SGX:EH5

Stock Analysis Report

United Overseas Australia

Executive Summary

United Overseas Australia Limited, together with its subsidiaries, engages in the development and resale of land and buildings in Malaysia.


Snowflake Analysis

Flawless balance sheet second-rate dividend payer.


Similar Companies

Share Price & News

How has United Overseas Australia's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: EH5's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.6%

EH5

5.3%

SG Real Estate

8.2%

SG Market


1 Year Return

-16.4%

EH5

-33.3%

SG Real Estate

-27.3%

SG Market

Return vs Industry: EH5 exceeded the SG Real Estate industry which returned -33.3% over the past year.

Return vs Market: EH5 exceeded the SG Market which returned -27.3% over the past year.


Shareholder returns

EH5IndustryMarket
7 Day-5.6%5.3%8.2%
30 Day-28.2%-21.2%-20.8%
90 Day-35.0%-28.5%-26.4%
1 Year-13.3%-16.4%-30.8%-33.3%-24.2%-27.3%
3 Year-14.8%-25.0%-33.0%-38.7%-20.5%-29.0%
5 Year19.3%-5.6%-30.7%-40.1%-18.7%-32.6%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is United Overseas Australia 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: EH5 (SGD0.51) is trading below our estimate of fair value (SGD2.72)

Significantly Below Fair Value: EH5 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: EH5 is poor value based on its PE Ratio (11.2x) compared to the Real Estate industry average (10.1x).

PE vs Market: EH5 is poor value based on its PE Ratio (11.2x) compared to the SG market (10.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate EH5's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: EH5 is overvalued based on its PB Ratio (0.7x) compared to the SG Real Estate industry average (0.4x).


Next Steps

Future Growth

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

8.0%

Forecasted Real Estate 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 United Overseas Australia 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 United Overseas Australia performed over the past 5 years?

-1.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EH5 has high quality earnings.

Growing Profit Margin: EH5's current net profit margins (23.7%) are higher than last year (22.9%).


Past Earnings Growth Analysis

Earnings Trend: EH5's earnings have declined by -1.4% per year over the past 5 years.

Accelerating Growth: EH5's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: EH5 had negative earnings growth (-9%) over the past year, making it difficult to compare to the Real Estate industry average (-30.5%).


Return on Equity

High ROE: EH5's Return on Equity (6%) is considered low.


Next Steps

Financial Health

How is United Overseas Australia's financial position?


Financial Position Analysis

Short Term Liabilities: EH5's short term assets (A$1.2B) exceed its short term liabilities (A$315.8M).

Long Term Liabilities: EH5's short term assets (A$1.2B) exceed its long term liabilities (A$54.8M).


Debt to Equity History and Analysis

Debt Level: EH5's debt to equity ratio (5.6%) is considered satisfactory.

Reducing Debt: EH5's debt to equity ratio has reduced from 11% to 5.6% over the past 5 years.

Debt Coverage: EH5's debt is well covered by operating cash flow (165.6%).

Interest Coverage: EH5 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: EH5 has a high level of physical assets or inventory.

Debt Coverage by Assets: EH5's debt is covered by short term assets (assets are 8.9x debt).


Next Steps

Dividend

What is United Overseas Australia's current dividend yield, its reliability and sustainability?

3.52%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: EH5's dividend (3.52%) is higher than the bottom 25% of dividend payers in the SG market (3.27%).

High Dividend: EH5's dividend (3.52%) is low compared to the top 25% of dividend payers in the SG market (7.07%).


Stability and Growth of Payments

Stable Dividend: EH5's dividend payments have been volatile in the past 10 years.

Growing Dividend: EH5's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (39.6%), EH5'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?

17.7yrs

Average board tenure


CEO

Chong Kong (78yo)

30.67s

Tenure

AU$2,199,965

Compensation

Mr. Chong Soon Kong @ Chi Suim serves as the Managing Director and Director at United Overseas Australia Ltd since July 1, 1989 and served as its Executive Chairman. Mr. Kong co-founded UOA Development Bhd ...


CEO Compensation Analysis

Compensation vs Market: Chong's total compensation ($USD1.36M) is above average for companies of similar size in the SG market ($USD662.75K).

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


Board Members

NamePositionTenureCompensationOwnership
Alan Winduss
Non-Executive Chairman & Company Secretaryno dataAU$62.17k0.14% A$1.1m
Chong Kong
MD & Director30.67yrsAU$2.20m0.15% A$1.2m
Pak Kong
Non-Independent Executive Director32.67yrsAU$2.20m0.038% A$301.1k
Chee Teo
Independent Non-Executive Director11.67yrsAU$43.00k0.012% A$92.3k
Chee May
Alternate Non Independent Director19.58yrsAU$53.28k0.075% A$590.4k

17.7yrs

Average Tenure

66yo

Average Age

Experienced Board: EH5's board of directors are seasoned and experienced ( 17.7 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4%.


Top Shareholders

Company Information

United Overseas Australia Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: United Overseas Australia Limited
  • Ticker: EH5
  • Exchange: SGX
  • Founded: 1987
  • Industry: Diversified Real Estate Activities
  • Sector: Real Estate
  • Market Cap: AU$902.881m
  • Listing Market Cap: AU$792.138m
  • Shares outstanding: 1.48b
  • Website: https://www.uoa.com.my

Number of Employees


Location

  • United Overseas Australia Limited
  • UOA Corporate Tower
  • Lobby A, Avenue 10
  • Kuala Lumpur
  • 59200
  • Malaysia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
UOSASX (Australian Securities Exchange)YesOrdinary SharesAUAUDOct 1992
EH5SGX (Singapore Exchange)YesOrdinary SharesSGSGDOct 1992
UOSCHIA (Chi-X Australia)YesOrdinary SharesAUAUDOct 1992

Biography

United Overseas Australia Limited, together with its subsidiaries, engages in the development and resale of land and buildings in Malaysia. The company operates through three segments: Investment, Land development and Resale, and Others. The Investment segment is involved in the holding of various investment properties. The Land Development and Resale segment engages in the development, construction, and sale of residential and commercial properties. The Others segment engages in the operation of hotels, and food and beverage outlets; and provision of facilities support, money lending, and management services, as well as car park operations. United Overseas Australia Limited was founded in 1987 and is headquartered in Kuala Lumpur, Malaysia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 12:55
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
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.