SGX:S63

Stock Analysis Report

Singapore Technologies Engineering

Executive Summary

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

Snowflake

Fundamentals

Reasonable growth potential with acceptable track record.


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


Market Performance


7 Day Return

-2.5%

S63

-1.3%

SG Aerospace & Defense

-0.02%

SG Market


1 Year Return

14.6%

S63

6.7%

SG Aerospace & Defense

0.6%

SG Market

Return vs Industry: S63 exceeded the SG Aerospace & Defense industry which returned 6.7% over the past year.

Return vs Market: S63 exceeded the SG Market which returned 0.6% over the past year.


Shareholder returns

S63IndustryMarket
7 Day-2.5%-1.3%-0.02%
30 Day0%-6.6%-1.6%
90 Day-8.6%-0.2%-7.3%
1 Year19.1%14.6%7.9%6.7%4.6%0.6%
3 Year40.2%24.1%-21.7%-23.7%15.1%2.8%
5 Year34.4%8.6%3.9%-0.3%10.0%-8.3%

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?

19.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: S63 (SGD3.92) is trading below our estimate of fair value (SGD4.86)

Significantly Undervalued: 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 (23.2x) compared to the Aerospace & Defense industry average (28x).

PE vs Market: S63 is poor value based on its PE Ratio (23.2x) compared to the SG market (13.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: S63 is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: S63 is overvalued based on its PB Ratio (5.7x) compared to the XA Aerospace & Defense industry average (2.5x).


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?

10.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: S63's forecast earnings growth (10.5% per year) is above the savings rate (2.3%).

Earnings vs Market: S63's earnings (10.5% per year) are forecast to grow faster than the SG market (5.6% per year).

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

Revenue vs Market: S63's revenue (8.2% per year) is forecast to grow faster than the SG market (5.4% per year).

High Growth Revenue: S63's revenue (8.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: S63's Return on Equity is forecast to be high in 3 years time (27%)


Next Steps

Past Performance

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

-1.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: S63's earnings have declined by -1.2% 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 (-0.5%) over the past year, making it difficult to compare to the Aerospace & Defense industry average (18.1%).


Return on Equity

High ROE: S63's Return on Equity (22.7%) is considered high.


Return on Assets

ROA vs Industry: S63 has a higher Return on Assets than the Aerospace & Defense industry average last year.


Return on Capital Employed

ROCE Improving: S63 has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Singapore Technologies Engineering's financial position?


Financial Position Analysis

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

Long Term Liabilities: S63's short term assets (4.4B) exceeds its long term liabilities (1.9B)


Debt to Equity History and Analysis

Debt Level: S63's debt to equity ratio (66.8%) is considered high

Reducing Debt: S63's debt to equity ratio has increased from 45.3% to 66.8% over the past 5 years.

Debt Coverage: S63's debt is well covered by operating cash flow (41.2%).

Interest Coverage: S63's interest payments on its debt are well covered by EBIT (37.5x coverage).


Balance Sheet

Inventory Level: S63 has a high level of physical assets or inventory.

Debt Coverage by Assets: S63's debt is covered by short term assets (assets are 2.680250x debt).


Next Steps

  • Explore more healthy companies in the Capital Goods industry.

Dividend

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

3.83%

Current Dividend Yield


Dividend Yield vs Market

company3.8%marketbottom25%2.6%markettop25%5.7%industryaverage1.4%forecastin3Years4.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: S63's dividend (3.83%) is higher than the bottom 25% of dividend payers in the SG market (2.55%).

High Dividend: S63's dividend (3.83%) is low compared to the top 25% of dividend payers in the SG market (5.71%).

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

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


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (88.6%), 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 (74.9% payout ratio).


Next Steps

Management

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

3.0yrs

Average management tenure


CEO

Vincent Chong (50yo)

3yrs

Tenure

S$4,602,887

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 ($USD3.37M) is about average for companies of similar size in the SG market ($USD3.70M).

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


Management Age and Tenure

3.0yrs

Average Tenure

Experienced Management: S63's management team is considered experienced (3 years average tenure).


Board Age and Tenure

4.2yrs

Average Tenure

60.5yo

Average Age

Experienced Board: S63's board of directors are considered experienced (4.2 years average tenure).


Insider Trading

Insider Buying: S63 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyS$78,59118 Oct 19
Chin-Hu Lim
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares20,000
Max PriceS$3.93
SellS$5,539,99613 Jun 19
DBS Group Holdings Limited, Asset Management Arm
EntityCompany
Shares1,400,000
Max PriceS$3.96
BuyS$910,66107 Nov 18
Fullerton Fund Management Company Ltd.
EntityCompany
Shares260,800
Max PriceS$3.49

Ownership Breakdown


Management Team

  • Bak Nguan Goh

    Chief Procurement Officer

    • Tenure: 0yrs
  • Patrick Choy

    Executive Vice President of International Marketing

    • Tenure: 0yrs
  • Steven Cheong

    Senior Vice President of Mergers & Acquisitions

    • Tenure: 0yrs
  • Saik Hay Fong

    Chief Technology Officer and President of Advanced Engineering Centre

    • Tenure: 0yrs
  • Meng Wai Low

    Senior Vice President of Legal

    • Tenure: 0yrs
  • Cedric Foo (59yo)

    Chief Financial Officer

    • Tenure: 2.3yrs
  • Bernard Chew

    Chief Information Officer

    • Tenure: 0yrs
  • Lina Poa

    Head of Corporate Communications & Investor Relations

    • Tenure: 0yrs
  • Jit Chek Lim

    Senior Vice President of Human Resource

    • Tenure: 5.8yrs
  • Vincent Chong (50yo)

    President

    • Tenure: 3yrs
    • Compensation: S$4.60m

Board Members

  • Ah Doo Lim (70yo)

    Non-Executive Independent Director

    • Tenure: 3.9yrs
    • Compensation: S$162.00k
  • John Coburn (77yo)

    Non-Executive Chairman of VT Systems

    • Tenure: 17.8yrs
  • Chin-Hu Lim (60yo)

    Independent Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: S$58.28k
  • Chong Seng Kwa (72yo)

    Independent Chairman

    • Tenure: 6.5yrs
    • Compensation: S$750.00k
  • Swan Beh (52yo)

    Non-Executive Independent Director

    • Tenure: 5.1yrs
    • Compensation: S$11.25k
  • Gim Quek (61yo)

    Non-Executive Director

    • Tenure: 3.2yrs
    • Compensation: S$22.50k
  • See Tiat Quek (65yo)

    Non-Executive & Independent Director

    • Tenure: 6.3yrs
    • Compensation: S$164.50k
  • Vincent Chong (50yo)

    President

    • Tenure: 3yrs
    • Compensation: S$4.60m
  • Sim Lim (60yo)

    Non-Executive Independent Director

    • Tenure: 4.4yrs
    • Compensation: S$167.50k
  • Melvyn Ong (44yo)

    Non-Independent Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: S$6.38k

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$12.224b
  • 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 Analysis2019/10/19 12:35
End of Day Share Price2019/10/18 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.