SGX:OU8

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Fair value with acceptable track record.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-1.2%

OU8

0.06%

SG Real Estate

-0.002%

SG Market


1 Year Return

-3.6%

OU8

0.3%

SG Real Estate

0.6%

SG Market

Return vs Industry: OU8 underperformed the SG Real Estate industry which returned 0.3% over the past year.

Return vs Market: OU8 underperformed the SG Market which returned 0.6% over the past year.


Shareholder returns

OU8IndustryMarket
7 Day-1.2%0.06%-0.002%
30 Day0%-1.4%-1.5%
90 Day-1.2%-7.2%-6.8%
1 Year1.2%-3.6%3.5%0.3%4.7%0.6%
3 Year41.8%22.7%3.2%-5.2%15.1%2.7%
5 Year-2.9%-22.9%0.2%-13.0%10.1%-8.2%

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?

7.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: OU8 (SGD0.41) is trading below our estimate of fair value (SGD0.44)

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 (4.3x) compared to the Real Estate industry average (11.1x).

PE vs Market: OU8 is good value based on its PE Ratio (4.3x) compared to the SG market (13.5x).


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 is overvalued based on its PB Ratio (0.7x) compared to the SG Real Estate industry average (0.5x).


Next Steps

Future Growth

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

-20.9%

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 (-20.9% per year).

Earnings vs Market: OU8's earnings are forecast to decline over the next 3 years (-20.9% per year).

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

Revenue vs Market: OU8's revenue (3.1% per year) is forecast to grow slower than the SG market (5.4% per year).

High Growth Revenue: OU8's revenue (3.1% 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 (6.6%).


Next Steps

Past Performance

How has Centurion performed over the past 5 years?

-11.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: OU8's earnings have declined by -11.8% per year over the past 5 years.

Accelerating Growth: OU8's earnings growth over the past year (154.5%) exceeds its 5-year average (-11.8% per year).

Earnings vs Industry: OU8 earnings growth over the past year (154.5%) exceeded the Real Estate industry -22.8%.


Return on Equity

High ROE: OU8's Return on Equity (15.6%) is considered low.


Return on Assets

ROA vs Industry: OU8 has a higher Return on Assets than the Real Estate industry average last year.


Return on Capital Employed

ROCE Improving: OU8's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Centurion's financial position?


Financial Position Analysis

Short Term Liabilities: OU8's short term assets (SGD79.4M) do not cover its short term liabilities (SGD90.0M)

Long Term Liabilities: OU8's short term assets (79.4M) do not cover its long term liabilities (722.6M)


Debt to Equity History and Analysis

Debt Level: OU8's debt to equity ratio (136.4%) is considered high

Reducing Debt: OU8's debt to equity ratio has increased from 86.5% to 136.4% over the past 5 years.

Debt Coverage: OU8's debt is not well covered by operating cash flow (7.9%).

Interest Coverage: OU8's interest payments on its debt are not well covered by EBIT (2.8x coverage).


Balance Sheet

Inventory Level: OU8 has a high level of physical assets or inventory.

Debt Coverage by Assets: OU8's debt is not covered by short term assets (assets are 0.1x debt).


Next Steps

Dividend

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

4.94%

Current Dividend Yield


Dividend Yield vs Market

company4.9%marketbottom25%2.6%markettop25%5.7%industryaverage3.4%forecastin3Years4.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: OU8's dividend (4.94%) is higher than the bottom 25% of dividend payers in the SG market (2.55%).

High Dividend: OU8's dividend (4.94%) is low compared to the top 25% of dividend payers in the SG market (5.71%).

Stable Dividend: Whilst dividend payments have been stable, OU8 has been paying a dividend for less than 10 years.

Growing Dividend: OU8's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (21.4%), OU8's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: OU8's dividends in 3 years are forecast to be covered by earnings (50% payout ratio).


Next Steps

Management

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

6.5yrs

Average management tenure


CEO

Chee Min Kong (54yo)

8.2yrs

Tenure

0

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 ...


Management Age and Tenure

6.5yrs

Average Tenure

54yo

Average Age

Experienced Management: OU8's management team is seasoned and experienced (6.5 years average tenure).


Board Age and Tenure

4.4yrs

Average Tenure

57.5yo

Average Age

Experienced Board: OU8's board of directors are considered experienced (4.4 years average tenure).


Insider Trading

Insider Buying: OU8 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyS$186,55401 Oct 19
Seng Juan Han
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares450,000
Max PriceS$0.41
BuyS$186,49523 Sep 19
Seng Juan Han
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares450,000
Max PriceS$0.41
BuyS$208,87328 Aug 19
Seng Juan Han
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares500,000
Max PriceS$0.42
BuyS$22,59910 Jun 19
Kim Kang Loh
EntityIndividual
Role
Member of the Board of Directors
Non Executive Director
Shares55,800
Max PriceS$0.41
BuyS$17,90107 Jun 19
Kim Kang Loh
EntityIndividual
Role
Member of the Board of Directors
Non Executive Director
Shares44,200
Max PriceS$0.41
BuyS$222,75006 Jun 19
Kim Kang Loh
EntityIndividual
Role
Member of the Board of Directors
Non Executive Director
Shares550,000
Max PriceS$0.41
BuyS$14,17524 May 19
Kim Kang Loh
EntityIndividual
Role
Member of the Board of Directors
Non Executive Director
Shares35,000
Max PriceS$0.41
BuyS$26,30223 May 19
Kim Kang Loh
EntityIndividual
Role
Member of the Board of Directors
Non Executive Director
Shares64,800
Max PriceS$0.41
BuyS$192,65021 Mar 19
Seng Juan Han
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares252,800
Max PriceS$2.41
BuyS$165,20820 Mar 19
Seng Juan Han
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares400,000
Max PriceS$0.41
BuyS$949,59506 Mar 19
Kim Kang Loh
EntityIndividual
Role
Member of the Board of Directors
Non Executive Director
Shares2,302,000
Max PriceS$0.41
BuyS$157,32628 Nov 18
Kim Kang Loh
EntityIndividual
Role
Member of the Board of Directors
Non Executive Director
Shares379,100
Max PriceS$0.41
BuyS$209,16027 Nov 18
Kim Kang Loh
EntityIndividual
Role
Member of the Board of Directors
Non Executive Director
Shares504,000
Max PriceS$0.41
BuyS$52,69023 Nov 18
Seng Juan Han
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares130,100
Max PriceS$0.41
BuyS$173,30022 Nov 18
Seng Juan Han
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares427,900
Max PriceS$0.41
BuyS$56,01220 Nov 18
Seng Juan Han
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares138,300
Max PriceS$0.41
BuyS$210,46419 Nov 18
Seng Juan Han
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares511,000
Max PriceS$0.41
BuyS$303,75015 Nov 18
Seng Juan Han
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares750,000
Max PriceS$0.41
BuyS$262,53514 Nov 18
Seng Juan Han
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares650,000
Max PriceS$0.40

Ownership Breakdown


Management Team

  • Hazel Chia

    Company Secretary

    • Tenure: 4.8yrs
  • Chee Min Kong (54yo)

    Chief Executive Officer

    • Tenure: 8.2yrs
  • Janice Lee (58yo)

    Human Resources & Administration Manager

    • Tenure: 24.8yrs
  • Siew Fatt Leong (53yo)

    Head of Student Accommodation Business

    • Tenure: 0yrs
  • Juliana Tan

    Company Secretary

    • Tenure: 2.8yrs
  • Tak Yee Wong (62yo)

    Company Secretary

    • Tenure: 2.3yrs
  • Ai Huey Foo (51yo)

    Chief Financial Officer

    • Tenure: 8.2yrs
  • Kelvin Teo (58yo)

    Chief Operating Officer of Accommodation Business & Executive Director

    • Tenure: 1.4yrs
    • Compensation: S$806.00k
  • Lip Chin Ho (50yo)

    Chief Investment Officer of Accommodation Business

    • Tenure: 4.8yrs
  • David Oh

    Investor Relations Manager

    • Tenure: 0yrs

Board Members

  • Hiang Meng Gn (70yo)

    Lead Independent Director

    • Tenure: 5.6yrs
    • Compensation: S$101.00k
  • Chandra Mohan (57yo)

    Independent Non-Executive Director

    • Tenure: 12.4yrs
    • Compensation: S$80.00k
  • Kok Hoe Wong (56yo)

    Non-Executive Chairman

    • Tenure: 8.2yrs
    • Compensation: S$72.00k
  • Seng Juan Han (57yo)

    Non-Executive Director

    • Tenure: 4.4yrs
    • Compensation: S$42.00k
  • David Loh (56yo)

    Non Executive Director

    • Tenure: 4.4yrs
    • Compensation: S$42.00k
  • Poh Hong Tan (59yo)

    Independent Non-Executive Director

    • Tenure: 1.4yrs
    • Compensation: S$40.00k
  • Kelvin Teo (58yo)

    Chief Operating Officer of Accommodation Business & Executive Director

    • Tenure: 1.4yrs
    • Compensation: S$806.00k
  • Kek Hean Owi (61yo)

    Independent Non-Executive Director

    • Tenure: 2.8yrs
    • Compensation: S$73.00k

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$336.311m
  • 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, Malaysia, Australia, and internationall ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 12:39
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
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.