Latest news with #Kimly
Yahoo
a day ago
- Business
- Yahoo
Are Investors Undervaluing Kimly Limited (Catalist:1D0) By 47%?
Kimly's estimated fair value is S$0.63 based on 2 Stage Free Cash Flow to Equity Current share price of S$0.33 suggests Kimly is potentially 47% undervalued Kimly's peers are currently trading at a premium of 3,106% on average Does the June share price for Kimly Limited (Catalist:1D0) reflect what it's really worth? Today, we will estimate the stock's intrinsic value by taking the expected future cash flows and discounting them to their present value. We will take advantage of the Discounted Cash Flow (DCF) model for this purpose. It may sound complicated, but actually it is quite simple! We generally believe that a company's value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. For those who are keen learners of equity analysis, the Simply Wall St analysis model here may be something of interest to you. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, and so the sum of these future cash flows is then discounted to today's value: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF (SGD, Millions) S$49.8m S$1.80m S$50.6m S$50.5m S$50.8m S$51.4m S$52.1m S$53.0m S$54.1m S$55.2m Growth Rate Estimate Source Analyst x1 Analyst x1 Analyst x1 Analyst x1 Est @ 0.58% Est @ 1.11% Est @ 1.49% Est @ 1.75% Est @ 1.93% Est @ 2.06% Present Value (SGD, Millions) Discounted @ 7.9% S$46.1 S$1.5 S$40.2 S$37.2 S$34.7 S$32.5 S$30.6 S$28.8 S$27.2 S$25.7 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = S$305m We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 2.4%. We discount the terminal cash flows to today's value at a cost of equity of 7.9%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = S$55m× (1 + 2.4%) ÷ (7.9%– 2.4%) = S$1.0b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= S$1.0b÷ ( 1 + 7.9%)10= S$473m The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is S$778m. The last step is to then divide the equity value by the number of shares outstanding. Compared to the current share price of S$0.3, the company appears quite undervalued at a 47% discount to where the stock price trades currently. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out. The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Kimly as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 7.9%, which is based on a levered beta of 1.286. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. See our latest analysis for Kimly Strength Debt is not viewed as a risk. Dividends are covered by earnings and cash flows. Dividend is in the top 25% of dividend payers in the market. Weakness Earnings declined over the past year. Opportunity Annual earnings are forecast to grow faster than the Singaporean market. Trading below our estimate of fair value by more than 20%. Threat No apparent threats visible for 1D0. Valuation is only one side of the coin in terms of building your investment thesis, and it ideally won't be the sole piece of analysis you scrutinize for a company. The DCF model is not a perfect stock valuation tool. Preferably you'd apply different cases and assumptions and see how they would impact the company's valuation. If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. Can we work out why the company is trading at a discount to intrinsic value? For Kimly, there are three relevant elements you should look at: Risks: Take risks, for example - Kimly has 1 warning sign we think you should be aware of. Future Earnings: How does 1D0's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing! PS. Simply Wall St updates its DCF calculation for every Singaporean stock every day, so if you want to find the intrinsic value of any other stock just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
10-05-2025
- Business
- Yahoo
Is Kimly Limited's (Catalist:1D0) Recent Stock Performance Influenced By Its Fundamentals In Any Way?
Kimly (Catalist:1D0) has had a great run on the share market with its stock up by a significant 8.2% over the last month. As most would know, fundamentals are what usually guide market price movements over the long-term, so we decided to look at the company's key financial indicators today to determine if they have any role to play in the recent price movement. Particularly, we will be paying attention to Kimly's ROE today. Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. In simpler terms, it measures the profitability of a company in relation to shareholder's equity. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. The formula for ROE is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Kimly is: 19% = S$36m ÷ S$190m (Based on the trailing twelve months to September 2024). The 'return' is the yearly profit. That means that for every SGD1 worth of shareholders' equity, the company generated SGD0.19 in profit. View our latest analysis for Kimly We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don't share these attributes. To begin with, Kimly seems to have a respectable ROE. Further, the company's ROE compares quite favorably to the industry average of 7.0%. This certainly adds some context to Kimly's decent 8.4% net income growth seen over the past five years. As a next step, we compared Kimly's net income growth with the industry and were disappointed to see that the company's growth is lower than the industry average growth of 32% in the same period. The basis for attaching value to a company is, to a great extent, tied to its earnings growth. It's important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). This then helps them determine if the stock is placed for a bright or bleak future. What is 1D0 worth today? The intrinsic value infographic in our free research report helps visualize whether 1D0 is currently mispriced by the market. While Kimly has a three-year median payout ratio of 61% (which means it retains 39% of profits), the company has still seen a fair bit of earnings growth in the past, meaning that its high payout ratio hasn't hampered its ability to grow. Besides, Kimly has been paying dividends over a period of eight years. This shows that the company is committed to sharing profits with its shareholders. Based on the latest analysts' estimates, we found that the company's future payout ratio over the next three years is expected to hold steady at 65%. As a result, Kimly's ROE is not expected to change by much either, which we inferred from the analyst estimate of 17% for future ROE. In total, it does look like Kimly has some positive aspects to its business. Its earnings have grown respectably as we saw earlier, which was likely due to the company reinvesting its earnings at a pretty high rate of return. However, given the high ROE, we do think that the company is reinvesting a small portion of its profits. This could likely be preventing the company from growing to its full extent. That being so, a study of the latest analyst forecasts show that the company is expected to see a slowdown in its future earnings growth. To know more about the company's future earnings growth forecasts take a look at this free report on analyst forecasts for the company to find out more. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
25-02-2025
- Business
- Yahoo
Kimly Joins 2 Leading Dividend Stocks For Reliable Income
In the face of geopolitical tensions, tariff uncertainties, and mixed economic signals from major global markets, investors are increasingly seeking stable income sources amidst fluctuating indices. Dividend stocks have long been favored for their potential to provide reliable income streams, especially during times of market volatility. Name Dividend Yield Dividend Rating Padma Oil (DSE:PADMAOIL) 7.64% ★★★★★★ CAC Holdings (TSE:4725) 5.11% ★★★★★★ Peoples Bancorp (NasdaqGS:PEBO) 5.05% ★★★★★★ Southside Bancshares (NYSE:SBSI) 4.79% ★★★★★★ Daito Trust ConstructionLtd (TSE:1878) 4.04% ★★★★★★ Nihon Parkerizing (TSE:4095) 3.94% ★★★★★★ Citizens & Northern (NasdaqCM:CZNC) 5.41% ★★★★★★ GakkyushaLtd (TSE:9769) 4.44% ★★★★★★ DoshishaLtd (TSE:7483) 3.89% ★★★★★★ Banque Cantonale Vaudoise (SWX:BCVN) 4.64% ★★★★★★ Click here to see the full list of 2008 stocks from our Top Dividend Stocks screener. Let's uncover some gems from our specialized screener. Simply Wall St Dividend Rating: ★★★★☆☆ Overview: Kimly Limited is an investment holding company that operates coffee shops in Singapore with a market capitalization of SGD391.79 million. Operations: Kimly Limited generates revenue from its Food Retail segment with SGD260.69 million, Outlet Management at SGD162.31 million, and Outlet Investment Business contributing SGD9.22 million. Dividend Yield: 6.2% Kimly's dividend payments, though in the top 25% of the Singapore market, have been volatile over its eight-year history. The company recently approved a final dividend of S$0.01 per share for FY2024 despite a decrease in net income to S$33.12 million from S$36.47 million the previous year. While dividends are well-covered by earnings and cash flows with payout ratios at 75% and 30.3%, respectively, stability remains a concern for investors seeking consistent returns. Delve into the full analysis dividend report here for a deeper understanding of Kimly. Upon reviewing our latest valuation report, Kimly's share price might be too pessimistic. Simply Wall St Dividend Rating: ★★★★★★ Overview: Zhejiang Jiaxin Silk Corp., Ltd. engages in the research, development, production, and sales of silk products both in China and internationally, with a market cap of CN¥3.43 billion. Operations: Zhejiang Jiaxin Silk Corp., Ltd. generates its revenue through the research, development, production, and sales of silk products both domestically in China and on an international scale. Dividend Yield: 4.9% Zhejiang Jiaxin Silk Ltd offers a compelling dividend profile, with a yield of 4.89%, placing it in the top 25% of CN market payers. The company has consistently increased its dividends over the past decade, supported by stable earnings growth of 8.1% annually over five years. Its dividends are well-covered by both earnings (payout ratio: 85.6%) and cash flows (cash payout ratio: 39.7%), ensuring sustainability and reliability for income-focused investors. Get an in-depth perspective on Zhejiang Jiaxin SilkLtd's performance by reading our dividend report here. Our valuation report unveils the possibility Zhejiang Jiaxin SilkLtd's shares may be trading at a discount. Simply Wall St Dividend Rating: ★★★★☆☆ Overview: Kyowa Leather Cloth Co., Ltd. is a Japanese company that specializes in the manufacturing and sale of synthetic leather cover materials, with a market cap of ¥17.28 billion. Operations: Kyowa Leather Cloth Co., Ltd. generates revenue from its segment focused on the manufacture and sale of various synthetic skin materials, amounting to ¥53.32 billion. Dividend Yield: 4.4% Kyowa Leather Cloth's dividend yield of 4.38% ranks it among the top 25% in Japan, though its payments have been volatile over the past decade. Despite a reasonable payout ratio of 56.3%, dividends are not supported by free cash flows, raising sustainability concerns. The company's price-to-earnings ratio of 12 is slightly below the market average, offering potential value but posing risks for income investors due to unreliable and unsustainable dividend coverage. Unlock comprehensive insights into our analysis of Kyowa Leather Cloth stock in this dividend report. In light of our recent valuation report, it seems possible that Kyowa Leather Cloth is trading beyond its estimated value. Unlock more gems! Our Top Dividend Stocks screener has unearthed 2005 more companies for you to here to unveil our expertly curated list of 2008 Top Dividend Stocks. Invested in any of these stocks? Simplify your portfolio management with Simply Wall St and stay ahead with our alerts for any critical updates on your stocks. Discover a world of investment opportunities with Simply Wall St's free app and access unparalleled stock analysis across all markets. Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. Find companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include Catalist:1D0 SZSE:002404 and TSE:3553. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
