SGX:S29

Stock Analysis Report

Executive Summary

Stamford Tyres Corporation Limited, an investment holding company, engages in the wholesale and retail of tires and wheels in South East Asia, North Asia, Africa, and internationally.

Risk Analysis

Earnings have declined by -11.59% per year over past 5 years

Interest payments are not well covered by earnings

Dividend of 4.65% is not well covered by earnings

Does not have a meaningful market cap (SGD51M)



Snowflake Analysis

Mediocre balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: S29 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

S29

-3.1%

SG Retail Distributors

-1.4%

SG Market


1 Year Return

-27.6%

S29

-18.3%

SG Retail Distributors

0.8%

SG Market

Return vs Industry: S29 underperformed the SG Retail Distributors industry which returned -15.3% over the past year.

Return vs Market: S29 underperformed the SG Market which returned 2.1% over the past year.


Shareholder returns

S29IndustryMarket
7 Day0%-3.1%-1.4%
30 Day-12.5%-0.9%0.3%
90 Day0%-6.2%1.8%
1 Year-24.4%-27.6%-15.3%-18.3%4.9%0.8%
3 Year-12.6%-22.2%-20.5%-27.6%13.7%1.6%
5 Year-27.4%-40.0%-15.2%-29.1%10.8%-7.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.41x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: S29 (SGD0.22) is trading above our estimate of fair value (SGD0.18)

Significantly Below Fair Value: S29 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: S29 is unprofitable, so we can't compare its PE Ratio to the Retail Distributors industry average.

PE vs Market: S29 is unprofitable, so we can't compare its PE Ratio to the SG market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate S29's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: S29 is good value based on its PB Ratio (0.4x) compared to the SG Retail Distributors industry average (0.5x).


Next Steps

Future Growth

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

10.5%

Forecasted Retail 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 Stamford Tyres 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.


Next Steps

Past Performance

How has Stamford Tyres performed over the past 5 years?

-11.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: S29 is currently unprofitable.

Growing Profit Margin: S29 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: S29 is unprofitable, and losses have increased over the past 5 years at a rate of -11.6% per year.

Accelerating Growth: Unable to compare S29's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: S29 is unprofitable, making it difficult to compare its past year earnings growth to the Retail Distributors industry (-12%).


Return on Equity

High ROE: S29 has a negative Return on Equity (-0.33%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Stamford Tyres's financial position?


Financial Position Analysis

Short Term Liabilities: S29's short term assets (SGD174.8M) exceed its short term liabilities (SGD107.9M).

Long Term Liabilities: S29's short term assets (SGD174.8M) exceed its long term liabilities (SGD35.0M).


Debt to Equity History and Analysis

Debt Level: S29's debt to equity ratio (79.9%) is considered high.

Reducing Debt: S29's debt to equity ratio has reduced from 102.7% to 79.9% over the past 5 years.

Debt Coverage: S29's debt is not well covered by operating cash flow (4.4%).

Interest Coverage: S29 is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

Inventory Level: S29 has a high level of physical assets or inventory.

Debt Coverage by Assets: S29's debt is covered by short term assets (assets are 1.8x debt).


Next Steps

Dividend

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

4.76%

Current Dividend Yield


Dividend Yield vs Market

company4.8%marketbottom25%2.5%markettop25%5.5%industryaverage4.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: S29's dividend (4.65%) is higher than the bottom 25% of dividend payers in the SG market (2.5%).

High Dividend: S29's dividend (4.65%) is low compared to the top 25% of dividend payers in the SG market (5.41%).


Stability and Growth of Payments

Stable Dividend: S29's dividend payments have been volatile in the past 10 years.

Growing Dividend: S29's dividend payments have not increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: S29 is paying a dividend but the company is unprofitable.


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

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

13.4yrs

Average management tenure


CEO

Kelvin Lam (50yo)

0yrs

Tenure

0

Mr. Mun Kong Lam, also known as Kelvin, serves as Chief Executive Officer for China and an Assistant Vice President of Stamford Tyres Corp. Mr. Lam served as a Group Finance Manager, Head of Finance and Se ...


Management Age and Tenure

13.4yrs

Average Tenure

51yo

Average Age

Experienced Management: S29's management team is seasoned and experienced (13.4 years average tenure).


Board Age and Tenure

8.8yrs

Average Tenure

69yo

Average Age

Experienced Board: S29's board of directors are considered experienced (8.8 years average tenure).


Insider Trading

Insider Buying: S29 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyS$88,20006 Jan 20
Kok Wah Wee
EntityIndividual
Role
Member of the Board of Directors
President & Executive Director
Shares360,000
Max PriceS$0.24

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Dawn Wee (70yo)

    Executive Director

    • Tenure: 30.3yrs
  • Kok Wah Wee (73yo)

    President & Executive Director

    • Tenure: 30.3yrs
  • Tiu Conson (52yo)

    Senior VP & Deputy CEO of Malaysia

    • Clare Law (51yo)

      Senior VP and Head of Singapore Operations & Supply Chain

      • Tenure: 14yrs
    • Kelvin Lam (50yo)

      Chief Executive Officer of China Operations and Assistant Vice President

      • Soon Cham (51yo)

        Executive VP & CEO of Malaysia

        • Colin Choo (47yo)

          Senior VP & Head of Thailand Operations

          • Swee Oi Lo

            Company Secretary

            • Tenure: 13.4yrs
          • Li Ann Wee (47yo)

            Executive Director

            • Tenure: 10.1yrs
          • Frank Ng

            Group Financial Controller

            • Tenure: 7yrs

          Board Members

          • Chong Keen Sam (64yo)

            Non-Executive & Independent Chairman

            • Tenure: 7.4yrs
          • Leslie Mah (73yo)

            Independent Non-Executive Director

            • Tenure: 7.1yrs
          • Dawn Wee (70yo)

            Executive Director

            • Tenure: 30.3yrs
          • Kok Wah Wee (73yo)

            President & Executive Director

            • Tenure: 30.3yrs
          • Li Ann Wee (47yo)

            Executive Director

            • Tenure: 10.1yrs
          • Kazumichi Mandai (68yo)

            Independent Non-Executive Director

            • Tenure: 7.1yrs

          Company Information

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


          Key Information

          • Name: Stamford Tyres Corporation Limited
          • Ticker: S29
          • Exchange: SGX
          • Founded: 1989
          • Industry: Distributors
          • Sector: Retail
          • Market Cap: S$49.725m
          • Shares outstanding: 236.79m
          • Website: https://www.stamfordtyres.com

          Location

          • Stamford Tyres Corporation Limited
          • 19 Lok Yang Way
          • Jurong
          • Singapore
          • 628635
          • Singapore

          Listings

          TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
          S29SGX (Singapore Exchange)YesOrdinary SharesSGSGDJan 1992

          Biography

          Stamford Tyres Corporation Limited, an investment holding company, engages in the wholesale and retail of tires and wheels in South East Asia, North Asia, Africa, and internationally. The company offers tires for high performance cars, passenger cars, SUVs, light trucks, and truck radials; and radials for sports and passenger cars, light trucks, trucks, and buses, as well as for military, agriculture, and industrial solid tires. It also provides tires for the construction and mining industry; industrial and construction tires for use in skid steers, backhoes, and forklifts; and nylon bias tires for light truck, truck, agriculture, and earthmover applications. In addition, the company engages in the design and contract manufacturing of tires for proprietary brands, tire retreading, equipment trading, and servicing of motor vehicles; manufacture and sale of aluminum alloy wheels; and property holding activities. Further, it distributes Falken, Dunlop, Continental, and Maxam branded tires, as well as offers its proprietary brands, such as Sumo Firenza, Sumo Tire, and SSW wheels. Additionally, the company operates a retail network in Singapore and Malaysia with Mega Mart and Tyre Mart outlets that offer a range of tires, wheels, batteries, and auto accessories, as well as workshop and tire services. Stamford Tyres Corporation Limited was incorporated 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 Analysis2020/01/27 12:47
          End of Day Share Price2020/01/22 00:00
          Earnings2019/10/31
          Annual Earnings2019/04/30


          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.