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.


Snowflake Analysis

Adequate balance sheet and slightly overvalued.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.1%

N01

1.3%

SG Communications

1.2%

SG Market


1 Year Return

-28.0%

N01

2.3%

SG Communications

-19.9%

SG Market

Return vs Industry: N01 underperformed the SG Communications industry which returned 1.8% over the past year.

Return vs Market: N01 underperformed the SG Market which returned -20.1% over the past year.


Shareholder returns

N01IndustryMarket
7 Day3.1%1.3%1.2%
30 Day8.8%12.5%-2.6%
90 Day-23.8%-11.2%-15.7%
1 Year-26.7%-28.0%4.5%2.3%-16.7%-19.9%
3 Year-37.6%-47.2%-26.4%-32.3%-16.3%-25.4%
5 Year-49.4%-70.0%-38.7%-52.2%-12.3%-27.2%

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?

18.17x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: N01 (SGD0.2) is trading above our estimate of fair value (SGD0.11)

Significantly Below Fair Value: N01 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: N01 is good value based on its PE Ratio (18.2x) compared to the Communications industry average (29.3x).

PE vs Market: N01 is poor value based on its PE Ratio (18.2x) compared to the SG market (11.4x).


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 is good value based on its PB Ratio (1.1x) compared to the SG Communications industry average (1.1x).


Next Steps

Future Growth

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

28.0%

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?

-23.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: N01 has a high level of non-cash earnings.

Growing Profit Margin: N01's current net profit margins (2.7%) are lower than last year (3.8%).


Past Earnings Growth Analysis

Earnings Trend: N01's earnings have declined by -23.2% per year over the past 5 years.

Accelerating Growth: N01's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: N01 had negative earnings growth (-37.3%) over the past year, making it difficult to compare to the Communications industry average (-4.8%).


Return on Equity

High ROE: N01's Return on Equity (6.2%) 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 (SGD146.8M) exceed its short term liabilities (SGD90.3M).

Long Term Liabilities: N01's short term assets (SGD146.8M) exceed its long term liabilities (SGD4.5M).


Debt to Equity History and Analysis

Debt Level: N01's debt to equity ratio (25.9%) is considered satisfactory.

Reducing Debt: N01's debt to equity ratio has increased from 7.7% to 25.9% 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 (32.8x coverage).


Balance Sheet


Next Steps

Dividend

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

5.05%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: N01's dividend (5.05%) is higher than the bottom 25% of dividend payers in the SG market (2.74%).

High Dividend: N01's dividend (5.05%) is low compared to the top 25% of dividend payers in the SG market (6.55%).


Stability and Growth of Payments

Stable Dividend: N01's dividend payments have been volatile in the past 10 years.

Growing Dividend: N01's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (91.7%), N01's dividend payments are not well covered by earnings.


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

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

1.7yrs

Average management tenure


CEO

Tong Hong Beck

2.83yrs

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 ($USD477.17K) is above average for companies of similar size in the SG market ($USD361.34K).

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 Director2.83yrsS$674.45k0.019% SGD13.5k
Geok Leng Tan
Senior Financial Controllerno datano datano data
Lucy Phua
Vice President of Accountsno datano datano data
Kok Ann Tan
Vice President of Human Resources & Administration0.17yrno 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 Secretary1.67yrsno datano data
Lee Teng Gan
Joint Company Secretary1.67yrsno datano data

1.7yrs

Average Tenure

Experienced Management: N01's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Tong Hong Beck
CEO & Executive Director2.83yrsS$674.45k0.019% SGD13.5k
Kwok Cheong Lee
Independent Non-Executive Director7.17yrsS$54.00kno data
Lye Huat Tan
Independent Non-Executive Director7.33yrsS$54.00kno data
Basil Chan
Independent Non Executive Director0.17yrno datano data
Su-Yen Wong
Independent Chairman6.08yrsS$78.00kno data
Choon Hong Tan
Non-Executive Director7.33yrsS$42.00kno data
Zhi Zhuang Teo
Non-Executive Director2.17yrsS$42.00kno data

6.1yrs

Average Tenure

64yo

Average Age

Experienced Board: N01's board of directors are considered experienced (6.1 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$71.656m
  • 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 information technology networks in Singapore, Malaysia, Philippines, Indonesia, Thailand, Pakistan, Morocco, Europe, Middle East, Africa, and internationally. It 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, and microwave solutions, as well as 3G/4G/LTE base stations and 5G-ready 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; cybersecurity products, including firewalls, intrusion prevention systems, and encryption products, as well as security information and event management, and privilege access management products; and security assessment services. It also provides intent-based networking products; carrier-grade optical network solutions, including long haul systems, metro DWDM applications, optical multi-service platforms, and mobile front-haul solutions to serve mobile backhaul, business services, DC interconnection, and edge aggregation; and content creation, acquisition, and IP video transport solutions, as well as encoders/multiplexers, and transmission and network management systems to broadcasters and service providers. In addition, this segment offers automated solutions to navigate and manage services across multi-cloud infrastructure; and consulting services to identify automation governance model, change management plan, and deployment strategy. The company was incorporated in 1978 and is headquartered in Singapore. Nera Telecommunications Ltd is a subsidiary of Asia Systems Ltd. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/30 12:39
End of Day Share Price2020/05/29 00:00
Earnings2019/12/31
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.