Wednesday, 21 February 2024

Fraser & Neave at a glance

 


















































Price per share: RM29.20 
Market Capital (RM) 10.710b 
Number of Share 366.78m 
Revenue (TTM) 5.116B 
Net Profit (TTM) 508.84M 
Net Margin (TTM) 9.9% 
EPS (TTM) 138.73 
P/E Ratio 21.05 
ROE 14.29% 
P/B Ratio 3.01 
NTA 9.710 
5y CAGR - Revenue 4.0% 
5y CAGR - Profit 6.9% 
Dividend (cent) 77.000 ^ 
Dividend Yield 2.64% 


Over the last 10 years, the revenues grew about 4% yearly and the PBT grew at a slightly faster rate of about 6.9%. This indicated its profit margins had improved.  Over the 10 years above, its PBT Margin increased steadily from 8.3% to 12.5%. 

Its NAPS (Net Asset Price per Share) grew from RM 4.603 per share to RM 9.112 per share. F&N is a great company, with high ROE in the mid teens. Its ROE for the above 10 years period ranged from low of 12.9% to a high of 19.4%; averaging 15% to 16%. 

Given the risk free interest rate of 5% or so, its present price of RM 29.2 per shar means it is trading at a P/NAPS of 3.01 x. This valuation means it is trading at a fair price today. 

F&N has distributed dividends yearly. Its DPO was around 52% to 56%. Its latest DY is 2.68%. 

In summary, F&N is a great company, growing at a slow rate of 5% to 7% yearly. It retained about 50% of its earnings for future growth and with its ROE at around 15% or so, and many new projects for future growth, this stock in my portfolio remains for the long term.

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