SGX:S63

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Singapore Technologies Engineering

Executive Summary

Singapore Technologies Engineering Ltd, an investment holding company, operates as a technology, defense, and engineering company worldwide.


Snowflake Analysis

Solid track record average dividend payer.


Similar Companies

Share Price & News

How has Singapore Technologies Engineering's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: S63 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

S63

14.7%

SG Aerospace & Defense

0.5%

SG Market


1 Year Return

-23.7%

S63

51.8%

SG Aerospace & Defense

-19.5%

SG Market

Return vs Industry: S63 underperformed the SG Aerospace & Defense industry which returned 51.8% over the past year.

Return vs Market: S63 underperformed the SG Market which returned -19.5% over the past year.


Shareholder returns

S63IndustryMarket
7 Day0%14.7%0.5%
30 Day-3.9%21.8%-3.0%
90 Day-3.0%51.2%-0.2%
1 Year-20.4%-23.7%53.6%51.8%-15.3%-19.5%
3 Year-0.8%-12.5%28.1%24.9%-14.8%-24.9%
5 Year25.8%1.6%-6.5%-9.7%-3.3%-20.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

13.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: S63 (SGD3.22) is trading below our estimate of fair value (SGD3.73)

Significantly Below Fair Value: S63 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: S63 is good value based on its PE Ratio (17.4x) compared to the XA Aerospace & Defense industry average (49.5x).

PE vs Market: S63 is poor value based on its PE Ratio (17.4x) compared to the SG market (12.6x).


Price to Earnings Growth Ratio

PEG Ratio: S63 is poor value based on its PEG Ratio (7.8x)


Price to Book Ratio

PB vs Industry: S63 is overvalued based on its PB Ratio (4.5x) compared to the XA Aerospace & Defense industry average (3.2x).


Next Steps

Future Growth

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

2.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: S63's forecast earnings growth (2.2% per year) is above the savings rate (2.2%).

Earnings vs Market: S63's earnings (2.2% per year) are forecast to grow slower than the SG market (19.8% per year).

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

Revenue vs Market: S63's revenue (2.9% per year) is forecast to grow slower than the SG market (6% per year).

High Growth Revenue: S63's revenue (2.9% 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 (25%)


Next Steps

Past Performance

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

0.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: S63 has high quality earnings.

Growing Profit Margin: S63's current net profit margins (7.3%) are lower than last year (7.4%).


Past Earnings Growth Analysis

Earnings Trend: S63's earnings have grown by 0.8% per year over the past 5 years.

Accelerating Growth: S63's earnings growth over the past year (16.9%) exceeds its 5-year average (0.8% per year).

Earnings vs Industry: S63 earnings growth over the past year (16.9%) exceeded the Aerospace & Defense industry 11.9%.


Return on Equity

High ROE: S63's Return on Equity (23.8%) is considered high.


Next Steps

Financial Health

How is Singapore Technologies Engineering's financial position?


Financial Position Analysis

Short Term Liabilities: S63's short term assets (SGD4.6B) do not cover its short term liabilities (SGD5.4B).

Long Term Liabilities: S63's short term assets (SGD4.6B) exceed its long term liabilities (SGD1.6B).


Debt to Equity History and Analysis

Debt Level: S63's debt to equity ratio (76.8%) is considered high.

Reducing Debt: S63's debt to equity ratio has increased from 44.2% to 76.8% over the past 5 years.

Debt Coverage: S63's debt is well covered by operating cash flow (30.8%).

Interest Coverage: S63's interest payments on its debt are well covered by EBIT (19.4x coverage).


Balance Sheet


Next Steps

Dividend

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

4.66%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: S63's dividend (4.66%) is higher than the bottom 25% of dividend payers in the SG market (2.67%).

High Dividend: S63's dividend (4.66%) is low compared to the top 25% of dividend payers in the SG market (5.97%).


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 (81%), 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 (75.5% payout ratio).


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Vincent Chong (51 yo)

3.83yrs

Tenure

S$4,980,000

Compensation

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 ...


CEO Compensation Analysis

Compensation vs Market: Vincent's total compensation ($USD3.63M) is about average for companies of similar size in the SG market ($USD3.10M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Sy Feng Chong
President3.83yrsS$4.98m0.074%
SGD 7.4m
Chee Foo
Chief Financial Officer3.08yrsno datano data
Saik Fong
Chief Technology Officer and President of Advanced Engineering Centreno datano datano data
Bernard Chew
Chief Information Officerno datano datano data
Lina Poa
Head of Corporate Communications & Investor Relationsno datano datano data
Meng Wai Low
Senior VP of Legal & Company Secretaryno datano datano data
Jit Chek Lim
Senior Vice President of Human Resource6.58yrsno datano data
Bak Nguan Goh
Chief Procurement Officerno datano datano data
Patrick Choy
Executive Vice President of International Marketingno datano datano data
Steven Cheong
Senior Vice President of Mergers & Acquisitionsno datano datano data
Robin Thevathasan
Senior Vice President of Strategic Plansno datano datano data
Grace Kwok
Senior Vice President of Internal Auditno datano datano data

3.8yrs

Average Tenure

Experienced Management: S63's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Sy Feng Chong
President3.83yrsS$4.98m0.074%
SGD 7.4m
Ah Doo Lim
Non-Executive Independent Director4.75yrsS$162.00k0.0028%
SGD 281.2k
John Coburn
Non-Executive Chairman of VT Systems18.67yrsno datano data
Chin-Hu Lim
Independent Non-Executive Director2.08yrsS$170.00k0.0029%
SGD 290.2k
Bee Bee Ng
Independent Non-Executive Director0.17yrno datano data
Chong Seng Kwa
Independent Chairman7.33yrsS$750.00k0.037%
SGD 3.7m
Gim Pew Quek
Non-Executive Director4yrsS$22.50kno data
See Tiat Quek
Non-Executive & Independent Director7.08yrsS$198.81k0.0024%
SGD 245.0k
Su-Min Song
Independent Non-Executive Director1.92yrsS$169.50k0.00056%
SGD 56.2k
Sim Seng Lim
Non-Executive Independent Director5.25yrsS$167.50k0.0021%
SGD 205.9k
Su Kiat Ong
Non-Independent Non-Executive Director2.17yrsS$11.25kno data
Weng Keong Leong
Non-Independent Non-Executive Director1.17yrsS$6.41kno data

3.9yrs

Average Tenure

61yo

Average Age

Experienced Board: S63's board of directors are considered experienced (3.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: S63 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 company bio, 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$10.042b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SGGK.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 1997
SJXDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 1997
S63SGX (Singapore Exchange)YesOrdinary SharesSGSGDDec 1997
SGGK.YOTCPK (Pink Sheets LLC)UNSPONSOR ADRUSUSDNov 2008

Biography

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, eng ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/10 12:58
End of Day Share Price2020/08/07 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.