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Nam Cheong Limited (1MZ) Fair Value & Analysis

Industrials · SG · Market cap 453M SGD

NC Nam Cheong Limited 1MZ · SG
Price1.10 SGD
Fair Value2.22 SGD
Upside+101.8%
Quality41/100
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Expensive Growth
Highly profitable · 54.1% net margin
Low debt · generates free cash flow
Ranks above peers (10/13)
Wide moat 88/100
Evidence: High Range 1.52 SGD – 2.91 SGD Share as image

Fair value as of: Aug 13, 2026

From 24 valuation models · updated 4 days ago

Share price +0.9% over the past month.

Below-average quality, screening 102% undervalued on our models.

What matters now

  • The large discount to fair value meets weak quality (41/100). That raises the risk this is a value trap rather than a bargain.
  • The price is below even our cautious bear case (1.52 SGD). The market is more pessimistic than our downside scenario.
  • A fairly wide model range (1.52 SGD to 2.91 SGD) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

1.63 SGD 0.0040 SGD Fair Value 2.22 SGD May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range 0.0040 SGD – 1.63 SGD · fair‑value band 1.52 SGD – 2.91 SGD · the 1.10 SGD price screens below the 2.22 SGD fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Nam Cheong Limited (1MZ) currently trades at 1.10 SGD, while our model-based Fair Value estimate is 2.22 SGD, implying the stock looks roughly 101.8% undervalued today. The Quality Score stands at 41/100 (below-average quality), in the Industrials sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Nam Cheong Limited generated revenue of 621M SGD at a net margin of 54.1%. Revenue grew 1.1% year over year. It earns a return on equity of 44.1%. Net debt stands at 232M SGD. Fundamentals as of Aug 13, 2026

Our scenario range runs from 1.52 SGD (bear case) to 2.91 SGD (bull case); at 1.10 SGD, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 33% below its 52-week high and 127% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -60% fair-value upside, at 102%, 1MZ screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF 1.00 SGD 2.01 SGD 3.72 SGD 80
Rev-Margin DCF 1.46 SGD 3.28 SGD 5.98 SGD 74
ROIC Compounder 3.51 SGD 4.94 SGD 6.29 SGD 72
All 24 models by family
DCF Models
FCF DCF 1.06 SGD 1.87 SGD 3.94 SGD 38
Owner Earnings 7.77 SGD 16.27 SGD 31.87 SGD 31
5Y Revenue Exit 1.46 SGD 3.15 SGD 6.29 SGD 39
5Y EBITDA Exit 4.26 SGD 9.23 SGD 17.99 SGD 41
5Y P/E Exit 7.34 SGD 17.21 SGD 30.02 SGD 38
10Y Revenue Exit 1.24 SGD 3.00 SGD 5.28 SGD 36
10Y EBITDA Exit 3.09 SGD 7.74 SGD 16.44 SGD 37
10Y P/E Exit 5.07 SGD 12.99 SGD 26.93 SGD 35
Earnings-Based
Graham-Dodd 4.87 SGD 33.32 SGD 46.72 SGD 54
Lynch FV 9.80 SGD 14.00 SGD 18.20 SGD 50
PEG = 1.0 9.80 SGD 14.00 SGD 18.20 SGD 46
EPV 2.99 SGD 3.44 SGD 3.82 SGD 59
Multiples
P/E Multiple 11.28 SGD 15.03 SGD 18.79 SGD 63
P/S Multiple 2.32 SGD 3.09 SGD 3.86 SGD 58
P/B Multiple 6.87 SGD 9.17 SGD 11.46 SGD 55
EV/EBIT 6.37 SGD 8.60 SGD 10.84 SGD 53
EV/EBITDA 6.12 SGD 8.27 SGD 10.42 SGD 54
EV/Revenue 1.61 SGD 2.45 SGD 3.28 SGD 43
Asset-Based
NCAV (Graham) 1.02 SGD 1.36 SGD 2.04 SGD 50
Growth DCF
Growth DCF 1.00 SGD 2.01 SGD 3.72 SGD 80
Rev-Margin DCF 1.46 SGD 3.28 SGD 5.98 SGD 74
Economic Profit
Residual Income 4.43 SGD 6.30 SGD 49.04 SGD 61
ROIC Compounder 3.51 SGD 4.94 SGD 6.29 SGD 72
Growth Earnings
Growth-Adj P/E 13.50 SGD 19.28 SGD 25.07 SGD 68

Widest divergence: Growth Earnings (19.28 SGD) versus Asset-Based (1.36 SGD). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 621M SGD
Revenue growth (YoY) +1.1%
Net margin 54.1%
Return on equity 44.1%
Free cash flow 44.4M SGD FY2025
P/E ratio 4.2
More key figures
Operating margin 27.0%
EPS (TTM) 0.2600 SGD
EPS growth (YoY) +157%
Net debt 232M SGD FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 41/100

Of which business quality 41 · Market factors (momentum, volatility) 56

Profitability 73
Margins and returns on capital today
Quality Growth 2
Are margins and returns improving?
Cashflow 29
Earnings quality: real cash, not paper profit
Fin. Strength 64
Balance sheet, leverage, solvency risk
Investment 18
Disciplined investing over empire-building
Low Volatility 64
Calm price path (market factor)
Momentum 44
Price trend over the last 3–12 months (market factor)
52W Momentum 70
Distance to the 52-week high (market factor)
Net Issuance 33
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Nam Cheong Limited, an investment holding company, provides offshore support vessels (OSVs), shipbuilding and vessel chartering.

Full company description

Nam Cheong Limited, an investment holding company, provides offshore support vessels (OSVs), shipbuilding and vessel chartering. It builds various vessels, including anchor handling tug supply (AHTS) vessels, platform supply vessels (PSVs), maintenance work vessels (MWV), accommodation work barges (AWB), safety standby vessels (SSVs), landing craft, and fast crew boats (FCB). The company also provides vessel chartering and ship delivery services, as well as engages in trading activities. It primarily serves oil majors, oil field service providers, and shipowners, as well as marine service operators. The company operates offshore oil and gas industry in Malaysia, Singapore, Indonesia, Vietnam, the People's Republic of China, the Netherlands, India, Tunisia, the Middle East, the United States, West Africa, and Latin America. Nam Cheong Limited was founded in 1968 and is based in Singapore.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Nam Cheong Limited reported revenue of 620M SGD in FY2025 versus 286M SGD in FY2021, a compound +21.3%/yr. Reported net income was 287M SGD in FY2025, compounding +34.9%/yr from FY2021.

Growth Quality 62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
620M SGD
Latest YoY
−9.5%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+19.2%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+10.7%
Revenue +21.3%/yr
FY21 286M SGD
FY22 366M SGD
FY23 475M SGD
FY24 685M SGD
FY25 620M SGD
Net income +34.9%/yr
FY21 86.8M SGD
FY22 59.3M SGD
FY23 175M SGD
FY24 785M SGD
FY25 287M SGD

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Cite: Fair Value Calculator (2026). "Nam Cheong Limited Fair Value". https://www.fairvalue-calculator.com/stock/1MZ

Peer Group

Aerospace & Defense · 222 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 41 · Bottom 25%
Fair Value upside +102% · Top 25%
Return on equity (TTM) 44% · Top 25%
Return on assets 9% · Top 25%
Net margin (TTM) 54% · Top 25%
Operating margin (TTM) 27% · Top 25%
Revenue growth 1% · Below median
Debt / equity 0.40× · Higher than median

Valuation Multiples vs Aerospace & Defense median · lower = cheaper

P/E (TTM) 4.2× · Cheaper than 75% of peers
P/B 0.43× · Cheaper than 75% of peers
P/S (TTM) 0.57× · Cheaper than 75% of peers
P/FCF 8.0× · Cheaper than median
EV/EBITDA 1.9× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 100 · sector 0
FUTURE 6 · sector 51
PAST 100 · sector 38
HEALTH 80 · sector 93
DIVIDEND 0 · sector 16

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

Weapons Defense

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Aerospace & Defense stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
General Electric Company GE $365.33 $116.71 -68%
RTX Corporation RTX $222.76 $88.37 -60%
The Boeing Company BA $231.20 $49.09 -79%
China CSSC Holdings 600150 ¥33.89 ¥21.90 -35%
HD Hyundai Heavy Industries Co 329180 496,000 KRW 272,966 KRW -45%
Hanwha Aerospace Co 012450 1,160,000 KRW 573,468 KRW -51%
ASELSAN Elektronik Sanayi ve Ticaret Anonim Sirketi ASELS 346.75 TRY 130.70 TRY -62%
Saab AB SAABB kr 680.10 kr 212.84 -69%
Kongsberg Gruppen ASA KOG kr 330.10 kr 101.07 -69%
HD Korea Shipbuilding & Offshore Engineering Co 009540 371,500 KRW 643,950 KRW +73%

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Frequently asked questions

Is Nam Cheong Limited (1MZ) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of 2.22 SGD versus a price of 1.10 SGD, about +102% (undervalued).
What is the fair value of 1MZ?
Our model-based fair value for Nam Cheong Limited is 2.22 SGD (as of Aug 13, 2026), built from audited fundamentals. The current price is 1.10 SGD.
What is the quality score of 1MZ?
Nam Cheong Limited has a Quality Score of 41/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Nam Cheong Limited (1MZ)?
Nam Cheong Limited reported trailing-twelve-month revenue of about 621M SGD (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 1MZ?
The net profit margin of Nam Cheong Limited is about 54.1%, meaning it keeps roughly 54.1% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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