SGX:S44

Stock Analysis Report

Executive Summary

EnGro Corporation Limited, an investment holding company, manufactures and sells cement and building materials, and specialty polymers primarily in Singapore, Malaysia, the People’s Republic of China, and internationally.

Snowflake

Fundamentals

Adequate balance sheet with moderate growth potential.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

5.8%

S44

-0.3%

SG Basic Materials

-0.002%

SG Market


1 Year Return

14.1%

S44

-17.1%

SG Basic Materials

0.7%

SG Market

Return vs Industry: S44 exceeded the SG Basic Materials industry which returned -17.1% over the past year.

Return vs Market: S44 exceeded the SG Market which returned 0.7% over the past year.


Shareholder returns

S44IndustryMarket
7 Day5.8%-0.3%-0.002%
30 Day5.8%-1.1%-1.4%
90 Day14.1%-9.9%-7.3%
1 Year17.7%14.1%-14.4%-17.1%4.7%0.7%
3 Year19.1%9.8%-16.6%-30.1%15.1%2.8%
5 Year-2.1%-14.4%26.9%9.7%10.1%-8.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

15.37x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: S44 (SGD1.01) is trading above our estimate of fair value (SGD0.33)

Significantly Undervalued: S44 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: S44 is poor value based on its PE Ratio (15.4x) compared to the Basic Materials industry average (14.6x).

PE vs Market: S44 is poor value based on its PE Ratio (15.4x) compared to the SG market (13.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate S44's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: S44 is good value based on its PB Ratio (0.5x) compared to the SG Basic Materials industry average (0.6x).


Next Steps

Future Growth

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

20.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: S44's forecast earnings growth (20.3% per year) is above the savings rate (2.3%).

Earnings vs Market: S44's earnings (20.3% per year) are forecast to grow faster than the SG market (5.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Insufficient data to determine if S44's revenue is forecast to grow faster than the SG market.

High Growth Revenue: Insufficient data to determine if S44'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 S44's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has EnGro performed over the past 5 years?

-5.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: S44's earnings have declined by -5.9% per year over the past 5 years.

Accelerating Growth: S44's earnings growth over the past year (7%) exceeds its 5-year average (-5.9% per year).

Earnings vs Industry: S44 earnings growth over the past year (7%) underperformed the Basic Materials industry 7.3%.


Return on Equity

High ROE: S44's Return on Equity (3.4%) is considered low.


Return on Assets

ROA vs Industry: S44's Return on Assets is below or equal to the Basic Materials industry average last year.


Return on Capital Employed

ROCE Improving: S44 is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is EnGro's financial position?


Financial Position Analysis

Short Term Liabilities: S44's short term assets (SGD103.0M) exceeds its short term liabilities (SGD16.8M)

Long Term Liabilities: S44's short term assets (103.0M) exceeds its long term liabilities (3.3M)


Debt to Equity History and Analysis

Debt Level: S44's debt to equity ratio (0.5%) is considered satisfactory

Reducing Debt: S44's debt to equity ratio has increased from 0% to 0.5% over the past 5 years.

Debt Coverage: S44's debt is well covered by operating cash flow (154.5%).

Interest Coverage: Insufficient data to determine if S44's interest payments on its debt are well covered by EBIT.


Balance Sheet

Inventory Level: S44 has a low level of unsold assets or inventory.

Debt Coverage by Assets: S44's debt is covered by short term assets (assets are 94.934560x debt).


Next Steps

Dividend

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

2.48%

Current Dividend Yield


Dividend Yield vs Market

company2.5%marketbottom25%2.6%markettop25%5.7%industryaverage3.0%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: S44's dividend (2.48%) isn’t notable compared to the bottom 25% of dividend payers in the SG market (2.55%).

High Dividend: S44's dividend (2.48%) is low compared to the top 25% of dividend payers in the SG market (5.71%).

Stable Dividend: S44's dividends per share have been stable in the past 10 years.

Growing Dividend: S44's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (38%), S44's dividend payments are well 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 EnGro's salary, the management and board of directors tenure and is there insider trading?

9.1yrs

Average management tenure


CEO

Cheng Gay Tan (72yo)

46.8yrs

Tenure

0

Mr. Cheng Gay Tan serves as Managing Partner at iGlobe Partners. Mr. Tan has been the Chairman of the Board, Chief Executive Officer and Executive Director of EnGro Corporation Limited since November 27, 1 ...


Management Age and Tenure

9.1yrs

Average Tenure

59.5yo

Average Age

Experienced Management: S44's management team is seasoned and experienced (9.1 years average tenure).


Board Age and Tenure

7.8yrs

Average Tenure

70yo

Average Age

Experienced Board: S44's board of directors are considered experienced (7.8 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyS$7,40224 Apr 19
Cheng Gay Tan
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares8,800
Max PriceS$0.84
BuyS$23,03512 Apr 19
Cheng Gay Tan
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares27,100
Max PriceS$0.85

Ownership Breakdown


Management Team

  • Cheng Gay Tan (72yo)

    Chairman & CEO

    • Tenure: 46.8yrs
  • Yok Koon Tan (70yo)

    President of China Operations & Executive Director

    • Tenure: 45.4yrs
  • Joanna Lim

    Company Secretary

    • Tenure: 13.1yrs
  • Yee Chuan Lim (49yo)

    Group Financial Controller

    • Tenure: 5.1yrs
  • William Tan (40yo)

    Chief Financial Officer

    • Tenure: 1.2yrs
  • Ahsan Syed

    Chief Executive Officer of Engro Energy Limited

    • Tenure: 0.6yrs

Board Members

  • Cheng Gay Tan (72yo)

    Chairman & CEO

    • Tenure: 46.8yrs
  • Ronnie Teo (70yo)

    Independent Non-Executive Director

    • Tenure: 7.8yrs
  • Soo Nan Tan (70yo)

    Lead Independent Director

    • Tenure: 1.8yrs
  • Yok Koon Tan (70yo)

    President of China Operations & Executive Director

    • Tenure: 45.4yrs
  • Steven Ong (73yo)

    Independent Non-Executive Director

    • Tenure: 2.3yrs

Company Information

EnGro Corporation Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: EnGro Corporation Limited
  • Ticker: S44
  • Exchange: SGX
  • Founded: 1973
  • Industry: Construction Materials
  • Sector: Materials
  • Market Cap: S$119.825m
  • Shares outstanding: 118.64m
  • Website: https://www.engro-global.com

Location

  • EnGro Corporation Limited
  • No. 08-05/06, Acer Building Tower B
  • 29 International Business Park
  • Singapore
  • 609923
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
S44SGX (Singapore Exchange)YesOrdinary SharesSGSGDJan 1992

Biography

EnGro Corporation Limited, an investment holding company, manufactures and sells cement and building materials, and specialty polymers primarily in Singapore, Malaysia, the People’s Republic of China, and  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 12:39
End of Day Share Price2019/10/15 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.