SGX:OU8

Stock Analysis Report

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Executive Summary

Centurion Corporation Limited, an investment holding company, owns, develops, and manages workers and students accommodation assets in Singapore, the United Kingdom, the United States, Malaysia, Australia, and internationally. More Details


Snowflake Analysis

Proven track record and fair value.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: OU8 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.4%

OU8

-0.2%

SG Real Estate

0.9%

SG Market


1 Year Return

-14.8%

OU8

-21.4%

SG Real Estate

-21.5%

SG Market

Return vs Industry: OU8 exceeded the SG Real Estate industry which returned -20.9% over the past year.

Return vs Market: OU8 exceeded the SG Market which returned -21.5% over the past year.


Shareholder returns

OU8IndustryMarket
7 Day-1.4%-0.2%0.9%
30 Day-4.2%-0.5%-2.3%
90 Day-8.0%-4.8%-4.4%
1 Year-12.5%-14.8%-18.5%-21.4%-17.2%-21.5%
3 Year-21.4%-31.0%-27.4%-33.8%-17.1%-27.1%
5 Year2.9%-17.9%-8.7%-21.2%-0.4%-18.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

5.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: OU8 (SGD0.35) is trading below our estimate of fair value (SGD0.37)

Significantly Below Fair Value: OU8 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: OU8 is good value based on its PE Ratio (2.8x) compared to the SG Real Estate industry average (11.1x).

PE vs Market: OU8 is good value based on its PE Ratio (2.8x) compared to the SG market (13x).


Price to Earnings Growth Ratio

PEG Ratio: OU8's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: OU8's PB Ratio (0.5x) is in line with the SG Real Estate industry average.


Next Steps

Future Growth

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

-4.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OU8's earnings are forecast to decline over the next 3 years (-4.9% per year).

Earnings vs Market: OU8's earnings are forecast to decline over the next 3 years (-4.9% per year).

High Growth Earnings: OU8's earnings are forecast to decline over the next 3 years.

Revenue vs Market: OU8's revenue (5.3% per year) is forecast to grow slower than the SG market (6.3% per year).

High Growth Revenue: OU8's revenue (5.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: OU8's Return on Equity is forecast to be low in 3 years time (6.3%).


Next Steps

Past Performance

How has Centurion performed over the past 5 years?

14.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OU8 has a large one-off gain of SGD64.7M impacting its June 30 2020 financial results.

Growing Profit Margin: OU8's current net profit margins (75%) are higher than last year (60.4%).


Past Earnings Growth Analysis

Earnings Trend: OU8's earnings have grown by 14.6% per year over the past 5 years.

Accelerating Growth: OU8's earnings growth over the past year (31%) exceeds its 5-year average (14.6% per year).

Earnings vs Industry: OU8 earnings growth over the past year (31%) exceeded the Real Estate industry -34.4%.


Return on Equity

High ROE: OU8's Return on Equity (17.3%) is considered low.


Next Steps

Financial Health

How is Centurion's financial position?


Financial Position Analysis

Short Term Liabilities: OU8's short term assets (SGD101.5M) exceed its short term liabilities (SGD87.9M).

Long Term Liabilities: OU8's short term assets (SGD101.5M) do not cover its long term liabilities (SGD785.1M).


Debt to Equity History and Analysis

Debt Level: OU8's debt to equity ratio (121.3%) is considered high.

Reducing Debt: OU8's debt to equity ratio has reduced from 144.5% to 121.3% over the past 5 years.

Debt Coverage: OU8's debt is not well covered by operating cash flow (10%).

Interest Coverage: OU8's interest payments on its debt are not well covered by EBIT (2.9x coverage).


Balance Sheet


Next Steps

Dividend

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

4.61%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate OU8's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate OU8's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if OU8's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if OU8's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: OU8 is not paying a notable dividend for the SG market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of OU8's dividend in 3 years as they are not forecast to pay a notable one for the SG market.


Next Steps

Management

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

5.7yrs

Average management tenure


CEO

Chee Min Kong (55 yo)

9.08yrs

Tenure

S$861,000

Compensation

Mr. Chee Min Kong has been the Chief Executive Officer of Centurion Corporation Limited (formerly, SM Summit Holdings Limited) since August 1, 2011. Mr. Kong served as the Group Finance Director of TES-Env ...


CEO Compensation Analysis

Compensation vs Market: Chee Min's total compensation ($USD634.57K) is below average for companies of similar size in the SG market ($USD1.02M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Chee Min Kong
Chief Executive Officer9.08yrsS$861.00k0.021%
SGD 59.6k
Kok Hoe Wong
Deputy Chairman of Board0.83yrS$207.00k1.19%
SGD 3.4m
Peng Kwang Teo
Chief Operating Officer of Accommodation Business & Executive Director2.33yrsS$933.00k7.58%
SGD 22.0m
Ai Huey Foo
Chief Financial Officer9.08yrsno datano data
Geok Ing Lee
Human Resources & Administration Manager25.67yrsno datano data
George Goh
Investor Relations Managerno datano datano data
David Phey
Head of Corporate Communicationsno datano datano data
Siew Fatt Leong
Head of Student Accommodation Businessno datano datano data
Lip Chin Ho
Chief Investment Officer of Accommodation Business5.67yrsno datano data
Luang Chew Chia
Company Secretary5.67yrsno datano data
Beng Hwee Tan
Company Secretary3.67yrsno datano data
Tak Yee Wong
Company Secretary3.25yrsno datano data

5.7yrs

Average Tenure

56yo

Average Age

Experienced Management: OU8's management team is seasoned and experienced (5.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kok Hoe Wong
Deputy Chairman of Board0.83yrS$207.00k1.19%
SGD 3.4m
Peng Kwang Teo
Chief Operating Officer of Accommodation Business & Executive Director2.33yrsS$933.00k7.58%
SGD 22.0m
Hiang Meng Gn
Lead Independent Director6.5yrsS$103.00k0.029%
SGD 85.4k
Chandra Mohan
Independent Non-Executive Director13.33yrsS$81.00kno data
Seng Juan Han
Joint Chairman of the Board0.83yrS$46.00k4.97%
SGD 14.4m
Kim Kang Loh
Joint Chairman of the Board0.83yrS$46.00k4.54%
SGD 13.2m
Poh Hong Tan
Independent Non-Executive Director2.33yrsS$61.00kno data
Kek Hean Owi
Independent Non-Executive Director3.67yrsS$78.00kno data
Wei Loon Lee
Independent Non-Executive Director0.83yrS$6.00kno data

2.3yrs

Average Tenure

58yo

Average Age

Experienced Board: OU8's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: OU8 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

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


Key Information

  • Name: Centurion Corporation Limited
  • Ticker: OU8
  • Exchange: SGX
  • Founded: 1981
  • Industry: Real Estate Operating Companies
  • Sector: Real Estate
  • Market Cap: S$290.069m
  • Shares outstanding: 840.78m
  • Website: https://www.centurioncorp.com.sg

Number of Employees


Location

  • Centurion Corporation Limited
  • 45 Ubi Road 1
  • No. 05-01
  • Singapore
  • 408696
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OU8SGX (Singapore Exchange)YesOrdinary SharesSGSGDAug 2011
6090SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDAug 2011

Biography

Centurion Corporation Limited, an investment holding company, owns, develops, and manages workers and students accommodation assets in Singapore, the United Kingdom, the United States, Malaysia, Australia, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/17 20:15
End of Day Share Price2020/09/17 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.