Fraser & Neave lags consumer staples on earnings quality
KUALA LUMPUR, May 28 —Fraser & Neave scores the lowest on earnings quality among 18 companies in Malaysia’s consumer staples sector, tracked by at least three analysts, data from Thomson Reuters StarMine shows.
The company has a low Earnings Quality (EQ) of 7, suggesting poor earnings sustainability, and analysts have cut EPS estimates on the firm for the current year by 1.5 per cent in the past 30 days.
The company has below-average SmartHoldings score of 21 and a Value Momentum (Val-Mo) score of 48.
Its operating margin lags the industry average by nearly 14 per cent.
Of five analysts tracking the stock, two rank it a hold and three recommend a strong sell.
The firm currently trades at a 44 per cent premium to its intrinsic value of RM12.39, as determined by StarMine.
The stock is down over 6 per cent month-to-date, while the broader index is down 1.24 per cent for the same period.
A low score on StarMine’s Earnings Quality model indicates poor earnings sustainability over the next 12 months based on a company’s past operating performance.
StarMine’s Val-Mo model provides a 1-100 percentile ranking of stocks and rates companies based on a combination of two value and momentum metrics.
The StarMine SmartHoldings model is a global stock selection model that ranks stocks based on the expected future increase, or decrease in institutional ownership. — Reuters