Profitability has deteriorated significantly, with net margins falling to -16.0% in 2024Q4, reflecting an inability to scale operations efficiently against a $30.0M revenue base.
| Sales/Revenue | 134.34M | 120.7M | 90.34M | 148.05M | 63.51M | 25.17M |
| Revenue Growth % | - | 33.6% | -38.98% | 133.12% | 152.3% | - |
| Cost of Goods Sold | 253.31M | 106.72M | 84.1M | 130.2M | 54.83M | 22.01M |
| COGS % of Revenue | - | 88.42% | 93.09% | 87.94% | 86.33% | 87.44% |
| Gross Profit | 27.97M | 13.98M | 6.24M | 17.85M | 8.68M | 3.16M |
| Gross Margin % | 20.82% | 11.58% | 6.91% | 12.06% | 13.67% | 12.56% |
| Gross Profit Growth % | - | 123.92% | -65.03% | 105.58% | 174.74% | - |
| Operating Expenses | 10.86M | 16.26M | 11.85M | 6.7M | 3.42M | 788.7K |
| OpEx % of Revenue | - | 13.47% | 13.12% | 4.52% | 5.38% | 3.13% |
| Selling, General & Admin | 16.43M | 14.95M | 7.15M | 5.51M | 3.42M | 788.7K |
| SG&A % of Revenue | - | 12.38% | 7.91% | 3.72% | 5.38% | 3.13% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - |
| Other Operating Expenses | -2M | 1.31M | 4.7M | 1.18M | 0 | 0 |
| Operating Income | 5.65M | -2.28M | -5.61M | 11.15M | 5.27M | 2.37M |
| Operating Margin % | 4.2% | -1.89% | -6.21% | 7.53% | 8.29% | 9.42% |
| Operating Income Growth % | - | 59.28% | -150.27% | 111.8% | 122.01% | - |
| EBITDA | 6.93M | 337.6K | -4.84M | 11.48M | 5.68M | 2.73M |
| EBITDA Margin % | 5.16% | 0.28% | -5.35% | 7.75% | 8.95% | 10.86% |
| EBITDA Growth % | - | 106.98% | -142.13% | 102% | 107.88% | - |
| D&A (Non-Cash Add-back) | 1.28M | 2.62M | 771.98K | 323.18K | 415.64K | 361.16K |
| EBIT | 7.66M | -281.51K | -3.58M | 11.03M | 5.52M | 2.65M |
| Net Interest Income | -4.16M | -5.13M | -1.96M | -1.45M | -328K | -5.43K |
| Interest Income | 149.86K | 239.94K | 102.61K | 47.26K | 1.34K | 435 |
| Interest Expense | 4.06M | 5.37M | 2.07M | 1.5M | 329.34K | 5.86K |
| Other Income/Expense | -1.99M | -3.37M | -42.72K | -1.36M | -75.18K | 271.14K |
| Pretax Income | 3.66M | -5.66M | -5.65M | 9.79M | 5.19M | 2.64M |
| Pretax Margin % | 2.72% | -4.69% | -6.25% | 6.61% | 8.17% | 10.5% |
| Income Tax | 2.28M | 2.11M | -500.44K | 2.65M | 1.25M | 724.88K |
| Effective Tax Rate % | 62.27% | -37.26% | 8.86% | 27.02% | 24.04% | 27.42% |
| Net Income | 1.38M | -7.76M | -5.15M | 7.15M | 3.94M | 1.92M |
| Net Margin % | 1.03% | -6.43% | -5.7% | 4.83% | 6.21% | 7.62% |
| Net Income Growth % | - | -50.74% | -172.06% | 81.24% | 105.56% | - |
| Net Income (Continuing) | 1.38M | -7.76M | -5.15M | 7.15M | 3.94M | 1.92M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 8.16 | -23.48 | -29.71 | 42.24 | 23.21 | 2.00 |
| EPS Growth % | - | 20.97% | -170.34% | 81.99% | 1060.5% | - |
| EPS (Basic) | - | -23.48 | -29.71 | 42.24 | 23.21 | 2.00 |
| Diluted Shares Outstanding | 169.19K | 330.34K | 169.19K | 169.19K | 169.19K | 169.19K |
| Basic Shares Outstanding | 169.19K | 312.84K | 169.19K | 169.19K | 169.19K | 169.19K |
| Dividend Payout Ratio | - | - | - | - | - | - |
High leverage and insolvency
As indicated by the most recent quarterly data, FGL's revenue trajectory appears highly inconsistent, with a sharp 24.5% year-over-year contraction in 2024Q4 following previous periods of expansion, suggesting that the company's reliance on project-based EPCC contracts creates significant lumpiness in its top-line performance.
The lack of a consistent growth trend implies that the company struggles to maintain a steady pipeline of project wins, which is critical for an EPC firm. Investors should monitor whether this volatility is a result of project timing or a broader slowdown in the Malaysian solar market.
Based on the reported financial statements, FGL's profitability is severely constrained, with net margins deteriorating to -16.0% in 2024Q4, highlighting a structural inability to convert project volume into sustainable bottom-line earnings while operating within a highly competitive and low-barrier industrial solar construction environment.
The wide variance in gross margins, ranging from 6.8% to 40.5% across the provided periods, suggests that the company lacks pricing power and is highly susceptible to fluctuations in component costs. This margin instability indicates that the business model may be fundamentally under-earning relative to its operational risks.
According to the latest filings, FGL exhibits a concerning lack of operating leverage, as evidenced by the 2024Q4 operating margin of -17.8%, which suggests that fixed administrative and personnel costs are not scaling efficiently with the company's current revenue base and project execution capacity.
The inability to achieve positive operating income during periods of revenue generation points to an bloated cost structure that fails to align with the thin margins inherent in the EPC sector. This suggests that management may be prioritizing market share over the fundamental requirement of covering fixed overheads.
Data from recent financial disclosures reveals a precarious financial position, characterized by a 4.24 Debt/Equity ratio and persistent net losses, which suggests that the company's reliance on external financing to fund operations may be unsustainable in the current interest rate environment for Malaysian industrial firms.
Short-sellers would likely focus on the disconnect between the company's cash balance and its inability to generate positive cash flow from operations. The high leverage ratio warrants further investigation into whether the company is utilizing aggressive debt financing to mask underlying liquidity constraints and operational inefficiencies.
Quick answers to the most common questions about buying FGL stock.
For fiscal year 2025, Founder Group Limited Ordinary Shares (FGL) reported total revenue of $120.7M. This represents a 379.5% increase compared to $25.2M in 2021.
Founder Group Limited Ordinary Shares (FGL) reported a net loss of $7.8M for the fiscal year ending 2025.
Founder Group Limited Ordinary Shares (FGL) reported an operating income of $-2.3M, resulting in an operating profit margin of -1.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Founder Group Limited Ordinary Shares (FGL) generated $14.0M in gross profit for the year, representing a gross profit margin of 11.6%. This demonstrates the company's core pricing power and production efficiency.