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S20

Straits TradingSGX:S20 Stock Report

Market Cap

S$1.4b

7D

7.9%

1Y

118.6%

Updated

20 Oct, 2021

Data

Company Financials
S20 fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance4/6
Financial Health1/6
Dividends3/6

S20 Overview

The Straits Trading Company Limited is a conglomerate-investment company with operations resources, property, and hospitality businesses.

Price History & Performance

Summary of all time highs, changes and price drops for Straits Trading
Historical stock prices
Current Share PriceS$3.41
52 Week HighS$1.52
52 Week LowS$3.42
Beta0.78
1 Month Change10.36%
3 Month Change18.82%
1 Year Change118.59%
3 Year Change64.73%
5 Year Change71.36%
Change since IPO52.12%

Recent News & Updates

Oct 20
Does Straits Trading (SGX:S20) Deserve A Spot On Your Watchlist?

Does Straits Trading (SGX:S20) Deserve A Spot On Your Watchlist?

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

Jun 09
We Like These Underlying Return On Capital Trends At Straits Trading (SGX:S20)

We Like These Underlying Return On Capital Trends At Straits Trading (SGX:S20)

There are a few key trends to look for if we want to identify the next multi-bagger. Amongst other things, we'll want...

May 10
What To Know Before Buying The Straits Trading Company Limited (SGX:S20) For Its Dividend

What To Know Before Buying The Straits Trading Company Limited (SGX:S20) For Its Dividend

Is The Straits Trading Company Limited ( SGX:S20 ) a good dividend stock? How can we tell? Dividend paying companies...

Shareholder Returns

S20SG Metals and MiningSG Market
7D7.9%1.2%2.4%
1Y118.6%88.6%22.6%

Return vs Industry: S20 exceeded the SG Metals and Mining industry which returned 88.6% over the past year.

Return vs Market: S20 exceeded the SG Market which returned 22.6% over the past year.

Price Volatility

Is S20's price volatile compared to industry and market?
S20 volatility
S20 Beta0.78
Industry Beta0.98
Market Beta1

Stable Share Price: S20 is not significantly more volatile than the rest of SG stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: S20's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
188764Eric Tenghttps://www.stc.com.sg

The Straits Trading Company Limited is a conglomerate-investment company with operations resources, property, and hospitality businesses. It operates in four segments: Resources, Real Estate, Hospitality, and Others. The company engages in the smelting of tin concentrates and tin bearing materials.

Straits Trading Fundamentals Summary

How do Straits Trading's earnings and revenue compare to its market cap?
S20 fundamental statistics
Market CapS$1.39b
Earnings (TTM)S$168.61m
Revenue (TTM)S$423.14m

8.2x

P/E Ratio

3.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
S20 income statement (TTM)
RevenueS$423.14m
Cost of RevenueS$278.07m
Gross ProfitS$145.07m
Expenses-S$23.53m
EarningsS$168.61m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.41
Gross Margin34.28%
Net Profit Margin39.85%
Debt/Equity Ratio65.7%

How did S20 perform over the long term?

See historical performance and comparison

Dividends

1.8%

Current Dividend Yield

14%

Payout Ratio

Valuation

Is Straits Trading undervalued compared to its fair value and its price relative to the market?

8.23x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: S20 (SGD3.41) is trading above our estimate of fair value (SGD1.09)

Significantly Below Fair Value: S20 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: S20 is poor value based on its PE Ratio (8.2x) compared to the SG Metals and Mining industry average (8.1x).

PE vs Market: S20 is good value based on its PE Ratio (8.2x) compared to the SG market (13.6x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate S20's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: S20 is good value based on its PB Ratio (0.8x) compared to the SG Metals and Mining industry average (2x).


Future Growth

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

12.8%

Forecasted Materials 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 Straits Trading 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.


Past Performance

How has Straits Trading performed over the past 5 years?

14.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: S20 has a large one-off gain of SGD95.3M impacting its June 30 2021 financial results.

Growing Profit Margin: S20's current net profit margins (39.8%) are higher than last year (14.6%).


Past Earnings Growth Analysis

Earnings Trend: S20's earnings have grown by 14% per year over the past 5 years.

Accelerating Growth: S20's earnings growth over the past year (256.2%) exceeds its 5-year average (14% per year).

Earnings vs Industry: S20 earnings growth over the past year (256.2%) exceeded the Metals and Mining industry 90.3%.


Return on Equity

High ROE: S20's Return on Equity (11.7%) is considered low.


Financial Health

How is Straits Trading's financial position?


Financial Position Analysis

Short Term Liabilities: S20's short term assets (SGD633.7M) exceed its short term liabilities (SGD608.4M).

Long Term Liabilities: S20's short term assets (SGD633.7M) do not cover its long term liabilities (SGD684.4M).


Debt to Equity History and Analysis

Debt Level: S20's debt to equity ratio (65.7%) is considered high.

Reducing Debt: S20's debt to equity ratio has increased from 40.2% to 65.7% over the past 5 years.

Debt Coverage: S20's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: S20's interest payments on its debt are not well covered by EBIT (2.8x coverage).


Balance Sheet


Dividend

What is Straits Trading current dividend yield, its reliability and sustainability?

1.76%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: S20's dividend (1.76%) isn’t notable compared to the bottom 25% of dividend payers in the SG market (1.95%).

High Dividend: S20's dividend (1.76%) is low compared to the top 25% of dividend payers in the SG market (5.24%).


Stability and Growth of Payments

Stable Dividend: S20's dividends per share have been stable in the past 10 years.

Growing Dividend: S20's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (14.2%), S20's dividend payments are thoroughly 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?

2.9yrs

Average management tenure


CEO

Eric Teng

2yrs

Tenure

Mr. Heng Chew Teng, also known as Eric, BBM, PBM, has been Chief Executive Officer of Straits Developments Private Limited at The Straits Trading Company Limited since October 1, 2019. He served as the Adv...


Leadership Team

Experienced Management: S20's management team is considered experienced (2.9 years average tenure).


Board Members

Experienced Board: S20's board of directors are considered experienced (8.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: S20 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

The Straits Trading Company Limited's employee growth, exchange listings and data sources


Key Information

  • Name: The Straits Trading Company Limited
  • Ticker: S20
  • Exchange: SGX
  • Founded: 1887
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: S$1.387b
  • Shares outstanding: 406.82m
  • Website: https://www.stc.com.sg

Number of Employees


Location

  • The Straits Trading Company Limited
  • Guoco Tower
  • No. 15-01, 1 Wallich Street
  • Singapore
  • 78881
  • Singapore

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/20 15:14
End of Day Share Price2021/10/20 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.