Kossan Rubber Industries Bhd
Kossan Rubber Industries Bhd Fundamental Analysis
Kossan Rubber Industries Bhd (KSRBF) shows moderate financial fundamentals with a PE ratio of 21.91, profit margin of 8.65%, and ROE of 4.10%. The company generates $1.7B in annual revenue with strong year-over-year growth of 19.85%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 60.3/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze KSRBF's fundamental strength across five key dimensions:
Efficiency Score
WeakKSRBF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentKSRBF trades at attractive valuation levels.
Growth Score
ModerateKSRBF shows steady but slowing expansion.
Financial Health Score
ExcellentKSRBF maintains a strong and stable balance sheet.
Profitability Score
WeakKSRBF struggles to sustain strong margins.
Key Financial Metrics
Is KSRBF Expensive or Cheap?
P/E Ratio
KSRBF trades at 21.91 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, KSRBF's PEG of 0.37 indicates potential undervaluation.
Price to Book
The market values Kossan Rubber Industries Bhd at 0.90 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 15.55 times EBITDA. This signals the market has high growth expectations.
How Well Does KSRBF Make Money?
Net Profit Margin
For every $100 in sales, Kossan Rubber Industries Bhd keeps $8.65 as profit after all expenses.
Operating Margin
Core operations generate 9.62 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $4.10 in profit for every $100 of shareholder equity.
ROA
Kossan Rubber Industries Bhd generates $3.70 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Kossan Rubber Industries Bhd produces operating cash flow of $360.54M, showing steady but balanced cash generation.
Free Cash Flow
Kossan Rubber Industries Bhd generates weak or negative free cash flow of $51.72M, restricting financial flexibility.
FCF Per Share
Each share generates $0.02 in free cash annually.
FCF Yield
KSRBF converts 1.56% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
21.91
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.37
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.90
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.90
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
9.80
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.04
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How KSRBF Stacks Against Its Sector Peers
| Metric | KSRBF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 21.91 | 28.25 | Better (Cheaper) |
| ROE | 4.10% | 780.00% | Weak |
| Net Margin | 8.65% | -20122.00% (disorted) | Weak |
| Debt/Equity | 0.02 | 0.30 | Strong (Low Leverage) |
| Current Ratio | 9.80 | 4.66 | Strong Liquidity |
| ROA | 3.70% | -14687.00% (disorted) | Weak |
KSRBF outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Kossan Rubber Industries Bhd's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-13.79%
Industry Style: Defensive, Growth, Innovation
DecliningEPS CAGR
-46.44%
Industry Style: Defensive, Growth, Innovation
DecliningFCF CAGR
-54.10%
Industry Style: Defensive, Growth, Innovation
Declining