One-glance verdict
Undervalued
$83.87 our estimate vs market $3.58
96% below our estimate, below the bear case
Fundamentals snapshot
ARB IOT Group Limited
ARBB · NCM · Technology · Information Technology Services
Current price
$3.58
52-week range
$3.16 - $10.67
Market cap
$6.32M
Balance sheet
Healthy
-4,915.60x Concerning
Net cash $7.66M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
2 Risks
2 rewards · 2 risks
- Reward Revenue grew 304.5% last year.
- Reward Free cash flow was positive in 1/10 years.
- Risk Return on equity was -57.1% last year — the company lost money on shareholders' equity.
- Risk Operating margin compressed from 19.9% to -33.6% over 3 years.
What this company does
ARB IOT Group Limited
ARB IOT Group Limited creates and installs smart technology systems for buildings and farms, meaning they connect everyday things like lights or sensors to the internet to make them work automatically. Most of their money comes from selling and setting up these smart systems for property developers and construction companies. This is important because it shows how they are growing by bringing modern, connected technology to new constructions.
How the company got here
ARB IOT Group Limited was incorporated in 2022 and is based in Singapore. The company has quickly established itself as a provider of integrated Internet of Things (IoT) systems and devices, offering solutions from initial design through to project deployment. It has also benefited from the experience and network of ARB Berhad, a Malaysian IT company, which has provided a foundation of established business processes and experienced leadership. This has allowed ARB IOT Group to focus on growing its IoT business and leveraging new technology trends like artificial intelligence (AI) and cloud computing.
What it actually does
ARB IOT Group provides comprehensive solutions for integrating Internet of Things (IoT) systems and devices. This means they help businesses connect everyday objects to the internet so they can collect and share data. They offer a full range of services, from the initial design and planning stages to the installation, testing, and ongoing support of these systems. Their goal is to help companies adopt digital technologies to meet changing customer demands and improve their operations.
AI Server
This segment focuses on providing high-performance AI servers, such as the ARB-222 and ARB-333 models. These servers are designed for data-intensive operations and are crucial for tasks like accelerating AI model training and faster data processing. They are built for seamless integration within the AI ecosystem, supporting businesses that rely heavily on artificial intelligence for their operations and digital transformation initiatives. This is a key area for the company's growth, as AI technology becomes increasingly important across various industries.
IoT Smart Building and Engineering
This part of the business offers solutions for making buildings 'smart' using IoT technology. This includes designing, installing, and maintaining systems for automated control of things like lighting, heating, and security. The aim is to improve energy efficiency, reduce operational costs, and enhance safety within buildings. They work with property developers and contractors to integrate these advanced systems into new and existing structures, making buildings more efficient and responsive.
IoT Smart Agriculture and System Development
This segment provides IoT-based solutions for the agriculture sector, focusing on enhancing automation and efficiency in farming. This can include systems for real-time monitoring of crops, soil conditions, and environmental factors to help farmers make data-driven decisions. The company also engages in system development services, creating software and applications that support these IoT functionalities, enabling better management and optimization of agricultural processes.
What management is betting on now
Management is focused on leveraging advancements in AI, cloud computing, 5G, and IoT to drive digital transformation for their clients. They are expanding their AI footprint, particularly with AI server solutions, to meet the growing demand for data-intensive applications. The company aims to be a leading player in the IoT landscape within the ASEAN region by providing integrated, scalable, and reliable solutions that help businesses improve efficiency, reduce costs, and adapt to evolving market needs.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $83.87 vs current price $3.58
Our most-likely fair value is $83.87 a share — about 2,242.6% above today's price of $3.58, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $7.7M - more cash than debt. Interest coverage -4915.6x.
Net debt
$-7.66M
Interest coverage
-4,915.60x
ARB IOT Group Limited's profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 4 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
ARBB
BASELINE
ARB IOT Group Limited
Total debt $34.29K Interest coverage -4,915.60x This is the baseline the peer rows are being compared against.
Total debt $4.49M Interest coverage -0.95x Neither company has much profit cushion over interest right now.
Total debt $8.59M Interest coverage -6.55x Neither company has much profit cushion over interest right now.
Total debt $1.18M Interest coverage -22.22x Neither company has much profit cushion over interest right now.
Total debt $2.65M Interest coverage -5.80x Neither company has much profit cushion over interest right now.
What you should know
The case for and against ARBB
2 Rewards
2 Risks
Rewards
-
Revenue grew 304.5% last year.
-
Free cash flow was positive in 1/10 years.
Risks
-
Return on equity was -57.1% last year — the company lost money on shareholders' equity.
-
Operating margin compressed from 19.9% to -33.6% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
—
Forward P/E
—
P/B
0.25x
P/S
0.03x
EV/EBITDA
17.88x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
-4.0%
Operating margin
-33.6%
Net margin
-35.6%
ROE
-57.1%
ROA
-17.0%
Health
Liquidity and balance-sheet strength
Debt / equity
0.00x
Current ratio
7.93x
Quick ratio
7.93x
Total debt
$34.29K
Total cash
$7.70M
Growth
How the business has been compounding
Revenue TTM
$58.02M
Revenue 5Y CAGR
-19.0%
EPS TTM
-11.61
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$-352.13K
Free CF TTM
$-352.13K
FCF margin
-0.6%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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