company background image
8AZ

Aztech Global SGX:8AZ Stock Report

Last Price

S$0.94

Market Cap

S$725.6m

7D

1.1%

1Y

-16.8%

Updated

16 Aug, 2022

Data

Company Financials +
8AZ fundamental analysis
Snowflake Score
Valuation6/6
Future Growth4/6
Past Performance4/6
Financial Health5/6
Dividends3/6

8AZ Stock Overview

Aztech Global Ltd., together with its subsidiaries, engages in the research, development, engineering, and manufacturing of IoT devices, data-communication products, and LED lighting products in Singapore, North America, China, Europe, and internationally.

Aztech Global Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Aztech Global
Historical stock prices
Current Share PriceS$0.94
52 Week HighS$1.16
52 Week LowS$0.77
Beta0
1 Month Change19.74%
3 Month Change10.59%
1 Year Change-16.81%
3 Year Changen/a
5 Year Changen/a
Change since IPO-27.13%

Recent News & Updates

Shareholder Returns

8AZSG ElectronicSG Market
7D1.1%-0.5%-0.4%
1Y-16.8%-4.7%0.9%

Return vs Industry: 8AZ underperformed the SG Electronic industry which returned -6.4% over the past year.

Return vs Market: 8AZ underperformed the SG Market which returned 0.1% over the past year.

Price Volatility

Is 8AZ's price volatile compared to industry and market?
8AZ volatility
8AZ Average Weekly Movement3.1%
Electronic Industry Average Movement5.8%
Market Average Movement4.6%
10% most volatile stocks in SG Market12.3%
10% least volatile stocks in SG Market2.2%

Stable Share Price: 8AZ is not significantly more volatile than the rest of SG stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 8AZ's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19862,500Michael Munhttps://www.aztechglobal.com

Aztech Global Ltd., together with its subsidiaries, engages in the research, development, engineering, and manufacturing of IoT devices, data-communication products, and LED lighting products in Singapore, North America, China, Europe, and internationally. It operates through two segments, Manufacturing, and Distribution and Trading. The company provides consumer electronics and consumer healthtech products, including smart security cameras, smart home and automation products, smart wearables, etc. It also offers LED lighting products for use in residential, commercial, and industrial applications; and designs and develops smart lighting systems.

Aztech Global Fundamentals Summary

How do Aztech Global's earnings and revenue compare to its market cap?
8AZ fundamental statistics
Market CapS$725.64m
Earnings (TTM)S$87.82m
Revenue (TTM)S$739.25m

8.3x

P/E Ratio

1.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
8AZ income statement (TTM)
RevenueS$739.25m
Cost of RevenueS$568.66m
Gross ProfitS$170.59m
Other ExpensesS$82.77m
EarningsS$87.82m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.11
Gross Margin23.08%
Net Profit Margin11.88%
Debt/Equity Ratio3.2%

How did 8AZ perform over the long term?

See historical performance and comparison

Dividends

5.3%

Current Dividend Yield

44%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 8AZ undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 8AZ?

Other financial metrics that can be useful for relative valuation.

8AZ key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.7x
Enterprise Value/EBITDA4.9x
PEG Ratio0.6x

Price to Earnings Ratio vs Peers

How does 8AZ's PE Ratio compare to its peers?

8AZ PE Ratio vs Peers
The above table shows the PE ratio for 8AZ vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average18.3x
BN2 Valuetronics Holdings
11.4x7.2%S$228.1m
C33 Chuan Hup Holdings
39xn/aS$208.2m
V03 Venture
15.3x6.8%S$5.3b
BDF Excelpoint Technology
7.3xn/aS$231.2m
8AZ Aztech Global
8.3x14.3%S$725.6m

Price-To-Earnings vs Peers: 8AZ is good value based on its Price-To-Earnings Ratio (8.3x) compared to the peer average (18.3x).


Price to Earnings Ratio vs Industry

How does 8AZ's PE Ratio compare vs other companies in the Asian Electronic Industry?

Price-To-Earnings vs Industry: 8AZ is good value based on its Price-To-Earnings Ratio (8.3x) compared to the SG Electronic industry average (11.6x)


Price to Earnings Ratio vs Fair Ratio

What is 8AZ's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

8AZ PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.3x
Fair PE Ratio12.5x

Price-To-Earnings vs Fair Ratio: 8AZ is good value based on its Price-To-Earnings Ratio (8.3x) compared to the estimated Fair Price-To-Earnings Ratio (12.5x).


Share Price vs Fair Value

What is the Fair Price of 8AZ when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 8AZ (SGD0.94) is trading below our estimate of fair value (SGD4.21)

Significantly Below Fair Value: 8AZ is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


Discover undervalued companies

Future Growth

How is Aztech Global forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


14.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 8AZ's forecast earnings growth (14.3% per year) is above the savings rate (1.8%).

Earnings vs Market: 8AZ's earnings (14.3% per year) are forecast to grow faster than the SG market (12.6% per year).

High Growth Earnings: 8AZ's earnings are forecast to grow, but not significantly.

Revenue vs Market: 8AZ's revenue (14.7% per year) is forecast to grow faster than the SG market (7.6% per year).

High Growth Revenue: 8AZ's revenue (14.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 8AZ's Return on Equity is forecast to be high in 3 years time (27%)


Discover growth companies

Past Performance

How has Aztech Global performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


29.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 8AZ has high quality earnings.

Growing Profit Margin: 8AZ's current net profit margins (11.9%) are lower than last year (11.9%).


Past Earnings Growth Analysis

Earnings Trend: 8AZ's earnings have grown significantly by 29.8% per year over the past 5 years.

Accelerating Growth: 8AZ's earnings growth over the past year (21.8%) is below its 5-year average (29.8% per year).

Earnings vs Industry: 8AZ earnings growth over the past year (21.8%) exceeded the Electronic industry 4.4%.


Return on Equity

High ROE: 8AZ's Return on Equity (30%) is considered high.


Discover strong past performing companies

Financial Health

How is Aztech Global's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 8AZ's short term assets (SGD584.9M) exceed its short term liabilities (SGD308.9M).

Long Term Liabilities: 8AZ's short term assets (SGD584.9M) exceed its long term liabilities (SGD5.3M).


Debt to Equity History and Analysis

Debt Level: 8AZ has more cash than its total debt.

Reducing Debt: Insufficient data to determine if 8AZ's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 8AZ's debt is well covered by operating cash flow (894.2%).

Interest Coverage: 8AZ earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Discover healthy companies

Dividend

What is Aztech Global current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


5.32%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 8AZ's dividend (5.32%) is higher than the bottom 25% of dividend payers in the SG market (2.28%).

High Dividend: 8AZ's dividend (5.32%) is low compared to the top 25% of dividend payers in the SG market (5.99%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether 8AZ's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 8AZ's dividend payments are increasing as they only just started paying a dividend.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (44%), 8AZ's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (46.8%), 8AZ's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

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

1.5yrs

Average board tenure


CEO

Michael Mun (72 yo)

no data

Tenure

S$2,497,868

Compensation

Mr. Hong Yew Mun, also known as Michael has been the Chief Executive Officer and President of Aztech Group Ltd. (aka: Aztech Systems Ltd.) since 1986 and also has been its Chairman and Director since Augus...


CEO Compensation Analysis

Compensation vs Market: Insufficient data to establish whether Michael's total compensation is reasonable compared to companies of similar size in the SG market.

Compensation vs Earnings: Insufficient data to compare Michael's compensation with company performance.


Board Members

Experienced Board: 8AZ's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


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

Aztech Global Ltd.'s employee growth, exchange listings and data sources


Key Information

  • Name: Aztech Global Ltd.
  • Ticker: 8AZ
  • Exchange: SGX
  • Founded: 1986
  • Industry: Electronic Manufacturing Services
  • Sector: Tech
  • Implied Market Cap: S$725.636m
  • Shares outstanding: 771.95m
  • Website: https://www.aztechglobal.com

Number of Employees


Location

  • Aztech Global Ltd.
  • 31 Ubi Road 1, No. 01-05
  • Singapore
  • 408694
  • Singapore

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/16 00:00
End of Day Share Price2022/08/16 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.