Nestlé (Malaysia) Berhad
Nestlé (Malaysia) Berhad Fundamental Analysis
Nestlé (Malaysia) Berhad (NSLYF) shows weak financial fundamentals with a PE ratio of 36.46, profit margin of 6.42%, and ROE of 73.84%. The company generates $6.7B in annual revenue with weak year-over-year growth of -11.72%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 28.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze NSLYF's fundamental strength across five key dimensions:
Efficiency Score
ExcellentNSLYF demonstrates superior asset utilization.
Valuation Score
ModerateNSLYF shows balanced valuation metrics.
Growth Score
WeakNSLYF faces weak or negative growth trends.
Financial Health Score
WeakNSLYF carries high financial risk with limited liquidity.
Profitability Score
ModerateNSLYF maintains healthy but balanced margins.
Key Financial Metrics
Is NSLYF Expensive or Cheap?
P/E Ratio
NSLYF trades at 36.46 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, NSLYF's PEG of 1.07 indicates fair valuation.
Price to Book
The market values Nestlé (Malaysia) Berhad at 26.32 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 16.74 times EBITDA. This signals the market has high growth expectations.
How Well Does NSLYF Make Money?
Net Profit Margin
For every $100 in sales, Nestlé (Malaysia) Berhad keeps $6.42 as profit after all expenses.
Operating Margin
Core operations generate 10.05 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $73.84 in profit for every $100 of shareholder equity.
ROA
Nestlé (Malaysia) Berhad generates $11.78 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Nestlé (Malaysia) Berhad produces operating cash flow of $1.05B, showing steady but balanced cash generation.
Free Cash Flow
Nestlé (Malaysia) Berhad generates strong free cash flow of $858.17M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.66 in free cash annually.
FCF Yield
NSLYF converts 5.49% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
36.46
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.07
vs 25 benchmark
P/B Ratio
Price to book value ratio
26.32
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.34
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.29
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.60
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.74
vs 25 benchmark
ROA
Return on assets percentage
0.12
vs 25 benchmark
ROCE
Return on capital employed
0.54
vs 25 benchmark
How NSLYF Stacks Against Its Sector Peers
| Metric | NSLYF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 36.46 | 23.25 | Worse (Expensive) |
| ROE | 73.84% | 1240.00% | Weak |
| Net Margin | 6.42% | -9728.00% (disorted) | Weak |
| Debt/Equity | 1.29 | 0.77 | Weak (High Leverage) |
| Current Ratio | 0.60 | 2.54 | Weak Liquidity |
| ROA | 11.78% | -203388.00% (disorted) | Strong |
NSLYF outperforms its industry in 1 out of 6 key metrics, particularly excelling in ROA, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Nestlé (Malaysia) Berhad's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
12.81%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
-38.23%
Industry Style: Defensive, Dividend, Low Volatility
DecliningFCF CAGR
-23.22%
Industry Style: Defensive, Dividend, Low Volatility
Declining