YTL Power International Berhad (6742.KL) stock analysis

In our weekly check, YTL Power International Berhad is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 12 pass, warnings: 6, red flags: 7.

About YTL Power International Berhad

YTL Power International Berhad is an Utilities company (Diversified Utilities), listed on KLS as 6742.KL.

What our checks show for 6742.KL

Red flags

• Net debt is 5.1x a year of EBITDA (debt/equity 1.83). That limits room in a downturn and raises refinancing risk.
• Operating profit does not cover the interest bill (0.5x): interest is paid from cash or new debt.
• Free cash flow is negative (-22.3% of revenue): the business spends more cash than it brings in.
• The dividend takes 164% of profit: little cushion if profit falls.
• The stock has fallen as much as 80% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 3.5 years.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• The net margin fell by 0.6 points over 5 years, to 7.7%: the company keeps less of each sale as profit.
• Revenue grew only 0.2% a year over the last 3 years.
• Earnings per share fell 7.2% a year over the last 3 years.
• Net profit fell 6% a year over the last 3 years.
• The net margin is only 7.7%: little room if costs rise.
• Return on capital (ROCE) is only 5.6%.

Strengths

• The gross margin is 21.7% and has risen by 12.4 points: pricing power is holding.
• Operating cash flow is 1.78x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 21.3% a year over the next years.
• Analysts expect the net margin to improve by 3.8 points from today's 7.7%.
• A large company: market value $11.43 billion.
• Beta 0: the stock usually moves less than the market.

Next earnings report: 2026-11-26

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Questions

What grade does YTL Power International Berhad (6742.KL) have?

In our weekly check, YTL Power International Berhad is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 12 pass, warnings: 6, red flags: 7. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 6742.KL stock?

This week's biggest flags for YTL Power International Berhad: High debt, Weak interest cover, Weak free cash flow. In total 13 of 25 checks show a warning or a red flag.

What does YTL Power International Berhad do?

YTL Power International Berhad is an Utilities company (Diversified Utilities), listed on KLS as 6742.KL.

When does YTL Power International Berhad report earnings next?

The next earnings report is expected on 2026-11-26. 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 2026-10-31

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