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
Risk Analysis
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
| 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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