Top Glove Corporation Bhd.
Top Glove Corporation Bhd. Fundamental Analysis
Top Glove Corporation Bhd. (TGLVY) shows weak financial fundamentals with a PE ratio of 32.38, profit margin of 4.40%, and ROE of 3.25%. The company generates $3.5B in annual revenue with strong year-over-year growth of 11.39%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 46.3/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze TGLVY's fundamental strength across five key dimensions:
Efficiency Score
WeakTGLVY struggles to generate sufficient returns from assets.
Valuation Score
ModerateTGLVY shows balanced valuation metrics.
Growth Score
ExcellentTGLVY delivers strong and consistent growth momentum.
Financial Health Score
ExcellentTGLVY maintains a strong and stable balance sheet.
Profitability Score
WeakTGLVY struggles to sustain strong margins.
Key Financial Metrics
Is TGLVY Expensive or Cheap?
P/E Ratio
TGLVY trades at 32.38 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, TGLVY's PEG of 0.27 indicates potential undervaluation.
Price to Book
The market values Top Glove Corporation Bhd. at 1.05 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.74 times EBITDA. This is generally considered low.
How Well Does TGLVY Make Money?
Net Profit Margin
For every $100 in sales, Top Glove Corporation Bhd. keeps $4.40 as profit after all expenses.
Operating Margin
Core operations generate 3.69 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.25 in profit for every $100 of shareholder equity.
ROA
Top Glove Corporation Bhd. generates $2.43 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Top Glove Corporation Bhd. generates limited operating cash flow of $331.35M, signaling weaker underlying cash strength.
Free Cash Flow
Top Glove Corporation Bhd. produces free cash flow of $222.31M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.11 in free cash annually.
FCF Yield
TGLVY converts 4.48% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
32.38
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.27
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.05
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.42
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.18
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.63
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How TGLVY Stacks Against Its Sector Peers
| Metric | TGLVY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 32.38 | 28.25 | Worse (Expensive) |
| ROE | 3.25% | 780.00% | Weak |
| Net Margin | 4.40% | -20122.00% (disorted) | Weak |
| Debt/Equity | 0.18 | 0.30 | Strong (Low Leverage) |
| Current Ratio | 2.63 | 4.66 | Strong Liquidity |
| ROA | 2.43% | -14687.00% (disorted) | Weak |
TGLVY outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Top Glove Corporation Bhd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-47.86%
Industry Style: Defensive, Growth, Innovation
DecliningEPS CAGR
-104.99%
Industry Style: Defensive, Growth, Innovation
DecliningFCF CAGR
-96.08%
Industry Style: Defensive, Growth, Innovation
Declining