SGX:C31

Stock Analysis Report

Executive Summary

CapitaLand Limited, together with its subsidiaries, develops, owns, and manages real estate properties in Singapore, North America, Europe, Asia, the United Kingdom, and internationally.

Rewards

Trading at 41.2% below its fair value

Earnings are forecast to grow 5.24% per year

Earnings grew by 7.7% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

Unstable dividend track record

Large one-off items impacting financial results

Shareholders have been diluted in the past year



Snowflake Analysis

Good value average dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: C31 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.5%

C31

0.6%

SG Real Estate

1.0%

SG Market


1 Year Return

10.7%

C31

-5.1%

SG Real Estate

-1.8%

SG Market

Return vs Industry: C31 exceeded the SG Real Estate industry which returned -5.1% over the past year.

Return vs Market: C31 exceeded the SG Market which returned -1.8% over the past year.


Shareholder returns

C31IndustryMarket
7 Day0.5%0.6%1.0%
30 Day-5.3%-4.7%-2.7%
90 Day0%-0.3%-0.9%
1 Year14.5%10.7%-2.2%-5.1%2.2%-1.8%
3 Year18.0%7.5%-2.3%-9.9%9.3%-2.2%
5 Year17.0%1.1%-7.8%-19.5%9.2%-9.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

41.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: C31 (SGD3.72) is trading below our estimate of fair value (SGD6.33)

Significantly Below Fair Value: C31 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: C31 is good value based on its PE Ratio (9.7x) compared to the Real Estate industry average (11.2x).

PE vs Market: C31 is good value based on its PE Ratio (9.7x) compared to the SG market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: C31 is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: C31 is overvalued based on its PB Ratio (0.8x) compared to the SG Real Estate industry average (0.5x).


Next Steps

Future Growth

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

5.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: C31's forecast earnings growth (5.2% per year) is above the savings rate (1.8%).

Earnings vs Market: C31's earnings (5.2% per year) are forecast to grow slower than the SG market (5.8% per year).

High Growth Earnings: C31's earnings are forecast to grow, but not significantly.

Revenue vs Market: C31's revenue (12.8% per year) is forecast to grow faster than the SG market (5.2% per year).

High Growth Revenue: C31's revenue (12.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: C31's Return on Equity is forecast to be low in 3 years time (8.1%).


Next Steps

Past Performance

How has CapitaLand performed over the past 5 years?

11.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: C31 has a large one-off gain of SGD844.7M impacting its September 30 2019 financial results.

Growing Profit Margin: C31's current net profit margins (30.7%) are higher than last year (30.1%).


Past Earnings Growth Analysis

Earnings Trend: C31's earnings have grown by 11.6% per year over the past 5 years.

Accelerating Growth: C31's earnings growth over the past year (7.7%) is below its 5-year average (11.6% per year).

Earnings vs Industry: C31 earnings growth over the past year (7.7%) exceeded the Real Estate industry -37.7%.


Return on Equity

High ROE: C31's Return on Equity (7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is CapitaLand's financial position?


Financial Position Analysis

Short Term Liabilities: C31's short term assets (SGD17.9B) exceed its short term liabilities (SGD14.8B).

Long Term Liabilities: C31's short term assets (SGD17.9B) do not cover its long term liabilities (SGD29.1B).


Debt to Equity History and Analysis

Debt Level: C31's debt to equity ratio (81.9%) is considered high.

Reducing Debt: C31's debt to equity ratio has increased from 71.8% to 81.9% over the past 5 years.

Debt Coverage: C31's debt is not well covered by operating cash flow (2.3%).

Interest Coverage: C31's interest payments on its debt are well covered by EBIT (3.8x coverage).


Balance Sheet

Inventory Level: C31 has a low level of unsold assets or inventory.

Debt Coverage by Assets: C31's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

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

3.23%

Current Dividend Yield


Dividend Yield vs Market

company3.2%marketbottom25%2.6%markettop25%5.7%industryaverage3.2%forecastin3Years3.5%

Current dividend yield vs market & industry

Notable Dividend: C31's dividend (3.23%) is higher than the bottom 25% of dividend payers in the SG market (2.56%).

High Dividend: C31's dividend (3.23%) is low compared to the top 25% of dividend payers in the SG market (5.71%).


Stability and Growth of Payments

Stable Dividend: C31's dividend payments have been volatile in the past 10 years.

Growing Dividend: C31's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (31.2%), C31's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: C31's dividends in 3 years are forecast to be well covered by earnings (39.8% payout ratio).


Next Steps

Management

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

1.4yrs

Average management tenure


CEO

Chee Koon Lee (44yo)

1.4yrs

Tenure

S$4,210,958

Compensation

Mr. Chee Koon Lee has been Executive Non Independent Director at CapitaLand Ltd. since January 01, 2019. He has been President & Group Chief Executive Officer at CapitaLand Ltd. since September 15, 2018. M ...


CEO Compensation Analysis

Compensation vs Market: Chee Koon's total compensation ($USD3.02M) is below average for companies of similar size in the SG market ($USD4.83M).

Compensation vs Earnings: Insufficient data to compare Chee Koon's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Chee Koon Lee
Group CEO & Executive Non Independent Director1.4yrsS$4.21m0.014% SGD2.7m
Cho Pin Lim
Group Chief Financial Officer3.1yrsno datano data
Grace Chen
Head of Investor Relations & Capital Markets Compliance0yrsno datano data
Bee Tan
Head of Group Communications0yrsno datano data
Seng Tan
Chief Corporate & People Officer2.1yrsno datano data
Juan Thong Leow
President of Singapore & International1.4yrsno data0.015% SGD2.9m
Jen Yuh Loh
President of China1.4yrsno data0.013% SGD2.5m
Chin Yee Leong
Chief Sustainability Officer0yrsno datano data
Jihong He
Chief Corporate Strategy Officer of CapitaLand Group0.6yrsno datano data
Hwee Tin Kng
CEO of Finance & Corporate Services - China0.3yrsno datano data

1.4yrs

Average Tenure

52yo

Average Age

Experienced Management: C31's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Chee Koon Lee
Group CEO & Executive Non Independent Director1.4yrsS$4.21m0.014% SGD2.7m
Chin Yee Leong
Chief Sustainability Officer0yrsno datano data
Kee Ng
Independent Chairman of the Board7.8yrsS$750.00k0.0081% SGD1.5m
Ching-Yen Lee
Independent Non-Executive Director7.1yrsS$180.10k0.0018% SGD327.9k
Philip Pillai
Independent Non-Executive Director5.8yrsS$168.90k0.0013% SGD251.1k
Amirsham Bin Abdul Aziz
Independent Non-Executive Director7.6yrsS$228.70k0.0026% SGD477.9k
Teck Koon Kee
Independent Non-Executive Director5.4yrsS$194.80k0.0013% SGD239.9k
Kai Ko
Non-Executive Deputy Chairman0.5yrsno datano data
Chee Kheong Mah
Independent Non-Executive Director3yrsS$196.60k0.0016% SGD298.0k
Weng Kin Lim
Independent Non-Executive Director2.5yrsS$162.70k0.00041% SGD76.8k

5.4yrs

Average Tenure

64.5yo

Average Age

Experienced Board: C31's board of directors are considered experienced (5.4 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 been diluted in the past year, with total shares outstanding growing by 4.2%.


Top Shareholders

Company Information

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


Key Information

  • Name: CapitaLand Limited
  • Ticker: C31
  • Exchange: SGX
  • Founded: 1989
  • Industry: Diversified Real Estate Activities
  • Sector: Real Estate
  • Market Cap: S$18.739b
  • Shares outstanding: 5.04b
  • Website: https://www.capitaland.com

Number of Employees


Location

  • CapitaLand Limited
  • No. 30-01, Capital Tower
  • 168 Robinson Road
  • Singapore
  • 68912
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CLLD.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 2000
C31SGX (Singapore Exchange)YesOrdinary SharesSGSGDNov 2000
PLFDB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 2000
CLLD.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDJun 2003

Biography

CapitaLand Limited, together with its subsidiaries, develops, owns, and manages real estate properties in Singapore, North America, Europe, Asia, the United Kingdom, and internationally. The company operates through CapitaLand Singapore, CapitaLand China, CapitaLand Vietnam, and CapitaLand International segments. Its real estate portfolio includes integrated developments, shopping malls, lodging, offices, homes, and real estate investment trusts and funds. CapitaLand Limited also invests in real estate financial products and assets; and provides investment advisory and management services, as well as real estate asset management and trust management services. In addition, it offers software and network technique development and management and consultancy services. The company was formerly known as Pidemco Land Limited and changed its name to CapitaLand Limited in November 2000. CapitaLand Limited was founded in 1989 and is headquartered in Singapore. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 12:41
End of Day Share Price2020/02/14 00:00
Earnings2019/09/30
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.