Frencken Group Stock Fair Value – FRENCKEN GROUP Reports 9.7% Decrease in Total Revenue for Q2 2023
August 18, 2023
🌥️Earnings Overview
For the quarter ending June 30 2023, the FRENCKEN GROUP ($SGX:E28) reported total revenue of SGD 351.0 million, a drop of 9.7% from the same period in 2023. Net income for the quarter was SGD 12.1 million, a decrease of 53.8% year over year.
Analysis – Frencken Group Stock Fair Value
GoodWhale has conducted an analysis of FRENCKEN GROUP‘s financials and come to the conclusion that the intrinsic value of the company’s share is around SG$1.2. This value was determined using GoodWhale’s proprietary Valuation Line, which takes into account numerous financial metrics, such as the company’s debt to equity ratio and the cost of capital. Currently, FRENCKEN GROUP stock is trading at SG$0.8, which implies that the stock is currently undervalued by 34.3%. This represents a great opportunity for potential investors, as they will be able to purchase the stock at a discount. With this in mind, GoodWhale highly recommends that investors consider FRENCKEN GROUP as an investment option. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Frencken Group. More…
| Total Revenues | Net Income | Net Margin |
| 748.2 | 37.8 | 5.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Frencken Group. More…
| Operations | Investing | Financing |
| 57.95 | -32.06 | -39.51 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Frencken Group. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 688.92 | 299.17 | 0.9 |
Key Ratios Snapshot
Some of the financial key ratios for Frencken Group are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 6.0% | -7.5% | 7.0% |
| FCF Margin | ROE | ROA |
| 4.0% | 8.4% | 4.7% |
Peers
The Frencken Group Ltd faces stiff competition from a range of rival companies, including Sanmina Corp, V.S Industry Bhd, and Chunghwa Precision Test Tech Co Ltd. All of these companies have their own unique advantages, and they compete heavily in the market to gain a competitive edge. This competition has pushed Frencken Group Ltd to further innovate and expand its product offerings, ensuring that the company remains at the forefront of the industry.
– Sanmina Corp ($NASDAQ:SANM)
Sanmina Corp is a global manufacturing services provider with a market cap of 3.29B as of 2023. It provides electronics and electro-mechanical services to original equipment manufacturers and other companies in the electronics and communications industry. Sanmina’s Return on Equity (ROE) is an impressive 12.74%, which is evidence of the company’s ability to generate profits from its investments. Sanmina has a strong customer base and is well-positioned to capitalize on the current trends of increasing digital transformation initiatives across sectors.
– V.S Industry Bhd ($KLSE:6963)
VS Industry Bhd is a Malaysian-based company engaged in the manufacturing, marketing, and distribution of electrical and electronics products. Founded in 1979, the company has grown into a global leader in its field with operations in China, Vietnam, India, and other countries in Asia. As of 2023, the company has a market capitalization of 3.17B and a Return on Equity (ROE) of 6.62%. The company’s market cap is indicative of its strong financial position and ability to generate consistent returns for its investors. The company’s strong ROE demonstrates that it is adequately utilizing its resources and efficiently converting profits into shareholder returns. VS Industry Bhd is well-positioned to continue providing its customers with quality products and services in the future.
– Chunghwa Precision Test Tech Co Ltd ($TPEX:6510)
Chunghwa Precision Test Tech Co Ltd is a Taiwan-based company that specializes in the manufacturing, research, and development of electronic testing instruments and systems. The company has a market cap of 18.59 billion US dollars as of 2023 and a return on equity of 7.31%. The market cap is an indicator of the company’s size and reflects the total value of its shares outstanding, while the return on equity is an indication of how well the company is using its assets to generate earnings for shareholders. The high market cap and high ROE suggests that the company is performing well in terms of capital allocation and profit margins.
Summary
Analyzing the investment potential of the Frencken Group is an important part of a potential investor’s due diligence. The company reported total revenue of SGD 351.0 million for the quarter ending June 30 2023, a year-on-year decrease of 9.7%. Net income decreased 53.8% year-on-year to SGD 12.1 million.
Investors should consider whether the company’s current financials are indicative of future performance or if they will rebound in the coming quarters. Investors should also consider risks such as management changes, industry changes, and changing customer preferences.
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