Sri Trang Agro-Industry (SET:STA) - Share price, News & Analysis

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

STA (THB20.4) is trading above our estimate of [[fair value]] (THB12.38)

STA fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	0/6
Past Performance	3/6
Financial Health	6/6
Dividends	4/6

STA Stock Overview

Rewards

Price-To-Earnings ratio (2.7x) is below the TH market (17.1x)

Risk Analysis

Earnings are forecast to decline by an average of 42.2% per year for the next 3 years

Dividend of 20.34% is not well covered by earnings

Profit margins (9.9%) are lower than last year (16.3%)

Sri Trang Agro-Industry Competitors

North East Rubbers

SET:NER

฿10.2b

Hwa Fong Rubber (Thailand)

SET:HFT

฿4.3b

Inoue Rubber (Thailand)

SET:IRC

฿2.8b

N.D. Rubber

SET:NDR

฿915.8m

Price History & Performance

Summary of all time highs, changes and price drops for Sri Trang Agro-Industry
Historical stock prices
Current Share Price	฿20.40
52 Week High	฿42.00
52 Week Low	฿19.80
Beta	0.28
1 Month Change	-18.40%
3 Month Change	-24.44%
1 Year Change	-47.69%
3 Year Change	67.21%
5 Year Change	39.73%
Change since IPO	70.00%

Shareholder Returns

	STA	TH Auto Components	TH Market
7D	-6.4%	-5.2%	-1.3%
1Y	-47.7%	-24.0%	0.1%

Return vs Industry: STA underperformed the TH Auto Components industry which returned -24% over the past year.

Return vs Market: STA underperformed the TH Market which returned 0.1% over the past year.

Price Volatility

Is STA's price volatile compared to industry and market?
STA volatility
STA Average Weekly Movement	5.6%
Auto Components Industry Average Movement	5.2%
Market Average Movement	5.1%
10% most volatile stocks in TH Market	10.8%
10% least volatile stocks in TH Market	2.6%

Stable Share Price: STA is not significantly more volatile than the rest of TH stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: STA's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1987	n/a	Veerasith Sinchareonkul	https://www.sritranggroup.com

Sri Trang Agro-Industry Public Company Limited, together with its subsidiaries, manufactures and distributes natural rubber products in Thailand, China, the United States, Singapore, Japan, and internationally. The company operates in four segments: Natural Rubber Products, Gloves, and Other Businesses. The Natural Rubber Products segment manufactures, sells, and trade in ribbed smoked sheets, concentrated latex, and block rubbers.

Sri Trang Agro-Industry Fundamentals Summary

How do Sri Trang Agro-Industry's earnings and revenue compare to its market cap?
STA fundamental statistics
Market Cap	฿31.33b
Earnings (TTM)	฿11.40b
Revenue (TTM)	฿114.70b

2.7x

P/E Ratio

0.3x

P/S Ratio

Is STA overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
STA income statement (TTM)
Revenue	฿114.70b
Cost of Revenue	฿85.66b
Gross Profit	฿29.03b
Other Expenses	฿17.64b
Earnings	฿11.40b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	7.42
Gross Margin	25.31%
Net Profit Margin	9.94%
Debt/Equity Ratio	62.1%

How did STA perform over the long term?

See historical performance and comparison

Dividends

20.3%

Current Dividend Yield

42%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for STA. This is calculated by dividing STA's market cap by their current preferred multiple.
What is STA's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	฿31.33b

STA 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/Revenue	0.6x
Enterprise Value/EBITDA	3.1x
PEG Ratio	-0.07x

Price to Earnings Ratio vs Peers

How does STA's PE Ratio compare to its peers?

STA PE Ratio vs Peers

The above table shows the PE ratio for STA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	15.3x
NER North East Rubbers	5.2x	5.6%	฿10.2b
HFT Hwa Fong Rubber (Thailand)	10.1x	17.9%	฿4.3b
IRC Inoue Rubber (Thailand)	15.9x	37.2%	฿2.8b
NDR N.D. Rubber	29.9x	n/a	฿915.8m
STA Sri Trang Agro-Industry	2.7x	-42.2%	฿31.3b

Forward PE

Price-To-Earnings vs Peers: STA is good value based on its Price-To-Earnings Ratio (2.7x) compared to the peer average (15.3x).

Price to Earnings Ratio vs Industry

How does STA's PE Ratio compare vs other companies in the Asian Auto Components Industry?

Price-To-Earnings vs Industry: STA is good value based on its Price-To-Earnings Ratio (2.7x) compared to the TH Auto Components industry average (16.1x)

Price to Earnings Ratio vs Fair Ratio

What is STA'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.

STA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	2.7x
Fair PE Ratio	4.9x

Price-To-Earnings vs Fair Ratio: STA is good value based on its Price-To-Earnings Ratio (2.7x) compared to the estimated Fair Price-To-Earnings Ratio (4.9x).

Share Price vs Fair Value

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

Below Fair Value: STA (THB20.4) is trading above our estimate of fair value (THB12.38)

Significantly Below Fair Value: STA is trading above our estimate of fair value.

Price to Earnings Growth Ratio

PEG Ratio: STA's earnings are forecast to decline next year, so we can't calculate its PEG ratio.

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Future Growth

How is Sri Trang Agro-Industry forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-42.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: STA's earnings are forecast to decline over the next 3 years (-42.2% per year).

Earnings vs Market: STA's earnings are forecast to decline over the next 3 years (-42.2% per year).

High Growth Earnings: STA's earnings are forecast to decline over the next 3 years.

Revenue vs Market: STA's revenue is expected to decline over the next 3 years (-1.3% per year).

High Growth Revenue: STA's revenue is forecast to decline over the next 3 years (-1.3% per year).

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: STA's Return on Equity is forecast to be low in 3 years time (7.1%).

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Past Performance

How has Sri Trang Agro-Industry performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

72.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: STA has high quality earnings.

Growing Profit Margin: STA's current net profit margins (9.9%) are lower than last year (16.3%).

Past Earnings Growth Analysis

Earnings Trend: STA has become profitable over the past 5 years, growing earnings by 72% per year.

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

Earnings vs Industry: STA had negative earnings growth (-22.1%) over the past year, making it difficult to compare to the Auto Components industry average (47%).

Return on Equity

High ROE: STA's Return on Equity (26.6%) is considered high.

Discover strong past performing companies

Financial Health

How is Sri Trang Agro-Industry's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: STA's short term assets (THB67.1B) exceed its short term liabilities (THB24.7B).

Long Term Liabilities: STA's short term assets (THB67.1B) exceed its long term liabilities (THB25.3B).

Debt to Equity History and Analysis

Debt Level: STA's net debt to equity ratio (30.5%) is considered satisfactory.

Reducing Debt: STA's debt to equity ratio has reduced from 200.8% to 62.1% over the past 5 years.

Debt Coverage: STA's debt is well covered by operating cash flow (27%).

Interest Coverage: STA's interest payments on its debt are well covered by EBIT (26.7x coverage).

Balance Sheet

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Dividend

What is Sri Trang Agro-Industry current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

20.34%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: STA's dividend (20.34%) is higher than the bottom 25% of dividend payers in the TH market (1.79%).

High Dividend: STA's dividend (20.34%) is in the top 25% of dividend payers in the TH market (5.47%)

Stability and Growth of Payments

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

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

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (42.5%), STA's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: STA is paying a dividend but the company has no free cash flows.

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Management

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

12.5yrs

Average management tenure

CEO

Veerasith Sinchareonkul (37 yo)

0.75

Tenure

฿836,000

Compensation

Dr. Veerasith Sinchareonkul has been an Executive Director of Sri Trang Agro-Industry Public Company Limited since April 28, 2010 and serves as its Chief Executive Officer and Managing Director since Octob...

Leadership Team

Experienced Management: STA's management team is seasoned and experienced (12.5 years average tenure).

Board Members

Experienced Board: STA's board of directors are considered experienced (7.5 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 not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/07/05 00:00
End of Day Share Price	2022/07/05 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31