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Singapore Telecommunications

SGX:Z74
Snowflake Description

Average dividend payer with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
Z74
SGX
SGD58B
Market Cap
  1. Home
  2. SG
  3. Telecom
Company description

Singapore Telecommunications Limited provides communication, infotainment, and technology services to consumers and small businesses in Singapore, Australia, the United States, Europe, and internationally. The last earnings update was 25 days ago. More info.


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Z74 Share Price and Events
7 Day Returns
0%
SGX:Z74
-0.4%
Asia Telecom
0.3%
SG Market
1 Year Returns
6.9%
SGX:Z74
0.2%
Asia Telecom
0.7%
SG Market
Z74 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Singapore Telecommunications (Z74) 0% 2.6% 12.4% 6.9% -17.7% -11.1%
Asia Telecom -0.4% 1.3% -4.5% 0.2% -8.9% -19.4%
SG Market 0.3% 2.4% 0.7% 0.7% 9.6% -5%
1 Year Return vs Industry and Market
  • Z74 outperformed the Telecom industry which returned 0.2% over the past year.
  • Z74 outperformed the Market in Singapore which returned 0.7% over the past year.
Price Volatility
Z74
Industry
5yr Volatility vs Market

Z74 Value

 Is Singapore Telecommunications undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Singapore Telecommunications to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Singapore Telecommunications.

SGX:Z74 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 21 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.1%
Perpetual Growth Rate 10-Year SG Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SGX:Z74
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year SG Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
Telecom Unlevered Beta Simply Wall St/ S&P Global 0.35
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.349 (1 + (1- 17%) (18.46%))
0.6
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.3% + (0.8 * 5.96%)
7.07%

Discounted Cash Flow Calculation for SGX:Z74 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Singapore Telecommunications is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

SGX:Z74 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (SGD, Millions) Source Present Value
Discounted (@ 7.07%)
2020 2,778.09 Analyst x7 2,594.62
2021 3,207.11 Analyst x6 2,797.50
2022 3,532.48 Analyst x4 2,877.82
2023 3,795.80 Est @ 7.45% 2,888.12
2024 4,020.09 Est @ 5.91% 2,856.78
2025 4,214.14 Est @ 4.83% 2,796.91
2026 4,385.65 Est @ 4.07% 2,718.51
2027 4,540.90 Est @ 3.54% 2,628.86
2028 4,684.79 Est @ 3.17% 2,533.05
2029 4,821.07 Est @ 2.91% 2,434.59
Present value of next 10 years cash flows SGD27,126.76
SGX:Z74 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= SGD4,821.07 × (1 + 2.3%) ÷ (7.07% – 2.3%)
SGD103,441.72
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= SGD103,441.72 ÷ (1 + 7.07%)10
SGD52,236.87
SGX:Z74 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= SGD27,126.76 + SGD52,236.87
SGD79,363.63
Equity Value per Share
(SGD)
= Total value / Shares Outstanding
= SGD79,363.63 / 16,320.56
SGD4.86
SGX:Z74 Discount to Share Price
Calculation Result
Value per share (SGD) From above. SGD4.86
Current discount Discount to share price of SGD3.54
= -1 x (SGD3.54 - SGD4.86) / SGD4.86
27.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Singapore Telecommunications is available for.
Intrinsic value
27%
Share price is SGD3.54 vs Future cash flow value of SGD4.86
Current Discount Checks
For Singapore Telecommunications to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Singapore Telecommunications's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Singapore Telecommunications's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Singapore Telecommunications's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Singapore Telecommunications's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SGX:Z74 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in SGD SGD0.19
SGX:Z74 Share Price ** SGX (2019-07-19) in SGD SGD3.54
Asia Telecom Industry PE Ratio Median Figure of 14 Publicly-Listed Telecom Companies 17.35x
Singapore Market PE Ratio Median Figure of 327 Publicly-Listed Companies 13.04x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Singapore Telecommunications.

SGX:Z74 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SGX:Z74 Share Price ÷ EPS (both in SGD)

= 3.54 ÷ 0.19

18.67x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Singapore Telecommunications is overvalued based on earnings compared to the Asia Telecom industry average.
  • Singapore Telecommunications is overvalued based on earnings compared to the Singapore market.
Price based on expected Growth
Does Singapore Telecommunications's expected growth come at a high price?
Raw Data
SGX:Z74 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 18.67x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 21 Analysts
5.7%per year
Asia Telecom Industry PEG Ratio Median Figure of 8 Publicly-Listed Telecom Companies 2.1x
Singapore Market PEG Ratio Median Figure of 119 Publicly-Listed Companies 1.69x

*Line of best fit is calculated by linear regression .

SGX:Z74 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 18.67x ÷ 5.7%

3.25x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Singapore Telecommunications is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Singapore Telecommunications's assets?
Raw Data
SGX:Z74 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in SGD SGD1.83
SGX:Z74 Share Price * SGX (2019-07-19) in SGD SGD3.54
Asia Telecom Industry PB Ratio Median Figure of 16 Publicly-Listed Telecom Companies 1.55x
Singapore Market PB Ratio Median Figure of 431 Publicly-Listed Companies 0.73x
SGX:Z74 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SGX:Z74 Share Price ÷ Book Value per Share (both in SGD)

= 3.54 ÷ 1.83

1.94x

* Primary Listing of Singapore Telecommunications.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Singapore Telecommunications is overvalued based on assets compared to the Asia Telecom industry average.
X
Value checks
We assess Singapore Telecommunications's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Telecom industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Telecom industry average (and greater than 0)? (1 check)
  5. Singapore Telecommunications has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Z74 Future Performance

 How is Singapore Telecommunications expected to perform in the next 1 to 3 years based on estimates from 21 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
5.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Singapore Telecommunications expected to grow at an attractive rate?
  • Singapore Telecommunications's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
  • Singapore Telecommunications's earnings growth is expected to exceed the Singapore market average.
  • Singapore Telecommunications's revenue growth is positive but not above the Singapore market average.
Annual Growth Rates Comparison
Raw Data
SGX:Z74 Future Growth Rates Data Sources
Data Point Source Value (per year)
SGX:Z74 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 21 Analysts 5.7%
SGX:Z74 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 21 Analysts 0.9%
Asia Telecom Industry Earnings Growth Rate Market Cap Weighted Average 18.5%
Asia Telecom Industry Revenue Growth Rate Market Cap Weighted Average 5.7%
Singapore Market Earnings Growth Rate Market Cap Weighted Average 5.7%
Singapore Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SGX:Z74 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 21 Analyst Estimates (S&P Global) See Below
All numbers in SGD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SGX:Z74 Future Estimates Data
Date (Data in SGD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-03-31 17,883 5,262 3,644 13
2021-03-31 17,630 5,070 3,362 21
2020-03-31 17,479 5,294 3,029 20
SGX:Z74 Past Financials Data
Date (Data in SGD Millions) Revenue Cash Flow Net Income *
2019-03-31 17,372 5,368 3,095
2018-12-31 17,555 5,166 3,070
2018-09-30 17,512 5,695 3,206
2018-06-30 17,510 6,001 5,393
2018-03-31 17,268 5,955 5,473
2017-12-31 17,314 5,968 5,667
2017-09-30 17,140 5,679 5,680
2017-06-30 16,959 5,464 3,798
2017-03-31 16,711 5,315 3,853
2016-12-31 16,498 5,107 3,835
2016-09-30 16,563 5,073 3,816
2016-06-30 16,661 4,902 3,874

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Singapore Telecommunications's earnings are expected to grow by 5.7% yearly, however this is not considered high growth (20% yearly).
  • Singapore Telecommunications's revenue is expected to grow by 0.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SGX:Z74 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 21 Analyst Estimates (S&P Global) See Below

All data from Singapore Telecommunications Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SGX:Z74 Future Estimates Data
Date (Data in SGD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-03-31 0.22 0.24 0.20 10.00
2021-03-31 0.20 0.22 0.19 16.00
2020-03-31 0.19 0.20 0.18 15.00
SGX:Z74 Past Financials Data
Date (Data in SGD Millions) EPS *
2019-03-31 0.19
2018-12-31 0.19
2018-09-30 0.20
2018-06-30 0.33
2018-03-31 0.34
2017-12-31 0.35
2017-09-30 0.35
2017-06-30 0.23
2017-03-31 0.24
2016-12-31 0.24
2016-09-30 0.24
2016-06-30 0.24

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Singapore Telecommunications is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Singapore Telecommunications's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Asia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Asia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Singapore Telecommunications has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Z74 Past Performance

  How has Singapore Telecommunications performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Singapore Telecommunications's growth in the last year to its industry (Telecom).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Singapore Telecommunications's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • Singapore Telecommunications's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Singapore Telecommunications's 1-year earnings growth is negative, it can't be compared to the Asia Telecom industry average.
Earnings and Revenue History
Singapore Telecommunications's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Singapore Telecommunications Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SGX:Z74 Past Revenue, Cash Flow and Net Income Data
Date (Data in SGD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 17,371.70 3,094.50 441.50
2018-12-31 17,555.10 3,069.50 474.80
2018-09-30 17,512.20 3,205.90 474.80
2018-06-30 17,510.10 5,393.10 474.80
2018-03-31 17,268.00 5,473.00 474.80
2017-12-31 17,314.10 5,666.70 451.90
2017-09-30 17,140.40 5,680.30 451.90
2017-06-30 16,959.00 3,798.20 451.90
2017-03-31 16,711.40 3,852.70 451.90
2016-12-31 16,497.60 3,835.40 416.90
2016-09-30 16,562.50 3,816.10 416.90
2016-06-30 16,660.60 3,873.50 416.90
2016-03-31 16,961.20 3,870.80 416.90
2015-12-31 17,206.20 3,863.60 403.40
2015-09-30 17,158.80 3,879.90 403.40
2015-06-30 17,283.80 3,888.50 403.40
2015-03-31 17,222.90 3,781.50 403.40
2014-12-31 17,012.40 3,741.00 384.70
2014-09-30 16,848.70 3,643.50 384.70
2014-06-30 16,702.40 3,475.60 384.70
2014-03-31 16,848.10 3,652.00 384.70
2013-12-31 17,201.10 3,621.90 382.80
2013-09-30 17,534.40 3,576.70 382.80
2013-06-30 17,943.30 3,574.00 382.80
2013-03-31 18,183.00 3,508.30 382.80
2012-12-31 18,481.80 3,929.10 319.10
2012-09-30 18,715.50 4,004.00 319.10

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Singapore Telecommunications has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Singapore Telecommunications used its assets more efficiently than the Asia Telecom industry average last year based on Return on Assets.
  • Singapore Telecommunications's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Singapore Telecommunications's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Telecom industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Singapore Telecommunications has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Z74 Health

 How is Singapore Telecommunications's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Singapore Telecommunications's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Singapore Telecommunications's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Singapore Telecommunications's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Singapore Telecommunications's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Singapore Telecommunications Company Filings, last reported 3 months ago.

SGX:Z74 Past Debt and Equity Data
Date (Data in SGD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 29,809.70 10,580.60 512.70
2018-12-31 28,897.20 10,561.30 637.20
2018-09-30 28,875.80 10,555.40 706.90
2018-06-30 30,414.90 9,217.00 624.60
2018-03-31 29,711.50 10,386.60 524.90
2017-12-31 29,505.10 9,468.80 840.90
2017-09-30 29,978.50 10,168.90 651.40
2017-06-30 28,866.90 11,457.90 632.00
2017-03-31 28,213.60 10,987.70 533.80
2016-12-31 26,959.90 11,269.20 847.80
2016-09-30 25,042.90 10,263.60 585.20
2016-06-30 25,423.50 9,226.00 965.70
2016-03-31 25,002.50 9,720.10 461.80
2015-12-31 24,542.10 10,083.90 685.90
2015-09-30 24,561.10 10,708.50 732.80
2015-06-30 25,353.90 8,679.10 1,389.70
2015-03-31 24,767.90 8,773.70 562.80
2014-12-31 23,697.00 8,511.60 629.30
2014-09-30 23,927.50 8,817.00 523.80
2014-06-30 24,670.30 6,842.90 649.00
2014-03-31 23,892.60 7,821.50 622.50
2013-12-31 22,555.50 8,124.20 1,282.90
2013-09-30 22,947.10 8,186.30 861.00
2013-06-30 24,164.20 7,380.70 1,311.70
2013-03-31 23,989.20 7,679.70 911.00
2012-12-31 22,655.60 7,709.30 831.10
2012-09-30 22,909.90 8,318.20 883.30
  • Singapore Telecommunications's level of debt (35.8%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (33.6% vs 35.8% today).
  • Debt is well covered by operating cash flow (50.3%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 7.3x coverage).
X
Financial health checks
We assess Singapore Telecommunications's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Singapore Telecommunications has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Z74 Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.94%
Current annual income from Singapore Telecommunications dividends. Estimated to be 4.93% next year.
If you bought SGD2,000 of Singapore Telecommunications shares you are expected to receive SGD99 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Singapore Telecommunications's pays a higher dividend yield than the bottom 25% of dividend payers in Singapore (2.55%).
  • Singapore Telecommunications's dividend is below the markets top 25% of dividend payers in Singapore (5.5%).
Upcoming dividend payment

Purchase Singapore Telecommunications before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SGX:Z74 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 21 Analyst Estimates (S&P Global) See Below
Asia Telecom Industry Average Dividend Yield Market Cap Weighted Average of 11 Stocks 2.8%
Singapore Market Average Dividend Yield Market Cap Weighted Average of 278 Stocks 3.8%
Singapore Minimum Threshold Dividend Yield 10th Percentile 1.7%
Singapore Bottom 25% Dividend Yield 25th Percentile 2.6%
Singapore Top 25% Dividend Yield 75th Percentile 5.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SGX:Z74 Future Dividends Estimate Data
Date (Data in SGD) Dividend per Share (annual) Avg. No. Analysts
2022-03-31 0.18 11.00
2021-03-31 0.17 19.00
2020-03-31 0.18 19.00
SGX:Z74 Past Annualized Dividends Data
Date (Data in SGD) Dividend per share (annual) Avg. Yield (%)
2019-06-25 0.175 4.985
2018-11-08 0.175 5.681
2018-06-21 0.175 5.520
2017-06-27 0.175 4.882
2016-06-27 0.175 4.495
2015-06-22 0.175 4.569
2015-05-13 0.175 4.168
2014-06-11 0.168 4.217
2013-11-21 0.168 4.604
2013-05-15 0.168 4.488
2012-11-14 0.158 4.533
2012-06-25 0.158 4.778
2012-05-09 0.158 5.040
2011-11-23 0.158 5.077
2011-05-12 0.158 5.033
2010-11-11 0.148 4.847
2010-05-12 0.142 4.653
2010-02-08 0.131 4.227
2009-05-14 0.125 4.083

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Singapore Telecommunications's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (1.1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.3x coverage).
X
Income/ dividend checks
We assess Singapore Telecommunications's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.7%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Singapore Telecommunications afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Singapore Telecommunications has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Z74 Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Sock Koong Chua
COMPENSATION SGD3,537,301
AGE 61
TENURE AS CEO 12.3 years
CEO Bio

Ms. Sock Koong Chua has been the Chief Executive Officer of SingTel Optus Pty Ltd since April 1, 2007. Ms. Chua has been the Chief Executive Officer of Singapore Telecommunications Limited since April 1, 2007. She served as the Group Chief Executive Officer at SingTel Group Treasury Pte. Ltd. She served as the Senior Vice President of Corporate Affairs & Finance at Singapore Telecom from 1995, the Group Chief Executive Officer of SingTel Optus Pty, Ltd. since April 1, 2007. She served as the Chief Financial Officer of Singapore since April 1999 and as Vice President of Corporate Affairs from 1992 to 1995. She served as a Treasurer of Singapore Telecom from 1989 to 1992. She has been an Executive and Non-Independent Director at SingTel Optus Pty Ltd. since October 12, 2006. She serves as a Director of SingTelSat Pte. Ltd., SingTel Ventures (Pte) Ltd. and SingTel Singapore Pte. Ltd. She has been an Executive Director of Singapore Telecommunications Limited since October 12, 2006 and its member of Optus Advisory Committee. She serves as a Director of SingTel Group Treasury Pte. Ltd. She serves as a Director of Optus Finance Pty. She has been a Non-Executive Director of Bharti Airtel Limited since May 7, 2001. She is Director of Cap Vista Pte Ltd. She serves as a Director of Bharti Telecom Limited. She served as a Director of Shin Corp. Public Co. Ltd. since 2001. She served as a Director of JTC Corporation and Belgacom SA. She has been a Director of Singapore Telecommunications Ltd. since July 24, 2009. She holds a Bachelor of Accountancy (Honors) from University of Singapore. She is a Fellow Member of the Institute of Singapore Chartered Accountants. Ms. Chua is a Certified Accountant and Chartered Financial Analyst.

CEO Compensation
  • Sock Koong's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Sock Koong's remuneration is lower than average for companies of similar size in Singapore.
Management Team Tenure

Average tenure and age of the Singapore Telecommunications management team in years:

4.3
Average Tenure
56
Average Age
  • The tenure for the Singapore Telecommunications management team is about average.
Management Team

Sock Koong Chua

TITLE
Group CEO
COMPENSATION
SGD4M
AGE
61
TENURE
12.3 yrs

Allen Lew

TITLE
Chief Executive Officer of Consumer Australia & Optus
COMPENSATION
SGD4M
AGE
64
TENURE
7.3 yrs

Jeann Low

TITLE
Group Chief Corporate Officer
COMPENSATION
SGD1M
AGE
58
TENURE
4.3 yrs

Kuan Yuen

TITLE
CEO of Consumer Singapore & Group Chief Digital Officer
COMPENSATION
SGD2M
AGE
52
TENURE
0.9 yrs

Bill Chang

TITLE
CEO of Group Enterprise & Country Chief Officer of Singapore
COMPENSATION
SGD2M
AGE
52
TENURE
13.7 yrs

Weng Hui

TITLE
President & Chief Operating Officer of AIS
COMPENSATION
SGD2M
AGE
64

Cheng Cheng Lim

TITLE
Group Chief Financial Officer
AGE
47
TENURE
4.3 yrs

Mark Chong

TITLE
Group Chief Technology Officer
AGE
56
TENURE
2.3 yrs

William Woo

TITLE
Group Chief Information Officer
AGE
55
TENURE
1.9 yrs

Yang Fong Sin

TITLE
Vice President of Investor Relations
Board of Directors Tenure

Average tenure and age of the Singapore Telecommunications board of directors in years:

6.6
Average Tenure
63
Average Age
  • The tenure for the Singapore Telecommunications board of directors is about average.
Board of Directors

Simon Claude Israel

TITLE
Non-Executive Chairman & Member of Optus Advisory Committee
COMPENSATION
SGD985K
AGE
66
TENURE
8 yrs

Sock Koong Chua

TITLE
Group CEO
COMPENSATION
SGD4M
AGE
61

Peter Edward Mason

TITLE
Chairman of Optus Advisory Committee and Non-Executive & Independent Director
COMPENSATION
SGD226K
AGE
73

Check Kian Low

TITLE
Non-Executive & Lead Independent Director
COMPENSATION
SGD227K
AGE
60
TENURE
8.2 yrs

Venky Ganesan

TITLE
Non-Executive & Independent Director and Chairman of Technology Advisory Panel
COMPENSATION
SGD295K
AGE
46

Swee-Lian Teo

TITLE
Non-Executive & Independent Director
COMPENSATION
SGD195K
AGE
59
TENURE
4.3 yrs

John Morschel

TITLE
Member of Optus Advisory Committee
COMPENSATION
SGD68K
AGE
76

Paul O’Sullivan

TITLE
Member of Optus Advisory Committee
COMPENSATION
SGD3M
AGE
58

Boon Hwee Koh

TITLE
Member of Technology Advisory Panel
AGE
68
TENURE
5.3 yrs

David Gonski

TITLE
Member of Optus Advisory Committee
COMPENSATION
SGD158K
AGE
65
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (SGD) Value (SGD)
X
Management checks
We assess Singapore Telecommunications's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Singapore Telecommunications has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

Z74 News

Simply Wall St News

Why Singapore Telecommunications Limited's (SGX:Z74) High P/E Ratio Isn't Necessarily A Bad Thing

We'll apply a basic P/E ratio analysis to Singapore Telecommunications Limited's (SGX:Z74), to help you decide if the stock is worth further research. … Check out our latest analysis for Singapore Telecommunications How Do I Calculate Singapore Telecommunications's Price To Earnings Ratio? … The formula for P/E is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Singapore Telecommunications: P/E of 18.67 = SGD3.54 ÷ SGD0.19 (Based on the year to March 2019.) Is A High P/E Ratio Good?

Simply Wall St -

Why You Should Care About Singapore Telecommunications Limited’s (SGX:Z74) Low Return On Capital

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Singapore Telecommunications: 0.061 = S$2.5b ÷ (S$49b - S$8.8b) (Based on the trailing twelve months to March 2019.) So, Singapore Telecommunications has an ROCE of 6.1%. … Do Singapore Telecommunications's Current Liabilities Skew Its ROCE?

Simply Wall St -

Singapore Telecommunications Limited (SGX:Z74): Poised For Long-Term Success?

In May 2019, Singapore Telecommunications Limited (SGX:Z74) announced its latest earnings update, which confirmed that the business faced a substantial headwind with earnings deteriorating by -43%. … Below is my commentary, albeit very simple and high-level, on how market analysts predict Singapore Telecommunications's earnings growth trajectory over the next few years and whether the future looks brighter. … View our latest analysis for Singapore Telecommunications Market analysts' prospects for this coming year seems pessimistic, with earnings falling by -1.6%.

Simply Wall St -

Should You Be Pleased About The CEO Pay At Singapore Telecommunications Limited's (SGX:Z74)

Chua Sock Koong became the CEO of Singapore Telecommunications Limited (SGX:Z74) in 2007. … View our latest analysis for Singapore Telecommunications How Does Chua Sock Koong's Compensation Compare With Similar Sized Companies? … According to our data, Singapore Telecommunications Limited has a market capitalization of S$54b, and pays its CEO total annual compensation worth S$6.1m.

Simply Wall St -

What Can We Expect From Singapore Telecommunications Limited's (SGX:Z74) Earnings In The Year Ahead?

After Singapore Telecommunications Limited's (SGX:Z74) earnings announcement on 31 March 2019, analyst forecasts appear to be bearish, with profits predicted to drop by 1.6% next year relative to the past 5-year average growth rate of 3.2%. … I've plotted out each year's earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of Z74's earnings growth over these next few years. … SGX:Z74 Past and Future Earnings, May 30th 2019 By 2022, Z74's earnings should reach S$3.7b, from current levels of S$3.1b, resulting in an annual growth rate of 6.2%.

Simply Wall St -

Is Singapore Telecommunications Limited (SGX:Z74) A Strong Dividend Stock?

Is Singapore Telecommunications Limited (SGX:Z74) a good dividend stock? How would you know? Dividend paying companies with growing earnings can be highly rewarding in the long term. Unfortunately, it's common for investors to be enticed in by the seemingly attractive yield, and lose money when the company has to cut its dividend payments. With a goodly-sized dividend yield despite a relatively short payment history, investors might be wondering if Singapore Telecommunications is a new dividend aristocrat in the making. It sure looks interesting on these metrics - but there's always more to the story . When buying stocks for their dividends, you should always run through the checks below, to see if the dividend looks sustainable. Click the interactive chart for our full dividend analysis SGX:Z74 Historical Dividend Yield, May 20th 2019 Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card! Payout ratios Dividends are usually paid out of company earnings. If a company is paying more than it earns, then the dividend might become unsustainable - hardly an ideal situation. As a result, we should always investigate whether a company can afford its dividend, measured as a percentage of a company's net income after tax. Singapore Telecommunications paid out 92% of its profit as dividends, over the trailing twelve month period. With a payout ratio this high, we'd say its dividend is not well covered by earnings. This may be fine if earnings are growing, but it might not take much of a downturn for the dividend to come under pressure. Another important check we do is to see if the free cash flow generated is sufficient to pay the dividend. The company paid out 86% of its free cash flow as dividends last year, which is adequate, but reduces the wriggle room in the event of a downturn. Is Singapore Telecommunications's Balance Sheet Risky? As Singapore Telecommunications's dividend was not well covered by earnings, we need to check its balance sheet for signs of financial distress. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) net interest cover. Net debt to EBITDA is a measure of a company's total debt. Net interest cover measures the ability to meet interest payments on debt. Essentially we check that a) a company does not have too much debt, and b) that it can afford to pay the interest. … Net interest cover of 7.29 times its interest expense appears reasonable for Singapore Telecommunications, although we're conscious that even high interest cover doesn't make a company bulletproof. … Conclusion When we look at a dividend stock, we need to form a judgement on whether the dividend will grow, if the company is able to maintain it in a wide range of economic circumstances, and if the dividend payout is sustainable.

Simply Wall St -

A Spotlight On Singapore Telecommunications Limited's (SGX:Z74) Fundamentals

By this I mean, I look at stocks holistically, from their financial health to their future outlook. … SGX:Z74 Historical Dividend Yield, May 11th 2019 Next Steps: For Singapore Telecommunications, I've put together three essential factors you should look at: Future Outlook: What are well-informed industry analysts predicting for Z74’s future growth? … Take a look at our free research report of analyst consensus for Z74’s outlook.

Simply Wall St -

Singapore Telecommunications Limited (SGX:Z74): An Investing Strategy To Help You Win

Singapore Telecommunications Limited is a financially healthy and robust stock with a proven track record of outperformance. … We all know Singapore Telecommunications, and having this large-cap to cushion your portfolio during a volatile period in the stock market isn't a bad idea. … Singapore Telecommunications Limited provides a portfolio of communication and technology, and infotainment services to consumers and businesses in Asia, Australia, and Africa

Simply Wall St -

Is Singapore Telecommunications Limited (SGX:Z74) Trading At A 35% Discount?

I will be using the Discounted Cash Flow (DCF) model. … If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model? … We're using the 2-stage growth model, which simply means we take in account two stages of company's growth

Simply Wall St -

Singapore Telecommunications Limited (SGX:Z74): A Fundamentally Attractive Investment

As an investor, I look for investments which does not compromise one fundamental factor for another. … By this I mean, I look at stocks holistically, from their financial health to their future outlook. … that has been able to sustain great financial health over the past

Simply Wall St -

Z74 Company Info

Description

Singapore Telecommunications Limited provides communication, infotainment, and technology services to consumers and small businesses in Singapore, Australia, the United States, Europe, and internationally. It operates through three segments: Group Consumer, Group Enterprise, and Group Digital Life. The Group Consumer segment engages in the carriage business, including mobile, pay TV, fixed broadband, and voice, as well as equipment sales. The Group Enterprise segment offers mobile, equipment sales, fixed voice and data, managed, cloud computing, cyber security, IT, and professional consulting services. The Group Digital Life segment is involved in the digital marketing, regional premium OTT video, and advanced analytics and intelligence businesses. The company also operates a venture capital fund that focuses its investments on technologies and solutions; and offers ICT solutions and marketing technology services. In addition, it offers inSing.com that provides hyper-local content, user reviews, and editorials, as well as business or service information; and Trustwave that enables businesses fight cybercrime, protect data, and reduce security risk. The company is headquartered in Singapore.

Details
Name: Singapore Telecommunications Limited
Z74
Exchange: SGX
Founded:
SGD57,774,771,818
16,320,557,011
Website: http://www.singtel.com
Address: Singapore Telecommunications Limited
31 Exeter Road,
No. 19-00 Comcentre,
Singapore,
239732,
Singapore
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SGX Z74 Ordinary Shares Singapore Exchange SG SGD 01. Nov 1993
OTCPK SNGN.F Ordinary Shares Pink Sheets LLC US USD 01. Nov 1993
DB SIT4 Ordinary Shares Deutsche Boerse AG DE EUR 01. Nov 1993
SGX Z77 Ordinary Shares Singapore Exchange SG SGD 01. Nov 1993
OTCPK SGAP.Y SPON ADR NEW06 Pink Sheets LLC US USD 15. Aug 1995
Number of employees
Current staff
Staff numbers
24,071
Singapore Telecommunications employees.
Industry
Integrated Telecommunication Services
Telecom
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/20 12:46
End of day share price update: 2019/07/19 00:00
Last estimates confirmation: 2019/07/17
Last earnings filing: 2019/06/25
Last earnings reported: 2019/03/31
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.