Freight Management Holdings Bhd (KLSE:FREIGHT) – Share price, News & Analysis

KLSE:FREIGHT

Stock Analysis Report

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Executive Summary

Freight Management Holdings Bhd, an investment holding company, provides international multimodal freight services in Malaysia, Australia, Indonesia, Thailand, the United Arab Emirates, Vietnam, India, Sri Lanka, the United States, the Philippines, and Singapore.

Rewards

Trading at 35.3% below our estimate of its fair value

Earnings are forecast to grow 12.25% per year

Risk Analysis

Unstable dividend track record

Highly volatile share price over past 3 months

Profit margins (2.3%) are lower than last year (3.3%)

Does not have a meaningful market cap (MYR145M)

Snowflake Analysis

Flawless balance sheet, undervalued and pays a dividend.

Similar Companies

Share Price & News

How has Freight Management Holdings Bhd’s share price performed over time and what events caused price changes?

Latest Share Price and Events

Stable Share Price: FREIGHT’s share price has been volatile over the past 3 months.

Market Performance

7 Day Return

-5.7%

FREIGHT

-2.6%

MY Shipping

-3.7%

MY Market

1 Year Return

-16.7%

FREIGHT

14.2%

MY Shipping

-10.3%

MY Market

Return vs Industry: FREIGHT underperformed the MY Shipping industry which returned 14.1% over the past year.

Return vs Market: FREIGHT underperformed the MY Market which returned -7.6% over the past year.

Shareholder returns

FREIGHT Industry Market
7 Day -5.7% -2.6% -3.7%
30 Day 2.0% 1.0% 5.6%
90 Day 20.5% 9.8% 20.2%
1 Year -11.7%-16.7% 19.0%14.2% -6.9%-10.3%
3 Year -35.9%-44.4% 19.3%5.1% -10.4%-21.2%
5 Year -37.8%-50.0% 12.8%-8.2% -0.9%-18.1%
Include Dividend Returns

Price Volatility Vs. Market

How volatile is Freight Management Holdings Bhd’s share price compared to the market and industry in the last 5 years?

Simply Wall St News

Valuation

Is Freight Management Holdings Bhd undervalued compared to its fair value and its price relative to the market?

37.4%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: FREIGHT (MYR0.52) is trading below our estimate of fair value (MYR0.8)

Significantly Below Fair Value: FREIGHT is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: FREIGHT is poor value based on its PE Ratio (11.3x) compared to the Shipping industry average (9.3x).

PE vs Market: FREIGHT is good value based on its PE Ratio (11.3x) compared to the MY market (13.6x).

Price to Earnings Growth Ratio

PEG Ratio: FREIGHT is good value based on its PEG Ratio (0.9x)

Price to Book Ratio

PB vs Industry: FREIGHT is good value based on its PB Ratio (0.5x) compared to the MY Shipping industry average (0.6x).

Next Steps

Future Growth

How is Freight Management Holdings Bhd forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

12.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: FREIGHT’s forecast earnings growth (12.3% per year) is above the savings rate (3.9%).

Earnings vs Market: FREIGHT’s earnings (12.3% per year) are forecast to grow slower than the MY market (15.5% per year).

High Growth Earnings: FREIGHT’s earnings are forecast to grow, but not significantly.

Revenue vs Market: FREIGHT’s revenue (5.2% per year) is forecast to grow slower than the MY market (5.7% per year).

High Growth Revenue: FREIGHT’s revenue (5.2% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: FREIGHT’s Return on Equity is forecast to be low in 3 years time (5.5%).

Next Steps

Past Performance

How has Freight Management Holdings Bhd performed over the past 5 years?

-7.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: FREIGHT has high quality earnings.

Growing Profit Margin: FREIGHT’s current net profit margins (2.3%) are lower than last year (3.3%).

Past Earnings Growth Analysis

Earnings Trend: FREIGHT’s earnings have declined by -7.4% per year over the past 5 years.

Accelerating Growth: FREIGHT’s has had negative earnings growth over the past year, so it can’t be compared to its 5-year average.

Earnings vs Industry: FREIGHT had negative earnings growth (-27.2%) over the past year, making it difficult to compare to the Shipping industry average (-13.1%).

Return on Equity

High ROE: FREIGHT’s Return on Equity (4.6%) is considered low.

Next Steps

Financial Health

How is Freight Management Holdings Bhd’s financial position?

Financial Position Analysis

Short Term Liabilities: FREIGHT’s short term assets (MYR202.6M) exceed its short term liabilities (MYR98.0M).

Long Term Liabilities: FREIGHT’s short term assets (MYR202.6M) exceed its long term liabilities (MYR90.4M).

Debt to Equity History and Analysis

Debt Level: FREIGHT’s debt to equity ratio (18.5%) is considered satisfactory.

Reducing Debt: FREIGHT’s debt to equity ratio has reduced from 29.5% to 18.5% over the past 5 years.

Debt Coverage: FREIGHT’s debt is well covered by operating cash flow (88.8%).

Interest Coverage: FREIGHT’s interest payments on its debt are well covered by EBIT (6.2x coverage).

Balance Sheet

Next Steps

Dividend

What is Freight Management Holdings Bhd’s current dividend yield, its reliability and sustainability?

7.00%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: FREIGHT’s dividend (6.73%) is higher than the bottom 25% of dividend payers in the MY market (1.96%).

High Dividend: FREIGHT’s dividend (6.73%) is in the top 25% of dividend payers in the MY market (5.51%)

Stability and Growth of Payments

Stable Dividend: FREIGHT’s dividend payments have been volatile in the past 10 years.

Growing Dividend: FREIGHT’s dividend payments have increased over the past 10 years.

Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (54.5%), FREIGHT’s dividend payments are covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: FREIGHT’s dividends in 3 years are forecast to be covered by earnings (50% payout ratio).

Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.5yrs

Average management tenure

CEO

Chong Chew (58yo)

no data

Tenure

RM59,500

Compensation

Mr. Chew Chong Keat is a Co-founder of Freight Management Holdings Bhd and serves as its Group Managing Director. Mr. Chew was instrumental in expanding Freight Management Holdings from a small sea freight …

Leadership Team

Name Position Tenure Compensation Ownership
Chong Chew Co-Founder no data RM59.50k 24.16% MYR33.7m
Siew Yong Gan Co-Founder & Executive Director 24.25yrs RM59.00k 4.45% MYR6.2m
Heng Lam Yang Head of Import Services & Sales and Executive Director 24.25yrs RM58.00k 18.7% MYR26.1m
Looi Ong Executive Director 14yrs RM58.00k 1.53% MYR2.1m
Ying Wei Chan Group Financial Controller 5.75yrs no data no data
Malcolm Goonting Head of Northern Region 8.92yrs no data no data
Hooi Mooi Lim Company Secretary no data no data no data
Hock Te Joint Secretary 1.33yrs no data no data
Sok Fong Joint Secretary 1.33yrs no data no data
Swee Sim Teh Executive Officer no data no data no data

3.5yrs

Average Tenure

56.5yo

Average Age

Experienced Management: FREIGHT’s management team is considered experienced (3.5 years average tenure).

Board Members

Name Position Tenure Compensation Ownership
Chong Chew Co-Founder no data RM59.50k 24.16% MYR33.7m
Siew Yong Gan Co-Founder & Executive Director 24.25yrs RM59.00k 4.45% MYR6.2m
Heng Lam Yang Head of Import Services & Sales and Executive Director 24.25yrs RM58.00k 18.7% MYR26.1m
Looi Ong Executive Director 14yrs RM58.00k 1.53% MYR2.1m
Kian Keong Khua Non-Independent & Non Executive Director 0.17yr no data no data
Chin Soh Independent Non-Executive Director 0.75yr no data no data
Nurul Binti Tengku Shahriman Independent & Non – Executive Chairman 0.58yr no data no data
Swee Lau Independent Non-Executive Director 1.83yrs RM56.77k no data

7.9yrs

Average Tenure

56yo

Average Age

Experienced Board: FREIGHT’s board of directors are considered experienced (7.9 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Top Shareholders

Company Information

Freight Management Holdings Bhd’s company bio, employee growth, exchange listings and data sources

Key Information

  • Name: Freight Management Holdings Bhd
  • Ticker: FREIGHT
  • Exchange: KLSE
  • Founded: 1988
  • Industry: Marine
  • Sector: Transportation
  • Market Cap: RM139.611m
  • Shares outstanding: 279.22m
  • Website: https://www.fmgloballogistics.com

Number of Employees

Location

  • Freight Management Holdings Bhd
  • Wisma Freight Management
  • Lot 37, Lebuh Sultan Mohamed 1
  • Port Klang
  • Selangor
  • 42000
  • Malaysia

Listings

Ticker Exchange Primary Security Security Type Country Currency Listed on
FREIGHT KLSE (Bursa Malaysia) Yes Ordinary Shares MY MYR Feb 2005

Biography

Freight Management Holdings Bhd, an investment holding company, provides international multimodal freight services in Malaysia, Australia, Indonesia, Thailand, the United Arab Emirates, Vietnam, India, Sri Lanka, the United States, the Philippines, and Singapore. It offers sea freight services, including export and import freight services for less than container load and full container load shipments; operates tugs and barges; and manages airfreight inbound and outbound shipments. The company also provides container haulage and conventional trucking, cross-border trucking, customs brokerage, and 3PL and warehousing services, as well as logistic solutions for e-commerce businesses. In addition, it offers specialized logistics services for hazardous goods, pharmaceuticals, perishables, apparel, aviation, and electronic parts. Further, the company develops, provides, and maintains IT software application solutions; and offers parcel, management, and trading services. It owns and operates a fleet of 100 trucks, 110 prime movers, 460 trailers, 8 barges, and 8 tugboats, as well as 1,000,000 square feet of bonded and non-bonded warehouses. Freight Management Holdings Bhd was incorporated in 1988 and is headquartered in Port Klang, Malaysia. 

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor’s Capital IQ.

Data Last Updated (UTC time)
Company Analysis 2020/06/15 16:30
End of Day Share Price 2020/06/15 00:00
Earnings 2019/12/31
Annual Earnings 2019/06/30

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

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