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S63

Singapore Technologies EngineeringSGX:S63 Stock Report

Market Cap

S$12.2b

7D

0.5%

1Y

8.9%

Updated

17 Oct, 2021

Data

Company Financials +
S63 fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance4/6
Financial Health4/6
Dividends4/6

S63 Overview

Singapore Technologies Engineering Ltd operates as a technology, defense, and engineering company in Asia, Europe, the Middle East, and the United States.

Singapore Technologies Engineering Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Singapore Technologies Engineering
Historical stock prices
Current Share PriceS$3.91
52 Week HighS$3.45
52 Week LowS$4.10
Beta0.62
1 Month Change2.90%
3 Month Change-0.51%
1 Year Change8.91%
3 Year Change14.33%
5 Year Change23.73%
Change since IPO215.32%

Recent News & Updates

Oct 07
Singapore Technologies Engineering (SGX:S63) Seems To Use Debt Quite Sensibly

Singapore Technologies Engineering (SGX:S63) Seems To Use Debt Quite Sensibly

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' When we think about how risky a company...

Aug 14
Singapore Technologies Engineering (SGX:S63) Will Pay A Dividend Of S$0.05

Singapore Technologies Engineering (SGX:S63) Will Pay A Dividend Of S$0.05

Singapore Technologies Engineering Ltd's ( SGX:S63 ) investors are due to receive a payment of S$0.05 per share on 31st...

Jul 17
Is Singapore Technologies Engineering Ltd (SGX:S63) Trading At A 34% Discount?

Is Singapore Technologies Engineering Ltd (SGX:S63) Trading At A 34% Discount?

Today we will run through one way of estimating the intrinsic value of Singapore Technologies Engineering Ltd ( SGX:S63...

Shareholder Returns

S63SG Aerospace & DefenseSG Market
7D0.5%2.6%2.0%
1Y8.9%14.6%21.6%

Return vs Industry: S63 underperformed the SG Aerospace & Defense industry which returned 14.6% over the past year.

Return vs Market: S63 underperformed the SG Market which returned 21.6% over the past year.

Price Volatility

Is S63's price volatile compared to industry and market?
S63 volatility
S63 Beta0.62
Industry Beta0.72
Market Beta1

Stable Share Price: S63 is less volatile than 75% of SG stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: S63's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
199723,103Vincent Chonghttps://www.stengg.com

Singapore Technologies Engineering Ltd operates as a technology, defense, and engineering company in Asia, Europe, the Middle East, and the United States. It offers technology and innovation to solve real-world problems through its portfolio of businesses across aerospace, smart city, defense, marine, and public security segments. It serves customers in the defense and commercial segments.

Singapore Technologies Engineering Fundamentals Summary

How do Singapore Technologies Engineering's earnings and revenue compare to its market cap?
S63 fundamental statistics
Market CapS$12.19b
Earnings (TTM)S$560.49m
Revenue (TTM)S$7.24b

21.7x

P/E Ratio

1.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
S63 income statement (TTM)
RevenueS$7.24b
Cost of RevenueS$5.67b
Gross ProfitS$1.56b
ExpensesS$1.00b
EarningsS$560.49m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.18
Gross Margin21.62%
Net Profit Margin7.74%
Debt/Equity Ratio80.5%

How did S63 perform over the long term?

See historical performance and comparison

Dividends

3.8%

Current Dividend Yield

83%

Payout Ratio

Valuation

Is Singapore Technologies Engineering undervalued compared to its fair value and its price relative to the market?

37.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: S63 (SGD3.91) is trading below our estimate of fair value (SGD6.28)

Significantly Below Fair Value: S63 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: S63 is good value based on its PE Ratio (21.7x) compared to the Asian Aerospace & Defense industry average (54.4x).

PE vs Market: S63 is poor value based on its PE Ratio (21.7x) compared to the SG market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: S63 is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: S63 is overvalued based on its PB Ratio (5.4x) compared to the XA Aerospace & Defense industry average (3.3x).


Future Growth

How is Singapore Technologies Engineering forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

7.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: S63's forecast earnings growth (7.4% per year) is above the savings rate (1.8%).

Earnings vs Market: S63's earnings (7.4% per year) are forecast to grow slower than the SG market (15.2% per year).

High Growth Earnings: S63's earnings are forecast to grow, but not significantly.

Revenue vs Market: S63's revenue (7.4% per year) is forecast to grow faster than the SG market (7.2% per year).

High Growth Revenue: S63's revenue (7.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: S63's Return on Equity is forecast to be high in 3 years time (24.5%)


Past Performance

How has Singapore Technologies Engineering performed over the past 5 years?

3.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: S63 has high quality earnings.

Growing Profit Margin: S63's current net profit margins (7.7%) are higher than last year (7.1%).


Past Earnings Growth Analysis

Earnings Trend: S63's earnings have grown by 3.5% per year over the past 5 years.

Accelerating Growth: S63's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: S63 had negative earnings growth (-1%) over the past year, making it difficult to compare to the Aerospace & Defense industry average (28.7%).


Return on Equity

High ROE: S63's Return on Equity (22.3%) is considered high.


Financial Health

How is Singapore Technologies Engineering's financial position?


Financial Position Analysis

Short Term Liabilities: S63's short term assets (SGD4.4B) exceed its short term liabilities (SGD3.9B).

Long Term Liabilities: S63's short term assets (SGD4.4B) exceed its long term liabilities (SGD3.0B).


Debt to Equity History and Analysis

Debt Level: S63's debt to equity ratio (80.5%) is considered high.

Reducing Debt: S63's debt to equity ratio has increased from 44.9% to 80.5% over the past 5 years.

Debt Coverage: S63's debt is well covered by operating cash flow (46.3%).

Interest Coverage: S63's interest payments on its debt are well covered by EBIT (12.2x coverage).


Balance Sheet


Dividend

What is Singapore Technologies Engineering current dividend yield, its reliability and sustainability?

3.84%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: S63's dividend (3.84%) is higher than the bottom 25% of dividend payers in the SG market (1.93%).

High Dividend: S63's dividend (3.84%) is low compared to the top 25% of dividend payers in the SG market (5.25%).


Stability and Growth of Payments

Stable Dividend: S63's dividend payments have been volatile in the past 10 years.

Growing Dividend: S63's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (83.4%), S63's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: S63's dividends in 3 years are forecast to be covered by earnings (76.6% payout ratio).


Next Steps

Management

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

4.3yrs

Average management tenure


CEO

Vincent Chong (52 yo)

5yrs

Tenure

S$3,743,684

Compensation

Mr. Sy Feng Chong, also known as Vincent, has been Group President and Chief Executive Officer at Singapore Technologies Engineering Ltd since 2021. He had been Chief Executive Officer and President at Sin...


CEO Compensation Analysis

Compensation vs Market: Vincent's total compensation ($USD2.78M) is about average for companies of similar size in the SG market ($USD3.24M).

Compensation vs Earnings: Vincent's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: S63's management team is considered experienced (4.3 years average tenure).


Board Members

Experienced Board: S63's board of directors are considered experienced (4.2 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Singapore Technologies Engineering Ltd's employee growth, exchange listings and data sources


Key Information

  • Name: Singapore Technologies Engineering Ltd
  • Ticker: S63
  • Exchange: SGX
  • Founded: 1997
  • Industry: Aerospace and Defense
  • Sector: Capital Goods
  • Market Cap: S$12.185b
  • Shares outstanding: 3.12b
  • Website: https://www.stengg.com

Number of Employees


Location

  • Singapore Technologies Engineering Ltd
  • No. 07-01, ST Engineering Hub
  • 1 Ang Mo Kio Electronics Park Road
  • Singapore
  • 567710
  • Singapore

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/17 11:03
End of Day Share Price2021/10/15 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.