Top Glove Bhd (TGLVY) AI Stock Analysis

• Market Cap: $1.11B
• Dividend Yield: N/A
• Average Volume (3M): 820.00
• Price to Earnings (P/E): 61.6
• Beta (1Y): -0.16
• Revenue Growth: 68.51%
• EPS Growth: N/A
• Country: US
• Employees: 11,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): <0.01
• Shares Outstanding: 2,054,401,100
• 10 Day Avg. Volume: 882
• 30 Day Avg. Volume: 820
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.47
• Enterprise Value/Revenue: 0.48
• Enterprise Value/Gross Profit: 1.27
• Enterprise Value/Ebitda: 3.85
• 1Y Price Target: $0.50
• Price Target Upside: 6.38% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 44 Neutral
• Price Target: $0.50 ▲(6.38% Upside)

Top Glove Bhd's overall stock score is primarily impacted by its weak financial performance, characterized by declining revenues and negative cash flow trends. The technical analysis further supports a bearish outlook with oversold conditions and negative momentum. The high P/E ratio indicates overvaluation, adding to the risk profile. The lack of earnings call and corporate events data limits additional insights.

Top Glove Bhd Business Overview & Revenue Model

Company Description

Top Glove Corporation Bhd. engages in the investment holding and provision of management services in Malaysia. The company offers medical examination, surgical, vinyl, and nitrile gloves; concentrate and synthetic latex, formers, chemicals and chemical compounds, rubber dental dams, exercise bands, condoms, and rubber related products; packaging materials, boxes, and cartons; and disposable and medical face masks, engineering parts and rubber glove machinery, functional fillers, healthcare products, and homecare and personal care products. It also provides property investment, consultancy services, and electrical engineering works; clinical and specialist medical services; analytical, emergency medical, advisory, general management, and value added services; management services in plantation sector, and processing of plantation produce; general trading; and industrial forest plantation, as well as forestry and industry services. In addition, the company trades in healthcare related products; distributes medical devices and other hospital related products; operates as a special purpose vehicle solely for issuance of Perpetual Sukuk; organizes in-house trainings and public trainings/programs; and establishes and maintains fitness related business, including healthcare, slimming centers, gymnasiums, and other related activities. Further, it generates and supplies energy and electricity using biomass technology; and offers e-commerce services for glove trading and other healthcare products. The company also exports its products to 195 countries worldwide. Top Glove Corporation Bhd. was founded in 1991 and is headquartered in Shah Alam, Malaysia.

How the Company Makes Money

Top Glove generates revenue primarily through the sale of disposable gloves and other PPE products. Its revenue model is based on the production and distribution of a wide variety of glove types, catering to both institutional and retail clients. Key revenue streams include sales to healthcare providers, food processing companies, and industrial users. The company benefits from economies of scale due to its large production capacity, enabling it to maintain competitive pricing. Moreover, Top Glove has established significant partnerships with distributors and wholesalers worldwide, enhancing its market reach. Fluctuations in demand, particularly during health crises like the COVID-19 pandemic, have also significantly boosted sales and revenue, contributing to the company's earnings growth.

Top Glove Bhd Financial Statement Overview

Summary

Top Glove Bhd is experiencing significant financial challenges with a notable decline in revenue and profitability. Despite a strong balance sheet with low leverage, negative free cash flow and revenue contraction highlight potential risks and the need for strategic realignment.

Income Statement

The income statement reveals a significant decline in revenue from 2021 to 2025, with revenue dropping from approximately 16.36 billion to 3.24 billion. Gross profit margin in the TTM is 100%, indicating all revenue is classified as gross profit, which may not reflect operational realities. Net profit margin in the TTM improved to 3.9% from a loss in the prior year, but EBIT margin remains low at 0.2%. The EBITDA margin is healthier at 13.6%, showing some operational efficiency recovery. However, the overall decline in revenue and mixed profitability margins point to financial instability.

Balance Sheet

The balance sheet shows a stable equity base with a debt-to-equity ratio of 0.26 in the TTM, suggesting a conservative leverage position. The equity ratio stands at 71.5%, reflecting strong asset coverage by equity. Return on equity (ROE) improved to 2.7% in the TTM, indicating positive net income generation relative to equity. However, the significant decrease in cash and cash equivalents from 2021 may pose liquidity risks.

Cash Flow

The cash flow statement highlights challenges with free cash flow, remaining negative in the TTM at -135 million. The free cash flow growth rate is negative, and the operating cash flow to net income ratio is 0.37, indicating weak cash generation relative to net income. The negative free cash flow to net income ratio points to inefficiencies in cash utilization.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.43B	2.51B	2.26B	5.57B	16.36B	7.24B
Gross Profit	1.29B	265.32M	64.32M	953.38M	11.10B	2.85B
EBITDA	426.43M	266.09M	-544.66M	711.00M	10.35B	2.45B
Net Income	98.60M	-18.27M	-878.61M	275.73M	7.76B	1.78B
Balance Sheet
Total Assets	6.38B	6.96B	7.06B	8.12B	9.78B	8.71B
Cash, Cash Equivalents and Short-Term Investments	527.75M	933.23M	942.82M	946.75M	2.51B	2.88B
Total Debt	1.01B	422.09M	581.85M	417.07M	482.38M	551.65M
Total Liabilities	1.65B	1.12B	1.14B	1.32B	2.56B	2.52B
Stockholders Equity	4.70B	5.81B	5.89B	6.75B	7.17B	6.17B
Cash Flow
Free Cash Flow	-91.81M	-122.54M	-244.10M	-774.72M	6.49B	2.64B
Operating Cash Flow	90.67M	20.70M	121.04M	178.81M	7.83B	3.46B
Investing Cash Flow	549.37M	247.46M	-383.26M	132.42M	-1.25B	-2.37B
Financing Cash Flow	-703.79M	-181.66M	94.75M	-740.35M	-6.90B	-42.12M

Top Glove Bhd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.47
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TGLVY, the sentiment is Negative. The current price of 0.47 is below the 20-day moving average (MA) of 0.55, below the 50-day MA of 0.61, and below the 200-day MA of 0.82, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 29.07 is Positive, neither overbought nor oversold. The STOCH value of 18.03 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TGLVY.

Top Glove Bhd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATR	72 Outperform	8.86B	23.19	14.50%	1.34%	1.51%	21.70%
BDX	70 Outperform	53.61B	33.63	6.30%	2.22%	7.86%	14.24%
COO	67 Neutral	13.55B	33.56	4.88%	―	6.35%	12.94%
BAX	54 Neutral	11.82B	-86.70	-9.32%	2.95%	-27.41%	67.01%
ICUI	53 Neutral	3.25B	-86.48	-1.75%	―	2.95%	47.92%
TGLVY	44 Neutral	$1.11B	61.58	1.46%	―	68.51%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%