Metro Holdings Stock Intrinsic Value – METRO HOLDINGS Reports Earnings Results for Q2 FY2024, Ending November 14 2023
November 27, 2023
🌥️Earnings Overview
On November 14 2023, METRO HOLDINGS ($SGX:M01) released its earnings results for the second quarter of the FY2024, ending September 30 2023. Revenue for the quarter amounted to SGD 50.2 million, a 6.9% decrease from the same period in the previous fiscal year. Net income was also lower by 51.5%, totaling SGD 8.2 million compared to the prior year quarter.
Stock Price
The stock opened at SG$0.5 and closed at the same price, representing a 6.0% rise from the last closing price of SG$0.5. This increase in stock price was driven by the company’s financial performance, which exceeded its expectations and met the analysts’ consensus. This was attributed to higher sales of its products in both domestic and international markets. This was largely attributed to their cost-cutting initiatives and improved efficiency in operations.
Overall, the strong financials were a positive indicator for investors and further strengthens the company’s position as a leading market player. With the successful execution of various strategic moves, METRO HOLDINGS is expected to continue to show strong financial performance in the upcoming quarters. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Metro Holdings. More…
| Total Revenues | Net Income | Net Margin |
| 113.51 | 16.46 | 21.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Metro Holdings. More…
| Operations | Investing | Financing |
| 15.63 | 4.32 | -83.79 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Metro Holdings. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.25k | 804.12 | 1.72 |
Key Ratios Snapshot
Some of the financial key ratios for Metro Holdings are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -1.4% | -26.6% | 45.0% |
| FCF Margin | ROE | ROA |
| 13.3% | 2.2% | 1.4% |
Analysis – Metro Holdings Stock Intrinsic Value
At GoodWhale, we conducted an analysis of METRO HOLDINGS‘s financials and have determined that the intrinsic value of their share is around SG$0.7. This value was calculated using our proprietary Valuation Line. Currently, the stock is being traded at SG$0.5, which puts it at a 26.5% discount to our calculated intrinsic value. This indicates to us that the stock is currently undervalued. More…
Peers
Founded in 1991, they have since grown to become a major player in the area and compete with several other well-established companies such as Isetan (Singapore) Ltd, Century Ginwa Retail Holdings Ltd, and Xinjiang Winka Times Department Store Co Ltd. By offering a diverse range of products and services, Metro Holdings Ltd stands out from its competitors and is committed to providing the best customer experience.
– Isetan (Singapore) Ltd ($SGX:I15)
Isetan (Singapore) Ltd is a leading retailer in Singapore that specializes in fashion and lifestyle products. With a market capitalization of 115.5M as of 2023, it is one of the most successful companies in Singapore. Its Return on Equity of 1.07%, which shows that the company is able to generate significant profits from its investments. The company is committed to providing quality and innovative products to their customers, all while focusing on ensuring a high level of customer service. With this, Isetan (Singapore) Ltd is able to deliver value to its shareholders and investors.
– Century Ginwa Retail Holdings Ltd ($SEHK:00162)
Century Ginwa Retail Holdings Ltd is a retail company based in Hong Kong that offers a variety of products in the form of consumer electronics, apparel, and home furnishings. At the end of 2023, the company had a market capitalization of 133.36 million dollars. Return on Equity (ROE) for the same period was -7.65%, indicating that the company was not able to generate sufficient profits to cover it’s equity investments. The company’s stock price has dropped due to lack of profitability in the past few years. Despite this, Century Ginwa Retail Holdings Ltd is still one of the leading retail companies in Hong Kong and continues to provide quality products to its customers.
– Xinjiang Winka Times Department Store Co Ltd ($SHSE:603101)
Xinjiang Winka Times Department Store Co Ltd is a Chinese department store chain with a market cap of 3.43 billion as of 2023. It has a Return on Equity (ROE) of 2.82%. The company specializes in offering a wide selection of apparel and other products through its physical stores throughout China. It is currently listed on the Shenzhen Stock Exchange and is committed to providing quality products and services to its customers. In addition to its department stores, Xinjiang Winka Times also operates several specialty stores, including those dedicated to electronics, cosmetics, and home furnishings.
Summary
METRO HOLDINGS reported its earnings results for the second quarter of FY2024, which ended on November 14 2023. Total revenue decreased by 6.9% year-over-year to SGD 50.2 million, and net income declined by 51.5% to SGD 8.2 million. Despite the disappointing results, the company’s stock price moved up on the same day.
Investors should take a closer look at METRO HOLDINGS’ financials and current performance to assess whether the stock is a buy, sell, or hold. A thorough analysis should include looking at the company’s operating costs, free cash flow, and debt levels to draw an informed conclusion.
