SGX:Z74

Stock Analysis Report

Singapore Telecommunications

Executive Summary

Singapore Telecommunications Limited provides communication, infotainment, and technology services to consumers and small businesses in Singapore, Australia, the United States, Europe, and internationally.

Snowflake

Fundamentals

Average dividend payer with mediocre balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-0.3%

Z74

0.2%

SG Telecom

0.9%

SG Market


1 Year Return

1.6%

Z74

8.9%

SG Telecom

1.4%

SG Market

Return vs Industry: Z74 underperformed the SG Telecom industry which returned 8.9% over the past year.

Return vs Market: Z74 exceeded the SG Market which returned 1.4% over the past year.


Shareholder returns

Z74IndustryMarket
7 Day-0.3%0.2%0.9%
30 Day-1.6%-1.3%-2.3%
90 Day-10.2%-5.4%-6.7%
1 Year7.2%1.6%13.1%8.9%5.4%1.4%
3 Year-5.5%-19.4%6.9%-4.5%15.8%3.4%
5 Year9.8%-14.1%16.8%-2.3%11.3%-7.0%

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

Valuation

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

35.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: Z74 (SGD3.16) is trading below our estimate of fair value (SGD4.93)

Significantly Undervalued: 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 (18.4x) compared to the Telecom industry average (17.6x).

PE vs Market: Z74 is poor value based on its PE Ratio (18.4x) compared to the SG market (13.4x).


Price to Earnings Growth Ratio

Low PEG Ratio: Z74 is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: Z74 is overvalued based on its PB Ratio (1.7x) compared to the XA Telecom industry average (1.4x).


Next Steps

Future Growth

How is Singapore Telecommunications forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

10.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Z74's forecast earnings growth (10.5% per year) is above the savings rate (2.3%).

Earnings vs Market: Z74's earnings (10.5% per year) are forecast to grow faster than the SG market (5.7% per year).

High Growth Earnings: Z74's earnings are forecast to grow, but not significantly.

Revenue vs Market: Z74's revenue (0.7% per year) is forecast to grow slower than the SG market (5.4% per year).

High Growth Revenue: Z74's revenue (0.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Z74's Return on Equity is forecast to be low in 3 years time (10.7%).


Next Steps

Past Performance

How has Singapore Telecommunications performed over the past 5 years?

1.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: Z74's earnings have grown by 1.1% 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 (-48.2%) over the past year, making it difficult to compare to the Telecom industry average (10.5%).


Return on Equity

High ROE: Z74's Return on Equity (9.3%) is considered low.


Return on Assets

ROA vs Industry: Z74 has a higher Return on Assets than the Telecom industry average last year.


Return on Capital Employed

ROCE Improving: Z74's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Singapore Telecommunications's financial position?


Financial Position Analysis

Short Term Liabilities: Z74's short term assets (SGD6.9B) do not cover its short term liabilities (SGD9.3B)

Long Term Liabilities: Z74's short term assets (6.9B) do not cover its long term liabilities (11.1B)


Debt to Equity History and Analysis

Debt Level: Z74's debt to equity ratio (34.8%) is considered satisfactory

Reducing Debt: Z74's debt to equity ratio has increased from 27.8% to 34.8% over the past 5 years.

Debt Coverage: Z74's debt is well covered by operating cash flow (49.8%).

Interest Coverage: Z74's interest payments on its debt are well covered by EBIT (7.4x coverage).


Balance Sheet

Inventory Level: Z74 has a high level of physical assets or inventory.

Debt Coverage by Assets: Z74's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

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

5.54%

Current Dividend Yield


Dividend Yield vs Market

company5.5%marketbottom25%2.5%markettop25%5.6%industryaverage3.5%forecastin3Years5.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Z74's dividend (5.54%) is higher than the bottom 25% of dividend payers in the SG market (2.5%).

High Dividend: Z74's dividend (5.54%) is low compared to the top 25% of dividend payers in the SG market (5.59%).

Stable Dividend: Z74's dividends per share have been stable in the past 10 years.

Growing Dividend: Z74's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (101.9%), 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 (84.7% payout ratio).


Next Steps

Management

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

4.5yrs

Average management tenure


CEO

Sock Koong Chua (62yo)

12.5yrs

Tenure

S$3,537,301

Compensation

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 ($USD2.58M) is about average for companies of similar size in the SG market ($USD3.36M).

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


Management Age and Tenure

4.5yrs

Average Tenure

56yo

Average Age

Experienced Management: Z74's management team is considered experienced (4.5 years average tenure).


Board Age and Tenure

5.0yrs

Average Tenure

63.5yo

Average Age

Experienced Board: Z74's board of directors are considered experienced (5 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.


Ownership Breakdown


Management Team

  • Sock Koong Chua (62yo)

    Group CEO

    • Tenure: 12.5yrs
    • Compensation: S$3.54m
  • Weng Hui (64yo)

    President & Chief Operating Officer of AIS

    • Tenure: 0yrs
    • Compensation: S$1.80m
  • Allen Lew (64yo)

    Chief Executive Officer of Consumer Australia & Optus

    • Tenure: 7.5yrs
    • Compensation: S$3.66m
  • Kuan Moon Yuen (52yo)

    CEO of Consumer Singapore & Group Chief Digital Officer

    • Tenure: 1.2yrs
    • Compensation: S$1.92m
  • Bill Chang (52yo)

    CEO of Group Enterprise & Country Chief Officer of Singapore

    • Tenure: 13.9yrs
    • Compensation: S$1.86m
  • Jeann Low (58yo)

    Group Chief Corporate Officer

    • Tenure: 4.5yrs
    • Compensation: S$1.46m
  • Mark Chong (56yo)

    Group Chief Technology Officer

    • Tenure: 2.5yrs
  • William Woo (55yo)

    Group Chief Information Officer

    • Tenure: 2.2yrs
  • Cheng Cheng Lim (47yo)

    Group Chief Financial Officer

    • Tenure: 4.5yrs
  • Yang Sin

    Vice President of Investor Relations

    • Tenure: 0yrs

Board Members

  • Venky Ganesan (46yo)

    Non-Executive & Independent Director and Chairman of Technology Advisory Panel

    • Tenure: 0yrs
    • Compensation: S$294.67k
  • Simon Claude Israel (66yo)

    Non-Executive Chairman & Member of Optus Advisory Committee

    • Tenure: 8.3yrs
    • Compensation: S$984.56k
  • John Morschel (76yo)

    Member of Optus Advisory Committee

    • Tenure: 0yrs
    • Compensation: S$68.21k
  • Paul O’Sullivan (58yo)

    Member of Optus Advisory Committee

    • Tenure: 0yrs
    • Compensation: S$3.01m
  • David Gonski (65yo)

    Member of Optus Advisory Committee

    • Tenure: 0yrs
    • Compensation: S$158.11k
  • Sock Koong Chua (62yo)

    Group CEO

    • Tenure: 12.5yrs
    • Compensation: S$3.54m
  • Swee Lian Teo (59yo)

    Non-Executive & Independent Director

    • Tenure: 4.5yrs
    • Compensation: S$195.00k
  • Check Kian Low (60yo)

    Non-Executive & Lead Independent Director

    • Tenure: 4.3yrs
    • Compensation: S$227.00k
  • Boon Hwee Koh (68yo)

    Member of Technology Advisory Panel

    • Tenure: 5.5yrs
  • Gautam Banerjee (65yo)

    Non-Executive & Independent Director

    • Tenure: 1.6yrs

Company Information

Singapore Telecommunications Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Singapore Telecommunications Limited
  • Ticker: Z74
  • Exchange: SGX
  • Founded:
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: S$51.588b
  • Shares outstanding: 16.33b
  • Website: https://www.singtel.com

Number of Employees


Location

  • Singapore Telecommunications Limited
  • 31 Exeter Road
  • No. 19-00 Comcentre
  • Singapore
  • 239732
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SNGN.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 1993
Z74SGX (Singapore Exchange)YesOrdinary SharesSGSGDNov 1993
SIT4DB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 1993
Z77SGX (Singapore Exchange)YesOrdinary SharesSGSGDNov 1993
SGAP.YOTCPK (Pink Sheets LLC)SPON ADR NEW06USUSDAug 1995

Biography

Singapore Telecommunications Limited provides communication, infotainment, and technology services to consumers and small businesses in Singapore, Australia, the United States, Europe, and internationally. ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 12:39
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


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.