Frencken Group Limited (E28) AI Stock Analysis

• Market Cap: S$683.34M
• Dividend Yield: 1.62%
• Average Volume (3M): 4.69M
• Price to Earnings (P/E): 17.6
• Beta (1Y): 1.17
• Revenue Growth: 11.57%
• EPS Growth: 0.89%
• Country: SG
• Employees: 3,600
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.05
• Shares Outstanding: 427,090,420
• 10 Day Avg. Volume: 4,936,130
• 30 Day Avg. Volume: 4,692,093
• PEG Ratio: 0.91
• Price to Book (P/B): 1.11
• Price to Sales (P/S): 0.61
• P/FCF Ratio: 13.81
• 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: S$1.87
• Price Target Upside: 16.15% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: S$2.00 ▲(24.22% Upside)

Frencken Group Limited's stock score is primarily driven by its operational efficiency and stable financial performance, despite challenges in revenue growth and return on equity. The technical analysis indicates a positive momentum, supporting a higher score. Valuation metrics suggest the stock is fairly valued, contributing moderately to the overall score.

Positive Factors

Operational Efficiency

Stable profit margins and operational efficiency indicate strong management and cost control, supporting long-term profitability.

Strategic Expansion

The new facility enhances capabilities in semiconductor and life sciences, supporting growth and reinforcing market position.

Balanced Debt Profile

A balanced debt profile provides financial stability and flexibility, enabling sustainable growth and investment capacity.

Negative Factors

Declining Revenue Growth

Declining revenue growth poses a risk to future profitability and market competitiveness, requiring strategic adjustments.

Negative Free Cash Flow Growth

Negative free cash flow growth indicates challenges in cash generation, potentially limiting reinvestment and growth opportunities.

Reduced Return on Equity

A declining return on equity suggests reduced efficiency in generating profits from shareholders' equity, impacting investor confidence.

Frencken Group Limited Business Overview & Revenue Model

Company Description

Frencken Group Limited (E28) is a leading integrated technology solutions provider based in Singapore, specializing in the design and manufacturing of high-precision equipment and components. The company operates primarily in two sectors: the Semiconductor and the Healthcare sectors. Its core products include complex precision-engineered systems, modules, and components that serve a variety of industries, including semiconductor capital equipment, medical devices, and industrial automation.

How the Company Makes Money

Frencken Group generates revenue through multiple streams, primarily from the provision of contract manufacturing services and the sale of precision-engineered components. The company partners with key players in the semiconductor and healthcare industries, which enables it to secure long-term contracts and relationships that contribute to a stable revenue base. Additionally, Frencken benefits from economies of scale and operational efficiencies, allowing it to optimize production costs. The company's diverse client portfolio and strategic partnerships further enhance its ability to capture market opportunities and drive earnings.

Frencken Group Limited Financial Statement Overview

Summary

Frencken Group Limited demonstrates operational efficiency with stable profit margins and a balanced debt profile. However, the declining revenue growth and reduced return on equity highlight potential challenges in maintaining profitability and growth. Cash flow generation remains stable, but the negative growth in free cash flow warrants attention.

Income Statement

Frencken Group Limited has shown a declining revenue trend with a revenue growth rate of -18.56% in the most recent year. Despite this, the company maintains a stable gross profit margin of 14.52% and a net profit margin of 4.67%. The EBIT and EBITDA margins are also relatively stable at 6.62% and 10.50%, respectively, indicating operational efficiency. However, the declining revenue growth is a concern.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.31, reflecting a balanced approach to leverage. The return on equity is 8.55%, which, while positive, has decreased from previous years, indicating a potential decline in profitability. The equity ratio stands at 59.02%, suggesting a strong equity base relative to total assets.

Cash Flow

Frencken Group Limited has a slightly negative free cash flow growth rate of -2.59%, indicating challenges in generating free cash flow. However, the operating cash flow to net income ratio is 0.19, and the free cash flow to net income ratio is 0.73, showing that the company is able to convert a significant portion of its net income into cash. This suggests a reasonable level of cash flow stability despite growth challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	852.99M	794.33M	742.86M	786.11M	767.07M	620.62M
Gross Profit	120.95M	115.34M	98.00M	118.98M	128.91M	105.44M
EBITDA	67.66M	83.44M	77.66M	95.32M	96.19M	75.96M
Net Income	38.92M	37.12M	32.48M	51.87M	58.73M	42.57M
Balance Sheet
Total Assets	722.38M	735.14M	735.29M	725.21M	688.14M	563.79M
Cash, Cash Equivalents and Short-Term Investments	148.49M	159.20M	142.63M	166.99M	192.60M	174.45M
Total Debt	130.40M	133.55M	142.03M	150.45M	119.44M	81.98M
Total Liabilities	275.07M	297.64M	330.01M	328.79M	309.12M	227.51M
Stockholders Equity	443.83M	433.96M	401.25M	391.89M	376.16M	333.95M
Cash Flow
Free Cash Flow	47.65M	34.95M	22.08M	-4.77M	22.87M	55.85M
Operating Cash Flow	61.50M	48.05M	48.96M	37.83M	40.37M	79.64M
Investing Cash Flow	-11.84M	-11.12M	-27.30M	-44.48M	-28.84M	-22.76M
Financing Cash Flow	-18.92M	-15.57M	-35.85M	-30.43M	-9.21M	-14.96M

Frencken Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.61
• 50DMA: Positive
• 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:E28, the sentiment is Positive. The current price of 1.61 is above the 20-day moving average (MA) of 1.55, above the 50-day MA of 1.49, and above the 200-day MA of 1.26, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 56.64 is Neutral, neither overbought nor oversold. The STOCH value of 54.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:E28.

Frencken Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
544	74 Outperform	$612.40M	21.68	10.84%	2.79%	8.52%	-6.22%
8AZ	72 Outperform	S$513.24M	12.84	12.72%	16.79%	-50.75%	-61.46%
E28	71 Outperform	S$683.34M	17.56	9.11%	1.62%	11.57%	0.89%
AWX	63 Neutral	S$579.75M	42.53	2.87%	―	4.60%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
JLB	61 Neutral	S$317.24M	32.58	7.60%	0.32%	47.45%	51.05%
MZH	56 Neutral	S$446.43M	34.25	3.50%	0.98%	22.66%	83.49%

Frencken Group Limited Corporate Events

Frencken Group Breaks Ground on New Singapore Facility

Frencken Group Limited has initiated the development of a new manufacturing facility in Singapore, marking a significant step in expanding its Mechatronics operations. This strategic move is expected to enhance the company’s capabilities in delivering advanced solutions for the semiconductor and life sciences industries, reinforcing Singapore’s position as a key semiconductor hub and contributing to the growth of the technology manufacturing sector.