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Nam Cheong Limited

1MZ.SISES
Industrials
Aerospace & Defense
S$1.46
S$0.01(0.69%)
Singapore Market is Open • 11:00

Nam Cheong Limited Fundamental Analysis

Nam Cheong Limited (1MZ.SI) shows strong financial fundamentals with a PE ratio of 6.89, profit margin of 43.26%, and ROE of 39.11%. The company generates $0.6B in annual revenue with N/A year-over-year growth of N/A.

Key Strengths

ROE39.11%
Operating Margin36.54%
Cash Position34.51%
PEG Ratio0.47
Current Ratio2.81

Areas of Concern

No major concerns flagged.
We analyze 1MZ.SI's fundamental strength across five key dimensions.

The stock receives a Fundamental Health Score of 79.9/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.

Fundamental Health Score

B
79.9/100

We analyze 1MZ.SI's fundamental strength across five key dimensions:

Efficiency Score

Excellent

1MZ.SI demonstrates superior asset utilization.

ROA > 10%
18.80%

Valuation Score

Excellent

1MZ.SI trades at attractive valuation levels.

PE < 25
6.89
PEG Ratio < 2
0.47

Growth Score

Moderate

1MZ.SI shows steady but slowing expansion.

Revenue Growth > 5%
N/A
EPS Growth > 10%
N/A

Financial Health Score

Excellent

1MZ.SI maintains a strong and stable balance sheet.

Debt/Equity < 1
0.12
Current Ratio > 1
2.81

Profitability Score

Excellent

1MZ.SI achieves industry-leading margins.

ROE > 15%
39.11%
Net Margin ≥ 15%
43.26%
Positive Free Cash Flow
Yes

Key Financial Metrics

Is 1MZ.SI Expensive or Cheap?

P/E Ratio

1MZ.SI trades at 6.89 times earnings. This suggests potential undervaluation.

6.89

PEG Ratio

When adjusting for growth, 1MZ.SI's PEG of 0.47 indicates potential undervaluation.

0.47

Price to Book

The market values Nam Cheong Limited at 2.25 times its book value. This may indicate undervaluation.

2.25

EV/EBITDA

Enterprise value stands at 7.17 times EBITDA. This is generally considered low.

7.17

How Well Does 1MZ.SI Make Money?

Net Profit Margin

For every $100 in sales, Nam Cheong Limited keeps $43.26 as profit after all expenses.

43.26%

Operating Margin

Core operations generate 36.54 in profit for every $100 in revenue, before interest and taxes.

36.54%

ROE

Management delivers $39.11 in profit for every $100 of shareholder equity.

39.11%

ROA

Nam Cheong Limited generates $18.80 in profit for every $100 in assets, demonstrating efficient asset deployment.

18.80%

Following the Money - Real Cash Generation

Operating Cash Flow

Nam Cheong Limited produces operating cash flow of $114.53M, showing steady but balanced cash generation.

$114.53M

Free Cash Flow

Nam Cheong Limited produces free cash flow of $31.14M, offering steady but limited capital for shareholder returns and expansion.

$31.14M

FCF Per Share

Each share generates $0.08 in free cash annually.

$0.08

FCF Yield

1MZ.SI converts 1.70% of its market value into free cash.

1.70%

Financial Ratios Analysis

Valuation Ratios

P/E Ratio

Price to earnings ratio

6.89

vs 25 benchmark

PEG Ratio

Price/earnings to growth ratio

0.47

vs 25 benchmark

P/B Ratio

Price to book value ratio

2.25

vs 25 benchmark

P/S Ratio

Price to sales ratio

2.97

vs 25 benchmark

Financial Health

Debt/Equity

Total debt to shareholders' equity

0.12

vs 25 benchmark

Current Ratio

Current assets to current liabilities

2.81

vs 25 benchmark

Efficiency Ratios

ROE

Return on equity percentage

0.39

vs 25 benchmark

ROA

Return on assets percentage

0.19

vs 25 benchmark

ROCE

Return on capital employed

0.19

vs 25 benchmark

How 1MZ.SI Stacks Against Its Sector Peers

Metric1MZ.SI ValueSector AveragePerformance
P/E Ratio6.8925.81 Better (Cheaper)
ROE39.11%1255.00% Weak
Net Margin43.26%-46754.00% (disorted) Strong
Debt/Equity0.120.78 Strong (Low Leverage)
Current Ratio2.8110.04 Strong Liquidity
ROA18.80%-1492804.00% (disorted) Strong

1MZ.SI outperforms its industry in 5 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.

Historical Growth Performance

5-Year Growth Trajectory

This section reviews Nam Cheong Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.

Revenue CAGR

N/A

Industry Style: Cyclical, Value, Infrastructure

EPS CAGR

N/A

Industry Style: Cyclical, Value, Infrastructure

FCF CAGR

N/A

Industry Style: Cyclical, Value, Infrastructure

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