Singapore Telecommunications Limited provides communication, infotainment, and technology services to consumers and small businesses in Singapore, Australia, the United States, and internationally. More Details
Second-rate dividend payer and slightly overvalued.
Share Price & News
How has Singapore Telecommunications's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: Z74 has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: Z74 underperformed the SG Telecom industry which returned -15.2% over the past year.
Return vs Market: Z74 underperformed the SG Market which returned -21.8% over the past year.
Price Volatility Vs. Market
How volatile is Singapore Telecommunications's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall StWe're Not So Sure You Should Rely on Singapore Telecommunications's (SGX:Z74) Statutory Earnings
1 month ago | Simply Wall StShould You Buy Singapore Telecommunications Limited (SGX:Z74) For Its 5.1% Dividend?
Is Singapore Telecommunications undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: Z74 (SGD2.16) is trading below our estimate of fair value (SGD2.18)
Significantly Below Fair Value: Z74 is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: Z74 is poor value based on its PE Ratio (32.8x) compared to the XA Telecom industry average (18.7x).
PE vs Market: Z74 is poor value based on its PE Ratio (32.8x) compared to the SG market (12.7x).
Price to Earnings Growth Ratio
PEG Ratio: Z74 is poor value based on its PEG Ratio (1.7x)
Price to Book Ratio
PB vs Industry: Z74 is good value based on its PB Ratio (1.3x) compared to the XA Telecom industry average (1.7x).
How is Singapore Telecommunications forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: Z74's forecast earnings growth (19.9% per year) is above the savings rate (2.2%).
Earnings vs Market: Z74's earnings (19.9% per year) are forecast to grow slower than the SG market (21.8% per year).
High Growth Earnings: Z74's earnings are forecast to grow, but not significantly.
Revenue vs Market: Z74's revenue is expected to decline over the next 3 years (-0.4% per year).
High Growth Revenue: Z74's revenue is forecast to decline over the next 3 years (-0.4% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Z74's Return on Equity is forecast to be low in 3 years time (10.8%).
How has Singapore Telecommunications performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: Z74 has a large one-off gain of SGD419.3M impacting its March 31 2020 financial results.
Growing Profit Margin: Z74's current net profit margins (6.5%) are lower than last year (17.8%).
Past Earnings Growth Analysis
Earnings Trend: Z74's earnings have declined by 11.1% per year over the past 5 years.
Accelerating Growth: Z74's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: Z74 had negative earnings growth (-65.2%) over the past year, making it difficult to compare to the Telecom industry average (0.6%).
Return on Equity
High ROE: Z74's Return on Equity (3.9%) is considered low.
How is Singapore Telecommunications's financial position?
Financial Position Analysis
Short Term Liabilities: Z74's short term assets (SGD7.2B) do not cover its short term liabilities (SGD10.6B).
Long Term Liabilities: Z74's short term assets (SGD7.2B) do not cover its long term liabilities (SGD11.6B).
Debt to Equity History and Analysis
Debt Level: Z74's debt to equity ratio (45.2%) is considered high.
Reducing Debt: Z74's debt to equity ratio has increased from 35.4% to 45.2% over the past 5 years.
Debt Coverage: Z74's debt is well covered by operating cash flow (48%).
Interest Coverage: Z74's interest payments on its debt are well covered by EBIT (7.4x coverage).
What is Singapore Telecommunications's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: Z74's dividend (5.67%) is higher than the bottom 25% of dividend payers in the SG market (2.59%).
High Dividend: Z74's dividend (5.67%) is in the top 25% of dividend payers in the SG market (5.63%)
Stability and Growth of Payments
Stable Dividend: Z74's dividend payments have been volatile in the past 10 years.
Growing Dividend: Z74's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (186.1%), Z74's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Z74's dividends in 3 years are forecast to be covered by earnings (70.4% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Sock Koong Chua (63 yo)
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, 2 ...
CEO Compensation Analysis
Compensation vs Market: Sock Koong's total compensation ($USD2.27M) is below average for companies of similar size in the SG market ($USD6.35M).
Compensation vs Earnings: Sock Koong's compensation has been consistent with company performance over the past year.
|Group CEO||13.42yrs||S$3.10m||0.055% |
|CEO of Group Strategy & Business Development and Country Chief Officer of Thailand||8.42yrs||S$2.77m||no data|
|Group Chief Corporate Officer||5.42yrs||S$1.47m||no data|
|CEO of Consumer Singapore & Group Chief Digital Officer||2.08yrs||S$1.55m||no data|
|CEO of Group Enterprise & Country Chief Officer of Singapore||14.83yrs||S$1.41m||no data|
|Chief Executive Officer of International||3.42yrs||S$1.23m||no data|
|Group Chief Financial Officer||5.42yrs||no data||no data|
|Group Chief Technology Officer||3.42yrs||no data||no data|
|Group Chief Information Officer||3.08yrs||no data||no data|
|Vice President of Investor Relations||no data||no data||no data|
|Vice President of Group Corporate Communications & Brand||no data||no data||no data|
|Head of Digital Sales & Service - Optus||no data||no data||no data|
Experienced Management: Z74's management team is seasoned and experienced (5.4 years average tenure).
|Group CEO||13.42yrs||S$3.10m||0.055% |
|Non-Executive & Independent Director & Chairman of Technology Advisory Panel||no data||S$396.40k||0.00020% |
|Member of Optus Advisory Committee||no data||S$68.21k||no data|
|Non Independent Non Executive Chairman & Member of Optus Advisory Committee||0.17yr||no data||no data|
|Member of Optus Advisory Committee||no data||S$3.01m||no data|
|Member of Optus Advisory Committee||no data||S$158.11k||no data|
|Non-Executive & Independent Director||5.42yrs||S$205.00k||0.000010% |
|Non-Executive & Lead Independent Director||5.17yrs||S$225.00k||0.000010% |
|Member of Technology Advisory Panel||6.42yrs||no data||no data|
|Non-Executive & Independent Director||2.5yrs||S$195.27k||no data|
|Non-Executive & Independent Director||6.42yrs||S$184.75k||no data|
|Non-Executive & Independent Director and Chairman of Optus Advisory Committee||no data||S$243.08k||no data|
Experienced Board: Z74's board of directors are considered experienced (5.4 years average tenure).
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.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Singapore Telecommunications Limited's company bio, employee growth, exchange listings and data sources
- Name: Singapore Telecommunications Limited
- Ticker: Z74
- Exchange: SGX
- Founded: 1992
- Industry: Integrated Telecommunication Services
- Sector: Telecom
- Market Cap: S$35.254b
- Shares outstanding: 16.32b
- Website: https://www.singtel.com
Number of Employees
- Singapore Telecommunications Limited
- 31 Exeter Road
- No. 19-00 Comcentre
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|SNGN.F||OTCPK (Pink Sheets LLC)||Yes||Ordinary Shares||US||USD||Nov 1993|
|Z74||SGX (Singapore Exchange)||Yes||Ordinary Shares||SG||SGD||Nov 1993|
|SIT4||DB (Deutsche Boerse AG)||Yes||Ordinary Shares||DE||EUR||Nov 1993|
|SGAP.Y||OTCPK (Pink Sheets LLC)||SPON ADR NEW06||US||USD||Aug 1995|
Singapore Telecommunications Limited provides communication, infotainment, and technology services to consumers and small businesses in Singapore, Australia, the United States, and internationally. It oper ...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/09/22 19:28|
|End of Day Share Price||2020/09/22 00:00|
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.