Fraser And Neave (SGX:F99) Margin Compression To 5.9% Tests Bullish Valuation Narratives

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Feb 11

Fraser and Neave (SGX:F99) opened Q1 2026 with revenue of S$592.9 million and basic EPS of S$0.033, setting the tone for how investors will read its latest set of numbers. The company has seen ...

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The company has seen ...</p>\n\n<a href=\"https://simplywall.st/stocks/sg/food-beverage-tobacco/sgx-f99/fraser-and-neave-shares/news/fraser-and-neave-sgxf99-margin-compression-to-59-tests-bulli\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Fraser And Neave (SGX:F99) Margin Compression To 5.9% Tests Bullish Valuation Narratives</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nFraser And Neave (SGX:F99) Margin Compression To 5.9% Tests Bullish Valuation Narratives\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-02-11 22:22 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/sg/food-beverage-tobacco/sgx-f99/fraser-and-neave-shares/news/fraser-and-neave-sgxf99-margin-compression-to-59-tests-bulli><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Fraser and Neave (SGX:F99) opened Q1 2026 with revenue of S$592.9 million and basic EPS of S$0.033, setting the tone for how investors will read its latest set of numbers. The company has seen ...</p>\n\n<a href=\"https://simplywall.st/stocks/sg/food-beverage-tobacco/sgx-f99/fraser-and-neave-shares/news/fraser-and-neave-sgxf99-margin-compression-to-59-tests-bulli\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK6114","symbol_name":"包装食品与肉类","start_time":0,"source_url":"https://simplywall.st/stocks/sg/food-beverage-tobacco/sgx-f99/fraser-and-neave-shares/news/fraser-and-neave-sgxf99-margin-compression-to-59-tests-bulli","article_id":"2610416951","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/5122000-choice2-main-header/1585186547117"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/sg/food-beverage-tobacco/sgx-f99/fraser-and-neave-shares/news/fraser-and-neave-sgxf99-margin-compression-to-59-tests-bulli","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2610416951","pubTimestamp":1770819773,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Fraser and Neave (SGX:F99) opened Q1 2026 with revenue of S$592.9 million and basic EPS of S$0.033, setting the tone for how investors will read its latest set of numbers. The company has seen quarterly revenue move from S$618.0 million and EPS of S$0.036 in Q1 2025 through a series of quarters between roughly S$553 million and S$595 million in revenue and EPS between about S$0.016 and S$0.024, before landing at the current S$592.9 million and S$0.033 print. With a trailing net margin of 5.9%...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK6114":"包装食品与肉类","BLSX":"Tradr 2X Long BLSH Daily ETF","BK6509":"食品和饮料股","BLSG":"2倍做多BLSH ETF-Leverage Shares","BK4112":"金融交易所和数据","F99.SI":"星狮集团"},"translate_title":"Fraser And Neave(SGX：F99)利润率压缩至5.9%考验看涨估值叙事","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"F99.SI":1.98,"BLSG":0.6,"BLSX":0.6},"content_text":"Fraser and Neave (SGX:F99) opened Q1 2026 with revenue of S$592.9 million and basic EPS of S$0.033, setting the tone for how investors will read its latest set of numbers. The company has seen quarterly revenue move from S$618.0 million and EPS of S$0.036 in Q1 2025 through a series of quarters between roughly S$553 million and S$595 million in revenue and EPS between about S$0.016 and S$0.024, before landing at the current S$592.9 million and S$0.033 print. With a trailing net margin of 5.9% versus 7.1% a year earlier and negative earnings growth over the last 12 months, this update keeps the focus squarely on how efficiently the business is converting sales into profit. See our full analysis for Fraser and Neave. With the headline figures on the table, the next step is to see how these results line up against the widely held narratives about Fraser and Neave, and where the numbers start to push back on those stories. Curious how numbers become stories that shape markets? Explore Community Narratives SGX:F99 Earnings & Revenue History as at Feb 2026 AdvertisementMargins Under Pressure At 5.9%  Over the last 12 months, Fraser and Neave converted S$2.30b of revenue into S$136.7 million of net income, which works out to a 5.9% net margin compared with 7.1% a year earlier. What stands out for a more cautious, bearish take is that this 5.9% trailing margin sits alongside negative earnings growth over the last 12 months, even though quarterly net income in Q1 2026 at S$47.4 million was higher than Q4 2025 at S$23.1 million.\n     This combination of lower trailing margin and negative earnings growth is the core of the concern that profitability has been under pressure over the past year. At the same time, the Q1 2026 net income figure of S$47.4 million shows the business is still producing profit at a meaningful absolute level, which helps frame how much room there is before margin pressure becomes more severe.    P/E Of 15.9x Versus Peers  The shares trade on a trailing P/E of 15.9x, sitting below the peer group average of 23.2x and slightly below the Asian Food industry average of 16.5x, while the current share price is S$1.49. Supporters with a more bullish tilt often point to this lower multiple as a positive, and the numbers give them some backing but also add nuance.\n     The 15.9x P/E is paired with five year earnings compounding of about 1.1% per year, so the discount to peers comes with relatively modest long term earnings growth. Reported earnings quality is described as high, so some investors may see the combination of a slightly lower P/E and high quality earnings as a potential positive, even though trailing margins and earnings growth over the last 12 months have both softened.    Bulls argue that a lower P/E and high reported earnings quality could matter more than recent margin pressure, and that is exactly the debate this set of numbers keeps alive for Fraser and Neave. 📊 Read the full Fraser and Neave Consensus Narrative. DCF Fair Value S$1.14 Versus S$1.49 Price  The provided DCF fair value of S$1.14 sits below the current market price of S$1.49, creating a gap between the cash flow based estimate and where the stock is trading. Critics with a more bearish lean highlight this DCF gap together with cash flow pressure, and the figures show why that view persists.\n     On a trailing 12 month basis, free cash flow did not comfortably cover the dividend yield of about 3.69%, so income investors are relying on future cash flows improving relative to payouts. The mix of a market price above the S$1.14 DCF fair value and a dividend that is not well covered by free cash flow means investors who focus on cash generation and payout coverage have clear numbers to justify a cautious stance.     Next Steps Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Fraser and Neave's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move. See What Else Is Out There Fraser and Neave faces thinner margins, modest long term earnings compounding, a market price above the DCF fair value, and dividend coverage that hinges on stronger free cash flow. If you are concerned about paying up for these trade offs, check out 221 high quality undervalued stocks to focus on companies where price and fundamentals line up more tightly.  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: AI Stock Screener & AlertsOur new AI Stock Screener scans the market every day to uncover opportunities.• Dividend Powerhouses (3%+ Yield)• Undervalued Small Caps with Insider Buying• High growth Tech and AI CompaniesOr build your own from over 50 metrics.Explore Now for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"dataReport","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"}}}