Southern Steel Bhd (5665) fair value: what the stock is really worth
As of Oct 8, 2026: fair value of Southern Steel Bhd MYR 0.19, price MYR 0.50, upside -62.2%, quality 44 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Oct 2, 2026.
How to read this chart
60‑month range 0.3000 MYR – 1.19 MYR · fair‑value band 0.1785 MYR – 0.2040 MYR · the 0.4950 MYR price screens above the 0.1870 MYR fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Oct 2, 2026.
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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.
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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.
Stock analysis
Southern Steel Bhd (5665) currently trades at 0.4950 MYR, while our model-based Fair Value estimate is 0.1870 MYR, 62.2% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Asset-Based group reads highest at a median of 0.4100 MYR per share, and 0 of the 6 models we run sit above the 0.4950 MYR price.
Bear case: the Multiples group reads lowest at 0.1000 MYR, and 6 of the 6 models stay below the price. Evidence for this calculation is low.
Scenario range: 0.1785 MYR (bear) to 0.2040 MYR (bull), the price of 0.4950 MYR sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 44/100 (below-average quality), in the Basic Materials sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
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.
Key figures
Market cap 743M MYR (≈ $182M) · P/S ratio 0.35 · EPS (TTM) −0.1000 MYR · Net margin −2.3% · Return on equity −773% · Return on assets (EBIT) −0.4% · Operating margin 1.7% · Revenue (TTM) 2.1B MYR.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 37 out of 100 (low confidence).
What moves the price
The share trades about 16% below its 52-week high and 39% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Basic Materials peers we cover trades at −45% fair-value upside, at −62%, 5665 screens richer than that median.
Fair Value models
Bear 0.1785 MYRFair Value 0.1870 MYRBull 0.2040 MYR
Price 0.4950 MYR · Upside -62.2%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single 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. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.46/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
+19.3%
Revenue growth 3 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+5.1%
Revenue growth 5 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+7.0%
Start year 2020 (pandemic). Over 10 years: +0.6% a year
Revenue growth 13 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
−1.6%
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Profit margin (trend) ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.
−8.1% (2020) → −2.8% (2025)
What shareholders gained per year ⓘ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
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+74.3%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect
n/a
No analyst forecast available.
After inflation (Malaysia: IMF forecast 2.0% a year to 2030, 1.8% from 2016 to 2025) that is about +70.9% a year for the price.
Price, fair value, quality and upside side by side.
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Peer Groupⓘ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.Steel · 410 stocks
Beats the industry median on 3/9 measures
Overall it trails its industry peers.
Valuation
Quality Score44 · Below median
Fair Value upside−62.2% · Bottom 25%
Profitability
Return on assets−2.4% · Bottom 25%
Net margin (TTM)−2.3% · Bottom 25%
Operating margin (TTM)1.7% · Below median
Growth and dividend
Revenue growth8.9% · Above median
Valuation Multiplesvs Steel median · lower = cheaper
P/B0.20× · Cheapest 25%
P/S (TTM)0.09× · Cheapest 25%
P/FCF53.7× · Priciest 25%
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 21
FUTURE (revenue growth)45· sector 33
PAST (return on equity)0· sector 19
HEALTH (low debt)100· sector 95
DIVIDEND (yield)0· sector 52
VALUE 0: the price sits above our fair-value range.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Southern Steel Bhd Fair Value". https://www.fairvalue-calculator.com/stock/5665
Frequently asked questions
Is Southern Steel Bhd (5665) overvalued or undervalued?
As of Oct 2, 2026, our model estimates a fair value of 0.1870 MYR versus a price of 0.4950 MYR, about −62% upside (overvalued).
What is the fair value of 5665?
Our model-based fair value for Southern Steel Bhd is 0.1870 MYR (as of Oct 2, 2026), built from audited fundamentals. The current price: 0.4950 MYR.
What is the quality score of 5665?
Southern Steel Bhd has a Quality Score of 44/100. 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 price target for Southern Steel Bhd (5665)?
Our model-based price target is the fair value of 0.1870 MYR (as of Oct 2, 2026) from 6 valuation models. Cautious scenario 0.1785 MYR, optimistic scenario 0.2040 MYR. It is a calculation from audited fundamentals, not an analyst target.
What is the Southern Steel Bhd stock forecast for 2026?
Our models put fair value at 0.1870 MYR, about −62% upside versus a price of 0.4950 MYR (overvalued). Cautious scenario 0.1785 MYR, optimistic scenario 0.2040 MYR. The calculation is refreshed regularly with new filings.
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 Oct 2, 2026).
What growth is priced into Southern Steel Bhd (5665)?
For today's price to be fair in a discounted-cash-flow model, Southern Steel Bhd would have to grow free cash flow by +74.3 % per year for five years (discount rate 12.6 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +7.0 % per year. As of Oct 2, 2026.
What discount rate (WACC) does the fair value of 5665 use?
Our models discount Southern Steel Bhd at 12.6 %: a base by market capitalisation (micro), damped by beta 0.11, country premium for Malaysia. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Southern Steel Bhd that is +74.3 % per year a year over ten years, using the same discount rate (12.6 %) and the same formula as our fair value.
How much growth has Southern Steel Bhd (5665) delivered so far?
Over the past 5 years revenue at Southern Steel Bhd grew +7.0 % a year. The price currently implies +74.3 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Southern Steel Bhd (5665) growing?
The median revenue growth in the sector is +9.1 % a year. That is the yardstick for the growth priced into Southern Steel Bhd (+74.3 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Southern Steel Bhd (5665)?
The free-cash-flow yield on the price is 0.46 %: that much free cash flow Southern Steel Bhd produces per unit of market value. When it exceeds the discount rate of our models (12.6 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Southern Steel Bhd (5665)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Southern Steel Bhd it is 0.1870 MYR per share (as of Oct 2, 2026), against a price of 0.4950 MYR. It is the blended result of 6 valuation models (cash flow, earnings, asset, dividend).
Is Southern Steel Bhd stock overvalued or undervalued in 2026?
As of Oct 2, 2026, 5665 trades above its calculated fair value: price 0.4950 MYR, fair value 0.1870 MYR, a gap of about −62% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of 5665?
No. The price is what the market pays today (0.4950 MYR); the fair value is what the company's own numbers justify (0.1870 MYR). For Southern Steel Bhd the two are 0.3080 MYR per share apart. That gap is exactly why we show both numbers side by side.
How much is Southern Steel Bhd worth?
The market values Southern Steel Bhd at about 743M MYR (market capitalisation, as of Oct 2, 2026). Per share that is 0.4950 MYR; our models calculate a fair value of 0.1870 MYR per share.
What do the bullish and bearish scenarios say about 5665?
Our models span a range for Southern Steel Bhd: cautious scenario 0.1785 MYR, base 0.1870 MYR, optimistic 0.2040 MYR per share (as of Oct 2, 2026, price 0.4950 MYR). The range comes from different growth and margin assumptions, not from analyst opinions.
How far is 5665 from its 52-week high?
Southern Steel Bhd trades at 0.4950 MYR, about 16% below its 52-week high of 0.5900 MYR and 39% above the low of 0.3550 MYR (as of Oct 8, 2026). Distance from the high says nothing about value: that is what the fair value of 0.1870 MYR is for.
Which stocks are comparable to Southern Steel Bhd?
From the same area (Basic Materials) we also value Nucor Corporation, ArcelorMittal S.A, Steel Dynamics, Inc, JSW Steel Limited, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Southern Steel Bhd stock attractive at the current price?
The data as of Oct 2, 2026: price 0.4950 MYR, calculated fair value 0.1870 MYR (−62%), Quality Score 44/100, from 6 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of 5665 calculated?
We run Southern Steel Bhd through 6 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of 0.1870 MYR, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 14.5 % above its aggregate fair value. Southern Steel Bhd itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Southern Steel Bhd (5665)?
The closing price on Oct 8, 2026 was 0.4950 MYR. Our model-based fair value is 0.1870 MYR, about −62% upside (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Southern Steel Bhd right now?
The price sits above even our optimistic bull case (0.2040 MYR). The favourable scenario is already priced in. Weak quality (44/100) 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 (0.1785 MYR to 0.2040 MYR), unusually little disagreement for a valuation.
Key figures of Southern Steel Bhd
How large is the market capitalisation of Southern Steel Bhd (5665)?
The market capitalisation of Southern Steel Bhd is 743M MYR (≈ $182M). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Southern Steel Bhd (5665)?
The price-to-sales ratio of Southern Steel Bhd is 0.35 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Southern Steel Bhd (5665)?
Earnings per share at Southern Steel Bhd are −0.1000 MYR. Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of Southern Steel Bhd (5665)?
The net margin of Southern Steel Bhd is −2.3% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Southern Steel Bhd (5665)?
The return on equity (ROE) of Southern Steel Bhd is −773% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Southern Steel Bhd (5665)?
On an EBIT basis the return on assets of Southern Steel Bhd is −0.4% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Southern Steel Bhd (5665)?
The operating margin of Southern Steel Bhd is 1.7% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Southern Steel Bhd (5665)?
Revenue at Southern Steel Bhd is growing +8.9% versus a year earlier (3y avg +5.1%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Southern Steel Bhd (5665)?
Earnings per share at Southern Steel Bhd are growing −83.7% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Southern Steel Bhd (5665) carry?
The net debt of Southern Steel Bhd is 186M MYR (fiscal year 2025, ≈ 54.9 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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