Buffett Brain · Research note
Score updated 29 Oct 2026
5183.KL· Materials
PETRONAS Chemicals Group Berhad
PETRONAS Chemicals Group Berhad's negative margins and ROIC signal a lack of competitive moat and financial health.
Buffett fit
Weak fit
Owner
0
Durability
9
Management
47
Price
56
Score updated 29 Oct 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Materials stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
If we owned 100% of PETRONAS Chemicals, we'd be concerned about its long-term viability given the negative of -4.99% and a of -2.84%.
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The 10-year outlook for PETRONAS Chemicals is challenging. The company's has averaged only 4.01% over five years, and it has not been profitable consistently.
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The management's has not resulted in shareholder value creation, as evidenced by the negative earnings yield of -4.62% and no significant or dividend yield.
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With a of -21.7 and an yield of 2.3%, PETRONAS Chemicals is not priced attractively.
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- The full reasoning behind all four pillars
- The 5-year price target and the return it implies
- What would change the call
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
3- 1Debt/Equity ratio is low at 0.15, indicating conservative .
- 2Current ratio of 1.44 suggests adequate short-term liquidity.
- 3Net debt/EBITDA is -4.42, indicating a net cash position.
Concerns
5- 1 (5y avg) of 4.01% is well below the sector top-quintile cutoff of 12.3%.
- 2 of 10.66% is significantly below the sector top-quintile cutoff of 47.3%.
- 3 of -4.99% indicates the company is not generating operational profits.
- 4Negative earnings yield of -4.62% suggests the company is not profitable.
Price history
$4.57-44.9%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
PETRONAS Chemicals Group Berhad produces and sells chemicals, operating through segments like Olefins and Derivatives, Fertilisers and Methanol, and Specialties. However, with a of just 10.66% and an of -4.99%, the business struggles to generate profit efficiently. The company's revenue has declined at a CAGR of -1.73% over the past five years, indicating challenges in maintaining sales momentum.
What other investors would say
The same company, judged by three other documented playbooks.
Keep researching
Similar companies in Materials
Questions about PETRONAS Chemicals Group Berhad
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