SGX:V03

Stock Analysis Report

Executive Summary

Venture Corporation Limited provides technology solutions, products, and services in Singapore, other countries in the Asia Pacific, and internationally.


Snowflake Analysis

Flawless balance sheet average dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: V03 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.5%

V03

0.5%

SG Electronic

0.4%

SG Market


1 Year Return

5.9%

V03

9.2%

SG Electronic

2.3%

SG Market

Return vs Industry: V03 underperformed the SG Electronic industry which returned 9.2% over the past year.

Return vs Market: V03 exceeded the SG Market which returned 2.3% over the past year.


Shareholder returns

V03IndustryMarket
7 Day1.5%0.5%0.4%
30 Day0.8%2.7%-0.9%
90 Day-0.3%4.5%0.05%
1 Year10.7%5.9%15.2%9.2%6.5%2.3%
3 Year80.1%59.2%65.3%43.2%15.9%3.5%
5 Year163.6%106.0%73.6%40.0%14.7%-4.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

24.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: V03 (SGD15.76) is trading below our estimate of fair value (SGD20.85)

Significantly Below Fair Value: V03 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: V03 is poor value based on its PE Ratio (12.1x) compared to the Electronic industry average (11.8x).

PE vs Market: V03 is good value based on its PE Ratio (12.1x) compared to the SG market (13.2x).


Price to Earnings Growth Ratio

PEG Ratio: V03 is poor value based on its PEG Ratio (3.1x)


Price to Book Ratio

PB vs Industry: V03 is overvalued based on its PB Ratio (1.9x) compared to the SG Electronic industry average (0.8x).


Next Steps

Future Growth

How is Venture forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

3.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: V03's forecast earnings growth (3.9% per year) is above the savings rate (1.8%).

Earnings vs Market: V03's earnings (3.9% per year) are forecast to grow slower than the SG market (6.6% per year).

High Growth Earnings: V03's earnings are forecast to grow, but not significantly.

Revenue vs Market: V03's revenue (3.6% per year) is forecast to grow slower than the SG market (5.5% per year).

High Growth Revenue: V03's revenue (3.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: V03's Return on Equity is forecast to be low in 3 years time (14%).


Next Steps

Past Performance

How has Venture performed over the past 5 years?

31.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: V03 has high quality earnings.

Growing Profit Margin: V03's current net profit margins (10.4%) are lower than last year (11.1%).


Past Earnings Growth Analysis

Earnings Trend: V03's earnings have grown significantly by 31.4% per year over the past 5 years.

Accelerating Growth: V03's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: V03 had negative earnings growth (-7.6%) over the past year, making it difficult to compare to the Electronic industry average (-1.2%).


Return on Equity

High ROE: V03's Return on Equity (15.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Venture's financial position?


Financial Position Analysis

Short Term Liabilities: V03's short term assets (SGD2.3B) exceed its short term liabilities (SGD836.9M).

Long Term Liabilities: V03's short term assets (SGD2.3B) exceed its long term liabilities (SGD21.2M).


Debt to Equity History and Analysis

Debt Level: V03's debt to equity ratio (0.05%) is considered satisfactory.

Reducing Debt: V03's debt to equity ratio has reduced from 9.3% to 0.05% over the past 5 years.

Debt Coverage: V03's debt is well covered by operating cash flow (27304.5%).

Interest Coverage: V03 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: V03 has a high level of physical assets or inventory.

Debt Coverage by Assets: V03's debt is covered by short term assets (assets are 1866.2x debt).


Next Steps

Dividend

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

4.44%

Current Dividend Yield


Dividend Yield vs Market

company4.4%marketbottom25%2.5%markettop25%5.5%industryaverage4.4%forecastin3Years4.6%

Current dividend yield vs market & industry

Notable Dividend: V03's dividend (4.44%) is higher than the bottom 25% of dividend payers in the SG market (2.54%).

High Dividend: V03's dividend (4.44%) is low compared to the top 25% of dividend payers in the SG market (5.47%).


Stability and Growth of Payments

Stable Dividend: V03's dividend payments have been volatile in the past 10 years.

Growing Dividend: V03's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (53.8%), V03's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: V03's dividends in 3 years are forecast to be covered by earnings (55.3% payout ratio).


Next Steps

Management

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

4.8yrs

Average management tenure


CEO

Ngit Wong (78yo)

0yrs

Tenure

S$8,913,100

Compensation

Mr. Ngit Liong Wong has been the Chairman and Chief Executive Officer of Venture Group of Companies since 1986. Mr. Wong serves as the Chief Executive Officer of Venture Corporation Limited. He serves as C ...


CEO Compensation Analysis

Compensation vs Market: Ngit's total compensation ($USD6.56M) is above average for companies of similar size in the SG market ($USD1.57M).

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


Management Age and Tenure

4.8yrs

Average Tenure

Experienced Management: V03's management team is considered experienced (4.8 years average tenure).


Board Age and Tenure

5.3yrs

Average Tenure

71yo

Average Age

Experienced Board: V03's board of directors are considered experienced (5.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyS$1,460,62525 Oct 19
Schroder Investment Management Limited
EntityCompany
Shares95,000
Max PriceS$15.38
BuyS$46,57422 Oct 19
Schroder Investment Management Limited
EntityCompany
Shares2,900
Max PriceS$16.06
BuyS$4,883,70707 Aug 19
Schroder Investment Management Limited
EntityCompany
Shares333,500
Max PriceS$14.64
BuyS$2,895,30701 Aug 19
BlackRock, Inc.
EntityCompany
Shares182,900
Max PriceS$15.83
BuyS$1,57722 May 19
Schroder Investment Management Limited
EntityCompany
Shares100
Max PriceS$15.77
SellS$4,182,61906 Mar 19
Schroder Investment Management Limited
EntityCompany
Shares219,100
Max PriceS$19.09

Ownership Breakdown

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


Management Team

  • Ngit Wong (78yo)

    Chairman & CEO

    • Tenure: 0yrs
    • Compensation: S$8.91m
  • Ghai Lee

    Executive Vice President of Technology Products & Solutions

    • Tenure: 7.9yrs
  • Chin Tong Wong

    Chief Marketing Officer of USA Sales & Marketing

    • Tenure: 0yrs
  • Devika Davar

    Company Secretary

    • Tenure: 0.8yrs
  • Dharma Nadarajah

    Executive Vice President of Advanced Manufacturing & Design Solutions

    • Tenure: 0yrs
  • Chee Ng (49yo)

    Chief Financial Officer

    • Tenure: 4.8yrs
  • Sita Lim

    Chief Human Resource Officer

    • Tenure: 0yrs
  • Chee Wong

    VP of Design Services

    • Tenure: 0yrs
  • Karin Xiao

    Senior Manager

    • Tenure: 0yrs

Board Members

  • Jon Huberman (54yo)

    Independent Non-Executive Director

    • Tenure: 4.9yrs
    • Compensation: S$110.00k
  • Ngit Wong (78yo)

    Chairman & CEO

    • Tenure: 0yrs
    • Compensation: S$8.91m
  • Kay Kuok (73yo)

    Independent Non-Executive Director

    • Tenure: 1.9yrs
    • Compensation: S$60.00k
  • Lee Koh

    Lead Independent Director

    • Tenure: 5.7yrs
    • Compensation: S$140.00k
  • Goh Goon (77yo)

    Independent Non-Executive Director

    • Tenure: 15.8yrs
    • Compensation: S$145.00k
  • Yew Wong (69yo)

    Independent Non-Executive Director

    • Tenure: 10.3yrs
    • Compensation: S$135.00k
  • Thong Han (57yo)

    Independent Non Executive Director

    • Tenure: 3.9yrs
    • Compensation: S$110.00k
  • Seok Hoong Tan

    Independent Non-Executive Director

    • Tenure: 1.1yrs
    • Compensation: S$10.00k

Company Information

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


Key Information

  • Name: Venture Corporation Limited
  • Ticker: V03
  • Exchange: SGX
  • Founded: 1984
  • Industry: Electronic Manufacturing Services
  • Sector: Tech
  • Market Cap: S$4.503b
  • Shares outstanding: 288.44m
  • Website: https://www.venture.com.sg

Number of Employees


Location

  • Venture Corporation Limited
  • 5006 Ang Mo Kio Avenue 5
  • No. 05-01/12 TECHplace II
  • Singapore
  • 569873
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VEML.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 1992
V03SGX (Singapore Exchange)YesOrdinary SharesSGSGDNov 1992
VEMDB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 1992
VEML.YOTCPK (Pink Sheets LLC)ADRUSUSDJan 2009

Biography

Venture Corporation Limited provides technology solutions, products, and services in Singapore, other countries in the Asia Pacific, and internationally. The company operates through Advanced Manufacturing ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 12:34
End of Day Share Price2019/12/11 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.