Faber Group looks the most attractive on
valuations among eight stocks in Malaysia's healthcare sector
tracked by at least three analysts, data from Thomson Reuters
The facilities management company has a Relative Valuation
(RV) score of 96, the highest in the sector, and an above
average Value-Momentum (Val-Mo) score of 80. The higher the RV
score the cheaper the stock compared to its peers.
Faber's Earnings Quality (EQ) score rose eight points to 98
after the company announced its second-quarter earnings on Aug.
Its free cash flow (FCF) rose just under three times to 108
million ringgit for the quarter ending June from a year earlier,
while net income rose only 3 million ringgit to 20 million
ringgit during the same period.
Of the four analysts tracking the stock, two rate it a 'buy'
while one each gives it a 'sell' and 'strong sell' rating.
The stock currently trades at 58 percent of its intrinsic
value of 2.18 ringgit. It is down just over 29 percent so far
this year, while the broader index is up nearly 8.5
percent in the same period, as of Monday's close.
Faber said on Aug. 9 that its second-quarter net profit
increased 18.3 percent, or just over 3 million ringgit, to 19.5
million ringgit. Its revenue increased nearly 17 percent to 218
million ringgit during the same period. [ID: nKLS89101a]
StarMine's Relative Valuation model combines six different
ratios that measure a company's valuation and then ranks it
compared with all other stocks in the same region.
StarMine's Val-Mo model provides a 1-100 percentile ranking
of stocks and rates stocks based on a combination of two value
and momentum metrics.
The Earnings Quality model is a percentile (1-100) ranking
of stocks based on sustainability of earnings, with 100
representing the highest rank.
(Reporting By Reshma Apte; Editing by Jijo Jacob)