SGX:S69

Stock Analysis Report

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Market Cap

S$132.6m

Last Updated

2021/06/16 16:36 UTC

Data Sources

Company Financials

Executive Summary

Serial System Ltd, an investment holding company, distributes electronic and electrical components, and consumer products. More Details


Snowflake Analysis

Mediocre balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: S69 is not significantly more volatile than the rest of SG stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: S69's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

51.0%

S69

0.8%

SG Electronic

-0.6%

SG Market


1 Year Return

120.9%

S69

18.3%

SG Electronic

14.8%

SG Market

Return vs Industry: S69 exceeded the SG Electronic industry which returned 23.6% over the past year.

Return vs Market: S69 exceeded the SG Market which returned 15.7% over the past year.


Shareholder returns

S69IndustryMarket
7 Day51.0%0.8%-0.6%
30 Day70.1%2.4%1.6%
90 Day59.1%-2.6%0.8%
1 Year123.7%120.9%23.0%18.3%19.4%14.8%
3 Year24.3%-2.6%13.5%-1.3%2.7%-9.9%
5 Year51.9%11.3%111.3%69.5%23.9%0.7%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Serial System undervalued compared to its fair value and its price relative to the market?

383.04x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: S69 (SGD0.15) is trading above our estimate of fair value (SGD0.02)

Significantly Below Fair Value: S69 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: S69 is poor value based on its PE Ratio (375.5x) compared to the SG Electronic industry average (13.5x).

PE vs Market: S69 is poor value based on its PE Ratio (375.5x) compared to the SG market (15.6x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate S69's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: S69 is good value based on its PB Ratio (0.7x) compared to the SG Electronic industry average (0.9x).


Future Growth

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

18.2%

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 Serial System 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.


Past Performance

How has Serial System performed over the past 5 years?

-6.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: S69 has a large one-off loss of $2.3M impacting its December 31 2020 financial results.

Growing Profit Margin: S69's current net profit margins (0.04%) are lower than last year (1%).


Past Earnings Growth Analysis

Earnings Trend: S69's earnings have declined by 6.9% per year over the past 5 years.

Accelerating Growth: S69's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: S69 had negative earnings growth (-96.7%) over the past year, making it difficult to compare to the Electronic industry average (4.6%).


Return on Equity

High ROE: S69's Return on Equity (0.9%) is considered low.


Financial Health

How is Serial System's financial position?


Financial Position Analysis

Short Term Liabilities: S69's short term assets ($340.8M) exceed its short term liabilities ($234.0M).

Long Term Liabilities: S69's short term assets ($340.8M) exceed its long term liabilities ($11.0M).


Debt to Equity History and Analysis

Debt Level: S69's debt to equity ratio (90.9%) is considered high.

Reducing Debt: S69's debt to equity ratio has reduced from 169.6% to 90.9% over the past 5 years.

Debt Coverage: S69's debt is not well covered by operating cash flow (9.2%).

Interest Coverage: S69's interest payments on its debt are not well covered by EBIT (1.7x coverage).


Balance Sheet


Dividend

What is Serial System current dividend yield, its reliability and sustainability?

0.73%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: S69's dividend (0.75%) isn’t notable compared to the bottom 25% of dividend payers in the SG market (1.85%).

High Dividend: S69's dividend (0.75%) is low compared to the top 25% of dividend payers in the SG market (4.84%).


Stability and Growth of Payments

Stable Dividend: S69 is not paying a notable dividend for the SG market, therefore no need to check if payments are stable.

Growing Dividend: S69 is not paying a notable dividend for the SG market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: S69 is not paying a notable dividend for the SG market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of S69'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?

10.2yrs

Average management tenure


CEO

Derek Goh (59 yo)

24.42yrs

Tenure

US$2,258,977

Compensation

Dr. Bak Heng Goh, also known as Derek, BBM, serves as Chief Executive Officer of Serial Microelectronics Korea Limited. Dr. Goh founded Serial System Ltd. in 1988 and has been its Executive Chairman and Gr...


CEO Compensation Analysis

Compensation vs Market: Derek's total compensation ($USD2.26M) is above average for companies of similar size in the SG market ($USD383.75K).

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


Leadership Team

Experienced Management: S69's management team is seasoned and experienced (10.2 years average tenure).


Board Members

Experienced Board: S69's board of directors are considered experienced (4.1 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Serial System Ltd's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Serial System Ltd
  • Ticker: S69
  • Exchange: SGX
  • Founded: 1988
  • Industry: Technology Distributors
  • Sector: Tech
  • Market Cap: S$132.585m
  • Shares outstanding: 895.84m
  • Website: https://www.serialsystem.com

Number of Employees


Location

  • Serial System Ltd
  • No. 05-01, Serial System Building
  • 8 Ubi View
  • Singapore
  • 408554
  • Singapore

Listings


Biography

Serial System Ltd, an investment holding company, distributes electronic and electrical components, and consumer products. It operates in three segments: Electronic Components Distribution, Consumer Produc...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/16 16:36
End of Day Share Price2021/06/16 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.