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UWC Bhd (XKLS:5292) Financial Strength : 10 (As of Jan. 2025)


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What is UWC Bhd Financial Strength?

UWC Bhd has the Financial Strength Rank of 10. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

UWC Bhd shows strong financial strength.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and 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.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

UWC Bhd's Interest Coverage for the quarter that ended in Jan. 2025 was 206.79. UWC Bhd's debt to revenue ratio for the quarter that ended in Jan. 2025 was 0.04. As of today, UWC Bhd's Altman Z-Score is 18.07.


Competitive Comparison of UWC Bhd's Financial Strength

For the Metal Fabrication subindustry, UWC 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.


UWC Bhd's Financial Strength Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, UWC Bhd's Financial Strength distribution charts can be found below:

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


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UWC 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:

UWC Bhd's Interest Expense for the months ended in Jan. 2025 was RM-0.1 Mil. Its Operating Income for the months ended in Jan. 2025 was RM15.5 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jan. 2025 was RM3.8 Mil.

UWC Bhd's Interest Coverage for the quarter that ended in Jan. 2025 is

Interest Coverage=-1*Operating Income (Q: Jan. 2025 )/Interest Expense (Q: Jan. 2025 )
=-1*15.509/-0.075
=206.79

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

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. UWC Bhd has enough cash to cover all of its debt. Its financial situation is stable.

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

UWC Bhd's Debt to Revenue Ratio for the quarter that ended in Jan. 2025 is

Debt to Revenue Ratio=Total Debt (Q: Jan. 2025 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(9.459 + 3.799) / 369.588
=0.04

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.

UWC Bhd has a Z-score of 18.07, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 18.07 is strong.

* 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.


UWC Bhd  (XKLS:5292) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

UWC Bhd has the Financial Strength Rank of 10. It shows strong financial strength and is unlikely to fall into distressed situations.


UWC Bhd Financial Strength Related Terms

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UWC Bhd Business Description

Traded in Other Exchanges
N/A
Address
PMT 744-745, Jalan Cassia Selatan 5/1, Taman Perindustrian Batu Kawan, Bandar Cassia, PNG, MYS, 14110
UWC Bhd is an investment holding company. The company operates in two segments: Precision sheet metal fabrication and value-added assembly services, and the provision of precision machined components; and Investment holding. It provides fabrication services involving various processes of working with metal such as cutting, forming, joining, and other associated processes to produce intermediate metal products, ranging from metal piece parts to precision machined components. The company sells its products to various industries such as Semiconductors, Life science & medical technology, Heavy Duty, and others. Its geographical segments include Malaysia, Singapore, the United States, India, China, France, Netherlands, and Others.

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