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Dancomech Holdings (5276) Fair Value & Analysis

Industrials · MY · Market cap 144M MYR

DH Dancomech Holdings 5276 · KLSE
Price0.3300 MYR
Fair Value0.7800 MYR
Upside+136.4%
Quality60/100
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Mixed Growth
Thin margins · 9.2% net margin
Low debt · generates free cash flow
6.06% dividend yield
Ranks above peers (12/13)
Narrow moat 41/100
Evidence: Medium Range 0.5800 MYR – 0.9700 MYR Share as image

Fair value as of: Jul 20, 2026

From 26 valuation models · updated 21 days ago

Share price +1.5% over the past month.

A solid business, screening 136% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (0.5800 MYR). The market is more pessimistic than our downside scenario.
  • Solid quality (60/100) at a price below fair value, the discount is the argument here, not the business quality.
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Price vs Fair Value (5 years)

0.5265 MYR 0.3013 MYR Fair Value 0.7800 MYR Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 20, 2026.

How to read this chart

60‑month range 0.3013 MYR – 0.5265 MYR · fair‑value band 0.5800 MYR – 0.9700 MYR · the 0.3300 MYR price screens below the 0.7800 MYR fair value. Dashed = 300-day average. As of Jul 20, 2026.

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Analysis

Dancomech Holdings (5276) currently trades at 0.3300 MYR, while our model-based Fair Value estimate is 0.7800 MYR, implying the stock looks roughly 136.4% undervalued today. The Quality Score stands at 60/100 (solid 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: medium), always confirm before acting.

Over the trailing twelve months, Dancomech Holdings generated revenue of 176M MYR at a net margin of 9.2%. Revenue declined 17.7% year over year. It earns a return on equity of 6.9%. The balance sheet holds a net cash position of 112M MYR. Fundamentals as of Jul 20, 2026

Our scenario range runs from 0.5800 MYR (bear case) to 0.9700 MYR (bull case); at 0.3300 MYR, 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 19% below its 52-week high and 5% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -48% fair-value upside, at 136%, 5276 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 0.7200 MYR 0.8900 MYR 1.10 MYR 80
Residual Income 0.3900 MYR 0.4000 MYR 0.3800 MYR 76
Rev-Margin DCF 0.7400 MYR 1.02 MYR 1.35 MYR 74
All 26 models by family
DCF Models
FCF DCF 0.7200 MYR 0.9200 MYR 1.19 MYR 38
Owner Earnings 0.6200 MYR 0.7700 MYR 0.9700 MYR 31
5Y Revenue Exit 0.7400 MYR 1.02 MYR 1.37 MYR 39
5Y EBITDA Exit 0.7900 MYR 1.12 MYR 1.50 MYR 41
5Y P/E Exit 0.7600 MYR 1.05 MYR 1.37 MYR 38
10Y Revenue Exit 0.7100 MYR 0.9400 MYR 1.26 MYR 36
10Y EBITDA Exit 0.7500 MYR 1.00 MYR 1.34 MYR 37
10Y P/E Exit 0.7300 MYR 0.9600 MYR 1.25 MYR 35
Earnings-Based
Graham-Dodd 0.2500 MYR 0.8800 MYR 1.19 MYR 54
Lynch FV 0.2100 MYR 0.2900 MYR 0.3800 MYR 50
PEG = 1.0 0.2100 MYR 0.2900 MYR 0.3800 MYR 46
EPV 0.5600 MYR 0.6000 MYR 0.6200 MYR 59
Dividend Discount
Gordon GGM 0.1700 MYR 0.2900 MYR 0.3800 MYR 70
DDM Multi-Stage 0.1700 MYR 0.2800 MYR 0.3100 MYR 61
Multiples
P/E Multiple 0.5800 MYR 0.7800 MYR 0.9700 MYR 63
P/S Multiple 0.4700 MYR 0.6300 MYR 0.7900 MYR 58
P/B Multiple 0.4700 MYR 0.6300 MYR 0.7900 MYR 55
EV/EBIT 0.9800 MYR 1.22 MYR 1.45 MYR 53
EV/EBITDA 0.9100 MYR 1.13 MYR 1.35 MYR 54
EV/Revenue 0.7700 MYR 0.9900 MYR 1.21 MYR 43
Asset-Based
NCAV (Graham) 0.2600 MYR 0.3500 MYR 0.5200 MYR 50
Growth DCF
Growth DCF 0.7200 MYR 0.8900 MYR 1.10 MYR 80
Rev-Margin DCF 0.7400 MYR 1.02 MYR 1.35 MYR 74
Economic Profit
Residual Income 0.3900 MYR 0.4000 MYR 0.3800 MYR 76
ROIC Compounder 0.5700 MYR 0.6200 MYR 0.6900 MYR 72
Growth Earnings
Growth-Adj P/E 0.5000 MYR 0.7200 MYR 0.9400 MYR 68

Widest divergence: DCF Models (0.9600 MYR) versus Dividend Discount (0.2800 MYR). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 176M MYR
Revenue growth (YoY) -17.7%
Net margin 9.2%
Return on equity 6.9%
Free cash flow 23.8M MYR FY2025
P/E ratio 8.1
More key figures
Operating margin 5.3%
EPS (TTM) 0.0400 MYR
Dividend yield 6.1%
EPS growth (YoY) -18.9%
Net cash 112M MYR FY2025

Figures from reported company fundamentals · as of Jul 20, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 60/100

Of which business quality 64 · Market factors (momentum, volatility) 45

Profitability 37
Margins and returns on capital today
Quality Growth 14
Are margins and returns improving?
Cashflow 70
Earnings quality: real cash, not paper profit
Fin. Strength 100
Balance sheet, leverage, solvency risk
Investment 91
Disciplined investing over empire-building
Low Volatility 94
Calm price path (market factor)
Momentum 28
Price trend over the last 3–12 months (market factor)
52W Momentum 18
Distance to the 52-week high (market factor)
Net Issuance 69
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

Dancomech Holdings Berhad, together with its subsidiaries, engages in the trading and distribution of process control equipment, measurement instruments, and industrial pumps in Malaysia, Indonesia, and internationally. The company operates through six segments: Pump Manufacturing, Trading, MHS Solutions, Metal Stamping, E&E Engineering, and Others.

Full company description

Dancomech Holdings Berhad, together with its subsidiaries, engages in the trading and distribution of process control equipment, measurement instruments, and industrial pumps in Malaysia, Indonesia, and internationally. The company operates through six segments: Pump Manufacturing, Trading, MHS Solutions, Metal Stamping, E&E Engineering, and Others. It trades in and distributes valves, switches, actuators, bursting discs/explosion protection devices, expansion joints, float/steam traps, and other process control equipment; gauges, recorders, pressure transmitters, sight glasses, and other measurement instruments; and industrial pumps under various brand names. The company also engages in the provision of material handling system solutions; production of metal stamping parts and components, as well as design and manufacturing of tools and dies; electrical, electronic, and instrumentation engineering, contracting, commissioning, and servicing; and trading of electric vehicle charging stations, software solution, equipment, and other relevant accessories. In addition, it is involved in the manufacturing of various dealers industrial machinery; manufacturing and export of electrical and general appliances and tools; and provision of management services. The company serves the oil and gas, refineries and mills, water and marine, chemical processing, manufacturing and industrial, and food and beverage sectors. Dancomech Holdings Berhad was founded in 1989 and is headquartered in Shah Alam, Malaysia.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Dancomech Holdings reported revenue of 184M MYR in FY2025 versus 205M MYR in FY2021, a compound −2.8%/yr. Reported net income was 16.4M MYR in FY2025, compounding −0.3%/yr from FY2021.

Growth Quality 73/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
184M MYR
Latest YoY
−17.5%
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.
−4.7%
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.
+9.1%
Avg. growth/yr (10Y) 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.
+10.4%
Revenue −2.8%/yr
FY21 205M MYR
FY22 212M MYR
FY23 212M MYR
FY24 223M MYR
FY25 184M MYR
Net income −0.3%/yr
FY21 16.6M MYR
FY22 18.2M MYR
FY23 21.0M MYR
FY24 23.3M MYR
FY25 16.4M MYR
Character of growth · EPS growth decomposed (2015-2025) +1.3 % p.a.
Revenue per share +9.2 pp

of which total revenue +14.7 pp · buybacks/dilution −5.5 pp

EBIT margin −6.3 pp
Tax rate −0.1 pp
Residual (interest, one-offs) −1.5 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Dancomech Holdings Fair Value". https://www.fairvalue-calculator.com/stock/5276

Peer Group

Pollution & Treatment Controls · 91 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 60 · Above median
Fair Value upside +136% · Top 25%
Return on equity (TTM) 7% · Above median
Return on assets 5% · Top 25%
Net margin (TTM) 9% · Above median
Operating margin (TTM) 5% · Above median
Revenue growth -18% · Bottom 25%
Dividend yield (TTM) 6.1% · Top 25%
Debt / equity 0.03× · Lower than median

Valuation Multiples vs Pollution & Treatment Controls median · lower = cheaper

P/E (TTM) 8.1× · Cheaper than 75% of peers
P/B 0.15× · Cheaper than 75% of peers
P/S (TTM) 0.20× · Cheaper than 75% of peers
P/FCF 1.5× · Cheaper than median

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 0 · sector 14
PAST 28 · sector 10
HEALTH 99 · sector 95
DIVIDEND 100 · sector 37

Insider activity: 30/100

Values & ESG

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

None of the checked exposures detected

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

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Frequently asked questions

Is Dancomech Holdings (5276) overvalued or undervalued?
As of Jul 20, 2026, our model estimates a fair value of 0.7800 MYR versus a price of 0.3300 MYR, about +136% (undervalued).
What is the fair value of 5276?
Our model-based fair value for Dancomech Holdings is 0.7800 MYR (as of Jul 20, 2026), built from audited fundamentals. The current price is 0.3300 MYR.
What is the quality score of 5276?
Dancomech Holdings has a Quality Score of 60/100. 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 Dancomech Holdings (5276)?
Dancomech Holdings reported trailing-twelve-month revenue of about 176M MYR (latest available figure, as of Jul 20, 2026).
What is the net profit margin of 5276?
The net profit margin of Dancomech Holdings is about 9.2%, meaning it keeps roughly 9.2% of revenue as net income. Based on the latest reported figures.
Does Dancomech Holdings pay a dividend?
Dancomech Holdings currently shows a dividend yield of about 6.06% relative to its recent price (as of Jul 20, 2026).

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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