Multi-Chem Limited (AWZ) AI Stock Analysis

• Market Cap: €281.10M
• Dividend Yield: 9.1%
• Average Volume (3M): 16.11K
• Price to Earnings (P/E): 9.1
• Beta (1Y): 0.40
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: SG
• Employees: 582
• Sector: Technology
• Sector Strength: 87
• Industry: Information Technology Services
• EPS (TTM): 0.36
• Shares Outstanding: 90,095,290
• 10 Day Avg. Volume: 26,320
• 30 Day Avg. Volume: 16,113
• PEG Ratio: -3.02
• Price to Book (P/B): 1.71
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.36
• 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: N/A
• Number of Analyst Covering: 0

• Rating: 81 Outperform
• Price Target: S$3.50 ▲(11.82%Upside)

Multi-Chem Limited's strong financial performance and attractive valuation are the primary drivers of its high score. The company's robust cash management and low leverage enhance its growth potential. Technical analysis indicates stable market conditions, supporting the positive outlook.

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 makes money through the sale and distribution of specialty chemicals and related equipment. The company's primary revenue streams come from supplying products to industries such as electronics manufacturing, oil and gas extraction, and pharmaceutical production. By forming strategic partnerships with leading chemical manufacturers, Multi-Chem ensures a steady supply of high-demand products, which it then sells to its clients. Additionally, the company offers technical support and maintenance services, providing an additional revenue stream that complements its core distribution activities. These services help to build long-term relationships with clients and secure repeat business, contributing significantly to the company's overall earnings.

Multi-Chem Limited Financial Statement Overview

Summary

Multi-Chem Limited exhibits strong financial health across all verticals. The income statement shows solid revenue growth and consistent profit margins, though the absence of EBIT in 2024 is a concern. The balance sheet is robust, with low leverage and effective equity utilization, despite a slight dip in the equity ratio. The cash flow statement underscores excellent cash generation and management. Overall, the company is well-positioned for future growth, with minor areas for improvement.

Income Statement

Multi-Chem Limited has demonstrated solid revenue growth with a 6.7% increase from 2022 to 2023 and stable gross profit margins around 14.4%. While EBIT margin was non-existent in 2024, the previous years showed consistent EBIT performance. The net profit margin held steady at around 4.1%, indicating stable profitability. Overall, the income statement reflects a strong growth trajectory and stable profitability, although the lack of EBIT in 2024 requires attention.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.01, reflecting prudent leverage management. Return on Equity (ROE) was approximately 17.5% in 2023, demonstrating effective use of equity. The equity ratio of 38.6% denotes a healthy financial position, though slightly lower than previous years due to increased liabilities. Overall, the balance sheet is strong, with low leverage and solid equity management, though the slightly decreasing equity ratio warrants attention.

Cash Flow

Free cash flow grew by 45.4% from 2022 to 2023, highlighting strong cash generation capabilities. The operating cash flow to net income ratio is robust at 1.35, indicating efficient cash conversion. The free cash flow to net income ratio of 1.33 further supports the company's strong cash generation. Overall, the cash flow statement reflects excellent cash management and growth, positioning the company well for future investments.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	658.42M	683.68M	616.98M	603.64M	479.71M
Gross Profit	94.79M	97.48M	87.01M	85.51M	71.64M
EBITDA	39.25M	42.64M	28.14M	38.36M	28.46M
Net Income	27.12M	30.82M	20.00M	24.96M	17.78M
Balance Sheet
Total Assets	402.43M	381.61M	329.30M	298.44M	273.41M
Cash, Cash Equivalents and Short-Term Investments	83.82M	73.54M	69.54M	74.41M	77.65M
Total Debt	2.19M	2.69M	3.42M	5.01M	7.60M
Total Liabilities	248.22M	237.40M	192.21M	168.25M	146.58M
Stockholders Equity	155.25M	145.25M	137.10M	130.20M	114.53M
Cash Flow
Free Cash Flow	36.12M	24.84M	10.97M	25.78M	45.85M
Operating Cash Flow	36.64M	25.19M	12.12M	26.95M	47.14M
Investing Cash Flow	128.00K	-304.00K	-939.00K	-896.00K	-1.59M
Financing Cash Flow	-27.29M	-20.35M	-14.50M	-20.15M	-27.18M

Multi-Chem Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.13
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 3.13 is above the 20-day moving average (MA) of 3.10, above the 50-day MA of 3.08, and above the 200-day MA of 2.85, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 53.53 is Neutral, neither overbought nor oversold. The STOCH value of 95.56 is Negative, 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	81 Outperform	€281.10M	9.12	22.42%	9.10%	―	―
Sector *	63 Neutral	$34.04B	6.14	-11.52%	1.82%	5.53%	-18.79%
MCRNF		$176.87M	21.13	25.02%	5.13%	―	―
8AZ	79 Outperform	S$451.50M	6.40	20.62%	34.19%	-30.65%	-29.55%
E28	69 Neutral	S$542.40M	14.61	8.89%	2.63%	6.93%	14.19%
JLB	64 Neutral	S$324.02M	29.20	8.66%	0.31%	43.32%	96.93%
AWX	55 Neutral	S$466.93M	39.62	2.40%	―	-20.96%	―

Multi-Chem Limited Corporate Events

Multi-Chem Limited Conducts Annual General Meeting with Poll Voting

Multi-Chem Limited held its Annual General Meeting on April 25, 2025, in Singapore, where key company directors and shareholders were present. The meeting was chaired by Mr. Chong Teck Sin, and all resolutions were voted on by poll, with Entrust Advisory Pte Ltd appointed as the scrutineer. The Chairman exercised his right to demand poll voting for all resolutions and ensured that proxy votes were cast in accordance with shareholders’ instructions.

Multi-Chem Limited Shifts to Half-Yearly Financial Reporting

Multi-Chem Limited has announced a change in its financial reporting schedule, moving from quarterly to half-yearly reporting of unaudited financial statements, starting from the financial year ending December 31, 2025. This strategic shift is aimed at consolidating resources in a challenging economic environment to foster continued growth and value creation, while maintaining compliance with disclosure obligations to keep shareholders informed of any significant developments.