Sime Darby Berhad
Sime Darby Berhad Fundamental Analysis
Sime Darby Berhad (SMEBF) shows moderate financial fundamentals with a PE ratio of 7.38, profit margin of 2.31%, and ROE of 8.09%. The company generates $69.8B in annual revenue with strong year-over-year growth of 14.66%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 47.8/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SMEBF's fundamental strength across five key dimensions:
Efficiency Score
WeakSMEBF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSMEBF trades at attractive valuation levels.
Growth Score
ExcellentSMEBF delivers strong and consistent growth momentum.
Financial Health Score
ExcellentSMEBF maintains a strong and stable balance sheet.
Profitability Score
WeakSMEBF struggles to sustain strong margins.
Key Financial Metrics
Is SMEBF Expensive or Cheap?
P/E Ratio
SMEBF trades at 7.38 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, SMEBF's PEG of -0.09 indicates potential undervaluation.
Price to Book
The market values Sime Darby Berhad at 0.60 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.86 times EBITDA. This is generally considered low.
How Well Does SMEBF Make Money?
Net Profit Margin
For every $100 in sales, Sime Darby Berhad keeps $2.31 as profit after all expenses.
Operating Margin
Core operations generate 3.62 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.09 in profit for every $100 of shareholder equity.
ROA
Sime Darby Berhad generates $3.45 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Sime Darby Berhad generates limited operating cash flow of $4.30B, signaling weaker underlying cash strength.
Free Cash Flow
Sime Darby Berhad produces free cash flow of $3.21B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.47 in free cash annually.
FCF Yield
SMEBF converts 26.93% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
7.38
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.09
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.60
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.17
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.51
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.54
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How SMEBF Stacks Against Its Sector Peers
| Metric | SMEBF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 7.38 | 24.97 | Better (Cheaper) |
| ROE | 8.09% | 1167.00% | Weak |
| Net Margin | 2.31% | 673.00% | Weak |
| Debt/Equity | 0.51 | 0.66 | Strong (Low Leverage) |
| Current Ratio | 1.54 | 4.01 | Neutral |
| ROA | 3.45% | -8477.00% (disorted) | Weak |
SMEBF outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Sime Darby Berhad's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
81.77%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
140.85%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
68.39%
Industry Style: Cyclical, Growth, Discretionary
High Growth