Fact based stock research
Sime Darby Plantation (KLSE:SIMEPLT)

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

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Sime Darby Plantation stock research in summary

simedarbyplantation.com

ANALYSIS: With an Obermatt Combined Rank of 20 (worse than 80% compared with investment alternatives), Sime Darby Plantation (Agricultural Products, Malaysia) shares have lower financial characteristics compared with similar stocks. Shares of Sime Darby Plantation are low in value (priced high) with a consolidated Value Rank of 29 (worse than 71% of alternatives), show below-average growth (Growth Rank of 29), and are riskily financed (Safety Rank of 48), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 20, is a sell recommendation based on Sime Darby Plantation's financial characteristics. As the company Sime Darby Plantation's key financial metrics all exhibit below-average performance, such as low value (Obermatt Value Rank of 29), low growth (Obermatt Growth Rank of 29), and risky financing practices (Obermatt Safety Rank of 48), it is a somewhat questionable stock investment, where the risk of paying too much for the shares is significant, unless the company has an exceptionally bright future. Such poor financial performance sometimes indicates that the company's business is all concentrated in some distant future. This is sometimes the case for high-tech or biotechnology companies. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and risky today. In such cases, the Obermatt Method has limited value as it is based on facts we can observe today. If the facts are all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that should only amount to a small fraction of a safe portfolio. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	29
Growth Rank	29
Safety Rank	48
Combined Rank	20

Country	Malaysia
Industry	Agricultural Products
Index	Low Emissions, Energy Efficient, Good Governace Growth Markets, Human Rights, Independent Boards Growth Markets, Renewables Users
Size class	X-Large

19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Sime Darby Plantation

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	86	47	35	29
GROWTH
GROWTH	81	25	63	29
SAFETY
SAFETY	76	65	69	48
SENTIMENT
SENTIMENT	n/a	79	71	^new
360° VIEW
360° VIEW	n/a	57	81	^new

Most recent update of the stock research: 19-Dec-2024. Financial reporting date used for calculating ranks: 30-Sep-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Sime Darby Plantation is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	86	47	35	29
GROWTH
GROWTH	81	25	63	29
SAFETY
SAFETY	76	65	69	48
COMBINED
COMBINED	97	47	65	20

Last update of combined financial performance: 19-Dec-2024. Stock analysis on combined financial performance: The higher the rank of Sime Darby Plantation the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 29 (worse than 71% compared with alternatives), Sime Darby Plantation shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators where three out of four are below average for Sime Darby Plantation. Only the Price-to-Book Capital ratio (also referred to as market-to-book ratio) indicates good stock value with a Price-to-Book Rank of 55, which means that the stock price is lower compared with invested capital than for 55% of comparable investments. All other value indicators are below the market median. Price-to-Sales is 44 which means the stock price compared with what market professionals expect for future profits is higher than 56% of comparable companies, indicating a low value concerning Sime Darby Plantation's revenue levels. The same is valid for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Book Rank of 55 and for the dividend yields rank which is lower than for 70% of comparable companies, making the stock more expensive as regards to with the company's expected dividend payouts. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 29, is a hold recommendation based on Sime Darby Plantation's stock price compared with the company's operational size and dividend yields. Why are market participants paying such a high price for Sime Darby Plantation, where three out of four value indicators are below par? One reason could be that the company is well financed, indicated by the high book capital level, and has a promising future that is not yet visible in reported revenues and profits. That would also explain the low dividend yield because the company needs the cash to invest in its future. If investors can verify a picture in this sense, the stock may still be a good investment, even though current company-reported financials don't fully explain current stock prices. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	47	48	43	44
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	77	39	29	23
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	71	65	49	55
DIVIDEND YIELD
DIVIDEND YIELD	90	57	43	30
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	86	47	35	29

Last update of Value Rank: 19-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Sime Darby Plantation; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 29 (better than 29% compared with alternatives), Sime Darby Plantation shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Sime Darby Plantation. Capital Growth has a rank of 70, which means that currently professionals expect the company to grow its invested capital more than 6% of its competitors. Investors welcomed this, visible in the Stock Returns rank of 59 (above 59% of alternative investments). But Sales Growth has only a rank of 19, which means that, currently, professionals expect the company to grow less than 81% of its competitors, and Profit Growth is also low at a rank of 6. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 29, is a hold recommendation for growth and momentum investors. This is an ambiguous picture. Revenue growth and capital growth are strong, but the growth in profit, which seems good, can also be an indication that growth momentum may be negative. The fact that stock returns have been above average doesn't help much, as stock returns are less reliable in showing a company’s future growth potential. Prices may perform well for the simple reason that investors were too pessimistic in the past and are now correcting their opinions and moving the stock price to a more reasonable level. As the growth picture is mixed for Sime Darby Plantation, investors may want to look at value and sentiment indicators for a well-rounded picture of this stock. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	84	1	63	19
PROFIT GROWTH
PROFIT GROWTH	n/a	94	18	6
CAPITAL GROWTH
CAPITAL GROWTH	n/a	34	76	70
STOCK RETURNS
STOCK RETURNS	15	9	61	59
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	81	25	63	29

Last update of Growth Rank: 19-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Sime Darby Plantation.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 48 (better than 48% compared with alternatives), the company Sime Darby Plantation has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Sime Darby Plantation is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above average for Sime Darby Plantation. Leverage is at a rank of 62, meaning the company has a below-average debt-to-equity ratio. It has less debt than 62% of its competitors. Liquidity is also good at a rank of 52, meaning the company generates more profit to service its debt than 52% of its competitors. This indicates that the company is on the safer side when it comes to debt service. But Refinancing is lower at a rank of 37, which means that the portion of the debt that is about to be refinanced is above-average. It has more debt in the refinancing stage than 63% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 48 (worse than 52% compared with alternatives), Sime Darby Plantation has a financing structure that is riskier than that of its competitors. The refinancing issues could be a short-term problem, especially if the company has reputation issues. Banks and investors don't like to refinance debt if there are clouds on the horizon. For this reason, investors should look at the refinancing environment for Sime Darby Plantation. Does it look safe that debt that is coming due can be covered with new debt? If that is the case, then the financing situation of the company is on the safer side. If not, it may be better to wait until refinancing has been completed and the Refinancing rank is good again. Investors may have a short-term debt challenge with Sime Darby Plantation and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	54	64	60	62
REFINANCING
REFINANCING	54	33	41	37
LIQUIDITY
LIQUIDITY	70	72	84	52
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	76	65	69	48

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Sime Darby Plantation and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	58	19	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	44	94	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	93	98	^new
MARKET PULSE
MARKET PULSE	n/a	41	28	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	79	71	^new

Last update of Sentiment Rank: 19-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Sime Darby Plantation.
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