SGX:S85

Stock Analysis Report

Executive Summary

Straco Corporation Limited, together with its subsidiaries, develops and manages tourism-related businesses in Singapore and the People’s Republic of China.

Snowflake

Fundamentals

Excellent balance sheet with proven track record and pays a dividend.

Risks

  • Straco is not covered by any analysts.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-2.7%

SGX:S85

1.9%

SG Hospitality

-0.8%

SG Market


1 Year Return

-1.4%

SGX:S85

-15.4%

SG Hospitality

-2.7%

SG Market

S85 outperformed the Hospitality industry which returned -15.4% over the past year.

S85 outperformed the Market in Singapore which returned -2.7% over the past year.


Share holder returns

S85IndustryMarket
7 Day-2.7%1.9%-0.8%
30 Day-3.3%-4.4%-6.4%
90 Day-3.9%-3.8%-1.3%
1 Year3.2%-1.4%-12.7%-15.4%1.1%-2.7%
3 Year9.8%-1.4%21.8%11.5%15.9%3.6%
5 Year4.2%-11.0%-12.0%-23.3%7.9%-9.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

18%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Straco's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Straco's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Straco is good value based on earnings compared to the SG Hospitality industry average.

Straco is overvalued based on earnings compared to the Singapore market.


Price Based on Expected Growth

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


Price Based on Value of Assets

Straco is overvalued based on assets compared to the SG Hospitality industry average.


Next Steps

Future Growth

How is Straco expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

-8.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if Straco is high growth as no revenue estimate data is available.

Straco's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Unable to compare Straco's revenue growth to the Singapore market average as no estimate data is available.

Straco's earnings are expected to decrease over the next 1-3 years, this is below the Singapore market average.

Straco's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Straco will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Straco performed over the past 5 years?

2.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Straco's year on year earnings growth rate has been positive over the past 5 years.

Straco's 1-year earnings growth exceeds its 5-year average (7.6% vs 2.1%)

Straco's earnings growth has exceeded the SG Hospitality industry average in the past year (7.6% vs -19.1%).


Return on Equity

Straco has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Straco used its assets more efficiently than the SG Hospitality industry average last year based on Return on Assets.


Return on Capital Employed

Straco's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Straco's financial position?


Financial Position Analysis

Straco is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

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


Debt to Equity History and Analysis

Straco's level of debt (11.2%) compared to net worth is satisfactory (less than 40%).

Unable to establish if Straco's debt level has increased without past 5-year debt data.

Debt is well covered by operating cash flow (183.1%, greater than 20% of total debt).

Straco earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 6.3x debt.


Next Steps

Dividend

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

3.42%

Current Dividend Yield


Dividend Yield and Payments Analysis

Straco's pays a higher dividend yield than the bottom 25% of dividend payers in Singapore (2.64%).

Straco's dividend is below the markets top 25% of dividend payers in Singapore (5.74%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.1x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Hsioh Wu 0

0.0yrs

Tenure

S$1,559,000

Compensation

Mr. Hsioh Kwang Wu serves as the Chief Executive Officer of Straco Corporation Limited., and has been its Executive Chairman since March 2003. Mr. Wu is responsible for the overall strategic directions and ...


CEO Compensation Analysis

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

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


Management Age and Tenure

3.3yrs

Average Tenure

38yo

Average Age

The tenure for the Straco management team is about average.


Board Age and Tenure

5.4yrs

Average Tenure

50yo

Average Age

The tenure for the Straco board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Lotus Isabella Lim

    Company Secretary

    • Tenure: 0.0yrs
  • Hsioh Wu

    Executive Chairman & CEO

    • Tenure: 0.0yrs
    • Compensation: S$1.56m
  • Amos Ng (59yo)

    CFO and Senior VP of Finance & Administration

    • Tenure: 0.0yrs
  • Aimin Zhao

    Senior Vice President of Cable Car Operations - China

    • Tenure: 3.3yrs
  • Liang Wang

    Senior Vice President of Operations - China

    • Tenure: 0.0yrs
  • Xiuyi Wu (38yo)

    Senior VP & Assistant to Executive Chairman

    • Tenure: 5.2yrs
    • Compensation: S$305.00k
  • Sean Wu (37yo)

    Senior Vice President of Corporate Development & Risk Management

    • Tenure: 5.2yrs
    • Compensation: S$268.00k
  • April Ng

    Senior Vice President and Assistant to Executive Chairman

    • Tenure: 0.0yrs
  • Charles Cai

    VP of Technical - China

    • Tenure: 3.3yrs
  • Ringo Leung

    VP - Operations - Singapore and GM - Singapore Flyer (SF) - Straco Leisure Pte Ltd

    • Tenure: 4.6yrs

Board Members

  • Henry Lim (64yo)

    Independent Director

    • Tenure: 8.3yrs
    • Compensation: S$86.00k
  • Siew Choon Tay (71yo)

    Lead Independent Director

    • Tenure: 5.4yrs
    • Compensation: S$100.00k
  • Theng-Fong Hee (64yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: S$81.00k
  • Hsioh Wu

    Executive Chairman & CEO

    • Tenure: 0.0yrs
    • Compensation: S$1.56m
  • Xiuyi Wu (38yo)

    Senior VP & Assistant to Executive Chairman

    • Tenure: 5.2yrs
    • Compensation: S$305.00k
  • Soh Chua

    Non-Executive Director

    • Tenure: 9.2yrs
    • Compensation: S$66.00k
  • Ser-Luck Teo (50yo)

    Non-Executive Independent Director

    • Tenure: 0.1yrs
  • Sean Wu (37yo)

    Senior Vice President of Corporate Development & Risk Management

    • Tenure: 5.2yrs
    • Compensation: S$268.00k
  • Weiqiang Li (47yo)

    Non-Executive Director

    • Tenure: 6.8yrs
    • Compensation: S$56.00k

Company Information

Straco Corporation Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Straco Corporation Limited
  • Ticker: S85
  • Exchange: SGX
  • Founded: 2002
  • Industry: Leisure Facilities
  • Sector: Consumer Services
  • Market Cap: S$630.758m
  • Shares outstanding: 864.05m
  • Website: https://www.stracocorp.com

Number of Employees


Location

  • Straco Corporation Limited
  • No. 30-15 International Plaza
  • 10 Anson Road
  • Singapore
  • 79903
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
S85SGX (Singapore Exchange)YesOrdinary SharesSGSGDFeb 2004

Biography

Straco Corporation Limited, together with its subsidiaries, develops and manages tourism-related businesses in Singapore and the People’s Republic of China. It operates through two segments, Aquariums and  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/20 12:35
End of Day Share Price2019/08/20 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.