Gamuda Berhad (5398.KL) stock analysis

In our weekly check, Gamuda Berhad is graded D (A to F). Of 25 checks on debt, profit, cash flow and trend: 10 pass, warnings: 4, red flags: 11.

About Gamuda Berhad

Gamuda Berhad is an Industrials company (Engineering & Construction), listed on KLS as 5398.KL.

What our checks show for 5398.KL

Red flags

• Net debt is 5.5x a year of EBITDA (debt/equity 1.1). That limits room in a downturn and raises refinancing risk.
• Operating profit covers interest only 1.9 times: a weak year could make the payments hard.
• The net margin fell by 10.7 points over 5 years, to 5.7%: the company keeps less of each sale as profit.
• The gross margin fell by 14.8 points, to 7.4%: costs are rising faster than prices.
• Operating cash flow is only 0.42x net profit: part of the reported profit does not arrive as cash.
• Free cash flow is negative (-7.3% of revenue): the business spends more cash than it brings in.
• The dividend takes 104% of profit: little cushion if profit falls.
• The stock has fallen as much as 88% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 14.9 years.
• The share count grew by 112% in 2 years: each shareholder owns a smaller slice.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• Earnings per share fell 18.3% a year over the last 3 years.
• Net profit fell 17% a year over the last 3 years.
• The net margin is only 5.7%: little room if costs rise.
• Return on capital (ROCE) is only 7.2%.

Strengths

• Analysts expect earnings per share to grow about 22.2% a year over the next years.
• Analysts expect revenue to grow about 20.7% a year over the next years.
• Revenue grew 30.7% a year over the last 3 years.
• Beta 0.08: the stock usually moves less than the market.
• Actively traded: about 18 million shares a day.

Next earnings report: 2026-12-10

Similar companies

EME · FER.MC · HOT.DE · WSP.TO · ACS.MC · FIX

Questions

What grade does Gamuda Berhad (5398.KL) have?

In our weekly check, Gamuda Berhad is graded D (A to F). Of 25 checks on debt, profit, cash flow and trend: 10 pass, warnings: 4, red flags: 11. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 5398.KL stock?

This week's biggest flags for Gamuda Berhad: High debt, Weak interest cover, Margins falling. In total 15 of 25 checks show a warning or a red flag.

What does Gamuda Berhad do?

Gamuda Berhad is an Industrials company (Engineering & Construction), listed on KLS as 5398.KL.

When does Gamuda Berhad report earnings next?

The next earnings report is expected on 2026-12-10. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

Open the full analysis