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Southern Steel Bhd (5665) Fair Value & Analysis

Basic Materials · MY · Market cap 585M MYR

SS Southern Steel Bhd 5665 · KLSE
Price0.4200 MYR
Fair Value0.0850 MYR
Upside-79.8%
Quality43/100
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Strengths

Low debt · generates free cash flow

Risks

!Trades 394% ABOVE our fair value of 0.0850 MYR
!Mixed Growth (revenue 5y +7.0 %/yr)
!Loss-making · -2.3% net margin
!Mixed vs. peers (5/10)
Mixed Growth (revenue 5y +7.0 %/yr)
Loss-making · -2.3% net margin
Low debt · generates free cash flow
Mixed vs. peers (5/10)
Narrow moat 20/100
Evidence: Low Range 0.0765 MYR – 0.0850 MYR Share as image

Fair value as of: Aug 13, 2026

From 6 valuation models · updated 11 days ago

Share price +9.1% over the past month.

Below-average quality, and trading another 394% above our fair value.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

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What matters now

  • The price sits above even our optimistic bull case (0.0850 MYR). The favourable scenario is already priced in.
  • Weak quality (43/100) and above fair value at the same time, the margin of safety is missing on both counts.
  • The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
  • The models converge in a tight band (0.0765 MYR to 0.0850 MYR), unusually little disagreement for a valuation.
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Price vs Fair Value (5 years)

1.19 MYR 0.3000 MYR Fair Value 0.0850 MYR Nov 2020 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 0.3000 MYR – 1.19 MYR · fair‑value band 0.0765 MYR – 0.0850 MYR · the 0.4200 MYR price screens above the 0.0850 MYR fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Southern Steel Bhd (5665) currently trades at 0.4200 MYR, while our model-based Fair Value estimate is 0.0850 MYR, implying the stock looks roughly 79.8% overvalued today. The Quality Score stands at 43/100 (below-average quality), in the Basic Materials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: low).

Over the trailing twelve months, Southern Steel Bhd generated revenue of 2.1B MYR at a net margin of -2.3%. Revenue grew 8.9% year over year. Net debt stands at 186M MYR. Fundamentals as of Aug 13, 2026

Our scenario range runs from 0.0765 MYR (bear case) to 0.0850 MYR (bull case); at 0.4200 MYR, the current price sits above 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 6% below its 52-week high and 20% above its 52-week low, currently above its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at -17% fair-value upside, at -80%, 5665 screens richer 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 0.0900 MYR 0.1000 MYR 0.1000 MYR 80
NCAV (Graham) 0.3100 MYR 0.4100 MYR 0.6100 MYR 50
EV/Revenue 0.0900 MYR 0.1000 MYR 0.1100 MYR 43
All 6 models by family
DCF Models
FCF DCF 0.0900 MYR 0.0900 MYR 0.1000 MYR 38
5Y Revenue Exit 0.0900 MYR 0.1000 MYR 0.1100 MYR 39
10Y Revenue Exit 0.0900 MYR 0.1000 MYR 0.1000 MYR 36
Multiples
EV/Revenue 0.0900 MYR 0.1000 MYR 0.1100 MYR 43
Asset-Based
NCAV (Graham) 0.3100 MYR 0.4100 MYR 0.6100 MYR 50
Growth DCF
Growth DCF 0.0900 MYR 0.1000 MYR 0.1000 MYR 80

Widest divergence: Asset-Based (0.4100 MYR) versus DCF Models (0.1000 MYR). Highest evidence: Growth DCF (80).

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Key figures & financial health

P/S ratio 0.27 TTM
Net margin -2.3% TTM
Return on equity -773% TTM
Return on assets -2.4% TTM
Operating margin 4.8% TTM
EPS (TTM) -0.1000 MYR
More key figures
Growth
Revenue (TTM) 2.1B MYR TTM
Revenue growth (YoY) +8.9% 3y avg +5.1%
EPS growth (YoY) -83.7%
Balance sheet & cash flow
Free cash flow 3.4M MYR FY2025
Net debt 186M MYR FY2025 · ≈ 54.9 yrs of FCF

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

Quality Score breakdown

Overall quality 43/100

Of which business quality 46 · Market factors (momentum, volatility) 60

Profitability 24
Margins and returns on capital today
Quality Growth 65
Are margins and returns improving?
Cashflow 49
Earnings quality: real cash, not paper profit
Fin. Strength 65
Balance sheet, leverage, solvency risk
Investment 78
Disciplined investing over empire-building
Low Volatility 77
Calm price path (market factor)
Momentum 51
Price trend over the last 3–12 months (market factor)
52W Momentum 58
Distance to the 52-week high (market factor)
Net Issuance 0
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.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Southern Steel Berhad, an investment holding company, manufactures, sells, and trades in steel bars and related products for the construction, infrastructure, and industrial sectors. It operates through Steel Products; and Investment Holding and Others segments.

Full company description

Southern Steel Berhad, an investment holding company, manufactures, sells, and trades in steel bars and related products for the construction, infrastructure, and industrial sectors. It operates through Steel Products; and Investment Holding and Others segments. The company offers billets, bars and wires, and other related products; steel bars for structural reinforcement; steel pipes for fluid transport and structural purposes; wire rods and round bars for use in storage systems, hypermarket trolleys, fan wire casings, hooks, nails, staple wires, welding rods, and other industrial applications; and pre-stressed concrete strands and steel wires for use in elevated highways, bridges, PT slabs, precast beams, slabs and walls, concrete spun piles and poles, and concrete railway sleepers, etc. It also provides coated pipes consisting of water transmission pipes for the fire protection industry; and high-strength lightweight pipes for automotive, agriculture, and electrical wiring conduit pipes. In addition, the company is involved in property rental activities. It operates in Malaysia, Singapore, Taiwan, the United States of America, Australia, Japan, the Maldives, the Middle East, the Philippines, Vietnam, the South Pacific Island, and internationally. Southern Steel Berhad was incorporated in 1963 and is based in Perai, Malaysia.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Southern Steel Bhd reported revenue of 2.7B MYR in FY2025 versus 1.7B MYR in FY2021, a compound +11.4%/yr. Reported net income was −60.4M MYR in FY2025.

Growth Quality 46/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
2.7B MYR
Latest YoY
+19.3%
Avg. revenue 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.
+5.1%
Avg. revenue 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.
+7.0%
Avg. revenue growth/yr (13Y) 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.
−1.6%
Value creation/yr We only publish this rate when it is defensible. Reason: fiscal 2025 is a loss year, no rate is defined from a loss
not computed
Revenue +11.4%/yr
FY21 1.7B MYR
FY22 2.3B MYR
FY23 2.4B MYR
FY24 2.2B MYR
FY25 2.7B MYR
Net income
FY21 47.9M MYR
FY22 −94.9M MYR
FY23 −141M MYR
FY24 −55.8M MYR
FY25 −60.4M MYR

5665 screens 80% overvalued. Compare with Nucor Corporation →

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Cite: Fair Value Calculator (2026). "Southern Steel Bhd Fair Value". https://www.fairvalue-calculator.com/stock/5665

Peer Group

Steel · 394 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 43 · Below median
Fair Value upside −80% · Bottom 25%
Return on assets -2% · Bottom 25%
Net margin (TTM) -2% · Bottom 25%
Operating margin (TTM) 5% · Above median
Revenue growth 9% · Above median

Valuation Multiples vs Steel median · lower = cheaper

P/B 0.16× · Cheaper than 75% of peers
P/S (TTM) 0.07× · Cheaper than 75% of peers
P/FCF 42.8× · Pricier 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.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 13
FUTURE45 · sector 2
PAST0 · sector 16
HEALTH100 · sector 95
DIVIDEND0 · sector 48

VALUE 0: the price sits above our fair-value range.

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

Similar stocks

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

Stock Price Fair Value vs Fair Value
Nucor Corporation NUE $271.81 $116.05 -57%
ArcelorMittal S.A MT €64.18 €53.35 -17%
Steel Dynamics, Inc STLD $228.68 $127.14 -44%
JSW Steel Limited JSWSTEEL ₹1,296 ₹1,119 -14%
500228 500228 ₹1,292 ₹1,079 -16%
Tata Steel Limited TATASTEEL ₹186.20 ₹145.39 -22%
Reliance, Inc RS $427.11 $217.81 -49%
Baoshan Iron & Steel Co 600019 ¥5.91 ¥8.07 +37%
POSCO Holdings PKX $57.09 $83.53 +46%
Jindal Steel & Power Limited JINDALSTEL ₹1,114 ₹429.44 -61%

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Frequently asked questions

Is Southern Steel Bhd (5665) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of 0.0850 MYR versus a price of 0.4200 MYR, about −80% (overvalued).
What is the fair value of 5665?
Our model-based fair value for Southern Steel Bhd is 0.0850 MYR (as of Aug 13, 2026), built from audited fundamentals. The current price: 0.4200 MYR.
What is the quality score of 5665?
Southern Steel Bhd has a Quality Score of 43/100. 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 Southern Steel Bhd (5665)?
Southern Steel Bhd reported trailing-twelve-month revenue of about 2.1B MYR (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 5665?
The net profit margin of Southern Steel Bhd is about -2.3%, meaning it is currently running at a net loss. 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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