SGX:C6L

Stock Analysis Report

Executive Summary

Singapore Airlines Limited, together with subsidiaries, provides passenger and cargo air transportation services under the Singapore Airlines, SilkAir, and Scoot brands in East Asia, the Americas, Europe, South West Pacific, West Asia, and Africa.


Snowflake Analysis

Second-rate dividend payer with questionable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: C6L has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.2%

C6L

-5.9%

SG Airlines

-1.4%

SG Market


1 Year Return

-9.5%

C6L

-6.0%

SG Airlines

0.7%

SG Market

Return vs Industry: C6L underperformed the SG Airlines industry which returned 2.3% over the past year.

Return vs Market: C6L underperformed the SG Market which returned 2.1% over the past year.


Shareholder returns

C6LIndustryMarket
7 Day-2.2%-5.9%-1.4%
30 Day-2.8%-5.9%0.3%
90 Day-4.1%-2.5%1.9%
1 Year-6.6%-9.5%-4.0%-6.0%4.8%0.7%
3 Year-3.8%-12.2%-1.2%-6.3%13.7%1.6%
5 Year-18.2%-30.1%-6.7%-15.2%11.5%-7.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

15.08x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: C6L (SGD9.03) is trading above our estimate of fair value (SGD5.45)

Significantly Below Fair Value: C6L is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: C6L is poor value based on its PE Ratio (15.4x) compared to the Airlines industry average (15.3x).

PE vs Market: C6L is poor value based on its PE Ratio (15.4x) compared to the SG market (13.5x).


Price to Earnings Growth Ratio

PEG Ratio: C6L is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: C6L is good value based on its PB Ratio (0.9x) compared to the XA Airlines industry average (1.3x).


Next Steps

Future Growth

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

6.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: C6L's forecast earnings growth (6.2% per year) is above the savings rate (1.8%).

Earnings vs Market: C6L's earnings (6.2% per year) are forecast to grow faster than the SG market (5.9% per year).

High Growth Earnings: C6L's earnings are forecast to grow, but not significantly.

Revenue vs Market: C6L's revenue (4.2% per year) is forecast to grow slower than the SG market (5.6% per year).

High Growth Revenue: C6L's revenue (4.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: C6L's Return on Equity is forecast to be low in 3 years time (5.7%).


Next Steps

Past Performance

How has Singapore Airlines performed over the past 5 years?

11.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: C6L has high quality earnings.

Growing Profit Margin: C6L's current net profit margins (4.1%) are lower than last year (5.4%).


Past Earnings Growth Analysis

Earnings Trend: C6L's earnings have grown by 11.9% per year over the past 5 years.

Accelerating Growth: C6L's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: C6L had negative earnings growth (-20.1%) over the past year, making it difficult to compare to the Airlines industry average (-5.2%).


Return on Equity

High ROE: C6L's Return on Equity (6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Singapore Airlines's financial position?


Financial Position Analysis

Short Term Liabilities: C6L's short term assets (SGD3.6B) do not cover its short term liabilities (SGD8.7B).

Long Term Liabilities: C6L's short term assets (SGD3.6B) do not cover its long term liabilities (SGD10.7B).


Debt to Equity History and Analysis

Debt Level: C6L's debt to equity ratio (54.6%) is considered high.

Reducing Debt: C6L's debt to equity ratio has increased from 10.1% to 54.6% over the past 5 years.

Debt Coverage: C6L's debt is well covered by operating cash flow (48.5%).

Interest Coverage: C6L's interest payments on its debt are well covered by EBIT (9.1x coverage).


Balance Sheet

Inventory Level: C6L has a high level of physical assets or inventory.

Debt Coverage by Assets: C6L's debt is not covered by short term assets (assets are 0.5x debt).


Next Steps

Dividend

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

3.40%

Current Dividend Yield


Dividend Yield vs Market

company3.4%marketbottom25%2.5%markettop25%5.5%industryaverage2.3%forecastin3Years3.7%

Current dividend yield vs market & industry

Notable Dividend: C6L's dividend (3.32%) is higher than the bottom 25% of dividend payers in the SG market (2.5%).

High Dividend: C6L's dividend (3.32%) is low compared to the top 25% of dividend payers in the SG market (5.41%).


Stability and Growth of Payments

Stable Dividend: C6L's dividend payments have been volatile in the past 10 years.

Growing Dividend: C6L's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (51.3%), C6L's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: C6L's dividends in 3 years are forecast to be covered by earnings (52.2% payout ratio).


Next Steps

Management

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

6.6yrs

Average management tenure


CEO

Choon Phong Goh (56yo)

9yrs

Tenure

S$5,500,463

Compensation

Mr. Goh Choon Phong joined Singapore Airlines in 1990 and has held senior management positions in Singapore as well as overseas. Mr. Goh joined the Airline's Board on October 1, 2010 and was appointed CEO  ...


CEO Compensation Analysis

Compensation vs Market: Choon Phong's total compensation ($USD4.08M) is about average for companies of similar size in the SG market ($USD4.09M).

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


Management Age and Tenure

6.6yrs

Average Tenure

56yo

Average Age

Experienced Management: C6L's management team is seasoned and experienced (6.6 years average tenure).


Board Age and Tenure

3.0yrs

Average Tenure

62yo

Average Age

Experienced Board: C6L's board of directors are considered experienced (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.


Ownership Breakdown

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


Management Team

  • Swee Wah Mak (58yo)

    Executive Vice President of Commercial

    • Tenure: 8.9yrs
  • Choon Phong Goh (56yo)

    CEO & Non-Independent Executive Director

    • Tenure: 9yrs
    • Compensation: S$5.50m
  • Pee Teck Tan

    Senior Vice President of Cabin Crew

    • Tenure: 9.1yrs
  • Marvin Tan (48yo)

    Senior Vice President of Customer Services & Operations

    • Tenure: 7.3yrs
  • Yau Seng Chin (48yo)

    Senior Vice President of Cargo

    • Tenure: 1.8yrs
  • Stephen Barnes (59yo)

    Senior Vice President of Finance

    • Tenure: 5.9yrs
  • Chin Hwee Ng (58yo)

    Executive Vice President of Human Resources & Operations

    • Campbell David Mcgregor Wilson (48yo)

      Senior Vice President of Sales & Marketing

      • Tenure: 2.8yrs
    • Siok Hua Chia

      Divisional Vice President of Finance

      • Siva Govindasamy

        Vice President of Public Affairs

        • Tenure: 0.4yrs

      Board Members

      • Peter Seah (72yo)

        Independent Chairman

        • Tenure: 3yrs
        • Compensation: S$809.52k
      • Choon Phong Goh (56yo)

        CEO & Non-Independent Executive Director

        • Tenure: 9yrs
        • Compensation: S$5.50m
      • Simon Cheong (62yo)

        Independent Non-Executive Director

        • Tenure: 2.6yrs
        • Compensation: S$154.38k
      • Kim Shin Lee (58yo)

        Independent Non-Executive Director

        • Tenure: 3.3yrs
        • Compensation: S$163.01k
      • Gautam Banerjee (65yo)

        Independent Non-Executive Director

        • Tenure: 7yrs
        • Compensation: S$215.63k
      • Dominic Ho (68yo)

        Independent Non-Executive Director

        • Tenure: 2.7yrs
        • Compensation: S$261.67k
      • Tsun-Yan Hsieh (66yo)

        Independent Non-Executive Director

        • Tenure: 7.3yrs
        • Compensation: S$187.77k
      • David John Gledhill (57yo)

        Independent Non-Executive Director

        • Tenure: 1.3yrs
        • Compensation: S$83.75k
      • Swee Chen Goh (58yo)

        Independent Non-Executive Director

        • Tenure: 1yrs
        • Compensation: S$41.75k

      Company Information

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


      Key Information

      • Name: Singapore Airlines Limited
      • Ticker: C6L
      • Exchange: SGX
      • Founded: 1947
      • Industry: Airlines
      • Sector: Transportation
      • Market Cap: S$10.453b
      • Shares outstanding: 1.19b
      • Website: https://www.singaporeair.com

      Number of Employees


      Location

      • Singapore Airlines Limited
      • Airline House
      • 25 Airline Road
      • Singapore
      • 819829
      • Singapore

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      C6LSGX (Singapore Exchange)YesOrdinary SharesSGSGDJan 1992
      SIA1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
      SING.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
      SING.YOTCPK (Pink Sheets LLC)ADRUSUSDDec 2008

      Biography

      Singapore Airlines Limited, together with subsidiaries, provides passenger and cargo air transportation services under the Singapore Airlines, SilkAir, and Scoot brands in East Asia, the Americas, Europe, South West Pacific, West Asia, and Africa. It operates through Singapore Airlines, SilkAir, Budget Aviation, and SIAEC segments. The company also offers engineering services, air charters, and tour wholesaling and related services, as well as trains pilots and refurbishes aircraft galleys. In addition, it provides aircraft maintenance services, including technical and non-technical handling at the airport; maintenance, repair, and overhaul of aircraft and cabin components/systems; repair and overhaul of hydromechanical equipment; line maintenance and ground handling; aviation insurance; and airframe maintenance and component overhaul services, as well as manufactures aircraft cabin parts and tooling for the aerospace industry. Further, the company offers marketing cargo community systems; marketing and supporting portal services for the air cargo industry; and reservation service systems, as well as travel-related retail services. Additionally, it provides travel booking and related services. As of March 31, 2019, it operated a fleet of 202 aircraft, which include 195 passenger aircrafts and 7 freighters. The company was founded in 1947 and is headquartered in Singapore. Singapore Airlines Limited is a subsidiary of Temasek Holdings (Private) Limited. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/27 12:51
      End of Day Share Price2020/01/24 00:00
      Earnings2019/09/30
      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.