Sime Darby Property Berhad Fundamental Analysis
Sime Darby Property Berhad (SIMEF) shows weak financial fundamentals with a PE ratio of 17.13, profit margin of 13.57%, and ROE of 5.30%. The company generates $4.1B in annual revenue with weak year-over-year growth of -1.57%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 34.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SIMEF's fundamental strength across five key dimensions:
Efficiency Score
WeakSIMEF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSIMEF trades at attractive valuation levels.
Growth Score
WeakSIMEF faces weak or negative growth trends.
Financial Health Score
ExcellentSIMEF maintains a strong and stable balance sheet.
Profitability Score
WeakSIMEF struggles to sustain strong margins.
Key Financial Metrics
Is SIMEF Expensive or Cheap?
P/E Ratio
SIMEF trades at 17.13 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, SIMEF's PEG of 0.34 indicates potential undervaluation.
Price to Book
The market values Sime Darby Property Berhad at 0.91 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.33 times EBITDA. This is generally considered low.
How Well Does SIMEF Make Money?
Net Profit Margin
For every $100 in sales, Sime Darby Property Berhad keeps $13.57 as profit after all expenses.
Operating Margin
Core operations generate 19.05 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.30 in profit for every $100 of shareholder equity.
ROA
Sime Darby Property Berhad generates $2.95 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Sime Darby Property Berhad generates limited operating cash flow of $331.32M, signaling weaker underlying cash strength.
Free Cash Flow
Sime Darby Property Berhad produces free cash flow of $267.26M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.04 in free cash annually.
FCF Yield
SIMEF converts 2.80% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
17.13
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.34
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.91
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.32
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.45
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.04
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.05
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How SIMEF Stacks Against Its Sector Peers
| Metric | SIMEF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 17.13 | 23.27 | Better (Cheaper) |
| ROE | 5.30% | 680.00% | Weak |
| Net Margin | 13.57% | 1953.00% | Weak |
| Debt/Equity | 0.45 | -17.04 (disorted) | Distorted |
| Current Ratio | 1.04 | 23.29 | Neutral |
| ROA | 2.95% | -758.00% (disorted) | Weak |
SIMEF outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Sime Darby Property Berhad's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
102.84%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
200.40%
Industry Style: Income, Inflation Hedge, REIT
High GrowthFCF CAGR
-36.43%
Industry Style: Income, Inflation Hedge, REIT
Declining