Southern Steel Bhd (5665) Fair Value & Analysis
Basic Materials · MY · Market cap 585M MYR
Strengths
Risks
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 →
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.
Price vs Fair Value (5 years)
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.
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.
All 6 models by family
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
More key figures
Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 46 · Market factors (momentum, volatility) 60
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.
5665 screens 80% overvalued. Compare with Nucor Corporation →
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.
Valuation Multiples vs Steel median · lower = cheaper
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 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.
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
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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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