SGX:S51

Stock Analysis Report

Executive Summary

Sembcorp Marine Ltd, an investment holding company, provides offshore and marine engineering solutions worldwide.

Snowflake

Fundamentals

Reasonable growth potential with worrying balance sheet.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

5.7%

SGX:S51

-0.6%

SG Machinery

-0.1%

SG Market


1 Year Return

-25.0%

SGX:S51

-12.2%

SG Machinery

-2.8%

SG Market

S51 underperformed the Machinery industry which returned -12.2% over the past year.

S51 underperformed the Market in Singapore which returned -2.8% over the past year.


Share holder returns

S51IndustryMarket
7 Day5.7%-0.6%-0.1%
30 Day-10.4%-21.5%-6.0%
90 Day-12.2%-16.3%-0.8%
1 Year-25.0%-25.0%-10.2%-12.2%1.0%-2.8%
3 Year-0.7%-2.3%7.4%0.5%15.1%2.9%
5 Year-64.4%-67.2%-41.8%-48.2%7.7%-10.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Sembcorp Marine undervalued based on future cash flows and its price relative to the stock market?

1.17x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Sembcorp Marine's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Sembcorp Marine's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Sembcorp Marine is loss making, we can't compare its value to the SG Machinery industry average.

Sembcorp Marine is loss making, we can't compare the value of its earnings to the Singapore market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Sembcorp Marine, we can't assess if its growth is good value.


Price Based on Value of Assets

Sembcorp Marine is overvalued based on assets compared to the SG Machinery industry average.


Next Steps

Future Growth

How is Sembcorp Marine expected to perform in the next 1 to 3 years based on estimates from 17 analysts?

116.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Sembcorp Marine's revenue is expected to grow by 6% yearly, however this is not considered high growth (20% yearly).

Sembcorp Marine's earnings are expected to grow significantly at over 20% yearly.

Sembcorp Marine's revenue growth is expected to exceed the Singapore market average.

Sembcorp Marine's earnings growth is expected to exceed the Singapore market average.

Sembcorp Marine's earnings growth is expected to exceed the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

Sembcorp Marine is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Sembcorp Marine performed over the past 5 years?

-35.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Sembcorp Marine does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Sembcorp Marine's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Sembcorp Marine's 1-year growth to the SG Machinery industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Sembcorp Marine has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

Sembcorp Marine used its assets less efficiently than the SG Machinery industry average last year based on Return on Assets.


Return on Capital Employed

It is difficult to establish if Sembcorp Marine improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Sembcorp Marine's financial position?


Financial Position Analysis

Sembcorp Marine's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Sembcorp Marine's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Sembcorp Marine's level of debt (175.6%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (32.7% vs 175.6% today).

Debt is not well covered by operating cash flow (4.3%, less than 20% of total debt).

Sembcorp Marine is making a loss, therefore interest payments are not well covered by earnings.


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.7x debt.


Next Steps

Dividend

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

0.62%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Unable to evaluate Sembcorp Marine's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Sembcorp Marine's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Sembcorp Marine has not reported any payouts.

Unable to verify if Sembcorp Marine's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Sembcorp Marine has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Sembcorp Marine's dividends in 3 years as they are not expected to pay a notable one for Singapore.


Next Steps

Management

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

4.2yrs

Average management tenure


CEO

Weng Sun Wong (57yo)

10.3yrs

Tenure

S$2,667,000

Compensation

Mr. Wong Weng Sun serves as Chairman and Managing Director at Jurong Shipyard Pte Ltd. Mr. Wong serves as Chief Executive Officer at SembCorp Marine Ltd since May 01, 2009 and has been its Group President  ...


CEO Compensation Analysis

Weng Sun's remuneration is higher than average for companies of similar size in Singapore.

Weng Sun's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.2yrs

Average Tenure

The tenure for the Sembcorp Marine management team is about average.


Board Age and Tenure

4.8yrs

Average Tenure

65yo

Average Age

The tenure for the Sembcorp Marine board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellS$53,35526 Oct 18
Fullerton Fund Management Company Ltd.
EntityCompany
Shares28,800
Max PriceS$1.85

Ownership Breakdown


Management Team

  • Weng Sun Wong (57yo)

    CEO, President & Executive Director

    • Tenure: 10.3yrs
    • Compensation: S$2.67m
  • Poh Kwee Ong

    Chief Operating Officer

    • Tenure: 4.2yrs
    • Compensation: S$779.00k
  • Yah Tan

    Head of Legal & Corporate Secretariat and Secretary

    • Tenure: 0.0yrs
  • Cheng Tan

    Chief Financial Officer

    • Tenure: 13.4yrs
    • Compensation: S$615.00k
  • Zijian Wang

    Head of Singapore Yard Operations

    • Tenure: 0.0yrs
    • Compensation: S$1.05m
  • Jessie Lau

    Head of Administration

    • Tenure: 0.0yrs
  • San Chua

    Chief Human Resource Officer

    • Tenure: 0.0yrs
    • Compensation: S$883.00k
  • Lisa Lee

    Head of Investor Relations

    • Tenure: 0.0yrs
  • William Gu

    Senior VP and Head of Rigs & Floaters

    • Tenure: 4.2yrs
    • Compensation: S$1.02m
  • William Goh

    Director of Group Finance

    • Tenure: 2.3yrs
    • Compensation: S$961.00k

Board Members

  • Neil McGregor (64yo)

    Non-Executive and Non-Independent Director

    • Tenure: 2.3yrs
    • Compensation: S$145.00k
  • Weng Sun Wong (57yo)

    CEO, President & Executive Director

    • Tenure: 10.3yrs
    • Compensation: S$2.67m
  • Eric Ang (65yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: S$203.00k
  • William Tan (67yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: S$215.00k
  • Bob Tan (67yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: S$251.00k
  • Patrick Daniel (65yo)

    Non-Executive Independent Director

    • Tenure: 1.3yrs
    • Compensation: S$111.00k
  • Ron Foo (72yo)

    Non Executive & Independent Director

    • Tenure: 13.2yrs
    • Compensation: S$191.00k
  • Chiap Khiong Koh (52yo)

    Non-Executive & Non-Independent Director

    • Tenure: 8.3yrs
    • Compensation: S$173.00k
  • Mohd Bin Marican (67yo)

    Chairman

    • Tenure: 5.3yrs
    • Compensation: S$540.00k
  • Gina Lee-Wan (62yo)

    Non Executive & Independent Director

    • Tenure: 4.3yrs
    • Compensation: S$173.00k

Company Information

Sembcorp Marine Ltd's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sembcorp Marine Ltd
  • Ticker: S51
  • Exchange: SGX
  • Founded: 1963
  • Industry: Construction Machinery and Heavy Trucks
  • Sector: Capital Goods
  • Market Cap: S$2.800b
  • Shares outstanding: 2.09b
  • Website: https://www.sembmarine.com

Number of Employees


Location

  • Sembcorp Marine Ltd
  • 29 Tanjong Kling Road
  • Singapore
  • 628054
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SMBM.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
S51SGX (Singapore Exchange)YesOrdinary SharesSGSGDJan 1992
S8NDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
SMBM.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDNov 2008

Biography

Sembcorp Marine Ltd, an investment holding company, provides offshore and marine engineering solutions worldwide. The company engages in the turnkey design, engineering, procurement, construction, and comm ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/22 12:39
End of Day Share Price2019/08/22 00:00
Earnings2019/06/30
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.