Shrinkflex (Thailand) (SET:SFT) - Share price, News & Analysis

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

SFT (THB4.86) is trading above our estimate of [[fair value]] (THB1.24)

SFT fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	2/6
Financial Health	6/6
Dividends	2/6

SFT Stock Overview

Shrinkflex (Thailand) Public Company Limited engages in the manufacture and distribution of PVC and PET shrink sleeve labels in Thailand.

Rewards

Price-To-Earnings ratio (24.9x) is below the Commercial Services industry average (51.2x)

Risk Analysis

Dividend of 2.09% is not well covered by earnings

Does not have a meaningful market cap (THB2B)

Shrinkflex (Thailand) Competitors

T.K.S. Technologies

SET:TKS

฿5.3b

Krungdhep Sophon

SET:KWC

฿1.5b

Siam Steel International

SET:SIAM

฿1.0b

Stonehenge Inter

SET:STI

฿2.5b

Price History & Performance

Summary of all time highs, changes and price drops for Shrinkflex (Thailand)
Historical stock prices
Current Share Price	฿4.86
52 Week High	฿8.45
52 Week Low	฿4.60
Beta	0
1 Month Change	2.10%
3 Month Change	-2.80%
1 Year Change	-31.55%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	27.89%

Shareholder Returns

	SFT	TH Commercial Services	TH Market
7D	-0.8%	-5.3%	1.3%
1Y	-31.5%	17.4%	8.0%

Return vs Industry: SFT underperformed the TH Commercial Services industry which returned 17.4% over the past year.

Return vs Market: SFT underperformed the TH Market which returned 8% over the past year.

Price Volatility

Is SFT's price volatile compared to industry and market?
SFT volatility
SFT Average Weekly Movement	2.9%
Commercial Services Industry Average Movement	5.8%
Market Average Movement	4.6%
10% most volatile stocks in TH Market	10.2%
10% least volatile stocks in TH Market	2.3%

Stable Share Price: SFT is less volatile than 75% of TH stocks over the past 3 months, typically moving +/- 3% a week.

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

About the Company

Founded	Employees	CEO	Website
2007	n/a	Sung Tsoi	https://www.shrinkflexthailand.com

Shrinkflex (Thailand) Public Company Limited engages in the manufacture and distribution of PVC and PET shrink sleeve labels in Thailand. It offers shrinkable packaging by gravure and digital process. The company also provides stretch film products; and consulting services.

Shrinkflex (Thailand) Fundamentals Summary

How do Shrinkflex (Thailand)'s earnings and revenue compare to its market cap?
SFT fundamental statistics
Market Cap	฿2.14b
Earnings (TTM)	฿86.01m
Revenue (TTM)	฿816.33m

24.9x

P/E Ratio

2.6x

P/S Ratio

Is SFT overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
SFT income statement (TTM)
Revenue	฿816.33m
Cost of Revenue	฿605.49m
Gross Profit	฿210.84m
Other Expenses	฿124.83m
Earnings	฿86.01m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.20
Gross Margin	25.83%
Net Profit Margin	10.54%
Debt/Equity Ratio	2.0%

How did SFT perform over the long term?

See historical performance and comparison

Dividends

2.1%

Current Dividend Yield

52%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

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 SFT?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for SFT. This is calculated by dividing SFT's market cap by their current preferred multiple.
What is SFT's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	฿2.14b

SFT 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	2.6x
Enterprise Value/EBITDA	14.1x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

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

SFT PE Ratio vs Peers

The above table shows the PE ratio for SFT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	51.4x
TKS T.K.S. Technologies	4.3x	-52.9%	฿5.3b
KWC Krungdhep Sophon	16.7x	n/a	฿1.5b
SIAM Siam Steel International	165.9x	n/a	฿1.0b
STI Stonehenge Inter	18.9x	14.7%	฿2.5b
SFT Shrinkflex (Thailand)	24.9x	n/a	฿2.1b

Price-To-Earnings vs Peers: SFT is good value based on its Price-To-Earnings Ratio (24.9x) compared to the peer average (51.4x).

Price to Earnings Ratio vs Industry

How does SFT's PE Ratio compare vs other companies in the Asian Commercial Services Industry?

Price-To-Earnings vs Industry: SFT is good value based on its Price-To-Earnings Ratio (24.9x) compared to the TH Commercial Services industry average (51.2x)

Price to Earnings Ratio vs Fair Ratio

What is SFT'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.

SFT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	24.9x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate SFT's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

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

Below Fair Value: SFT (THB4.86) is trading above our estimate of fair value (THB1.24)

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

Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

How is Shrinkflex (Thailand) forecast to perform in the next 1 to 3 years based on estimates from 0 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

15.9%

Forecasted Commercial Services 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 Shrinkflex (Thailand) 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.

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Examine Shrinkflex (Thailand)'s financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.

Past Performance

How has Shrinkflex (Thailand) performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

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

28.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SFT has high quality earnings.

Growing Profit Margin: SFT's current net profit margins (10.5%) are lower than last year (14.5%).

Past Earnings Growth Analysis

Earnings Trend: SFT's earnings have grown significantly by 28.3% per year over the past 5 years.

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

Earnings vs Industry: SFT had negative earnings growth (-21%) over the past year, making it difficult to compare to the Commercial Services industry average (-20.5%).

Return on Equity

High ROE: SFT's Return on Equity (11.7%) is considered low.

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Financial Health

How is Shrinkflex (Thailand)'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: SFT's short term assets (THB556.5M) exceed its short term liabilities (THB189.7M).

Long Term Liabilities: SFT's short term assets (THB556.5M) exceed its long term liabilities (THB59.6M).

Debt to Equity History and Analysis

Debt Level: SFT has more cash than its total debt.

Reducing Debt: SFT's debt to equity ratio has reduced from 34.9% to 2% over the past 5 years.

Debt Coverage: SFT's debt is well covered by operating cash flow (601.2%).

Interest Coverage: SFT's interest payments on its debt are well covered by EBIT (19.8x coverage).

Balance Sheet

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Dividend

What is Shrinkflex (Thailand) current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

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

2.09%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: SFT's dividend (2.09%) is higher than the bottom 25% of dividend payers in the TH market (1.68%).

High Dividend: SFT's dividend (2.09%) is low compared to the top 25% of dividend payers in the TH market (5.46%).

Stability and Growth of Payments

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

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

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (52.1%), SFT's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: SFT 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?

CEO

Sung Tsoi

no data

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	2022/08/14 00:00
End of Day Share Price	2022/08/11 00:00
Earnings	2022/06/30
Annual Earnings	2021/12/31