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UEM Sunrise Bhd (XKLS:5148) Financial Strength : 3 (As of Mar. 2024)


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What is UEM Sunrise Bhd Financial Strength?

UEM Sunrise Bhd has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

UEM Sunrise Bhd displays poor financial strength. Usually, this is caused by too much debt for the company.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

UEM Sunrise Bhd's Interest Coverage for the quarter that ended in Mar. 2024 was 1.79. UEM Sunrise Bhd's debt to revenue ratio for the quarter that ended in Mar. 2024 was 4.69. As of today, UEM Sunrise Bhd's Altman Z-Score is 1.10.


Competitive Comparison of UEM Sunrise Bhd's Financial Strength

For the Real Estate - Development subindustry, UEM Sunrise Bhd's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


UEM Sunrise Bhd's Financial Strength Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, UEM Sunrise Bhd's Financial Strength distribution charts can be found below:

* The bar in red indicates where UEM Sunrise Bhd's Financial Strength falls into.



UEM Sunrise Bhd Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

UEM Sunrise Bhd's Interest Expense for the months ended in Mar. 2024 was RM-39 Mil. Its Operating Income for the months ended in Mar. 2024 was RM70 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was RM3,640 Mil.

UEM Sunrise Bhd's Interest Coverage for the quarter that ended in Mar. 2024 is

Interest Coverage=-1*Operating Income (Q: Mar. 2024 )/Interest Expense (Q: Mar. 2024 )
=-1*70.331/-39.316
=1.79

The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. UEM Sunrise Bhd interest coverage is 1.11, which is low.

2. Debt to revenue ratio. The lower, the better.

UEM Sunrise Bhd's Debt to Revenue Ratio for the quarter that ended in Mar. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(584.89 + 3639.729) / 899.824
=4.69

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

UEM Sunrise Bhd has a Z-score of 1.10, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.1 is in distress zone. This implies bankruptcy possibility in the next two years.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


UEM Sunrise Bhd  (XKLS:5148) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

UEM Sunrise Bhd has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.


UEM Sunrise Bhd Financial Strength Related Terms

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UEM Sunrise Bhd (XKLS:5148) Business Description

Traded in Other Exchanges
N/A
Address
No. 1, Jalan Dutamas 1, Level U2, Block C5, Solaris Dutamas, Kuala Lumpur, SGR, MYS, 50480
UEM Sunrise Bhd is a property development company wholly owned by Khazanah, an investment fund of the Government of Malaysia. The company focuses on macro township development, high-rise residential, commercial, retail, and integrated developments, property management, and project & construction services. The company operates in three main business segments: property development, Property investment & hotel operation, and Others. The property development segment, which generates the majority of revenue, develops and sells residential and commercial properties. Its geographical segments are Malaysia, Australia, South Africa and Singapore.

UEM Sunrise Bhd (XKLS:5148) Headlines

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