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Arka Berhad (7218) Fair Value & Analysis

Industrials · MY · Market cap 29.0M MYR

AB Arka Berhad 7218 · KLSE
Price0.4350 MYR
Fair Value0.1800 MYR
Upside-58.6%
Quality52/100
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Expensive Growth
Thin margins · 6.4% net margin
Low debt · negative free cash flow
Mixed vs. peers (6/11)
Narrow moat 25/100
Evidence: Medium Range 0.1300 MYR – 0.2300 MYR Share as image

Fair value as of: Jul 18, 2026

From 9 valuation models · updated 23 days ago

Share price −6.5% over the past month.

A solid business, but screening 59% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (0.2300 MYR). The favourable scenario is already priced in.
  • Solid but not exceptional quality (52/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

6.65 MYR 0.3500 MYR Fair Value 0.1800 MYR Jun 2019 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 18, 2026.

How to read this chart

60‑month range 0.3500 MYR – 6.65 MYR · fair‑value band 0.1300 MYR – 0.2300 MYR · the 0.4350 MYR price screens above the 0.1800 MYR fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 18, 2026.

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Analysis

Arka Berhad (7218) currently trades at 0.4350 MYR, while our model-based Fair Value estimate is 0.1800 MYR, implying the stock looks roughly 58.6% overvalued today. The Quality Score stands at 52/100 (solid quality), in the Industrials 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: medium).

Over the trailing twelve months, Arka Berhad generated revenue of 31.4M MYR at a net margin of 6.4%. Revenue declined 10.4% year over year. It earns a return on equity of 2.8%. The stock trades on a trailing P/E of 12.2. Fundamentals as of Jul 18, 2026

Our scenario range runs from 0.1300 MYR (bear case) to 0.2300 MYR (bull case); at 0.4350 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 65% below its 52-week high and 24% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -11% fair-value upside, at -59%, 7218 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-Adj P/E 0.1200 MYR 0.1700 MYR 0.2300 MYR 68
P/E Multiple 0.1700 MYR 0.2200 MYR 0.2800 MYR 63
Residual Income 0.5400 MYR 0.4900 MYR 0.3100 MYR 61
All 9 models by family
DCF Models
Owner Earnings 0.5300 MYR 0.6700 MYR 0.8300 MYR 31
Earnings-Based
Graham-Dodd 0.0700 MYR 0.1500 MYR 0.1900 MYR 54
PEG = 1.0 0.0200 MYR 0.0300 MYR 0.0400 MYR 46
Multiples
P/E Multiple 0.1700 MYR 0.2200 MYR 0.2800 MYR 63
P/S Multiple 0.1300 MYR 0.1800 MYR 0.2200 MYR 58
P/B Multiple 0.1300 MYR 0.1800 MYR 0.2200 MYR 55
Asset-Based
NCAV (Graham) 0.4400 MYR 0.5900 MYR 0.8800 MYR 50
Economic Profit
Residual Income 0.5400 MYR 0.4900 MYR 0.3100 MYR 61
Growth Earnings
Growth-Adj P/E 0.1200 MYR 0.1700 MYR 0.2300 MYR 68

Widest divergence: DCF Models (0.6700 MYR) versus Earnings-Based (0.0300 MYR). Highest evidence: Growth-Adj P/E (68).

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Key figures & financial health

Revenue (TTM) 31.4M MYR
Revenue growth (YoY) -10.4%
Net margin 6.4%
Return on equity 2.8%
Free cash flow −5.8M MYR FY2025
P/E ratio 12.2
More key figures
Operating margin -20.9%
EPS (TTM) 0.0300 MYR
EPS growth (YoY) -73.6%
Net debt 535K MYR FY2019

Figures from reported company fundamentals · as of Jul 18, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 52/100

Of which business quality 47 · Market factors (momentum, volatility) 20

Profitability 19
Margins and returns on capital today
Quality Growth 75
Are margins and returns improving?
Cashflow 0
Earnings quality: real cash, not paper profit
Fin. Strength 58
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 50
Calm price path (market factor)
Momentum 9
Price trend over the last 3–12 months (market factor)
52W Momentum 6
Distance to the 52-week high (market factor)
Net Issuance 77
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

Arka Berhad provides logistics services in Malaysia and Singapore. It operates through Logistics Solutions, Tyre Products, Technology Division segments.

Full company description

Arka Berhad provides logistics services in Malaysia and Singapore. It operates through Logistics Solutions, Tyre Products, Technology Division segments. The company offers trucking, container haulage, depot operations, warehousing, freight forwarding, and customs brokerage, as well as operates warehousing facilities and container depot to support the logistics operation; and foot and feeder trucks. It also offers heavy lifting, cargo consolidation, repacking, palletising, loading/unloading, and customs permit preparation; bonded and non-bonded storage solutions; storage, handling, labeling, cross-docking, and distribution activities; haulage services; and involved in tyre re-treading and sells new tyres for commercial vehicles. In addition, the company provides information technology and software development services. The company was formerly known as Transocean Holdings Bhd. and changed its name to Arka Berhad in April 2024. Arka Berhad was incorporated in 1977 and is based in Seberang Jaya, Malaysia.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Arka Berhad reported revenue of 31.9M MYR in FY2025 versus 22.4M MYR in FY2021, a compound +9.3%/yr. Reported net income was 696K MYR in FY2025, compounding −15.6%/yr from FY2021.

Growth Quality 57/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
31.9M MYR
Latest YoY
+1.1%
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.
+3.4%
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.
+13.4%
Avg. 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.
−0.7%
Revenue +9.3%/yr
FY21 22.4M MYR
FY22 28.9M MYR
FY23 38.6M MYR
FY24 31.6M MYR
FY25 31.9M MYR
Net income −15.6%/yr
FY21 1.4M MYR
FY22 1.8M MYR
FY23 −1.2M MYR
FY24 −7.0M MYR
FY25 696K MYR

7218 screens 59% overvalued. Compare with United Parcel Service, Inc →

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Cite: Fair Value Calculator (2026). "Arka Berhad Fair Value". https://www.fairvalue-calculator.com/stock/7218

Peer Group

Integrated Freight & Logistics · 218 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 52 · Above median
Fair Value upside −59% · Bottom 25%
Return on equity (TTM) 3% · Below median
Return on assets -5% · Bottom 25%
Net margin (TTM) 6% · Top 25%
Operating margin (TTM) -21% · Bottom 25%
Revenue growth -10% · Bottom 25%
Debt / equity 0.01× · Lower than 75% of peers

Valuation Multiples vs Integrated Freight & Logistics median · lower = cheaper

P/E (TTM) 14.7× · Cheaper than median
P/B 0.12× · Cheaper than 75% of peers
P/S (TTM) 0.23× · 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 0 · sector 46
FUTURE 0 · sector 8
PAST 11 · sector 26
HEALTH 100 · sector 94
DIVIDEND 0 · sector 56

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

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

Similar stocks

10 more Integrated Freight & Logistics stocks, each showing price versus our Fair Value estimate (as of Jul 18, 2026).

Stock Price Fair Value vs Fair Value
United Parcel Service, Inc UPS $117.72 $104.58 -11%
FedEx Corporation FDX $314.69 $347.68 +10%
Deutsche Post AG DHL €57.22 €53.18 -7%
DSV A/S DSV kr 1,660 kr 712.57 -57%
Kuehne + Nagel International AG KNIN CHF 209.90 CHF 147.92 -30%
J.B. Hunt Transport Services, Inc JBHT $291.41 $133.80 -54%
S.F. Holding 002352 ¥31.91 ¥48.64 +52%
C.H. Robinson Worldwide, Inc CHRW $193.50 $86.56 -55%
Expeditors International of Washington, Inc EXPD $172.02 $115.95 -33%
ZTO Express (Cayman) Inc 2057 HK$181.40 HK$241.93 +33%

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Frequently asked questions

Is Arka Berhad (7218) overvalued or undervalued?
As of Jul 18, 2026, our model estimates a fair value of 0.1800 MYR versus a price of 0.4350 MYR, about −59% (overvalued).
What is the fair value of 7218?
Our model-based fair value for Arka Berhad is 0.1800 MYR (as of Jul 18, 2026), built from audited fundamentals. The current price is 0.4350 MYR.
What is the quality score of 7218?
Arka Berhad has a Quality Score of 52/100. 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 Arka Berhad (7218)?
Arka Berhad reported trailing-twelve-month revenue of about 31.4M MYR (latest available figure, as of Jul 18, 2026).
What is the net profit margin of 7218?
The net profit margin of Arka Berhad is about 6.4%, meaning it keeps roughly 6.4% 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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