SGX:V03

Stock Analysis Report

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Executive Summary

Venture Corporation Limited provides technology solutions, products, and services in Singapore and internationally. More Details


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

-0.9%

V03

-1.1%

SG Electronic

-0.09%

SG Market


1 Year Return

34.7%

V03

17.2%

SG Electronic

-21.9%

SG Market

Return vs Industry: V03 exceeded the SG Electronic industry which returned 17.2% over the past year.

Return vs Market: V03 exceeded the SG Market which returned -21.9% over the past year.


Shareholder returns

V03IndustryMarket
7 Day-0.9%-1.1%-0.09%
30 Day7.2%7.2%2.4%
90 Day20.4%12.6%-2.0%
1 Year40.7%34.7%21.6%17.2%-17.6%-21.9%
3 Year26.3%11.2%5.9%-7.1%-20.1%-29.8%
5 Year213.0%149.1%123.9%76.5%-5.0%-22.3%

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?

19.06x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: V03 (SGD20.6) is trading above our estimate of fair value (SGD14.52)

Significantly Below Fair Value: V03 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: V03 is poor value based on its PE Ratio (19.1x) compared to the SG Electronic industry average (12.9x).

PE vs Market: V03 is poor value based on its PE Ratio (19.1x) compared to the SG market (13.2x).


Price to Earnings Growth Ratio

PEG Ratio: V03 is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: V03 is overvalued based on its PB Ratio (2.4x) 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?

12.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: V03's forecast earnings growth (12% per year) is above the savings rate (2.2%).

Earnings vs Market: V03's earnings (12% per year) are forecast to grow slower than the SG market (22.1% per year).

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

Revenue vs Market: V03's revenue (9.3% per year) is forecast to grow faster than the SG market (6.7% per year).

High Growth Revenue: V03's revenue (9.3% 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?

22.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: V03 has high quality earnings.

Growing Profit Margin: V03's current net profit margins (9.9%) are lower than last year (10.5%).


Past Earnings Growth Analysis

Earnings Trend: V03's earnings have grown significantly by 22.4% 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 (-15.7%) over the past year, making it difficult to compare to the Electronic industry average (-14.1%).


Return on Equity

High ROE: V03's Return on Equity (12.3%) is considered low.


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 (SGD664.7M).

Long Term Liabilities: V03's short term assets (SGD2.3B) exceed its long term liabilities (SGD15.9M).


Debt to Equity History and Analysis

Debt Level: V03's debt to equity ratio (0.04%) is considered satisfactory.

Reducing Debt: V03's debt to equity ratio has reduced from 9.5% to 0.04% over the past 5 years.

Debt Coverage: V03's debt is well covered by operating cash flow (25223.6%).

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


Balance Sheet


Next Steps

Dividend

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

3.40%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: V03's dividend (3.4%) is higher than the bottom 25% of dividend payers in the SG market (2.54%).

High Dividend: V03's dividend (3.4%) is low compared to the top 25% of dividend payers in the SG market (5.36%).


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 (69.4%), 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 (59.1% payout ratio).


Next Steps

Management

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

5.7yrs

Average management tenure


CEO

Ngit Liong Wong (79 yo)

no data

Tenure

S$8,693,688

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 Liong's total compensation ($USD6.40M) is above average for companies of similar size in the SG market ($USD2.17M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Ngit Liong Wong
Chairman & CEOno dataS$8.69m7.01%
SGD 418.8m
Chee Kwoon Ng
Chief Financial Officer5.67yrsno datano data
Karin Xiao
Senior Managerno datano datano data
Sita Lim
Chief Human Resource Officerno datano datano data
Ghai Lee
Executive Vice President of Technology Products & Solutions8.75yrsno datano data
Chin Tong Wong
Chief Marketing Officer of USA Sales & Marketingno datano datano data
Dharma Nadarajah
Executive Vice President of Advanced Manufacturing & Design Solutionsno datano datano data
Chee Kheong Wong
Senior VP Healthcare & Wellnessno datano datano data
Devika Rani Davar
Company Secretary1.58yrsno datano data

5.7yrs

Average Tenure

Experienced Management: V03's management team is seasoned and experienced (5.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ngit Liong Wong
Chairman & CEOno dataS$8.69m7.01%
SGD 418.8m
Jonathan Huberman
Independent Non-Executive Director5.75yrsS$110.00kno data
Oon Kwong Kuok
Independent Non-Executive Director2.75yrsS$82.97kno data
Lee Koh
Lead Independent Director6.5yrsS$140.00k0.0010%
SGD 61.5k
Kok Loon Goon
Independent Non-Executive Director16.67yrsS$145.00k0.0017%
SGD 102.7k
Yew Meng Wong
Independent Non-Executive Director11.08yrsS$135.00kno data
Thong Kwang Han
Independent Non-Executive Director4.75yrsS$110.00kno data
Seok Hoong Tan
Independent Non-Executive Director1.92yrsS$101.92k0.0010%
SGD 61.5k
Siew Eng Yeo
Independent Non-Executive Directorno datano datano data

6.1yrs

Average Tenure

72yo

Average Age

Experienced Board: V03'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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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$5.972b
  • Shares outstanding: 289.88m
  • 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 and internationally. The company operates through Advanced Manufacturing & Design Solutions, and Technology Pr ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/25 12:50
End of Day Share Price2020/10/23 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.