Biggest Market Capitalization in KLSE Maybank 1155

While reading The Star newspaper yesterday, I saw a column Top 100 Companies in KLSE by market capitalization. Refer to below table extracted. Maybank is the largest stock based on market capitalization in KLSE, with RM83 Billion. Based on the closing price on 3 April 2020,  the Price Earning ratio is 10.1 with Dividen Yield of 8.6%.

Maybank is Malaysia largest bank and all Malaysian known the brand very well. If you are not familiar with Maybank, you must be a foreigner. Maybank is among the top 5 banks in ASEAN an international network of over 2,2000 branches and offices in 20 countries.

From the stock chart from i3investor.com, the Peak price for Maybank for past 5 years is at RM11.08 and already declines 36%. Year to date is drop 25%. So is the price is attractive now? Let's deep dive into the valuation in more details.

From the Financial chart below can observed that the Revenue is increasing every year. Profitability stay almost flat with slight decreasing on the profit margin.

As for the Dividen, there is increasing in term of the yearly dividen payout. Dividen payout ratio is range from 40% to 80%, a healthy and sustainable range.

As for the Dividen yield for past 5 years,

Max = 6.25%

Min = 5.27% ( Ex on April 2020, with RM0.39/share)

Ave = 5.78%

Current is 8.65% above the average

As for the PE ratio for past 5 years:

Max = 14.72

Min = 8.33

Ave = 12.7

Current is 10.1 which is below than the Average.

As for the P/B ratio for past 5 years, it stay above 1.1

Max = 1.6

Min = 0.9

Ave = 1.25

Current is 1.05 (RM7.4/RM7.05) below the average

Data from Morningstar:
Consistent growth in Revenue.
Consistent growth in Net income.
Consistent growth in Dividen with healthy payout ratio
Free cash flow is negative 10.56 mil ended last year. This could be a headwind to look into it.

In Summary, in my personal opinion, Maybank has a healthy growth.  It is not highly undervalue stock yet. Current price is just nice and able to tolerate the down side risk. This is not a buy or sell recommendation and purely is educational and discussion purpose only.