SGX:S85

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Flawless balance sheet second-rate dividend payer.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: S85 is not significantly more volatile than the rest of SG stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: S85's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

2.0%

S85

2.5%

SG Hospitality

3.2%

SG Market


1 Year Return

-24.4%

S85

-11.0%

SG Hospitality

-13.7%

SG Market

Return vs Industry: S85 underperformed the SG Hospitality industry which returned -11% over the past year.

Return vs Market: S85 underperformed the SG Market which returned -13.7% over the past year.


Shareholder returns

S85IndustryMarket
7 Day2.0%2.5%3.2%
30 Day3.0%13.6%11.8%
90 Day4.1%12.3%9.8%
1 Year-20.7%-24.4%-6.2%-11.0%-8.9%-13.7%
3 Year-31.2%-39.3%-23.7%-31.7%-11.0%-22.1%
5 Year-28.5%-40.7%16.1%-2.2%10.8%-9.7%

Long-Term 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 compared to its fair value and its price relative to the market?

31.6x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: S85 (SGD0.51) is trading above our estimate of fair value (SGD0.24)

Significantly Below Fair Value: S85 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: S85 is good value based on its PE Ratio (31.6x) compared to the SG Hospitality industry average (33.9x).

PE vs Market: S85 is poor value based on its PE Ratio (31.6x) compared to the SG market (14.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate S85's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: S85 is overvalued based on its PB Ratio (1.7x) compared to the SG Hospitality industry average (0.7x).


Next Steps

Future Growth

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

77.0%

Forecasted Consumer Services industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Straco has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Straco performed over the past 5 years?

-8.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: S85 has high quality earnings.

Growing Profit Margin: S85's current net profit margins (21.7%) are lower than last year (36.9%).


Past Earnings Growth Analysis

Earnings Trend: S85's earnings have declined by 8.2% per year over the past 5 years.

Accelerating Growth: S85's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: S85 had negative earnings growth (-69%) over the past year, making it difficult to compare to the Hospitality industry average (-50.7%).


Return on Equity

High ROE: S85's Return on Equity (5.2%) is considered low.


Next Steps

Financial Health

How is Straco's financial position?


Financial Position Analysis

Short Term Liabilities: S85's short term assets (SGD196.3M) exceed its short term liabilities (SGD34.6M).

Long Term Liabilities: S85's short term assets (SGD196.3M) exceed its long term liabilities (SGD87.5M).


Debt to Equity History and Analysis

Debt Level: S85's debt to equity ratio (8.3%) is considered satisfactory.

Reducing Debt: S85's debt to equity ratio has reduced from 39.4% to 8.3% over the past 5 years.

Debt Coverage: S85's debt is well covered by operating cash flow (62.2%).

Interest Coverage: S85 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

4.90%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: S85's dividend (4.9%) is higher than the bottom 25% of dividend payers in the SG market (2.37%).

High Dividend: S85's dividend (4.9%) is low compared to the top 25% of dividend payers in the SG market (5.17%).


Stability and Growth of Payments

Stable Dividend: S85's dividends per share have been stable in the past 10 years.

Growing Dividend: S85's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (154.9%), S85's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

4.5yrs

Average management tenure


CEO

Hsioh Kwang Wu

no data

Tenure

S$1,473,000

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

Compensation vs Market: Hsioh Kwang's total compensation ($USD1.10M) is above average for companies of similar size in the SG market ($USD642.41K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Hsioh Kwang Wu
Executive Chairman & CEOno dataS$1.47m1.04%
SGD 4.4m
Xiuzhuan Wu
Senior Vice President of Corporate Development & Risk Management6.42yrsS$250.00k3.23%
SGD 13.8m
Xiuyi Wu
Senior VP & Assistant to Executive Chairman6.42yrsS$279.00k4.12%
SGD 17.6m
Chiau Ng
CFO and Senior VP of Finance & Administrationno datano datano data
Aimin Zhao
Senior Vice President of Cable Car Operations - China4.5yrsno datano data
Liang Wang
Senior Vice President of Operations - Chinano datano datano data
Kim Ng
Senior VP & Assistant to Executive Chairmanno datano data0.19%
SGD 817.8k
Mei Hua Lim
Company Secretaryno datano datano data
Yiwei Cai
VP of Technical - China4.5yrsno datano data
Kwok Leung
VP - Operations - Singapore and GM - Singapore Flyer (SF) - Straco Leisure Pte Ltd5.83yrsno datano data

4.5yrs

Average Tenure

39yo

Average Age

Experienced Management: S85's management team is considered experienced (4.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Hsioh Kwang Wu
Executive Chairman & CEOno dataS$1.47m1.04%
SGD 4.4m
Xiuzhuan Wu
Senior Vice President of Corporate Development & Risk Management6.42yrsS$250.00k3.23%
SGD 13.8m
Xiuyi Wu
Senior VP & Assistant to Executive Chairman6.42yrsS$279.00k4.12%
SGD 17.6m
Song Lim
Independent Director9.5yrsS$87.00k0.14%
SGD 612.0k
Siew Choon Tay
Lead Independent Director6.67yrsS$102.00k0.25%
SGD 1.1m
Theng-Fong Hee
Independent Director4.58yrsS$81.00kno data
Soh Har Chua
Non-Executive Director10.42yrsS$65.00k1.38%
SGD 5.9m
Ser-Luck Teo
Non-Executive Independent Director1.33yrsS$26.00kno data
Weiqiang Li
Non-Executive Director8.08yrsS$54.00k0.039%
SGD 165.0k

6.7yrs

Average Tenure

51yo

Average Age

Experienced Board: S85's board of directors are considered experienced (6.7 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.


Ownership Breakdown

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


Top Shareholders

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$427.548m
  • Shares outstanding: 855.10m
  • 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 in two segments, Aquariums and Giant...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/27 11:10
End of Day Share Price2020/11/27 00:00
Earnings2020/06/30
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.