SGX:S44

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

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. More Details


Snowflake Analysis

Excellent balance sheet and good value.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: S44 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.1%

S44

3.2%

SG Basic Materials

-0.6%

SG Market


1 Year Return

3.1%

S44

23.2%

SG Basic Materials

-22.6%

SG Market

Return vs Industry: S44 underperformed the SG Basic Materials industry which returned 20.9% over the past year.

Return vs Market: S44 exceeded the SG Market which returned -22.2% over the past year.


Shareholder returns

S44IndustryMarket
7 Day4.1%3.2%-0.6%
30 Day2.0%27.1%1.1%
90 Day24.7%51.7%-2.8%
1 Year6.2%3.1%29.6%23.2%-18.4%-22.6%
3 Year16.6%6.9%-10.7%-19.1%-20.8%-30.4%
5 Year10.6%-3.8%-38.7%-51.3%-5.7%-22.9%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: S44 (SGD1.01) is trading below our estimate of fair value (SGD29.55)

Significantly Below Fair Value: S44 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: S44 is good value based on its PE Ratio (11.9x) compared to the XA Basic Materials industry average (14.8x).

PE vs Market: S44 is good value based on its PE Ratio (11.9x) compared to the SG market (13.1x).


Price to Earnings Growth Ratio

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's PB Ratio (0.5x) is in line with the SG Basic Materials industry average.


Next Steps

Future Growth

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

11.9%

Forecasted Materials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as EnGro has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has EnGro performed over the past 5 years?

40.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: S44 has high quality earnings.

Growing Profit Margin: S44's current net profit margins (8.4%) are higher than last year (5.8%).


Past Earnings Growth Analysis

Earnings Trend: S44's earnings have grown significantly by 40.2% per year over the past 5 years.

Accelerating Growth: S44's earnings growth over the past year (29.3%) is below its 5-year average (40.2% per year).

Earnings vs Industry: S44 earnings growth over the past year (29.3%) exceeded the Basic Materials industry 4.3%.


Return on Equity

High ROE: S44's Return on Equity (4.2%) is considered low.


Next Steps

Financial Health

How is EnGro's financial position?


Financial Position Analysis

Short Term Liabilities: S44's short term assets (SGD106.1M) exceed its short term liabilities (SGD15.8M).

Long Term Liabilities: S44's short term assets (SGD106.1M) exceed its long term liabilities (SGD5.2M).


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 reduced from 0.8% to 0.5% over the past 5 years.

Debt Coverage: S44's debt is well covered by operating cash flow (1532.1%).

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


Balance Sheet


Next Steps

Dividend

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

2.48%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: S44's dividend (2.48%) isn’t notable compared to the bottom 25% of dividend payers in the SG market (2.59%).

High Dividend: S44's dividend (2.48%) is low compared to the top 25% of dividend payers in the SG market (5.34%).


Stability and Growth of Payments

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 (29.4%), 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

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average management tenure


CEO

Cheng Gay Tan (73 yo)

47.75yrs

Tenure

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 ...


Leadership Team

NamePositionTenureCompensationOwnership
Cheng Gay Tan
Chairman & CEO47.75yrsno data0.57%
SGD 689.0k
Yok Koon Tan
President of China Operations & Executive Director46.42yrsno data0.31%
SGD 369.7k
Mazhar Hasnani
Chief Financial Officer0.25yrno datano data
Yee Chuan Lim
Group Financial Controller6.08yrsno datano data
Ahsan Syed
Chief Executive Officer of Engro Energy Limited1.58yrsno datano data
Shomaila Loan
Company Secretary0.17yrno datano data

3.8yrs

Average Tenure

71yo

Average Age

Experienced Management: S44's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Cheng Gay Tan
Chairman & CEO47.75yrsno data0.57%
SGD 689.0k
Yok Koon Tan
President of China Operations & Executive Director46.42yrsno data0.31%
SGD 369.7k
Heng Hock Teo
Independent Non-Executive Director8.75yrsno datano data
Soo Nan Tan
Lead Independent Director2.75yrsno datano data
Kay Eng Ong
Independent Non-Executive Director3.25yrsno datano data

8.8yrs

Average Tenure

71yo

Average Age

Experienced Board: S44's board of directors are considered experienced (8.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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
  • 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 Analysis2020/10/27 12:51
End of Day Share Price2020/10/21 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.