SGX:564

Stock Analysis Report

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Executive Summary

Spindex Industries Limited, together with its subsidiaries, engages in the manufacture, import, export, and trade of mechanical, electrical, electronic, and precision machine parts, as well as other engineering materials.


Snowflake Analysis

Excellent balance sheet and good value.

Share Price & News

How has Spindex Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 564's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

564

2.7%

SG Machinery

2.4%

SG Market


1 Year Return

-5.9%

564

-29.5%

SG Machinery

-19.1%

SG Market

Return vs Industry: 564 exceeded the SG Machinery industry which returned -31.3% over the past year.

Return vs Market: 564 exceeded the SG Market which returned -19.9% over the past year.


Shareholder returns

564IndustryMarket
7 Day0%2.7%2.4%
30 Day6.7%-1.8%-1.6%
90 Day-13.0%-11.9%-14.9%
1 Year-2.6%-5.9%-27.7%-29.5%-15.9%-19.1%
3 Year-6.5%-14.9%-35.7%-40.1%-15.5%-24.7%
5 Year72.5%45.5%-45.4%-51.5%-10.8%-26.0%

Price Volatility Vs. Market

How volatile is Spindex Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Spindex Industries undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 564 (SGD0.8) is trading below our estimate of fair value (SGD3.81)

Significantly Below Fair Value: 564 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 564 is good value based on its PE Ratio (6.4x) compared to the Machinery industry average (9.2x).

PE vs Market: 564 is good value based on its PE Ratio (6.4x) compared to the SG market (11.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 564's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 564 is overvalued based on its PB Ratio (0.8x) compared to the SG Machinery industry average (0.5x).


Next Steps

Future Growth

How is Spindex Industries forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

21.4%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Spindex Industries has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Spindex Industries performed over the past 5 years?

6.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 564 has high quality earnings.

Growing Profit Margin: 564's current net profit margins (9.1%) are lower than last year (10.7%).


Past Earnings Growth Analysis

Earnings Trend: 564's earnings have grown by 6.8% per year over the past 5 years.

Accelerating Growth: 564's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 564 had negative earnings growth (-14.1%) over the past year, making it difficult to compare to the Machinery industry average (10.6%).


Return on Equity

High ROE: 564's Return on Equity (11.9%) is considered low.


Next Steps

Financial Health

How is Spindex Industries's financial position?


Financial Position Analysis

Short Term Liabilities: 564's short term assets (SGD99.5M) exceed its short term liabilities (SGD40.3M).

Long Term Liabilities: 564's short term assets (SGD99.5M) exceed its long term liabilities (SGD5.0M).


Debt to Equity History and Analysis

Debt Level: 564's debt to equity ratio (0.4%) is considered satisfactory.

Reducing Debt: 564's debt to equity ratio has increased from 0.4% to 0.4% over the past 5 years.

Debt Coverage: 564's debt is well covered by operating cash flow (4600.8%).

Interest Coverage: 564 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Spindex Industries's current dividend yield, its reliability and sustainability?

4.13%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 564's dividend (4.13%) is higher than the bottom 25% of dividend payers in the SG market (2.7%).

High Dividend: 564's dividend (4.13%) is low compared to the top 25% of dividend payers in the SG market (6.52%).


Stability and Growth of Payments

Stable Dividend: 564's dividend payments have been volatile in the past 10 years.

Growing Dividend: 564's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26.5%), 564's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

10.1yrs

Average board tenure


CEO

Nicholas Tan (39yo)

6.92yrs

Tenure

S$693,000

Compensation

Mr. Heok Ting Tan, also known as Nicholas, has been the Managing Director at Spindex Industries Ltd. since July 1, 2013. Mr. Tan served as the Group Marketing Manager of Spindex Industries Ltd. since 2008 ...


CEO Compensation Analysis

Compensation vs Market: Nicholas's total compensation ($USD0.00) is below average for companies of similar size in the SG market ($USD361.98K).

Compensation vs Earnings: Insufficient data to compare Nicholas's compensation with company performance.


Board Members

NamePositionTenureCompensationOwnership
Choo Pie Tan
Executive Chairman30.92yrsS$749.00kno data
Heok Ting Tan
MD & Executive Director6.92yrsS$693.00kno data
Meng Wah Chan
Lead Independent Director0.67yrS$52.00kno data
Chang Rong Chen
Non-Executive Director15.42yrsS$124.00kno data
Boon Heng Tan
Independent Director2.75yrsno datano data

10.1yrs

Average Tenure

65yo

Average Age

Experienced Board: 564's board of directors are seasoned and experienced ( 10.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Spindex Industries Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Spindex Industries Limited
  • Ticker: 564
  • Exchange: SGX
  • Founded: 1981
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: S$92.292m
  • Shares outstanding: 115.37m
  • Website: https://www.spindex.com.sg

Location

  • Spindex Industries Limited
  • No. 03-16, 8@TradeHub 21
  • 8 Boon Lay Way
  • Singapore
  • 609964
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
564SGX (Singapore Exchange)YesOrdinary SharesSGSGDNov 1998

Biography

Spindex Industries Limited, together with its subsidiaries, engages in the manufacture, import, export, and trade of mechanical, electrical, electronic, and precision machine parts, as well as other engineering materials. It provides printer shaft products, such as inkjet printer, laser printer, digital scanner, and 3D and craft printer shafts; steering shaft systems, throttle shafts, powertrain and transmission OCVs, and sensor systems for automotive applications; and industrial and power tools for a range of products, such as industrial outdoor transmission products, industrial impact hammers, industrial drills, and industrial angle grinders. The company also offers agitator shafts, input shafts, spin tubes, steam shafts, motor shafts, and eccentric pins; and components for washing machines. It has operations in the People’s Republic of China, Singapore and other ASEAN countries, the United States, Europe, and internationally. The company was founded in 1981 and is headquartered in Singapore. Spindex Industries Limited is a subsidiary of Uob Kay Hian Private Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/01 12:43
End of Day Share Price2020/06/01 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.