SGX:N01

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Nera Telecommunications

Executive Summary

Nera Telecommunications Ltd designs, engineers, sells, distributes, installs, services, and maintains telecommunication systems and products in transmission networks and satellite communications, and information technology networks in Singapore, Malaysia, Philippines, Indonesia, Thailand, Pakistan, Morocco, Europe, Middle East, Africa, and internationally. More Details


Snowflake Analysis

Proven track record with mediocre balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: N01 is not significantly more volatile than the rest of SG stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: N01's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-1.6%

N01

2.0%

SG Communications

5.0%

SG Market


1 Year Return

-32.4%

N01

-17.3%

SG Communications

23.7%

SG Market

Return vs Industry: N01 underperformed the SG Communications industry which returned -17.4% over the past year.

Return vs Market: N01 underperformed the SG Market which returned -9.9% over the past year.


Shareholder returns

N01IndustryMarket
7 Day-1.6%2.0%5.0%
30 Day5.1%6.3%20.5%
90 Day7.5%2.7%27.0%
1 Year-30.7%-32.4%-13.5%-17.3%28.4%23.7%
3 Year-40.7%-49.7%-17.3%-25.4%57.9%42.3%
5 Year-48.8%-69.3%-10.0%-34.4%100.9%72.1%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

14.35x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate N01's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate N01's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: N01 is good value based on its PE Ratio (14.3x) compared to the XA Communications industry average (34.2x).

PE vs Market: N01 is good value based on its PE Ratio (14.3x) compared to the SG market (15.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate N01's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: N01's PB Ratio (1x) is in line with the SG Communications industry average.


Next Steps

Future Growth

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

31.5%

Forecasted Tech 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 Nera Telecommunications 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 Nera Telecommunications performed over the past 5 years?

-22.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: N01 has high quality earnings.

Growing Profit Margin: N01's current net profit margins (3.3%) are higher than last year (2.8%).


Past Earnings Growth Analysis

Earnings Trend: N01's earnings have declined by 22.5% per year over the past 5 years.

Accelerating Growth: N01's earnings growth over the past year (13.8%) exceeds its 5-year average (-22.5% per year).

Earnings vs Industry: N01 earnings growth over the past year (13.8%) exceeded the Communications industry -2.1%.


Return on Equity

High ROE: N01's Return on Equity (7%) is considered low.


Next Steps

Financial Health

How is Nera Telecommunications's financial position?


Financial Position Analysis

Short Term Liabilities: N01's short term assets (SGD161.1M) exceed its short term liabilities (SGD102.0M).

Long Term Liabilities: N01's short term assets (SGD161.1M) exceed its long term liabilities (SGD4.4M).


Debt to Equity History and Analysis

Debt Level: N01's debt to equity ratio (50.5%) is considered high.

Reducing Debt: N01's debt to equity ratio has increased from 18.1% to 50.5% over the past 5 years.

Debt Coverage: N01's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: N01's interest payments on its debt are well covered by EBIT (11.3x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate N01's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate N01'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 N01's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if N01's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: N01 is not paying a notable dividend for the SG market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of N01'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?

2.3yrs

Average management tenure


CEO

Tong Hong Beck

3.5yrs

Tenure

S$674,447

Compensation

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 Inf...


CEO Compensation Analysis

Compensation vs Market: Tong Hong's total compensation ($USD508.71K) is above average for companies of similar size in the SG market ($USD385.55K).

Compensation vs Earnings: Tong Hong's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Tong Hong Beck
CEO & Executive Director3.5yrsS$674.45k0.019%
SGD 12.7k
Geok Leng Tan
Chief Financial Officerno datano data0.57%
SGD 383.4k
Lucy Phua
Vice President of Accountsno datano datano data
Kok Ann Tan
Vice President of Human Resources & Administration0.83yrno datano data
Ahmad Hashim
Managing Director for Nera (Malaysia) Sdn Bhdno datano datano data
Cham Khain Tan
Senior Vice President of Network Infrastructureno datano datano data
Wan Mei Chan
Joint Company Secretary2.33yrsno datano data
Lee Teng Gan
Joint Company Secretary2.33yrsno datano data

2.3yrs

Average Tenure

Experienced Management: N01's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Tong Hong Beck
CEO & Executive Director3.5yrsS$674.45k0.019%
SGD 12.7k
Kwok Cheong Lee
Independent Non-Executive Director7.83yrsS$54.00kno data
Basil Chan
Independent Non Executive Director0.83yrno datano data
Su-Yen Wong
Independent Chairman6.75yrsS$78.00kno data
Choon Hong Tan
Non-Executive Director8yrsS$42.00kno data
Zhi Zhuang Teo
Non-Executive Director2.92yrsS$42.00kno data

5.0yrs

Average Tenure

57.5yo

Average Age

Experienced Board: N01's board of directors are considered experienced (5 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.


Ownership Breakdown

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


Top Shareholders

Company Information

Nera Telecommunications Ltd's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Nera Telecommunications Ltd
  • Ticker: N01
  • Exchange: SGX
  • Founded: 1978
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: S$67.675m
  • Shares outstanding: 361.90m
  • Website: https://www.nera.net

Number of Employees


Location

  • Nera Telecommunications Ltd
  • 109 Defu Lane 10
  • Singapore
  • 539225
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
N01SGX (Singapore Exchange)YesOrdinary SharesSGSGDJul 1999

Biography

Nera Telecommunications Ltd designs, engineers, sells, distributes, installs, services, and maintains telecommunication systems and products in transmission networks and satellite communications, and infor...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/21 11:07
End of Day Share Price2021/01/21 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.