Frencken Group Limited (E28) AI Stock Analysis

• Market Cap: S$491.15M
• Dividend Yield: 2.23%
• Average Volume (3M): 2.30M
• Price to Earnings (P/E): 13.2
• Beta (1Y): 0.82
• Revenue Growth: 6.93%
• EPS Growth: 14.19%
• Country: SG
• Employees: 3,600
• Sector: Technology
• Sector Strength: 82
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.09
• Shares Outstanding: 427,090,420
• 10 Day Avg. Volume: 3,081,270
• 30 Day Avg. Volume: 2,295,073
• PEG Ratio: -0.53
• Price to Book (P/B): 0.96
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.98
• 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$1.38
• Price Target Upside: 20.00% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 69 Neutral
• Price Target: S$1.00 ▼(-13.04%Downside)

Frencken Group Limited demonstrates solid financial performance, with strong revenue growth, profitability, and cash flow management contributing positively to its stock assessment. While technical indicators present a mixed view, the valuation appears reasonable. The overall score reflects a stable outlook, with financial strengths being a key factor.

Positive Factors

Earnings

Frencken's 1Q25 earnings of S$10m are in line with expectations, driven by a 12% yoy revenue growth and gross margin improvement.

Semiconductor Segment

Semiconductor segment revenue surged 33.7% y/y, driven by strong demand from a key European customer and a sharp rebound in Asia.

Strategic Investments

Strategic investments and capacity expansion to support growth, including upgrading and expanding Singapore production facilities and opening a new US facility.

Negative Factors

Automotive Segment

Revenue growth was offset by a decline in the automotive (-14% yoy) and industrial automation (-19% yoy) segments.

Geopolitical and Macroeconomic Uncertainties

Frencken holds a cautious view due to increasing geopolitical and macroeconomic uncertainties.

Tariff Situation

The automotive segment of Frencken may face challenging conditions due to higher costs amid the tariff situation.

Frencken Group Limited Business Overview & Revenue Model

Company Description

Frencken Group Limited (E28) is a global integrated technology solutions company that provides comprehensive solutions to various industries, including the automotive, healthcare, industrial, semiconductor, and analytical sectors. The company offers a wide range of high-precision engineering services, including design, development, and manufacturing of complex components and systems. Frencken operates through its two main divisions: Mechatronics and Integrated Manufacturing Services (IMS).

How the Company Makes Money

Frencken Group Limited generates revenue through its two primary business divisions. The Mechatronics division focuses on developing and supplying complex, high-precision mechanical and electronic components and systems to industries such as semiconductor, analytical, and industrial automation. This division earns money by providing custom-engineered solutions and high-value manufacturing services. The Integrated Manufacturing Services (IMS) division contributes to the company's earnings by offering a complete suite of integrated design and manufacturing services, catering to the automotive, healthcare, and consumer electronics sectors. Revenue is derived from long-term contracts and partnerships with key clients in these industries, ensuring a steady income stream through recurring business. Additionally, Frencken's global presence and strategic partnerships allow it to leverage its expertise and capabilities to maintain competitive pricing and high-quality standards, thus driving profitability.

Frencken Group Limited Financial Statement Overview

Summary

Frencken Group Limited exhibits a strong financial position with consistent revenue growth and improved profitability margins. The balance sheet shows prudent financial management with stable leverage and strong equity. Cash flow generation has improved, adding to the company's financial resilience.

Income Statement

Frencken Group Limited shows a solid revenue growth trajectory with a 6.93% increase from 2023 to 2024. Gross profit margin slightly increased, reflecting improved cost management. The net profit margin improved to 4.67%, indicating enhanced profitability. EBIT and EBITDA margins have also shown steady improvement, reflecting strong operational efficiency.

Balance Sheet

The company's balance sheet is stable with a debt-to-equity ratio of 0.31, indicating reasonable leverage. The equity ratio of 59.02% reflects a robust capital structure. Return on equity remained stable, showing efficient use of equity capital. The decrease in total liabilities suggests effective debt management.

Cash Flow

Cash flow from operations is stable, while free cash flow increased significantly by 50% in 2024, indicating better cash management. The operating cash flow to net income ratio is 1.29, showcasing good cash generation relative to earnings. Free cash flow to net income ratio improved, further enhancing liquidity.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
794.33M	742.86M	786.11M	767.07M	620.62M
	Gross Profit
115.34M	98.00M	118.98M	128.91M	105.44M
	EBIT
50.43M	38.74M	66.83M	72.74M	60.20M
	EBITDA
83.75M	77.66M	95.32M	96.19M	75.96M
	Net Income Common Stockholders
37.12M	32.48M	51.87M	58.73M	42.57M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
159.20M	142.63M	166.99M	192.60M	174.45M
	Total Assets
735.14M	735.29M	725.21M	688.14M	563.79M
	Total Debt
133.55M	142.03M	150.45M	119.44M	81.98M
	Net Debt
-25.65M	-603.00K	-16.54M	-73.16M	-92.47M
	Total Liabilities
297.64M	330.01M	328.79M	309.12M	227.51M
	Stockholders Equity
433.96M	401.25M	391.89M	376.16M	333.95M
Cash Flow		Free Cash Flow
34.95M	23.29M	-4.77M	22.87M	55.85M
	Operating Cash Flow
48.05M	48.96M	37.83M	40.37M	79.64M
	Investing Cash Flow
-11.12M	-27.30M	-44.48M	-28.84M	-22.76M
	Financing Cash Flow
-15.57M	-35.85M	-30.43M	-9.21M	-14.96M

Frencken Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 1.15 is above the 20-day moving average (MA) of 1.15, above the 50-day MA of 1.04, and above the 200-day MA of 1.12, indicating a bullish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 62.83 is Neutral, neither overbought nor oversold. The STOCH value of 51.85 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
8AZ	78 Outperform	S$439.92M	6.24	20.62%	13.91%	-30.65%	-29.55%
544	73 Outperform	$330.49M	12.05	11.20%	4.88%	18.77%	7.38%
E28	69 Neutral	S$491.15M	13.23	8.89%	2.23%	6.93%	14.19%
JLB	64 Neutral	S$315.54M	28.44	8.66%	0.32%	43.32%	96.93%
AWX	63 Neutral	S$397.99M	34.70	2.40%	―	-20.96%	―
Sector *	62 Neutral	$11.90B	10.64	-7.50%	2.90%	7.41%	-8.19%
MZH	58 Neutral	S$374.85M	47.88	2.02%	1.19%	15.39%	140.82%

Frencken Group Limited Corporate Events

Frencken Group Limited Conducts Annual General Meeting

Frencken Group Limited held its Annual General Meeting at the Pan Pacific Hotel in Singapore, where key members of the board and the Chief Financial Officer were present. The meeting, which was attended by shareholders, proceeded with the requisite quorum and involved voting on resolutions by way of poll, with the Chairman acting as a proxy for some shareholders.

The most recent analyst rating on (SG:E28) stock is a Buy with a S$1.40 price target. To see the full list of analyst forecasts on Frencken Group Limited stock, see the SG:E28 Stock Forecast page.

Frencken Group Sees Robust Q1 Growth Driven by Semiconductor Segment

Frencken Group Limited reported an 11.5% year-on-year increase in revenue for the first quarter of 2025, reaching S$215.8 million, driven by strong performance in its Mechatronics Division, particularly in the semiconductor segment. The company’s net profit attributable to equity holders rose by 12.0% to S$10.0 million, with a gross profit margin improvement to 14.8%. The semiconductor segment saw a significant 33.7% revenue increase due to steady sales growth in Europe and a rebound in Asia, while the medical segment experienced a modest 1.2% growth. However, the industrial automation segment faced a decline due to changes in customer product demands.

The most recent analyst rating on (SG:E28) stock is a Buy with a S$1.74 price target. To see the full list of analyst forecasts on Frencken Group Limited stock, see the SG:E28 Stock Forecast page.