SGX:M01

Stock Analysis Report

Executive Summary

Metro Holdings Limited, together with its subsidiaries, engages in retail, and property development and investment businesses in Singapore, the People’s Republic of China, Indonesia, the United Kingdom, and internationally.

Snowflake

Fundamentals

Good value with mediocre balance sheet.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0%

M01

0.9%

SG Multiline Retail

0.9%

SG Market


1 Year Return

-14.8%

M01

-4.4%

SG Multiline Retail

0.4%

SG Market

Return vs Industry: M01 underperformed the SG Multiline Retail industry which returned -4.4% over the past year.

Return vs Market: M01 underperformed the SG Market which returned 0.4% over the past year.


Share holder returns

M01IndustryMarket
7 Day0%0.9%0.9%
30 Day-2.1%-2.5%-2.6%
90 Day-11.5%-4.3%-6.8%
1 Year-10.9%-14.8%-2.3%-4.4%4.4%0.4%
3 Year5.4%-7.5%-26.3%-31.4%15.5%3.1%
5 Year38.5%6.4%-7.0%-18.5%11.6%-6.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Metro Holdings undervalued based on future cash flows and its price relative to the stock market?

3%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: M01 (SGD0.92) is trading below our estimate of fair value (SGD0.94)

Significantly Undervalued: M01 is trading below fair value, but not by a significant amount.


Price Based on Earnings

PE vs Industry: M01 is good value based on its PE Ratio (8.9x) compared to the Multiline Retail industry average (20.8x).

PE vs Market: M01 is good value based on its PE Ratio (8.9x) compared to the SG market (13.3x).


Price Based on Expected Growth

Low PEG Ratio: Insufficient data to calculate M01's PEG Ratio to determine if it is good value.


Price Based on Value of Assets

PB vs Industry: M01 is good value based on its PB Ratio (0.5x) compared to the XA Multiline Retail industry average (1.3x).


Next Steps

Future Growth

How is Metro Holdings expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

8.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: M01's forecast earnings growth (8.4% per year) is above the savings rate (2.3%).

Earnings vs Market: M01's earnings (8.4% per year) are forecast to grow faster than the SG market (5.7% per year).

High Growth Earnings: M01's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if M01's revenue is forecast to grow faster than the SG market.

High Growth Revenue: Insufficient data to determine if M01's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: Insufficient data to determine if M01's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Metro Holdings performed over the past 5 years?

-5.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: M01's earnings have declined by -5.9% per year over the past 5 years.

Accelerating Growth: M01's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: M01 had negative earnings growth (-44.5%) over the past year, making it difficult to compare to the Multiline Retail industry average (-6.4%).


Return on Equity

High ROE: M01's Return on Equity (5.6%) is considered low.


Return on Assets

ROA vs Industry: M01's Return on Assets is below or equal to the Multiline Retail industry average last year.


Return on Capital Employed

ROCE Improving: M01 is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Metro Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: M01's short term assets (SGD834.9M) exceeds its short term liabilities (SGD138.2M)

Long Term Liabilities: M01's short term assets (834.9M) exceeds its long term liabilities (463.0M)


Debt to Equity History and Analysis

Debt Level: M01's debt to equity ratio (29.7%) is considered satisfactory

Reducing Debt: M01's debt to equity ratio has increased from 5.5% to 29.7% over the past 5 years.

Debt Coverage: M01's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if M01's interest payments on its debt are well covered by EBIT.


Balance Sheet

Inventory Level: M01 has a low level of unsold assets or inventory.

Debt Coverage by Assets: M01's debt is covered by short term assets (assets are 1.822890x debt).


Next Steps

Dividend

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

4.89%

Current Dividend Yield


Dividend Yield vs Market

company4.9%marketbottom25%2.5%markettop25%5.6%industryaverage2.2%forecastin3Yearsn/a

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: M01's dividend (4.89%) is higher than the bottom 25% of dividend payers in the SG market (2.5%).

High Dividend: M01's dividend (4.89%) is low compared to the top 25% of dividend payers in the SG market (5.57%).

Stable Dividend: M01's dividend payments have been volatile in the past 10 years.

Growing Dividend: M01's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (19.3%), M01'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 Metro Holdings's salary, the management and board of directors tenure and is there insider trading?

4.1yrs

Average management tenure


CEO

Yip Hoong Mun (57yo)

0.3yrs

Tenure

0

Mr. Yip Hoong Mun has been the Group Chief Executive Officer and Executive Director of Metro Holdings Limited since June 1, 2019. He has served as Deputy Group Chief Executive Officer of Metro Holdings Lim ...


Management Age and Tenure

4.1yrs

Average Tenure

57yo

Average Age

Experienced Management: M01's management team is considered experienced (4.1 years average tenure).


Board Age and Tenure

9.5yrs

Average Tenure

65.5yo

Average Age

Experienced Board: M01's board of directors are considered experienced (9.5 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$9,599,99421 Nov 18
Leroy Singapore Pte Ltd
EntityCompany
Shares8,000,000
Max PriceS$1.20

Ownership Breakdown


Management Team

  • Ching Chek Tan

    Joint Company Secretary

    • Tenure: 16.4yrs
  • Lawrence Chiang (67yo)

    • Tenure: 0.3yrs
    • Compensation: S$2.12m
  • Sioe Hong Wong (69yo)

    Executive Chairman & MD of Metro (Private) Limited

    • Tenure: 7yrs
  • Leng Seng Goh

    Head of Property Development Technical Services

    • Tenure: 0yrs
  • David Tang (56yo)

    Chief Executive Officer of Metro (Private) Limited

    • Tenure: 7.1yrs
  • Yip Hoong Mun (57yo)

    Group CEO & Executive Director

    • Tenure: 0.3yrs
  • Eve Chan (49yo)

    CFO & Joint Company Secretary

    • Tenure: 1.2yrs

Board Members

  • Raymond Tan (61yo)

    Non-Executive & Independent Director

    • Tenure: 7.8yrs
    • Compensation: S$150.00k
  • Gerald Ong (57yo)

    Non-Executive Director

    • Tenure: 12.3yrs
    • Compensation: S$161.00k
  • Bah Lee Phua (86yo)

    Non-Executive & Independent Director

    • Tenure: 26yrs
    • Compensation: S$97.00k
  • Sioe Hong Wong (69yo)

    Executive Chairman & MD of Metro (Private) Limited

    • Tenure: 7yrs
  • Winston Choo (77yo)

    Non-Executive & Independent Chairman

    • Tenure: 12.3yrs
    • Compensation: S$239.00k
  • Deborah Lee (62yo)

    Non-Executive & Independent Director

    • Tenure: 1.3yrs
    • Compensation: S$64.00k
  • Ai Lian Fang (69yo)

    Non-Executive & Independent Director

    • Tenure: 11.3yrs
    • Compensation: S$129.00k
  • Yip Hoong Mun (57yo)

    Group CEO & Executive Director

    • Tenure: 0.3yrs

Company Information

Metro Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Metro Holdings Limited
  • Ticker: M01
  • Exchange: SGX
  • Founded: 1957
  • Industry: Department Stores
  • Sector: Retail
  • Market Cap: S$770.073m
  • Shares outstanding: 828.04m
  • Website: https://www.metroholdings.com.sg

Location

  • Metro Holdings Limited
  • No. 19-00, Tower A
  • 391A Orchard Road
  • Singapore
  • 238873
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
M01SGX (Singapore Exchange)YesOrdinary SharesSGSGDJan 1992

Biography

Metro Holdings Limited, together with its subsidiaries, engages in retail, and property development and investment businesses in Singapore, the People’s Republic of China, Indonesia, the United Kingdom, an ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 12:36
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


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.

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