Frencken Group Limited (E28) AI Stock Analysis

• Market Cap: S$683.34M
• Dividend Yield: 1.85%
• 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$1.82
• Price Target Upside: 29.08% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: S$1.50 ▲(6.38% Upside)

Frencken Group Limited's overall stock score reflects a combination of stable financial performance and bearish technical indicators. The company's operational efficiency and balanced debt profile are positive, but declining revenue growth and reduced return on equity are concerns. The stock's technical indicators suggest it is in a bearish trend, with potential oversold conditions. Valuation is moderate, with a reasonable P/E ratio but a relatively low dividend yield.

Positive Factors

Operational Efficiency

Operational efficiency with stable margins indicates effective cost management and competitive positioning, supporting long-term profitability.

Balanced Debt Profile

A balanced debt profile with a moderate debt-to-equity ratio enhances financial stability and reduces risk, allowing for strategic investments.

Diverse Revenue Streams

Diverse revenue streams from multiple sectors provide resilience against sector-specific downturns and support steady cash flow.

Negative Factors

Declining Revenue Growth

Declining revenue growth poses challenges to scaling operations and maintaining market share, potentially impacting future earnings.

Reduced Return on Equity

A reduced return on equity suggests declining profitability and efficiency in generating returns from shareholder investments.

Negative Free Cash Flow Growth

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

Frencken Group Limited Business Overview & Revenue Model

Company Description

Frencken Group Limited, an investment holding company, provides original design, original equipment, and diversified integrated manufacturing solutions worldwide. It operates in two segments, Mechatronics and Integrated Manufacturing Services (IMS). The Mechatronics segment designs, develops, and produces precision-engineered systems and machines, electromechanical assemblies, and high precision parts and components for original equipment manufacturers in the healthcare, analytical and life sciences, semiconductor, and industrial automation markets. It also offers value engineering, prototyping, program machining components and sheet metal parts manufacturing, and modular and equipment system assembly, integration, testing, and commissioning; assembly, testing, designs, engineers, and manufactures mechatronic modules, products, and systems; and research, development, and engineering services. The IMS segment provides integrated contract design and manufacturing services to the automotive, and consumer and industrial electronics industries. This segment design, engineers, manufactures, and sells filters; manufactures mold and die, plastic products, and component sub-assembly; injection mold making and injection molding; manufactures and distributes plastic products; and designs and trades in micro-mechanical product components for automotive industry. The company also engages in the property holding activities; and provision of vacuum coating, thermal treatment, and other related services for plastic component. Frencken Group Limited was founded in 1995 and is based in George Town, Malaysia.

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: Negative
• Last Price: 1.41
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:E28, the sentiment is Negative. The current price of 1.41 is below the 20-day moving average (MA) of 1.52, below the 50-day MA of 1.51, and above the 200-day MA of 1.29, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 36.17 is Neutral, neither overbought nor oversold. The STOCH value of 9.04 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	72 Outperform	S$513.24M	12.84	12.72%	17.32%	-50.75%	-61.46%
544	67 Neutral	$612.40M	21.68	10.84%	2.40%	8.52%	-6.22%
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%
MZH	56 Neutral	S$446.43M	34.25	3.50%	1.01%	22.66%	83.49%
AWX	52 Neutral	S$579.75M	42.53	2.87%	―	4.60%	―

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.