SGX:D6U

Stock Analysis Report

Executive Summary

Dynamic Colours Limited, an investment holding company, operates in resin compounding and polyethylene packaging businesses.

Snowflake

Fundamentals

Flawless balance sheet and slightly overvalued.

Share Price & News

How has Dynamic Colours's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

9.0%

D6U

1.7%

SG Chemicals

0.9%

SG Market


1 Year Return

-10.1%

D6U

8.7%

SG Chemicals

0.7%

SG Market

Return vs Industry: D6U underperformed the SG Chemicals industry which returned 8.7% over the past year.

Return vs Market: D6U underperformed the SG Market which returned 0.7% over the past year.


Shareholder returns

D6UIndustryMarket
7 Day9.0%1.7%0.9%
30 Day9.0%1.2%-1.7%
90 Dayn/a8.3%-7.1%
1 Year-7.5%-10.1%11.1%8.7%4.7%0.7%
3 Year-10.3%-22.7%90.7%79.1%14.9%2.6%
5 Year24.0%-15.0%30.9%22.5%10.0%-8.2%

Price Volatility Vs. Market

How volatile is Dynamic Colours's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Dynamic Colours undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: D6U (SGD0.17) is trading below our estimate of fair value (SGD1.87)

Significantly Undervalued: D6U is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: D6U is poor value based on its PE Ratio (16.9x) compared to the Chemicals industry average (13.4x).

PE vs Market: D6U is poor value based on its PE Ratio (16.9x) compared to the SG market (13.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate D6U's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: D6U is overvalued based on its PB Ratio (0.8x) compared to the SG Chemicals industry average (0.5x).


Next Steps

Future Growth

How is Dynamic Colours forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

9.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: D6U's forecast earnings growth (9.3% per year) is above the savings rate (2.3%).

Earnings vs Market: D6U's earnings (9.3% per year) are forecast to grow faster than the SG market (5.5% per year).

High Growth Earnings: D6U's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if D6U's revenue is forecast to grow faster than the SG market.

High Growth Revenue: Insufficient data to determine if D6U's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if D6U's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Dynamic Colours performed over the past 5 years?

-11.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: D6U's earnings have declined by -11.4% per year over the past 5 years.

Accelerating Growth: D6U's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: D6U had negative earnings growth (-41.6%) over the past year, making it difficult to compare to the Chemicals industry average (15.7%).


Return on Equity

High ROE: D6U's Return on Equity (4.7%) is considered low.


Return on Assets

ROA vs Industry: D6U's Return on Assets is below or equal to the Chemicals industry average last year.


Return on Capital Employed

ROCE Improving: D6U's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Dynamic Colours's financial position?


Financial Position Analysis

Short Term Liabilities: D6U's short term assets ($22.1M) exceeds its short term liabilities ($3.7M)

Long Term Liabilities: D6U's short term assets (22.1M) exceeds its long term liabilities (1.0M)


Debt to Equity History and Analysis

Debt Level: D6U is debt free.

Reducing Debt: D6U has no debt compared to 5 years ago when its debt to equity ratio was 6.9%.

Debt Coverage: D6U has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: D6U has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: D6U has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if D6U's debt is covered by short term assets.


Next Steps

Dividend

What is Dynamic Colours's current dividend yield, its reliability and sustainability?

2.91%

Current Dividend Yield


Dividend Yield vs Market

company2.9%marketbottom25%2.5%markettop25%5.7%industryaverage3.8%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: D6U's dividend (2.91%) is higher than the bottom 25% of dividend payers in the SG market (2.51%).

High Dividend: D6U's dividend (2.91%) is low compared to the top 25% of dividend payers in the SG market (5.65%).

Stable Dividend: D6U's dividend payments have been volatile in the past 10 years.

Growing Dividend: D6U's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (50%), D6U's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Dynamic Colours's salary, the management and board of directors tenure and is there insider trading?

3.8yrs

Average management tenure


CEO

Hock Leng Yeo (63yo)

0yrs

Tenure

US$524,000

Compensation

Mr. Yeo Hock Leng serves as an Executive Chairman and Group Managing Director of Dynamic Colours Limited. Mr. Leng is responsible for the general management and strategic development of Dynamic Colours's b ...


CEO Compensation Analysis

Compensation vs. Market: Hock Leng's total compensation ($USD382.17K) is above average for companies of similar size in the SG market ($USD259.64K).

Compensation vs Earnings: Hock Leng's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.8yrs

Average Tenure

60yo

Average Age

Experienced Management: D6U's management team is considered experienced (3.8 years average tenure).


Board Age and Tenure

2.3yrs

Average Tenure

63yo

Average Age

Experienced Board: D6U's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Seok Eng Goh (57yo)

    Deputy Group MD

    • Tenure: 26.3yrs
    • Compensation: US$483.00k
  • Hock Leng Yeo (63yo)

    Executive Chairman & Group MD

    • Tenure: 0yrs
    • Compensation: US$524.00k
  • Kok Chong Lee (75yo)

    Managing Director of S L Packaging

    • Tenure: 0yrs
  • Wan Mei Chan

    Company Secretary

    • Tenure: 6.6yrs
  • Fong Wei He

    Executive Officer

    • Tenure: 0yrs
  • Lay Peng Pun

    Executive Officer

    • Tenure: 0yrs
  • Arthur Tan (45yo)

    Chief Financial Officer

    • Tenure: 1.3yrs
  • Pay Lee Lee

    Company Secretary

    • Tenure: 3.8yrs
  • Wei Guan Chong

    Executive Officer

    • Tenure: 0yrs

Board Members

  • Lye Huat Tan (69yo)

    Independent Director

    • Tenure: 8.4yrs
    • Compensation: US$60.00k
  • Cheong Yan Law (48yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$61.00k
  • Seok Eng Goh (57yo)

    Deputy Group MD

    • Tenure: 26.3yrs
    • Compensation: US$483.00k
  • Hock Leng Yeo (63yo)

    Executive Chairman & Group MD

    • Tenure: 0yrs
    • Compensation: US$524.00k
  • Sebastian Chong (71yo)

    Lead Independent Director

    • Tenure: 0.5yrs
    • Compensation: US$59.00k
  • - Shabbir

    Non-Executive & Non-Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$45.00k

Company Information

Dynamic Colours Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Dynamic Colours Limited
  • Ticker: D6U
  • Exchange: SGX
  • Founded: 1993
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Market Cap: S$35.695m
  • Shares outstanding: 209.97m
  • Website: https://www.dynamiccolours.com

Number of Employees


Location

  • Dynamic Colours Limited
  • 21 Woodlands Close
  • No. 09-12 Primz Bizhub
  • Singapore
  • 737854
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
D6USGX (Singapore Exchange)YesOrdinary SharesSGSGDNov 2007

Biography

Dynamic Colours Limited, an investment holding company, operates in resin compounding and polyethylene packaging businesses. It provides color and modified resin compounds that are used in the manufacture  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 12:44
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.