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Singapore Technologies Engineering

SGX:S63
Snowflake Description

Reasonable growth potential with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
S63
SGX
SGD13B
Market Cap
  1. Home
  2. SG
  3. Capital Goods
Company description

Singapore Technologies Engineering Ltd, an investment holding company, operates as a technology, defense, and engineering company worldwide. The last earnings update was 4 days ago. More info.


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S63 Share Price and Events
7 Day Returns
-4.3%
SGX:S63
-2.4%
Asia Aerospace & Defense
-1.3%
SG Market
1 Year Returns
23.9%
SGX:S63
-6%
Asia Aerospace & Defense
-3.3%
SG Market
S63 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Singapore Technologies Engineering (S63) -4.3% -5.2% 3.6% 23.9% 23.2% 10.7%
Asia Aerospace & Defense -2.4% -6.2% 0.4% -6% -12.4% -13.2%
SG Market -1.3% -6.7% -2.5% -3.3% 2.9% -10.4%
1 Year Return vs Industry and Market
  • S63 outperformed the Aerospace & Defense industry which returned -6% over the past year.
  • S63 outperformed the Market in Singapore which returned -3.3% over the past year.
Price Volatility
S63
Industry
5yr Volatility vs Market
Related Companies

S63 Value

 Is Singapore Technologies Engineering undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Singapore Technologies Engineering to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Singapore Technologies Engineering.

SGX:S63 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 14 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.1%
Perpetual Growth Rate 10-Year SG Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SGX:S63
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year SG Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
Aerospace & Defense Unlevered Beta Simply Wall St/ S&P Global 0.87
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.866 (1 + (1- 17%) (13.01%))
0.973
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.97
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.3% + (0.973 * 5.96%)
8.1%

Discounted Cash Flow Calculation for SGX:S63 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Singapore Technologies Engineering is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

SGX:S63 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (SGD, Millions) Source Present Value
Discounted (@ 8.1%)
2020 603.46 Analyst x8 558.23
2021 713.09 Analyst x8 610.22
2022 802.60 Analyst x2 635.35
2023 885.45 Analyst x2 648.40
2024 952.45 Est @ 7.57% 645.20
2025 1,009.48 Est @ 5.99% 632.59
2026 1,058.76 Est @ 4.88% 613.75
2027 1,102.26 Est @ 4.11% 591.08
2028 1,141.58 Est @ 3.57% 566.29
2029 1,177.97 Est @ 3.19% 540.55
Present value of next 10 years cash flows SGD6,041.67
SGX:S63 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= SGD1,177.97 × (1 + 2.3%) ÷ (8.1% – 2.3%)
SGD20,784.88
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= SGD20,784.88 ÷ (1 + 8.1%)10
SGD9,537.90
SGX:S63 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= SGD6,041.67 + SGD9,537.90
SGD15,579.57
Equity Value per Share
(SGD)
= Total value / Shares Outstanding
= SGD15,579.57 / 3,119.81
SGD4.99
SGX:S63 Discount to Share Price
Calculation Result
Value per share (SGD) From above. SGD4.99
Current discount Discount to share price of SGD4.04
= -1 x (SGD4.04 - SGD4.99) / SGD4.99
19.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Singapore Technologies Engineering is available for.
Intrinsic value
19%
Share price is SGD4.04 vs Future cash flow value of SGD4.99
Current Discount Checks
For Singapore Technologies Engineering to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Singapore Technologies Engineering's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Singapore Technologies Engineering's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Singapore Technologies Engineering's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Singapore Technologies Engineering's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SGX:S63 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in SGD SGD0.17
SGX:S63 Share Price ** SGX (2019-08-16) in SGD SGD4.04
Asia Aerospace & Defense Industry PE Ratio Median Figure of 10 Publicly-Listed Aerospace & Defense Companies 12.67x
Singapore Market PE Ratio Median Figure of 317 Publicly-Listed Companies 12.56x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Singapore Technologies Engineering.

SGX:S63 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SGX:S63 Share Price ÷ EPS (both in SGD)

= 4.04 ÷ 0.17

23.87x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Singapore Technologies Engineering is overvalued based on earnings compared to the Asia Aerospace & Defense industry average.
  • Singapore Technologies Engineering is overvalued based on earnings compared to the Singapore market.
Price based on expected Growth
Does Singapore Technologies Engineering's expected growth come at a high price?
Raw Data
SGX:S63 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 23.87x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts
10.9%per year
Global Aerospace & Defense Industry PEG Ratio Median Figure of 69 Publicly-Listed Aerospace & Defense Companies 1.87x
Singapore Market PEG Ratio Median Figure of 120 Publicly-Listed Companies 1.59x

*Line of best fit is calculated by linear regression .

SGX:S63 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 23.87x ÷ 10.9%

2.19x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Singapore Technologies Engineering is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Singapore Technologies Engineering's assets?
Raw Data
SGX:S63 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in SGD SGD0.69
SGX:S63 Share Price * SGX (2019-08-16) in SGD SGD4.04
Asia Aerospace & Defense Industry PB Ratio Median Figure of 11 Publicly-Listed Aerospace & Defense Companies 1.79x
Singapore Market PB Ratio Median Figure of 429 Publicly-Listed Companies 0.7x
SGX:S63 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SGX:S63 Share Price ÷ Book Value per Share (both in SGD)

= 4.04 ÷ 0.69

5.87x

* Primary Listing of Singapore Technologies Engineering.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Singapore Technologies Engineering is overvalued based on assets compared to the Asia Aerospace & Defense industry average.
X
Value checks
We assess Singapore Technologies Engineering's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Aerospace & Defense industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Aerospace & Defense industry average (and greater than 0)? (1 check)
  5. Singapore Technologies Engineering has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

S63 Future Performance

 How is Singapore Technologies Engineering expected to perform in the next 1 to 3 years based on estimates from 14 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
10.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Singapore Technologies Engineering expected to grow at an attractive rate?
  • Singapore Technologies Engineering's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
  • Singapore Technologies Engineering's earnings growth is expected to exceed the Singapore market average.
  • Singapore Technologies Engineering's revenue growth is expected to exceed the Singapore market average.
Annual Growth Rates Comparison
Raw Data
SGX:S63 Future Growth Rates Data Sources
Data Point Source Value (per year)
SGX:S63 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts 10.9%
SGX:S63 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 14 Analysts 7.9%
Asia Aerospace & Defense Industry Earnings Growth Rate Market Cap Weighted Average 9.8%
Global Aerospace & Defense Industry Revenue Growth Rate Market Cap Weighted Average 5.3%
Singapore Market Earnings Growth Rate Market Cap Weighted Average 5.8%
Singapore Market Revenue Growth Rate Market Cap Weighted Average 5.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SGX:S63 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below
All numbers in SGD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SGX:S63 Future Estimates Data
Date (Data in SGD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 1,163
2022-12-31 1,096
2021-12-31 8,898 1,041 721 11
2020-12-31 8,390 923 663 14
2019-12-31 7,700 892 588 13
SGX:S63 Past Financials Data
Date (Data in SGD Millions) Revenue Cash Flow Net Income *
2019-06-30 6,912 670 528
2019-03-31 6,783 578 508
2018-12-31 6,698 639 494
2018-09-30 6,716 742 547
2018-06-30 6,601 807 531
2018-03-31 6,657 795 520
2017-12-31 6,521 764 503
2017-09-30 6,647 743 505
2017-06-30 6,651 804 454
2017-03-31 6,567 1,038 474
2016-12-31 6,684 759 485
2016-09-30 6,642 592 455

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Singapore Technologies Engineering's earnings are expected to grow by 10.9% yearly, however this is not considered high growth (20% yearly).
  • Singapore Technologies Engineering's revenue is expected to grow by 7.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SGX:S63 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below

All data from Singapore Technologies Engineering Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SGX:S63 Future Estimates Data
Date (Data in SGD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.23 0.27 0.21 10.00
2020-12-31 0.21 0.23 0.20 13.00
2019-12-31 0.19 0.20 0.18 12.00
SGX:S63 Past Financials Data
Date (Data in SGD Millions) EPS *
2019-06-30 0.17
2019-03-31 0.16
2018-12-31 0.16
2018-09-30 0.18
2018-06-30 0.17
2018-03-31 0.17
2017-12-31 0.16
2017-09-30 0.16
2017-06-30 0.15
2017-03-31 0.15
2016-12-31 0.16
2016-09-30 0.15

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Singapore Technologies Engineering is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Singapore Technologies Engineering's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Asia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Global market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Singapore Technologies Engineering has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

S63 Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Singapore Technologies Engineering's growth in the last year to its industry (Aerospace & Defense).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Singapore Technologies Engineering's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Singapore Technologies Engineering's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Singapore Technologies Engineering's 1-year earnings growth is negative, it can't be compared to the Asia Aerospace & Defense industry average.
Earnings and Revenue History
Singapore Technologies Engineering's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Singapore Technologies Engineering Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SGX:S63 Past Revenue, Cash Flow and Net Income Data
Date (Data in SGD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 6,911.58 528.33 733.66
2019-03-31 6,782.67 507.67 718.50
2018-12-31 6,697.93 494.24 710.05
2018-09-30 6,716.49 547.16 668.65
2018-06-30 6,601.23 531.14 652.92
2018-03-31 6,657.11 520.44 643.45
2017-12-31 6,521.06 502.63 643.53
2017-09-30 6,647.21 504.92 655.40
2017-06-30 6,650.86 453.74 662.61
2017-03-31 6,567.19 474.21 664.06
2016-12-31 6,683.74 484.51 658.24
2016-09-30 6,642.02 454.93 676.31
2016-06-30 6,528.97 511.54 678.75
2016-03-31 6,450.70 509.27 663.58
2015-12-31 6,335.02 529.04 648.57
2015-09-30 6,404.77 528.49 635.18
2015-06-30 6,457.71 516.53 621.80
2015-03-31 6,499.07 524.70 635.44
2014-12-31 6,539.43 531.95 648.00
2014-09-30 6,632.31 559.20 649.23
2014-06-30 6,629.27 569.31 653.83
2014-03-31 6,640.17 584.04 645.53
2013-12-31 6,633.15 580.83 642.24
2013-09-30 6,419.18 565.53 665.82
2013-06-30 6,410.95 580.57 671.98
2013-03-31 6,383.51 575.83 682.17
2012-12-31 6,379.87 576.18 678.01
2012-09-30 6,197.49 576.10 647.90

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Singapore Technologies Engineering has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Singapore Technologies Engineering used its assets less efficiently than the Asia Aerospace & Defense industry average last year based on Return on Assets.
  • Singapore Technologies Engineering has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Singapore Technologies Engineering's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Aerospace & Defense industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Singapore Technologies Engineering has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

S63 Health

 How is Singapore Technologies Engineering's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Singapore Technologies Engineering's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Singapore Technologies Engineering's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Singapore Technologies Engineering's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Singapore Technologies Engineering's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Singapore Technologies Engineering Company Filings, last reported 1 month ago.

SGX:S63 Past Debt and Equity Data
Date (Data in SGD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 2,430.90 1,639.38 321.74
2019-03-31 2,603.35 807.75 609.05
2018-12-31 2,534.61 481.06 414.82
2018-09-30 2,415.95 370.71 351.81
2018-06-30 2,428.37 1,019.04 1,166.44
2018-03-31 2,611.77 1,040.88 1,303.70
2017-12-31 2,496.34 1,099.43 997.97
2017-09-30 2,384.09 1,131.51 791.00
2017-06-30 2,393.71 1,027.46 809.54
2017-03-31 2,530.12 1,040.71 1,282.47
2016-12-31 2,444.20 1,061.49 1,092.52
2016-09-30 2,236.76 1,035.78 972.53
2016-06-30 2,285.46 1,026.99 972.33
2016-03-31 2,498.71 1,157.77 1,199.91
2015-12-31 2,260.93 1,173.80 1,127.09
2015-09-30 2,158.88 1,119.67 920.29
2015-06-30 2,115.11 1,040.78 1,092.25
2015-03-31 2,325.70 1,066.75 1,791.99
2014-12-31 2,264.61 999.96 1,604.50
2014-09-30 2,096.82 986.32 1,460.38
2014-06-30 2,131.83 965.11 1,613.64
2014-03-31 2,384.59 1,034.14 1,789.82
2013-12-31 2,259.91 1,356.05 2,075.02
2013-09-30 2,058.09 1,507.37 1,774.22
2013-06-30 1,986.46 1,508.33 1,710.76
2013-03-31 2,198.45 1,334.80 2,185.36
2012-12-31 2,012.58 1,280.95 1,742.94
2012-09-30 1,813.33 1,291.69 1,957.88
  • Singapore Technologies Engineering's level of debt (66.8%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (45.3% vs 66.8% today).
  • Debt is well covered by operating cash flow (41.2%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 37.5x coverage).
X
Financial health checks
We assess Singapore Technologies Engineering's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Singapore Technologies Engineering has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

S63 Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.71%
Current annual income from Singapore Technologies Engineering dividends. Estimated to be 3.96% next year.
If you bought SGD2,000 of Singapore Technologies Engineering shares you are expected to receive SGD74 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Singapore Technologies Engineering's pays a higher dividend yield than the bottom 25% of dividend payers in Singapore (2.66%).
  • Singapore Technologies Engineering's dividend is below the markets top 25% of dividend payers in Singapore (5.73%).
Upcoming dividend payment

Purchase Singapore Technologies Engineering before the 'Ex-dividend' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SGX:S63 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below
Asia Aerospace & Defense Industry Average Dividend Yield Market Cap Weighted Average of 8 Stocks 3.1%
Singapore Market Average Dividend Yield Market Cap Weighted Average of 273 Stocks 4.1%
Singapore Minimum Threshold Dividend Yield 10th Percentile 1.8%
Singapore Bottom 25% Dividend Yield 25th Percentile 2.7%
Singapore Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SGX:S63 Future Dividends Estimate Data
Date (Data in SGD) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.17 11.00
2020-12-31 0.16 13.00
2019-12-31 0.15 13.00
SGX:S63 Past Annualized Dividends Data
Date (Data in SGD) Dividend per share (annual) Avg. Yield (%)
2019-03-21 0.150 3.727
2019-02-20 0.150 4.005
2018-03-22 0.150 4.314
2018-02-22 0.150 4.366
2017-03-24 0.150 4.261
2017-02-16 0.150 4.100
2016-11-10 0.150 4.538
2016-08-12 0.150 4.638
2016-04-12 0.150 4.646
2016-02-25 0.150 4.787
2015-11-05 0.170 5.861
2015-08-13 0.170 5.528
2015-04-23 0.150 4.412
2014-08-12 0.160 4.546
2014-03-28 0.150 3.909
2013-08-13 0.168 4.249
2013-02-15 0.168 3.999
2012-11-07 0.155 4.115
2012-08-14 0.155 4.466
2012-02-23 0.155 4.976
2011-03-15 0.146 4.984
2011-02-15 0.146 4.526
2010-03-26 0.133 4.068
2010-02-18 0.133 4.175
2009-08-05 0.070 2.378
2009-03-11 0.158 6.443

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of Singapore Technologies Engineering's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.4x coverage).
X
Income/ dividend checks
We assess Singapore Technologies Engineering's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Singapore Technologies Engineering afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Singapore Technologies Engineering has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

S63 Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Vincent Chong
COMPENSATION SGD4,602,887
AGE 50
TENURE AS CEO 2.8 years
CEO Bio

Mr. Sy Feng Chong, also known as Vincent, has been Chief Executive Officer and President at Singapore Technologies Engineering Ltd since October 1, 2016. Mr. Chong served as Deputy Chief Executive Officer of Corporate Development at Singapore Technologies Engineering Ltd since December 2014 and its Executive Officer. He served as President of Strategic Plans & Business Development at ST Aerospace. Before joining the ST Engineering Group in April 2014, he served as Director of Asia Pacific Lubricants Sales at ExxonMobil Asia Pacific Private Limited, responsible for automotive and industrial lubricants business across more than 20 countries in the region. He spent 20 years with ExxonMobil, where he held various senior positions and served international postings in countries including Singapore, Japan, Hong Kong, United Kingdom and USA. He held a wide span of positions from refinery process engineering, product marketing, industrial and retail operations to strategic planning. Among his appointments was Global Director of Marine Fuels (located in Surrey, UK) where he was responsible for ExxonMobil’s business in more than 200 ports across the world. As Downstream Senior Advisor, Corporate Strategic Planning (located in Irving, Texas), Mr. Chong was involved in the development of ExxonMobil’s global business plans. He has been Director at Singapore Technologies Engineering Ltd since October 1, 2016 and JTC Corporation since April 01, 2017. He serves as Director at Vision Technologies Systems, Inc. since October 2016. Mr. Chong sits on the Government-convened Committee on the Future Economy, made up of 30 members responsible for developing economic strategies for Singapore's future. He holds a Bachelor in Mechanical Engineering (First Class) from the National University of Singapore. He has also attended executive leadership programs at the Thunderbird School of Global Management and the Columbia Business School. His professional experience has been global with postings in Hong Kong, Japan, the United Kingdom and the US. Vincent is a Board member of Jurong Town Corporation and he is also a member of the Ministry of Trade and Industry’s International Advisory Panel for Advanced Manufacturing & Engineering.

CEO Compensation
  • Vincent's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Vincent's remuneration is higher than average for companies of similar size in Singapore.
Management Team Tenure

Average tenure of the Singapore Technologies Engineering management team in years:

2.8
Average Tenure
  • The tenure for the Singapore Technologies Engineering management team is about average.
Management Team

Vincent Chong

TITLE
President
COMPENSATION
SGD5M
AGE
50
TENURE
2.8 yrs

Cedric Foo

TITLE
Chief Financial Officer
AGE
59
TENURE
2.1 yrs

Saik Hay Fong

TITLE
Chief Technology Officer and President of Advanced Engineering Centre

Bernard Chew

TITLE
Chief Information Officer

Lina Poa

TITLE
Head of Corporate Communications & Investor Relations

Meng Wai Low

TITLE
Senior Vice President of Legal

Jit Chek Lim

TITLE
Senior Vice President of Human Resource
TENURE
5.6 yrs

Bak Nguan Goh

TITLE
Chief Procurement Officer

Patrick Choy

TITLE
Executive Vice President of International Marketing

Steven Cheong

TITLE
Senior Vice President of Mergers & Acquisitions
Board of Directors Tenure

Average tenure and age of the Singapore Technologies Engineering board of directors in years:

4
Average Tenure
60.5
Average Age
  • The tenure for the Singapore Technologies Engineering board of directors is about average.
Board of Directors

Chong Seng Kwa

TITLE
Chairman
COMPENSATION
SGD750K
AGE
72
TENURE
6.3 yrs

Vincent Chong

TITLE
President
COMPENSATION
SGD5M
AGE
50
TENURE
2.8 yrs

John Coburn

TITLE
Non-Executive Chairman of VT Systems
AGE
77
TENURE
17.7 yrs

See Tiat Quek

TITLE
Non-Executive & Independent Director
COMPENSATION
SGD165K
AGE
65
TENURE
6.1 yrs

Gim Quek

TITLE
Non-Executive Director
COMPENSATION
SGD23K
AGE
61
TENURE
3 yrs

Swan Beh

TITLE
Non-Executive Independent Director
COMPENSATION
SGD11K
AGE
52
TENURE
4.9 yrs

Sim Lim

TITLE
Non-Executive Independent Director
COMPENSATION
SGD168K
AGE
60
TENURE
4.3 yrs

Ah Doo Lim

TITLE
Non-Executive Independent Director
COMPENSATION
SGD162K
AGE
70
TENURE
3.8 yrs

Melvyn Ong

TITLE
Non-Independent Non-Executive Director
COMPENSATION
SGD6K
AGE
44
TENURE
1.2 yrs

Chin-Hu Lim

TITLE
Independent Non-Executive Director
COMPENSATION
SGD58K
AGE
60
TENURE
1.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (SGD) Value (SGD)
13. Jun 19 Sell DBS Group Holdings Limited, Asset Management Arm Company 06. Jun 19 06. Jun 19 -1,400,000 SGD3.96 SGD-5,539,996
07. Nov 18 Buy Fullerton Fund Management Company Ltd. Company 31. Oct 18 31. Oct 18 260,800 SGD3.49 SGD910,661
19. Sep 18 Buy Seatown Holdings Pte. Ltd. Company 14. Sep 18 14. Sep 18 1,065,000 SGD3.48 SGD3,702,152
X
Management checks
We assess Singapore Technologies Engineering's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Singapore Technologies Engineering has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

S63 News

Simply Wall St News

Don't Race Out To Buy Singapore Technologies Engineering Ltd (SGX:S63) Just Because It's Going Ex-Dividend

Singapore Technologies Engineering's next dividend payment will be S$0.05 per share. … If you buy this business for its dividend, you should have an idea of whether Singapore Technologies Engineering's dividend is reliable and sustainable. … Cash is slightly more important than profit from a dividend perspective, but given Singapore Technologies Engineering's payouts were not well covered by either earnings or cash flow, we would be concerned about the sustainability of this dividend.

Simply Wall St -

Should Singapore Technologies Engineering Ltd (SGX:S63) Be Part Of Your Income Portfolio?

Click the interactive chart for our full dividend analysis SGX:S63 Historical Dividend Yield, August 7th 2019 Payout ratios Companies (usually) pay dividends out of their earnings. If a company is paying more than it earns, the dividend might have to be cut. As a result, we should always investigate whether a company can afford its dividend, measured as a percentage of a company's net income after tax. Looking at the data, we can see that 92% of Singapore Technologies Engineering's profits were paid out as dividends in the last 12 months. Its payout ratio is quite high, and the dividend is not well covered by earnings. If earnings are growing or the company has a large cash balance, this might be sustainable - still, we think it is a concern. We also measure dividends paid against a company's levered free cash flow, to see if enough cash was generated to cover the dividend. Singapore Technologies Engineering paid out 397% of its free cash flow last year, suggesting the dividend is poorly covered by cash flow. Paying out more than 100% of your free cash flow in dividends is generally not a long-term, sustainable state of affairs, so we think shareholders should watch this metric closely. As Singapore Technologies Engineering's dividend was not well covered by either earnings or cash flow, we would be concerned that this dividend could be at risk over the long term. Is Singapore Technologies Engineering's Balance Sheet Risky? As Singapore Technologies Engineering's dividend was not well covered by earnings, we need to check its balance sheet for signs of financial distress. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) net interest cover. … Singapore Technologies Engineering's dividend payments have fluctuated, so it hasn't grown 7.9% every year, but the CAGR is a useful rule of thumb for approximating the historical growth. … Conclusion To summarise, shareholders should always check that Singapore Technologies Engineering's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend.

Simply Wall St -

Is Singapore Technologies Engineering Ltd (SGX:S63) Overpaying Its CEO?

Vincent Chong became the CEO of Singapore Technologies Engineering Ltd (SGX:S63) in 2016. … View our latest analysis for Singapore Technologies Engineering How Does Vincent Chong's Compensation Compare With Similar Sized Companies? … Most shareholders would probably be pleased with Singapore Technologies Engineering Ltd for providing a total return of 48% over three years.

Simply Wall St -

Singapore Technologies Engineering Ltd (SGX:S63): Should The Recent Earnings Drop Worry You?

Check out our latest analysis for Singapore Technologies Engineering Was S63 weak performance lately part of a long-term decline? … However, its return on assets (ROA) of 6.7% is below the SG Aerospace &amp; Defense industry of 6.8%, indicating Singapore Technologies Engineering's are utilized less efficiently. … You should continue to research Singapore Technologies Engineering to get a better picture of the stock by looking at: Future Outlook: What are well-informed industry analysts predicting for S63’s future growth?

Simply Wall St -

Is Singapore Technologies Engineering (SGX:S63) Using Too Much Debt?

SGX:S63 Historical Debt, July 9th 2019 A Look At Singapore Technologies Engineering's Liabilities We can see from the most recent balance sheet that Singapore Technologies Engineering had liabilities of S$3.77b falling due within a year, and liabilities of S$1.60b due beyond that. … Since Singapore Technologies Engineering does have net debt, we think it is worthwhile for shareholders to keep an eye on the balance sheet, over time. … During the last three years, Singapore Technologies Engineering produced sturdy free cash flow equating to 79% of its EBIT, about what we'd expect.

Simply Wall St -

These Fundamentals Make Singapore Technologies Engineering Ltd (SGX:S63) Truly Worth Looking At

If you're interested in understanding beyond my broad commentary, read the full report on Singapore Technologies Engineering here. … Flawless balance sheet with reasonable growth potential S63’s cash-generating ability is outstanding, with analysts expecting its operating cash flows to flourish by 64% in the upcoming year. … SGX:S63 Past and Future Earnings, July 1st 2019 Next Steps: For Singapore Technologies Engineering, there are three fundamental aspects you should further research: Historical Performance: What has S63's returns been like over the past?

Simply Wall St -

Does Singapore Technologies Engineering Ltd's (SGX:S63) June Stock Price Reflect Its Future Growth?

Singapore Technologies Engineering Ltd (SGX:S63) is a stock well-positioned for future growth, but many investors are wondering whether its last closing price of SGD4.1 is based on unrealistic expectations. … As the legendary value investor Ben Graham once said, “Price is what you pay, value is what you get.” Singapore Technologies Engineering is trading at price-to-earnings (PE) ratio of 25.21x, which tells us the stock is overvalued based on current earnings compared to the Aerospace &amp; Defense industry average of 13.44x , and overvalued compared to the SG market average ratio of 12.57x. … But, to be able to properly assess the value of a high-growth stock such as Singapore Technologies Engineering, we must incorporate its earnings growth in our valuation.

Simply Wall St -

Do Institutions Own Shares In Singapore Technologies Engineering Ltd (SGX:S63)?

View our latest analysis for Singapore Technologies Engineering SGX:S63 Ownership Summary, June 10th 2019 What Does The Institutional Ownership Tell Us About Singapore Technologies Engineering? … We can see that Singapore Technologies Engineering does have institutional investors; and they hold 14% of the stock. … Insider Ownership Of Singapore Technologies Engineering The definition of an insider can differ slightly between different countries, but members of the board of directors always count.

Simply Wall St -

Should You Be Tempted To Sell Singapore Technologies Engineering Ltd (SGX:S63) Because Of Its P/E Ratio?

We'll apply a basic P/E ratio analysis to Singapore Technologies Engineering Ltd's (SGX:S63), to help you decide if the stock is worth further research. … See our latest analysis for Singapore Technologies Engineering How Do I Calculate Singapore Technologies Engineering's Price To Earnings Ratio? … The formula for price to earnings is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Singapore Technologies Engineering: P/E of 24.04 = SGD3.91 ÷ SGD0.16 (Based on the trailing twelve months to March 2019.) Is A High P/E Ratio Good?

Simply Wall St -

An Intrinsic Calculation For Singapore Technologies Engineering Ltd (SGX:S63) Suggests It's 21% Undervalued

Using the most recent financial data, we'll take a look at whether the stock is fairly priced by estimating the company's future cash flows and discounting them to their present value. … Generally we assume that a dollar today is more valuable than a dollar in the future, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) estimate 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF (SGD, Millions) SGD1.21k SGD626.13 SGD718.69 SGD816.00 SGD899.00 SGD966.16 SGD1.02k SGD1.07k SGD1.12k SGD1.16k Growth Rate Estimate Source Analyst x1 Analyst x7 Analyst x7 Analyst x1 Analyst x1 Est @ 7.47% Est @ 5.92% Est @ 4.84% Est @ 4.08% Est @ 3.54% Present Value (SGD, Millions) Discounted @ 8.11% SGD1.12k SGD535.70 SGD568.76 SGD597.33 SGD608.71 SGD605.11 SGD592.85 SGD574.89 SGD553.43 SGD530.05 Present Value of 10-year Cash Flow (PVCF)= SGD6.28b "Est" = FCF growth rate estimated by Simply Wall St We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. … SGX:S63 Intrinsic value, May 22nd 2019 Important assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows.

Simply Wall St -

S63 Company Info

Description

Singapore Technologies Engineering Ltd, an investment holding company, operates as a technology, defense, and engineering company worldwide. The company’s Aerospace segment offers aircraft maintenance, engineering, and training services for military and commercial aircraft operators. Its services include airframe, component, and engine maintenance, repair, and overhaul; aircraft design engineering and parts manufacturing; and aviation materials and asset management, as well as pilot training services. The company’s Electronics segment engages in the design, development, and delivery of information communications technologies (ICT) products, solutions, and services for smart cities connectivity, mobility, and security. Its Land Systems segment offers customized land systems, security solutions, and their related through-life support for defense, homeland security, and commercial applications. The company’s Marine segment offers defence and commercial solutions to the marine, offshore, and environmental engineering industries. This segment’s services include shipbuilding, repair and conversion, naval ops, and integrated logistics solution services, as well as environmental engineering services. Its Others segment is involved in the research and development activities; and provision of engineering products and solutions, and treasury services, as well as management, consultancy, and other support services. The company also focuses on healthtech and medical technology business areas. Singapore Technologies Engineering Ltd was incorporated in 1997 and is headquartered in Singapore.

Details
Name: Singapore Technologies Engineering Ltd
S63
Exchange: SGX
Founded: 1997
SGD12,604,029,321
3,119,809,238
Website: http://www.stengg.com
Address: Singapore Technologies Engineering Ltd
No. 07-01, ST Engineering Hub,
1 Ang Mo Kio Electronics Park Road,
Singapore,
567710,
Singapore
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SGX S63 Ordinary Shares Singapore Exchange SG SGD 09. Dec 1997
OTCPK SGGK.F Ordinary Shares Pink Sheets LLC US USD 09. Dec 1997
DB SJX Ordinary Shares Deutsche Boerse AG DE EUR 09. Dec 1997
OTCPK SGGK.Y UNSPONSOR ADR Pink Sheets LLC US USD 11. Nov 2008
Number of employees
Current staff
Staff numbers
22,000
Singapore Technologies Engineering employees.
Industry
Aerospace and Defense
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/08/17 12:37
End of day share price update: 2019/08/16 00:00
Last estimates confirmation: 2019/08/16
Last earnings filing: 2019/08/13
Last earnings reported: 2019/06/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.