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Nera Telecommunications

SGX:N01
Snowflake Description

Excellent balance sheet and slightly overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
N01
SGX
SGD114M
Market Cap
  1. Home
  2. SG
  3. Tech
Company description

Nera Telecommunications Ltd designs, engineers, sells, installs, services, and maintains telecommunication systems and products in transmission networks and satellite communications, and information technology networks worldwide. The last earnings update was 16 days ago. More info.


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N01 Share Price and Events
7 Day Returns
-1.6%
SGX:N01
-0.5%
SG Communications
0.3%
SG Market
1 Year Returns
-14.9%
SGX:N01
-23.5%
SG Communications
-6.2%
SG Market
N01 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Nera Telecommunications (N01) -1.6% 5% 14.5% -14.9% -49.2% -59.9%
SG Communications -0.5% 4.8% 11% -23.5% -36.5% -66.3%
SG Market 0.3% 3.3% 3.7% -6.2% 8.5% -3%
1 Year Return vs Industry and Market
  • N01 outperformed the Communications industry which returned -23.5% over the past year.
  • N01 underperformed the Market in Singapore which returned -6.2% over the past year.
Price Volatility
N01
Industry
5yr Volatility vs Market

N01 Value

 Is Nera Telecommunications undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Nera Telecommunications to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Nera Telecommunications.

SGX:N01 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 8.8%
Perpetual Growth Rate 10-Year SG Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SGX:N01
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year SG Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
Communications Unlevered Beta Simply Wall St/ S&P Global 1.09
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.09 (1 + (1- 17%) (4.82%))
1.09
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.09
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.3% + (1.09 * 5.96%)
8.8%

Discounted Cash Flow Calculation for SGX:N01 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Nera Telecommunications is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

SGX:N01 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (SGD, Millions) Source Present Value
Discounted (@ 8.8%)
2019 27.67 Est @ 70.64% 25.43
2020 41.54 Est @ 50.14% 35.10
2021 56.41 Est @ 35.79% 43.80
2022 70.93 Est @ 25.74% 50.62
2023 84.20 Est @ 18.71% 55.24
2024 95.82 Est @ 13.79% 57.77
2025 105.73 Est @ 10.34% 58.59
2026 114.11 Est @ 7.93% 58.13
2027 121.24 Est @ 6.24% 56.76
2028 127.37 Est @ 5.06% 54.81
Present value of next 10 years cash flows SGD496.26
SGX:N01 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= SGD127.37 × (1 + 2.3%) ÷ (8.8% – 2.3%)
SGD2,006.35
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= SGD2,006.35 ÷ (1 + 8.8%)10
SGD863.40
SGX:N01 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= SGD496.26 + SGD863.40
SGD1,359.66
Equity Value per Share
(SGD)
= Total value / Shares Outstanding
= SGD1,359.66 / 361.90
SGD3.76
SGX:N01 Discount to Share Price
Calculation Result
Value per share (SGD) From above. SGD3.76
Current discount Discount to share price of SGD0.32
= -1 x (SGD0.32 - SGD3.76) / SGD3.76
91.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Nera Telecommunications is available for.
Intrinsic value
>50%
Share price is SGD0.32 vs Future cash flow value of SGD3.76
Current Discount Checks
For Nera Telecommunications to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Nera Telecommunications's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Nera Telecommunications's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Nera Telecommunications's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Nera Telecommunications's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SGX:N01 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in SGD SGD0.02
SGX:N01 Share Price ** SGX (2019-04-18) in SGD SGD0.32
Asia Communications Industry PE Ratio Median Figure of 31 Publicly-Listed Communications Companies 12.57x
Singapore Market PE Ratio Median Figure of 328 Publicly-Listed Companies 13.2x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Nera Telecommunications.

SGX:N01 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SGX:N01 Share Price ÷ EPS (both in SGD)

= 0.32 ÷ 0.02

14.7x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Nera Telecommunications is overvalued based on earnings compared to the Asia Communications industry average.
  • Nera Telecommunications is overvalued based on earnings compared to the Singapore market.
Price based on expected Growth
Does Nera Telecommunications's expected growth come at a high price?
Raw Data
SGX:N01 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 14.7x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
2%per year
Asia Communications Industry PEG Ratio Median Figure of 9 Publicly-Listed Communications Companies 0.78x
Singapore Market PEG Ratio Median Figure of 119 Publicly-Listed Companies 1.55x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Nera Telecommunications, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Nera Telecommunications's assets?
Raw Data
SGX:N01 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in SGD SGD0.18
SGX:N01 Share Price * SGX (2019-04-18) in SGD SGD0.32
Singapore Communications Industry PB Ratio Median Figure of 5 Publicly-Listed Communications Companies 0.99x
Singapore Market PB Ratio Median Figure of 432 Publicly-Listed Companies 0.75x
SGX:N01 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SGX:N01 Share Price ÷ Book Value per Share (both in SGD)

= 0.32 ÷ 0.18

1.71x

* Primary Listing of Nera Telecommunications.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Nera Telecommunications is overvalued based on assets compared to the SG Communications industry average.
X
Value checks
We assess Nera Telecommunications's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Communications industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Communications industry average (and greater than 0)? (1 check)
  5. Nera Telecommunications has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

N01 Future Performance

 How is Nera Telecommunications expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

  • No analysts cover Nera Telecommunications, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Nera Telecommunications expected to grow at an attractive rate?
  • Nera Telecommunications's earnings growth is positive but not above the low risk savings rate of 2.3%.
Growth vs Market Checks
  • Nera Telecommunications's earnings growth is positive but not above the Singapore market average.
  • Unable to compare Nera Telecommunications's revenue growth to the Singapore market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
SGX:N01 Future Growth Rates Data Sources
Data Point Source Value (per year)
SGX:N01 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts 2%
Asia Communications Industry Earnings Growth Rate Market Cap Weighted Average 8.6%
Asia Communications Industry Revenue Growth Rate Market Cap Weighted Average 6.9%
Singapore Market Earnings Growth Rate Market Cap Weighted Average 5.8%
Singapore Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SGX:N01 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in SGD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SGX:N01 Future Estimates Data
Date (Data in SGD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
SGX:N01 Past Financials Data
Date (Data in SGD Millions) Revenue Cash Flow Net Income *
2018-12-31 168 19 8
2018-09-30 181 15 9
2018-06-30 191 3 9
2018-03-31 194 16 7
2017-12-31 194 2 8
2017-09-30 186 5 7
2017-06-30 178 8 4
2017-03-31 178 3 5
2016-12-31 165 5 4
2016-09-30 155 4 7
2016-06-30 149 15 10
2016-03-31 123 4 12

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Nera Telecommunications's earnings are expected to grow by 2% yearly, however this is not considered high growth (20% yearly).
  • Unable to determine if Nera Telecommunications is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SGX:N01 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Nera Telecommunications Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SGX:N01 Future Estimates Data
Date (Data in SGD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
SGX:N01 Past Financials Data
Date (Data in SGD Millions) EPS *
2018-12-31 0.02
2018-09-30 0.02
2018-06-30 0.03
2018-03-31 0.02
2017-12-31 0.02
2017-09-30 0.02
2017-06-30 0.01
2017-03-31 0.01
2016-12-31 0.01
2016-09-30 0.02
2016-06-30 0.03
2016-03-31 0.03

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Nera Telecommunications will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Nera Telecommunications's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Asia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Asia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Nera Telecommunications has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

N01 Past Performance

  How has Nera Telecommunications performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Nera Telecommunications's growth in the last year to its industry (Communications).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Nera Telecommunications's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Nera Telecommunications's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Nera Telecommunications's 1-year earnings growth is negative, it can't be compared to the Asia Communications industry average.
Earnings and Revenue History
Nera Telecommunications's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Nera Telecommunications Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SGX:N01 Past Revenue, Cash Flow and Net Income Data
Date (Data in SGD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 167.53 7.75 29.85
2018-09-30 180.68 8.61 33.06
2018-06-30 190.81 9.11 34.73
2018-03-31 193.65 7.42 34.37
2017-12-31 194.12 7.76 31.89
2017-09-30 186.14 7.19 36.80
2017-06-30 177.74 3.89 36.13
2017-03-31 178.42 4.85 35.59
2016-12-31 164.88 3.89 35.27
2016-09-30 154.67 6.95 30.63
2016-06-30 148.95 9.87 29.95
2016-03-31 123.25 11.59 26.49
2015-12-31 134.78 12.74 29.33
2015-09-30 143.70 13.38 31.40
2015-06-30 165.29 15.32 35.19
2015-03-31 183.85 14.67 40.48
2014-12-31 182.40 16.23 40.53
2014-09-30 178.55 15.45 41.45
2014-06-30 179.03 15.20 40.33
2014-03-31 182.42 22.22 40.32
2013-12-31 178.22 23.47 39.49
2013-09-30 179.14 23.49 39.31
2013-06-30 177.20 25.89 37.54
2013-03-31 171.75 18.75 36.49
2012-12-31 178.84 19.40 35.82
2012-09-30 181.39 21.58 34.11
2012-06-30 169.80 18.55 34.29

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Nera Telecommunications has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Nera Telecommunications used its assets less efficiently than the Asia Communications industry average last year based on Return on Assets.
  • Nera Telecommunications's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Nera Telecommunications's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Communications industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Nera Telecommunications has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

N01 Health

 How is Nera Telecommunications's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Nera Telecommunications's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Nera Telecommunications is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Nera Telecommunications's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Nera Telecommunications's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 27.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Nera Telecommunications Company Filings, last reported 3 months ago.

SGX:N01 Past Debt and Equity Data
Date (Data in SGD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 66.67 5.50 23.12
2018-09-30 65.49 6.44 17.80
2018-06-30 68.06 7.73 19.55
2018-03-31 72.15 10.17 29.28
2017-12-31 69.10 11.30 22.29
2017-09-30 67.22 11.47 19.07
2017-06-30 68.72 0.73 20.45
2017-03-31 68.76 9.75 19.06
2016-12-31 66.28 9.59 25.42
2016-09-30 119.67 12.62 73.96
2016-06-30 57.70 22.51 23.52
2016-03-31 58.64 16.15 17.66
2015-12-31 56.03 16.31 21.76
2015-09-30 51.07 15.88 18.63
2015-06-30 59.73 10.65 18.28
2015-03-31 63.71 5.43 24.91
2014-12-31 60.95 4.70 25.58
2014-09-30 56.51 4.70 27.68
2014-06-30 60.15 0.00 29.06
2014-03-31 71.16 0.00 41.72
2013-12-31 66.17 0.00 39.90
2013-09-30 62.53 0.00 25.93
2013-06-30 67.61 0.00 25.44
2013-03-31 71.86 0.00 41.90
2012-12-31 65.87 0.01 44.20
2012-09-30 62.29 0.01 37.44
2012-06-30 71.35 0.02 54.33
  • Nera Telecommunications's level of debt (8.2%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0% vs 8.2% today).
  • Debt is well covered by operating cash flow (338.5%, greater than 20% of total debt).
  • Nera Telecommunications earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Nera Telecommunications's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Nera Telecommunications has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

N01 Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
7.94%
Current annual income from Nera Telecommunications dividends.
If you bought SGD2,000 of Nera Telecommunications shares you are expected to receive SGD159 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Nera Telecommunications's pays a higher dividend yield than the bottom 25% of dividend payers in Singapore (2.5%).
  • Nera Telecommunications's dividend is above the markets top 25% of dividend payers in Singapore (5.44%).
Upcoming dividend payment

Purchase Nera Telecommunications before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SGX:N01 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
Asia Communications Industry Average Dividend Yield Market Cap Weighted Average of 20 Stocks 3.2%
Singapore Market Average Dividend Yield Market Cap Weighted Average of 278 Stocks 3.9%
Singapore Minimum Threshold Dividend Yield 10th Percentile 1.6%
Singapore Bottom 25% Dividend Yield 25th Percentile 2.5%
Singapore Top 25% Dividend Yield 75th Percentile 5.4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SGX:N01 Future Dividends Estimate Data
Date (Data in SGD) Dividend per Share (annual) Avg. No. Analysts
SGX:N01 Past Annualized Dividends Data
Date (Data in SGD) Dividend per share (annual) Avg. Yield (%)
2019-04-04 0.025 7.996
2018-04-18 0.025 8.356
2017-04-26 0.010 2.673
2016-08-03 0.020 4.081
2016-02-25 0.035 5.543
2015-04-13 0.040 6.382
2014-08-05 0.060 7.892
2014-04-14 0.060 7.895
2013-11-08 0.040 5.596
2013-08-06 0.040 5.368
2013-02-07 0.080 12.075
2012-10-18 0.080 15.346
2012-07-16 0.080 18.360
2012-04-13 0.060 13.684
2012-02-10 0.060 13.543
2011-02-10 0.040 10.531
2010-04-15 0.030 8.793
2009-04-21 0.030 9.342

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of Nera Telecommunications's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.9x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Nera Telecommunications's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.6%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Nera Telecommunications afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Nera Telecommunications has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

N01 Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Tong Hong Beck
COMPENSATION SGD1,597,841
TENURE AS CEO 1.8 years
CEO Bio

Mr. Tong Hong Beck has been the Chief Executive Officer of Nera Telecommunications Ltd since July 2017 and as its Executive Director since November 8, 2017. Mr. Beck served as Vice President of Network Infrastructure of Nera Telecommunications Ltd until July 2017 and also as its Acting Chief Executive Officer from October 24, 2016 to July 2017.

CEO Compensation
  • Insufficient data for Tong Hong to compare compensation growth.
  • Tong Hong's remuneration is higher than average for companies of similar size in Singapore.
Management Team Tenure

Average tenure and age of the Nera Telecommunications management team in years:

1.8
Average Tenure
60
Average Age
  • The average tenure for the Nera Telecommunications management team is less than 2 years, this suggests a new team.
Management Team

Tong Hong Beck

TITLE
CEO & Executive Director
COMPENSATION
SGD2M
TENURE
1.8 yrs

Jacqueline Tan

TITLE
Financial Controller

Lucy Phua

TITLE
Vice President of Accounts

Molly Sim

TITLE
VP of Corporate Affairs & HR
TENURE
2.3 yrs

Michael Chan

TITLE
Senior Vice President of Contracts & Corporate Secretariat
AGE
52

Ahmad Hashim

TITLE
Managing Director for Nera (Malaysia) Sdn Bhd
AGE
60

Orlando Tan

TITLE
Senior Vice President of Network Infrastructure

Wan Mei Chan

TITLE
Joint Company Secretary
TENURE
0.6 yrs

Lee Teng Gan

TITLE
Joint Company Secretary
TENURE
0.6 yrs

Samuel Ang

TITLE
Executive
COMPENSATION
SGD3M
AGE
62
TENURE
2.5 yrs
Board of Directors Tenure

Average tenure and age of the Nera Telecommunications board of directors in years:

5.5
Average Tenure
55.5
Average Age
  • The tenure for the Nera Telecommunications board of directors is about average.
Board of Directors

Su-Yen Wong

TITLE
Chairman
COMPENSATION
SGD153K
AGE
48
TENURE
5 yrs

Tong Hong Beck

TITLE
CEO & Executive Director
COMPENSATION
SGD2M
TENURE
1.4 yrs

Lye Huat Tan

TITLE
Independent Director
COMPENSATION
SGD104K
AGE
68
TENURE
6.3 yrs

Kwok Cheong Lee

TITLE
Independent Director
COMPENSATION
SGD104K
AGE
63
TENURE
6.1 yrs

Choon Hong Tan

TITLE
Non-Executive Director
COMPENSATION
SGD48K
AGE
43
TENURE
6.3 yrs

Tommy Teo

TITLE
Non-Executive Director
TENURE
1.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (SGD) Value (SGD)
X
Management checks
We assess Nera Telecommunications's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Nera Telecommunications has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

N01 News

Simply Wall St News

Is Nera Telecommunications Ltd (SGX:N01) A Risky Dividend Stock?

Is Nera Telecommunications Ltd (SGX:N01) a good dividend stock? … A dividend paying company with growing earnings can be rewarding in the long term. … Yet sometimes, investors buy a stock for its dividend and lose money because the share price falls by more than they earned in dividend payments.

Simply Wall St -

A Note On Nera Telecommunications Ltd's (SGX:N01) ROE and Debt To Equity

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Our data shows Nera Telecommunications has a return on equity of 13% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Here's How P/E Ratios Can Help Us Understand Nera Telecommunications Ltd (SGX:N01)

To keep it practical, we'll show how Nera Telecommunications Ltd's (SGX:N01) P/E ratio could help you assess the value on offer. … Nera Telecommunications has a P/E ratio of 11.36, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

How Good Is Nera Telecommunications Ltd (SGX:N01), When It Comes To ROE?

Nera Telecommunications has a ROE of 13%, based on the last twelve months. … Another way to think of that is that for every SGD1 worth of equity in the company, it was able to earn SGD0.13. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Nera Telecommunications Ltd (SGX:N01): Ex-Dividend Is In 2 Days, Should You Buy?

If you are interested in cashing in on Nera Telecommunications Ltd's (SGX:N01) upcoming dividend of S$0.01 per share, you only have 2 days left to buy the shares before its ex-dividend date, 23 August 2018, in time for dividends payable on the 07 September 2018. … Is it paying an annual yield above 75% of dividend payers? … Will the company be able to keep paying dividend based on the future earnings growth

Simply Wall St -

Should You Be Tempted To Buy Nera Telecommunications Ltd (SGX:N01) At Its Current PE Ratio?

and want to start learning about core concepts of fundamental analysis on practical examples from today's market. … Although some investors may jump to the conclusion that this is a great buying opportunity, understanding the assumptions behind the P/E ratio might change your mind. … Check out our latest analysis for Nera Telecommunications

Simply Wall St -

How Financially Strong Is Nera Telecommunications Ltd (SGX:N01)?

While small-cap stocks, such as Nera Telecommunications Ltd (SGX:N01) with its market cap of S$117.62m, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. … Evaluating financial health as part of your investment thesis is

Simply Wall St -

Does Nera Telecommunications Ltd's (SGX:N01) Recent Track Record Look Strong?

Understanding how Nera Telecommunications Ltd (SGX:N01) is performing as a company requires looking at more than just a years' earnings. … Today I will run you through a basic sense check to gain perspective on how Nera Telecommunications is doing by comparing its latest earnings with its long-term trend as well as the performance of its communications industry peers. … Check out our latest analysis for Nera Telecommunications?

Simply Wall St -

Does Nera Telecommunications Ltd (SGX:N01) Fall With The Market?

This means that the change in N01's value, whether it goes up or down, will be of a smaller degree than the change in value of the entire stock market index. … N01’s beta indicates it is a stock that investors may find valuable if they want to reduce the overall market risk exposure of their stock portfolio. … N01, with its market capitalisation of S$119.43M, is a small-cap stock, which generally have higher beta than similar companies of larger size.

Simply Wall St -

Does Nera Telecommunications Ltd's (SGX:N01) PE Ratio Signal A Buying Opportunity?

Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for N01 Price per share = SGD0.34 Earnings per share = SGD0.02 ∴ Price-Earnings Ratio = SGD0.34 ÷ SGD0.02 = 16.3x On its own, the P/E ratio doesn’t tell you much; however, it becomes extremely useful when you compare it with other similar companies. … We preferably want to compare the stock’s P/E ratio to the average of companies that have similar features to N01, such as capital structure and profitability. … For example, if you are inadvertently comparing lower risk firms with N01, then N01’s P/E would naturally be lower than its peers, since investors would value those with lower risk with a higher price.

Simply Wall St -

N01 Company Info

Description

Nera Telecommunications Ltd designs, engineers, sells, installs, services, and maintains telecommunication systems and products in transmission networks and satellite communications, and information technology networks worldwide. The company operates through two segments, Wireless Infrastructure Networks (WIN) and Network Infrastructure (NI). The WIN segment provides wireless infrastructure network solutions, including in-building, outdoor coverage enhancement, RF access network optimization, benchmarking, 3G/LTE base, and microwave solutions. It serves clients in a range of sectors, such as service providers, ISPs, broadcasters, enterprises, government organizations, offshore, and utilities. The NI segment offers cloud solutions; managed services; network security solutions, such as firewalls, malware protection devices, denial-of-service protection solutions, deep packet inspection products, and 2 factor authentication and remote access solutions; and network security testing services comprising vulnerability management and penetration testing services. It also provides IP networking products comprising routers, switches, application performance monitoring solutions, network access control solutions, and network operation and management systems to service providers, enterprise customers, and government organizations; and optical network solutions, such as high capacity digital cross connect systems, metro access applications, optical multi-service platforms, and mobile front-haul solutions to service providers, mobile carriers, and business enterprises. In addition, this segment offers analogue and digital TV broadcast network infrastructure products comprising content creation, acquisition, IP video transport solutions, encoders/multiplexers, and distribution links to broadcasters and service providers. The company was incorporated in 1978 and is headquartered in Singapore. Nera Telecommunications Ltd is a subsidiary of Asia Systems Ltd.

Details
Name: Nera Telecommunications Ltd
N01
Exchange: SGX
Founded: 1978
SGD113,997,555
361,897,000
Website: http://www.nera.net
Address: Nera Telecommunications Ltd
109 Defu Lane 10,
Singapore,
539225,
Singapore
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SGX N01 Ordinary Shares Singapore Exchange SG SGD 01. Jul 1999
Number of employees
Current staff
Staff numbers
0
Nera Telecommunications employees.
Industry
Communications Equipment
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/20 12:33
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2017/02/21
Last earnings filing: 2019/04/04
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.