Nestle Malaysia BHD (NSLYF) Stock

Nestle Malaysia BHD trades at a P/E ratio of 62.05, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple.

With a beta of 0.18, Nestle Malaysia BHD is less volatile than the overall market. This means when the market moves up or down by 10%, this stock typically moves less than 10% in the same direction. Lower beta stocks are often preferred by conservative investors seeking stability. The price-to-book ratio of 44.31 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Nestle Malaysia BHD achieves a profit margin of 6.42%, meaning it retains $6.42 from every $100 in revenue after all expenses. This relatively low margin suggests the company operates in a competitive environment or high-cost industry where profitability is challenging. The operating margin of 10.94% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 73.51% and ROA at 11.38%, the company generates strong returns on invested capital.

Nestle Malaysia BHD's revenue grew by 21.90% year-over-year, representing robust expansion that significantly outpaces typical market growth rates. This strong top-line performance suggests the company is successfully capturing market share or benefiting from favorable industry trends. Earnings increased by 33.50% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against Packaged Foods industry averages for proper context.

Nestle Malaysia BHD offers a dividend yield of 2.13%, paying $0.58 per share annually. This above-average yield of 2-4% provides meaningful income while still allowing the company to reinvest for growth. It compares favorably to the S&P 500 average and offers competitive returns versus bonds in the current rate environment. To receive the next dividend, shares must be purchased before the ex-dividend date of Nov 18, 2025.

The dividend sustainability can be assessed through the payout ratio - Nestle Malaysia BHD pays $0.58 per share in dividends against earnings of $0.44 per share, resulting in a payout ratio of 100.00%. This very high payout exceeding 90% raises sustainability concerns, as nearly all earnings go to dividends. Any earnings decline could force a dividend cut.

Nestle Malaysia BHD has a market capitalization of $8.1B, classifying it as a mid-cap stock ($2B-$10B). Mid-caps often represent companies in their growth phase, offering higher growth potential than large-caps but with more stability than small-caps. They can be attractive takeover targets and may become tomorrow's large-caps. With 234.50M shares outstanding, the company's ownership is relatively concentrated. As a participant in the Packaged Foods industry, it competes with other firms in this sector.

Nestle Malaysia BHD's book value per share is $0.62, while the current stock price is $27.30, resulting in a price-to-book (P/B) ratio of 44.31. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As EQUITY, this represents a specific type of security.