SGX:PA3

Stock Analysis Report

Executive Summary

TA Corporation Ltd, an investment holding company, operates in the property and construction business.

Risk Analysis

Earnings have declined by -35.31% per year over past 5 years

Has less than 1 year of cash runway

Currently unprofitable and not forecast to become profitable over the next 3 years

Shareholders have been diluted in the past year

+ 1 more risk


Snowflake Analysis

Imperfect balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: PA3 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

PA3

-1.6%

SG Construction

-1.5%

SG Market


1 Year Return

-25.5%

PA3

-10.3%

SG Construction

0.6%

SG Market

Return vs Industry: PA3 underperformed the SG Construction industry which returned -7.1% over the past year.

Return vs Market: PA3 underperformed the SG Market which returned 2.2% over the past year.


Shareholder returns

PA3IndustryMarket
7 Day0%-1.6%-1.5%
30 Day-6.9%1.7%0.6%
90 Day-2.0%2.8%1.9%
1 Year-25.5%-25.5%-8.1%-10.3%4.7%0.6%
3 Year-31.2%-36.6%-14.6%-22.0%13.7%1.6%
5 Year-34.2%-43.8%-39.5%-48.8%11.4%-7.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.48x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate PA3's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate PA3's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: PA3 is unprofitable, so we can't compare its PE Ratio to the Construction industry average.

PE vs Market: PA3 is unprofitable, so we can't compare its PE Ratio to the SG market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate PA3's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: PA3 is good value based on its PB Ratio (0.5x) compared to the SG Construction industry average (0.6x).


Next Steps

Future Growth

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

11.7%

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 TA 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 TA performed over the past 5 years?

-35.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PA3 is currently unprofitable.

Growing Profit Margin: PA3 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PA3 is unprofitable, and losses have increased over the past 5 years at a rate of -35.3% per year.

Accelerating Growth: Unable to compare PA3's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: PA3 is unprofitable, making it difficult to compare its past year earnings growth to the Construction industry (-53.3%).


Return on Equity

High ROE: PA3 has a negative Return on Equity (-7.97%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is TA's financial position?


Financial Position Analysis

Short Term Liabilities: PA3's short term assets (SGD392.9M) exceed its short term liabilities (SGD315.3M).

Long Term Liabilities: PA3's short term assets (SGD392.9M) exceed its long term liabilities (SGD285.4M).


Debt to Equity History and Analysis

Debt Level: PA3's debt to equity ratio (240.9%) is considered high.

Reducing Debt: PA3's debt to equity ratio has increased from 136.5% to 240.9% over the past 5 years.


Balance Sheet

Inventory Level: PA3 has a high level of physical assets or inventory.

Debt Coverage by Assets: PA3's debt is covered by short term assets (assets are 1x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: PA3 has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: PA3 has less than a year of cash runway if free cash flow continues to reduce at historical rates of -63.4% each year


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%2.5%markettop25%5.5%industryaverage3.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate PA3's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate PA3's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if PA3's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PA3's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: PA3 is not paying a notable dividend for the SG market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PA3's dividend in 3 years as they are not forecast to pay a notable one for the SG market.


Next Steps

Management

What is the CEO of TA's salary, the management and board of directors tenure and is there insider trading?

5.2yrs

Average board tenure


CEO

Tiam Neo (56yo)

0yrs

Tenure

0

Mr. Tiam Boon Neo, PBM serves as the Chief Executive Officer of TA Corporation Ltd and has been its Executive Director since March 7, 2011. Mr. Neo has been employed with TA since 1996 and has over 15 year ...


Board Age and Tenure

5.2yrs

Average Tenure

61.5yo

Average Age

Experienced Board: PA3's board of directors are considered experienced (5.2 years average tenure).


Insider Trading

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 been diluted in the past year, with total shares outstanding growing by 2.4%.


Management Team

  • Soon Soo Foo (60yo)

    Company Secretary

    • Ming Choo Yap (60yo)

      CFO & Company Secretary

      • Tenure: 9.1yrs
    • Tiam Neo (56yo)

      CEO & Executive Director

      • Yew Seng Chow (63yo)

        Executive Director of Tiong Aik Construction

        • Yong Joo Goh (50yo)

          Chief Executive Officer of Aston Air Control

          • Kiam Teck Liong (67yo)

            Executive Chairman

            • Wendy Liong (36yo)

              Assistant General Manager of Business Development & Property

              • Kian Lee Neo

                Executive Officer

                • Bing Hao Neo

                  Executive Officer


                  Board Members

                  • Boo Fong Heng (69yo)

                    Lead Independent Director

                    • Tenure: 2.1yrs
                  • Tiam Neo (56yo)

                    CEO & Executive Director

                    • Mervyn Goh (54yo)

                      Independent Director

                      • Tenure: 8.3yrs
                    • Kiam Teck Liong (67yo)

                      Executive Chairman

                      • Teng Pang

                        Independent Director

                        • Tenure: 1.1yrs

                      Company Information

                      TA Corporation Ltd's company bio, employee growth, exchange listings and data sources


                      Key Information

                      • Name: TA Corporation Ltd
                      • Ticker: PA3
                      • Exchange: SGX
                      • Founded: 1972
                      • Industry: Construction and Engineering
                      • Sector: Capital Goods
                      • Market Cap: S$77.192m
                      • Shares outstanding: 518.07m
                      • Website: https://www.tiongaik.com.sg

                      Location

                      • TA Corporation Ltd
                      • No. 03-03 New World Centre
                      • No. 1 Jalan Berseh
                      • Singapore
                      • 209037
                      • Singapore

                      Listings

                      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
                      PA3SGX (Singapore Exchange)YesOrdinary SharesSGSGDNov 2011

                      Biography

                      TA Corporation Ltd, an investment holding company, operates in the property and construction business. It provides various construction services that cover structural, architectural, mechanical, and electrical works, as well as interior fitting-out works, external works, and landscaping activities. The company also designs, installs, and maintains air conditioning and mechanical ventilation systems; offers general engineering services, and concrete precast components; and sells construction materials. In addition, it engages in the fabrication of metal frameworks; erection of building structural steels; leasing of construction machinery; and provision of training and testing services for construction workers. Further, the company engages in the development of residential and commercial projects; and provision of project management services. Additionally, it is involved in the rental or/and management of investment properties, including workers’ dormitories, commercial units, and industrial properties; and sale and distribution of petroleum based lubricant products, automotive tires, and commercial vehicles. The company was founded in 1972 and is based in Singapore. 


                      Company Analysis and Financial Data Status

                      All financial data provided by Standard & Poor's Capital IQ.
                      DataLast Updated (UTC time)
                      Company Analysis2020/01/24 13:02
                      End of Day Share Price2020/01/16 00:00
                      Earnings2019/09/30
                      Annual Earnings2018/12/31


                      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.