SGX:S68

Stock Analysis Report

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Executive Summary

Singapore Exchange Limited, together with its subsidiaries, operates an integrated securities exchange and derivatives exchange, and related clearing houses in Singapore. More Details


Snowflake Analysis

Outstanding track record with excellent balance sheet and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: S68 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.4%

S68

2.3%

SG Capital Markets

-0.4%

SG Market


1 Year Return

8.6%

S68

11.1%

SG Capital Markets

-21.3%

SG Market

Return vs Industry: S68 matched the SG Capital Markets industry which returned 8.7% over the past year.

Return vs Market: S68 exceeded the SG Market which returned -21.7% over the past year.


Shareholder returns

S68IndustryMarket
7 Day3.4%2.3%-0.4%
30 Day5.6%2.0%-2.7%
90 Day10.3%8.9%-3.8%
1 Year12.4%8.6%14.9%11.1%-17.1%-21.3%
3 Year36.1%22.7%32.6%19.8%-18.9%-28.7%
5 Year50.4%25.7%42.2%19.6%-2.0%-19.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

20.87x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: S68 (SGD9.2) is trading above our estimate of fair value (SGD7.69)

Significantly Below Fair Value: S68 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: S68 is poor value based on its PE Ratio (20.9x) compared to the XA Capital Markets industry average (18.4x).

PE vs Market: S68 is poor value based on its PE Ratio (20.9x) compared to the SG market (12.7x).


Price to Earnings Growth Ratio

PEG Ratio: S68's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: S68 is overvalued based on its PB Ratio (7.9x) compared to the SG Capital Markets industry average (0.7x).


Next Steps

Future Growth

How is Singapore Exchange forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

-1.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: S68's earnings are forecast to decline over the next 3 years (-1.1% per year).

Earnings vs Market: S68's earnings are forecast to decline over the next 3 years (-1.1% per year).

High Growth Earnings: S68's earnings are forecast to decline over the next 3 years.

Revenue vs Market: S68's revenue (1.9% per year) is forecast to grow slower than the SG market (6.5% per year).

High Growth Revenue: S68's revenue (1.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: S68's Return on Equity is forecast to be high in 3 years time (30.6%)


Next Steps

Past Performance

How has Singapore Exchange performed over the past 5 years?

4.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: S68 has high quality earnings.

Growing Profit Margin: S68's current net profit margins (44.8%) are higher than last year (43%).


Past Earnings Growth Analysis

Earnings Trend: S68's earnings have grown by 4.8% per year over the past 5 years.

Accelerating Growth: S68's earnings growth over the past year (20.6%) exceeds its 5-year average (4.8% per year).

Earnings vs Industry: S68 earnings growth over the past year (20.6%) exceeded the Capital Markets industry 17%.


Return on Equity

High ROE: S68's Return on Equity (37.8%) is considered high.


Next Steps

Financial Health

How is Singapore Exchange's financial position?


Financial Position Analysis

Short Term Liabilities: S68's short term assets (SGD1.7B) exceed its short term liabilities (SGD1.3B).

Long Term Liabilities: S68's short term assets (SGD1.7B) exceed its long term liabilities (SGD172.4M).


Debt to Equity History and Analysis

Debt Level: S68's debt to equity ratio (24.3%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if S68's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: S68's debt is well covered by operating cash flow (205.3%).

Interest Coverage: S68 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

3.48%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: S68's dividend (3.48%) is higher than the bottom 25% of dividend payers in the SG market (2.53%).

High Dividend: S68's dividend (3.48%) is low compared to the top 25% of dividend payers in the SG market (5.69%).


Stability and Growth of Payments

Stable Dividend: S68's dividends per share have been stable in the past 10 years.

Growing Dividend: S68's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (69.2%), S68's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: S68's dividends in 3 years are forecast to be covered by earnings (80.4% payout ratio).


Next Steps

Management

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

5.5yrs

Average management tenure


CEO

Boon Chye Loh (56 yo)

5.17yrs

Tenure

S$4,880,212

Compensation

Mr. Loh Boon Chye has been the Chief Executive Officer of Singapore Exchange Limited since July 14, 2015. Mr. Loh served as the Deputy President of The Asia-Pacific Region and Head of Global Markets for As ...


CEO Compensation Analysis

Compensation vs Market: Boon Chye's total compensation ($USD3.54M) is about average for companies of similar size in the SG market ($USD3.30M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Boon Chye Loh
CEO and Executive & Non-Independent Director5.17yrsS$4.88m0.043%
SGD 4.1m
Lay Chew Chng
Chief Financial Officer8.75yrsS$1.30m0.017%
SGD 1.6m
Sutat Chew
Head of Global Sales & Senior MD1.25yrsS$1.49mno data
Hsien-Min Syn
Head of Equities & Senior MD9.5yrsS$1.47mno data
Boon Gin Tan
Chief Executive Officer of Singapore Exchange Regulation5.25yrsS$1.49mno data
Beng Hong Lee
Head of Fixed Income1.08yrsS$2.39mno data
Tinku Gupta
Chief Technology Officer5.67yrsno datano data
Dominic Lim
Head of Investor Relationsno datano datano data
Kim Ming Seah
Head of Legal & Compliance and Joint Company Secretary4.67yrsno datano data
May Nah Chin
Vice President of Marketing & Communicationsno datano datano data
Arulraj Maria Devadoss
Head of Human Resources & Senior MD8.75yrsno datano data
Mohamed Nasser Ismail
Head Capital Market Development9.25yrsno datano data

5.5yrs

Average Tenure

56yo

Average Age

Experienced Management: S68's management team is seasoned and experienced (5.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Boon Chye Loh
CEO and Executive & Non-Independent Director5.17yrsS$4.88m0.043%
SGD 4.1m
Subra Suresh
Non-Executive & Independent Director2yrsS$100.00k0.00021%
SGD 20.2k
Gek Khim Chew
Non-Executive & Independent Director6.75yrsS$125.00k0.00045%
SGD 43.4k
Chin-Hu Lim
Non-Executive & Independent Director3yrsS$169.67k0.0037%
SGD 358.4k
Sok Hui Lim
Non-Executive & Non-Independent Director4.75yrsS$130.00kno data
Mark Makepeace
Non-Executive & Independent Directorno datano datano data
Kevin Khien Kwok
Non-Executive & Independent Director8yrsS$195.00k0.0089%
SGD 853.5k
Chong Seng Kwa
Non-Executive Independent Chairman4yrsS$1.01m0.0075%
SGD 719.6k
Swan Gin Beh
Independent Non-Executive Director0.58yrS$47.71kno data
Jane Diplock
Non-Executive & Independent Director9.17yrsS$155.00k0.00045%
SGD 43.4k
Wai King Ng
Non-Executive & Independent Director2yrsS$100.00k0.00021%
SGD 20.2k

4.4yrs

Average Tenure

60yo

Average Age

Experienced Board: S68's board of directors are considered experienced (4.4 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Singapore Exchange Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Singapore Exchange Limited
  • Ticker: S68
  • Exchange: SGX
  • Founded: 1999
  • Industry: Financial Exchanges and Data
  • Sector: Diversified Financials
  • Market Cap: S$9.634b
  • Shares outstanding: 1.07b
  • Website: https://www.sgx.com

Number of Employees


Location

  • Singapore Exchange Limited
  • No. 02-02, SGX Centre 1
  • 2 Shenton Way
  • Singapore
  • 68804
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SPXC.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 2000
S68SGX (Singapore Exchange)YesOrdinary SharesSGSGDNov 2000
SOUDB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 2000
SPXC.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDNov 2008
SOUUDB (Deutsche Boerse AG)UNSPONSORD ADRDEEURNov 2008

Biography

Singapore Exchange Limited, together with its subsidiaries, operates an integrated securities exchange and derivatives exchange, and related clearing houses in Singapore. The company’s Fixed Income, Curre ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/28 12:33
End of Day Share Price2020/09/28 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.