SGX:S68

Stock Analysis Report

Executive Summary

Singapore Exchange Limited, together with its subsidiaries, operates an integrated exchange for equity, fixed income, currency, and commodity markets in Singapore.

Snowflake

Fundamentals

Solid track record established dividend payer.


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


Market Performance


7 Day Return

-0.9%

S68

0.7%

SG Capital Markets

0.9%

SG Market


1 Year Return

21.7%

S68

17.2%

SG Capital Markets

0.4%

SG Market

Return vs Industry: S68 exceeded the SG Capital Markets industry which returned 17.2% over the past year.

Return vs Market: S68 exceeded the SG Market which returned 0.4% over the past year.


Share holder returns

S68IndustryMarket
7 Day-0.9%0.7%0.9%
30 Day-2.2%-1.3%-2.6%
90 Day4.4%4.0%-6.8%
1 Year26.6%21.7%22.0%17.2%4.4%0.4%
3 Year30.2%15.8%26.2%12.5%15.5%3.1%
5 Year48.9%22.8%37.1%13.0%11.6%-6.9%

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

22.85x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: S68 (SGD8.35) is trading above our estimate of fair value (SGD8.06)

Significantly Undervalued: S68 is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: S68 is poor value based on its PE Ratio (22.8x) compared to the Capital Markets industry average (16.9x).

PE vs Market: S68 is poor value based on its PE Ratio (22.8x) compared to the SG market (13.3x).


Price Based on Expected Growth

Low PEG Ratio: S68 is poor value based on its PEG Ratio (5.7x)


Price Based on Value of Assets

PB vs Industry: S68 is overvalued based on its PB Ratio (8.2x) compared to the SG Capital Markets industry average (1.2x).


Next Steps

Future Growth

How is Singapore Exchange expected to perform in the next 1 to 3 years based on estimates from 13 analysts?

4.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: S68's forecast earnings growth (4% per year) is above the savings rate (2.3%).

Earnings vs Market: S68's earnings (4% per year) are forecast to grow slower than the SG market (5.7% per year).

High Growth Earnings: S68's earnings are forecast to grow, but not significantly.

Revenue vs Market: S68's revenue (3.8% per year) is forecast to grow slower than the SG market (5.4% per year).

High Growth Revenue: S68's revenue (3.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: S68's Return on Equity is forecast to be high in 3 years time (32.9%)


Next Steps

Past Performance

How has Singapore Exchange performed over the past 5 years?

2.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: S68's earnings have grown by 2.8% per year over the past 5 years.

Accelerating Growth: S68's earnings growth over the past year (7.7%) exceeds its 5-year average (2.8% per year).

Earnings vs Industry: S68 earnings growth over the past year (7.7%) exceeded the Capital Markets industry -16.5%.


Return on Equity

High ROE: S68's Return on Equity (35.9%) is considered high.


Return on Assets

ROA vs Industry: S68 has a higher Return on Assets than the Capital Markets industry average last year.


Return on Capital Employed

ROCE Improving: S68 has not improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Singapore Exchange's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: S68 has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if S68's debt is covered by short term assets.


Financial Institutions Analysis

Asset Level: S68's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if S68 has a sufficient allowance for bad loans.

Low Risk Liabilities: S68 reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if S68 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: S68 has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if S68 has an appropriate level of bad loans.


Next Steps

Dividend

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

3.92%

Expected Dividend Yield


Dividend Yield vs Market

company3.6%marketbottom25%2.5%markettop25%5.6%industryaverage3.7%forecastin3Years3.9%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: S68's dividend (3.59%) is higher than the bottom 25% of dividend payers in the SG market (2.5%).

High Dividend: S68's dividend (3.59%) is low compared to the top 25% of dividend payers in the SG market (5.57%).

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: At its current payout ratio (82.1%), S68's 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 (83.8% payout ratio).


Next Steps

Management

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

4.5yrs

Average management tenure


CEO

Boon Chye Loh (55yo)

4.3yrs

Tenure

S$4,291,175

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 ($USD3.13M) is about average for companies of similar size in the SG market ($USD4.01M).

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


Management Age and Tenure

4.5yrs

Average Tenure

56.5yo

Average Age

Experienced Management: S68's management team is considered experienced (4.5 years average tenure).


Board Age and Tenure

5.0yrs

Average Tenure

61.5yo

Average Age

Experienced Board: S68's board of directors are considered experienced (5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellS$400,00008 Mar 19
Kevin Khien Kwok
EntityIndividual
Role
Member of the Board of Directors
Non-Executive & Independent Director
Shares50,000
Max PriceS$8.00

Ownership Breakdown


Management Team

  • Boon Chye Loh (55yo)

    CEO and Executive & Non-Independent Director

    • Tenure: 4.3yrs
    • Compensation: S$4.29m
  • Sutat Chew (47yo)

    Head of Global Sales & Origination and Executive VP

    • Tenure: 0.3yrs
    • Compensation: S$1.41m
  • May Nah Chin

    Vice President of Marketing & Communications

    • Tenure: 0yrs
  • Glenn Seah

    Head of Legal & Compliance and Joint Company Secretary

    • Tenure: 3.8yrs
  • Boon Gin Tan

    Chief Executive Officer of Singapore Exchange Regulation

    • Tenure: 4.3yrs
    • Compensation: S$1.29m
  • Michael Syn

    Head of Equities & Executive VP

    • Tenure: 8.6yrs
    • Compensation: S$1.46m
  • Lay Chng (61yo)

    Chief Financial Officer

    • Tenure: 7.8yrs
    • Compensation: S$1.22m
  • Arulraj Maria Devadoss (58yo)

    Head of Human Resources & Executive VP

    • Tenure: 7.8yrs
  • Tinku Gupta

    Head of Technology & Executive VP

    • Tenure: 4.8yrs
  • Dominic Lim

    Head of Investor Relations

    • Tenure: 0yrs

Board Members

  • Thaddeus Thomas Beczak (68yo)

    Non-Executive & Independent Director

    • Tenure: 9yrs
    • Compensation: S$115.00k
  • Boon Chye Loh (55yo)

    CEO and Executive & Non-Independent Director

    • Tenure: 4.3yrs
    • Compensation: S$4.29m
  • Gek Khim Chew (57yo)

    Non-Executive & Independent Director

    • Tenure: 5.8yrs
    • Compensation: S$125.00k
  • Chin-Hu Lim (60yo)

    Non Executive & Non Independent Director

    • Tenure: 2.1yrs
    • Compensation: S$134.50k
  • Sok Hui Chng (58yo)

    Non-Executive & Non-Independent Director

    • Tenure: 3.8yrs
    • Compensation: S$130.00k
  • Mun Leong Liew (73yo)

    Non-Executive & Non-Independent Director

    • Tenure: 10.3yrs
    • Compensation: S$165.00k
  • Kevin Khien Kwok (63yo)

    Non-Executive & Independent Director

    • Tenure: 7.1yrs
    • Compensation: S$195.00k
  • Chong Seng Kwa (72yo)

    Non-Executive Independent Chairman

    • Tenure: 3.1yrs
    • Compensation: S$1.01m
  • Jane Diplock (70yo)

    Non-Executive & Independent Director

    • Tenure: 8.3yrs
    • Compensation: S$155.00k
  • Wai King Ng (52yo)

    Non-Executive & Independent Director

    • Tenure: 1.1yrs
    • Compensation: S$77.99k

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$8.996b
  • Shares outstanding: 1.07b
  • Website: https://www2.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

Biography

Singapore Exchange Limited, together with its subsidiaries, operates an integrated exchange for equity, fixed income, currency, and commodity markets in Singapore. The company’s Equities and Fixed Income s ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 12:37
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.

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