Multi-Chem Limited (AWZ) AI Stock Analysis

• Market Cap: €309.03M
• Dividend Yield: 7.51%
• Average Volume (3M): 11.70K
• Price to Earnings (P/E): 10.0
• Beta (1Y): 0.47
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: SG
• Employees: 582
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.16
• Shares Outstanding: 90,095,290
• 10 Day Avg. Volume: 12,740
• 30 Day Avg. Volume: 11,696
• PEG Ratio: -0.78
• Price to Book (P/B): 1.61
• Price to Sales (P/S): 0.38
• P/FCF Ratio: 6.91
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: S$4.00 ▲(19.05% Upside)

Multi-Chem Limited's strong financial performance and attractive valuation are the primary drivers of its overall score. The company's solid balance sheet and cash flow management provide a stable foundation, while the low P/E ratio and high dividend yield enhance its appeal. Technical analysis suggests a neutral outlook, with no strong momentum in either direction.

Positive Factors

Cash Flow Management

Strong cash flow management indicates the company's ability to effectively convert earnings into cash, supporting long-term investments and financial stability.

Balance Sheet Health

A strong balance sheet with minimal leverage enhances financial flexibility, reducing risk and supporting sustainable growth.

Return on Equity

High return on equity suggests efficient operations and effective management, contributing to long-term shareholder value.

Negative Factors

Revenue Decline

A decline in revenue can indicate challenges in market demand or competitive pressures, potentially impacting future growth prospects.

Profit Margin Concerns

Relatively low net profit margins may limit the company's ability to absorb cost increases or invest in growth opportunities.

Revenue Growth Uncertainty

Lack of clear revenue growth trends creates uncertainty about the company's ability to expand its market share and drive future earnings.

Multi-Chem Limited Business Overview & Revenue Model

Company Description

Multi-Chem Limited, an investment holding company, distributes information technology products in Singapore, Greater China, Australia, India, and internationally. It operates through two segments, Printed Circuit Board (PCB) Business and IT Business. The company distributes hardware and software relating to internet and network products, as well as related installation, technical, and maintenance services. It also offers PCB related services to PCB fabricators. In addition, the company distributes a range of specialty chemicals; and PCB-related materials and equipment, including entry and back-up materials for drilling, non-woven brushes to ensure clean copper surface with suitable roughness, tacky rollers, tack cloth/wipes, cleaning machine to remove foreign particles on PCBs, automatic drills regrinding machines, and x-ray inspection machines. Further, it leases machines; offers software consultancy and implementation services; and provides IT training courses. Multi-Chem Limited was incorporated in 1985 and is headquartered in Singapore.

How the Company Makes Money

Multi-Chem Limited generates revenue through the sale of its specialty chemical products and services. The primary revenue streams include the direct sale of chemical formulations to industrial clients, recurring revenue from long-term contracts in the oil and gas sector, and consulting services that help optimize chemical usage in manufacturing processes. Additionally, the company benefits from strategic partnerships with key industry players, enabling it to expand its market reach and enhance product offerings. Factors such as strong customer relationships, a focus on R&D for innovative product development, and a growing demand for eco-friendly and efficient chemical solutions also contribute to its earnings.

Multi-Chem Limited Financial Statement Overview

Summary

Multi-Chem Limited exhibits strong financial health with stable profitability, a solid balance sheet, and excellent cash flow management. The company's low leverage and strong cash flow position it well for future growth and stability, despite a recent revenue decline.

Income Statement

Multi-Chem Limited has shown consistent profitability with a stable gross profit margin around 14% and a net profit margin averaging 4%. However, the company experienced a revenue decline of 4.27% in the most recent year, which is a concern. The EBIT and EBITDA margins are stable, indicating efficient operations, but the recent revenue contraction needs attention.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.014, indicating minimal leverage. The return on equity is robust at 17.47%, reflecting efficient use of shareholder funds. The equity ratio is healthy, suggesting a strong capital structure with a significant portion of assets financed by equity.

Cash Flow

Multi-Chem Limited has demonstrated impressive cash flow management with a significant free cash flow growth rate of 1489% in the latest year. The operating cash flow to net income ratio is solid, indicating good cash generation relative to earnings. The free cash flow to net income ratio is nearly 1, showing that the company effectively converts its earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	647.53M	658.42M	683.68M	616.98M	603.64M	479.71M
Gross Profit	86.52M	94.79M	97.48M	87.01M	85.51M	71.64M
EBITDA	35.08M	39.25M	42.64M	24.22M	32.60M	20.49M
Net Income	28.42M	27.12M	30.82M	20.00M	24.96M	17.78M
Balance Sheet
Total Assets	350.03M	402.43M	381.61M	329.30M	298.44M	273.41M
Cash, Cash Equivalents and Short-Term Investments	71.64M	83.82M	73.54M	69.54M	74.41M	77.65M
Total Debt	1.77M	2.19M	2.69M	3.42M	5.01M	7.60M
Total Liabilities	200.23M	248.22M	237.40M	192.21M	168.25M	146.58M
Stockholders Equity	149.80M	155.25M	145.25M	137.10M	130.20M	114.53M
Cash Flow
Free Cash Flow	47.43M	36.12M	24.84M	10.97M	25.78M	45.85M
Operating Cash Flow	47.81M	36.64M	25.19M	12.12M	26.95M	47.14M
Investing Cash Flow	-374.00K	128.00K	-304.00K	-939.00K	-896.00K	-1.59M
Financing Cash Flow	-25.73M	-27.29M	-20.35M	-14.50M	-20.15M	-27.18M

Multi-Chem Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.36
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:AWZ, the sentiment is Positive. The current price of 3.36 is below the 20-day moving average (MA) of 3.38, below the 50-day MA of 3.42, and above the 200-day MA of 3.15, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 47.88 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:AWZ.

Multi-Chem Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AWZ	76 Outperform	€309.03M	10.03	―	7.51%	―	―
5DD	72 Outperform	$246.09M	19.71	24.01%	3.64%	12.70%	48.43%
8AZ	72 Outperform	S$513.24M	12.84	12.72%	17.32%	-50.75%	-61.46%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
E28	61 Neutral	S$683.34M	17.56	9.11%	1.85%	11.57%	0.89%
JLB	61 Neutral	S$317.24M	32.58	7.60%	0.32%	47.45%	51.05%
AWX	52 Neutral	S$579.75M	42.53	2.87%	―	4.60%	―