Telekom Malaysia Berhad
Telekom Malaysia Berhad Fundamental Analysis
Telekom Malaysia Berhad (MYTEF) shows moderate financial fundamentals with a PE ratio of 16.05, profit margin of 14.43%, and ROE of 16.74%. The company generates $11.9B in annual revenue with weak year-over-year growth of -4.43%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 45.6/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze MYTEF's fundamental strength across five key dimensions:
Efficiency Score
WeakMYTEF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentMYTEF trades at attractive valuation levels.
Growth Score
WeakMYTEF faces weak or negative growth trends.
Financial Health Score
ExcellentMYTEF maintains a strong and stable balance sheet.
Profitability Score
ModerateMYTEF maintains healthy but balanced margins.
Key Financial Metrics
Is MYTEF Expensive or Cheap?
P/E Ratio
MYTEF trades at 16.05 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, MYTEF's PEG of -0.18 indicates potential undervaluation.
Price to Book
The market values Telekom Malaysia Berhad at 2.60 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.76 times EBITDA. This is generally considered low.
How Well Does MYTEF Make Money?
Net Profit Margin
For every $100 in sales, Telekom Malaysia Berhad keeps $14.43 as profit after all expenses.
Operating Margin
Core operations generate 17.84 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.74 in profit for every $100 of shareholder equity.
ROA
Telekom Malaysia Berhad generates $8.39 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Telekom Malaysia Berhad generates strong operating cash flow of $3.54B, reflecting robust business health.
Free Cash Flow
Telekom Malaysia Berhad generates strong free cash flow of $1.80B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.47 in free cash annually.
FCF Yield
MYTEF converts 6.57% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
16.05
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.18
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.60
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.32
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.35
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.04
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.17
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How MYTEF Stacks Against Its Sector Peers
| Metric | MYTEF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 16.05 | 23.32 | Better (Cheaper) |
| ROE | 16.74% | 1104.00% | Weak |
| Net Margin | 14.43% | -55937.00% (disorted) | Strong |
| Debt/Equity | 0.35 | 1.38 | Strong (Low Leverage) |
| Current Ratio | 1.04 | 1.56 | Neutral |
| ROA | 8.39% | -45352.00% (disorted) | Weak |
MYTEF outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Telekom Malaysia Berhad's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
0.38%
Industry Style: Growth, Technology, Streaming
GrowingEPS CAGR
212.40%
Industry Style: Growth, Technology, Streaming
High GrowthFCF CAGR
12.23%
Industry Style: Growth, Technology, Streaming
High Growth