Singapore Post (SGX:S08) - Share price, News & Analysis

Q: What is the Fair Price of S08 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

S08 (SGD0.66) is trading below our estimate of [[fair value]] (SGD1.55)

S08 fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	2/6
Past Performance	4/6
Financial Health	2/6
Dividends	3/6

S08 Stock Overview

Rewards

Trading at 57.4% below our estimate of its fair value

Earnings are forecast to grow 18.7% per year

Earnings grew by 112.1% over the past year

Risk Analysis

Unstable dividend track record

Singapore Post Competitors

COSCO SHIPPING International (Singapore)

SGX:F83

S$432.2m

GKE

Catalist:595

S$80.6m

Vibrant Group

SGX:BIP

S$52.6m

A-Sonic Aerospace

SGX:BTJ

S$47.7m

Price History & Performance

Summary of all time highs, changes and price drops for Singapore Post
Historical stock prices
Current Share Price	S$0.66
52 Week High	S$0.74
52 Week Low	S$0.63
Beta	0.72
1 Month Change	-2.94%
3 Month Change	0%
1 Year Change	-7.04%
3 Year Change	-31.25%
5 Year Change	-51.11%
Change since IPO	3.13%

Recent News & Updates

Jun 17

Singapore Post (SGX:S08) Hasn't Managed To Accelerate Its Returns

Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Firstly, we'd want to...

Shareholder Returns

	S08	SG Logistics	SG Market
7D	1.5%	1.2%	0.4%
1Y	-7.0%	-15.2%	-1.8%

Return vs Industry: S08 exceeded the SG Logistics industry which returned -15.2% over the past year.

Return vs Market: S08 underperformed the SG Market which returned -1.8% over the past year.

Price Volatility

Is S08's price volatile compared to industry and market?
S08 volatility
S08 Average Weekly Movement	3.3%
Logistics Industry Average Movement	5.5%
Market Average Movement	4.9%
10% most volatile stocks in SG Market	11.8%
10% least volatile stocks in SG Market	2.3%

Stable Share Price: S08 is not significantly more volatile than the rest of SG stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: S08's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1819	n/a	Vincent Phang	https://www.singpost.com

Singapore Post Limited, together with its subsidiaries, engages in post and parcel, eCommerce logistics, and property businesses in Singapore, Japan, Europe, New Zealand, Hong Kong, Australia, and internationally. It operates through Post and Parcel, Logistics, and Property segments. The Post and Parcel segment offers services for collecting, sorting, transporting, and distributing domestic and international mail, as well as sells philatelic products.

Singapore Post Fundamentals Summary

How do Singapore Post's earnings and revenue compare to its market cap?
S08 fundamental statistics
Market Cap	S$1.48b
Earnings (TTM)	S$69.46m
Revenue (TTM)	S$1.67b

21.4x

P/E Ratio

0.9x

P/S Ratio

Is S08 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
S08 income statement (TTM)
Revenue	S$1.67b
Cost of Revenue	S$1.39b
Gross Profit	S$278.33m
Other Expenses	S$208.87m
Earnings	S$69.46m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.031
Gross Margin	16.71%
Net Profit Margin	4.17%
Debt/Equity Ratio	45.3%

How did S08 perform over the long term?

See historical performance and comparison

Dividends

2.7%

Current Dividend Yield

58%

Payout Ratio

Does S08 pay a reliable dividends?

See S08 dividend history and benchmarks

When do you need to buy S08 by to receive an upcoming dividend?
Singapore Post dividend dates
Ex Dividend Date	Jul 29 2022
Dividend Pay Date	Aug 16 2022
Days until Ex dividend	30 days
Days until Dividend pay date	48 days

Does S08 pay a reliable dividends?

See S08 dividend history and benchmarks

We’ve recently updated our valuation analysis.

Valuation

Is S08 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for S08?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for S08. This is calculated by dividing S08's market cap by their current preferred multiple.
What is S08's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	S$1.48b

S08 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1x
Enterprise Value/EBITDA	10.5x
PEG Ratio	1.1x

Price to Earnings Ratio vs Peers

How does S08's PE Ratio compare to its peers?

S08 PE Ratio vs Peers

The above table shows the PE ratio for S08 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	10.2x
F83 COSCO SHIPPING International (Singapore)	14.4x	-45.4%	S$432.2m
595 GKE	9.1x	14.3%	S$80.6m
BIP Vibrant Group	12x	n/a	S$52.6m
BTJ A-Sonic Aerospace	5.2x	n/a	S$47.7m
S08 Singapore Post	21.4x	18.7%	S$1.5b

Forward PE

Price-To-Earnings vs Peers: S08 is expensive based on its Price-To-Earnings Ratio (21.4x) compared to the peer average (10.2x).

Price to Earnings Ratio vs Industry

How does S08's PE Ratio compare vs other companies in the Asian Logistics Industry?

Price-To-Earnings vs Industry: S08 is expensive based on its Price-To-Earnings Ratio (21.4x) compared to the SG Logistics industry average (13.2x)

Price to Earnings Ratio vs Fair Ratio

What is S08's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

S08 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	21.4x
Fair PE Ratio	22.7x

Price-To-Earnings vs Fair Ratio: S08 is good value based on its Price-To-Earnings Ratio (21.4x) compared to the estimated Fair Price-To-Earnings Ratio (22.7x).

Share Price vs Fair Value

What is the Fair Price of S08 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: S08 (SGD0.66) is trading below our estimate of fair value (SGD1.55)

Significantly Below Fair Value: S08 is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: S08 is poor value based on its PEG Ratio (1.1x)

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Future Growth

How is Singapore Post forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

18.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: S08's forecast earnings growth (18.7% per year) is above the savings rate (1.8%).

Earnings vs Market: S08's earnings (18.7% per year) are forecast to grow faster than the SG market (12.6% per year).

High Growth Earnings: S08's earnings are forecast to grow, but not significantly.

Revenue vs Market: S08's revenue (5.5% per year) is forecast to grow slower than the SG market (7.8% per year).

High Growth Revenue: S08's revenue (5.5% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: S08's Return on Equity is forecast to be low in 3 years time (7.6%).

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Past Performance

How has Singapore Post performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-2.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: S08 has high quality earnings.

Growing Profit Margin: S08's current net profit margins (4.2%) are higher than last year (2.3%).

Past Earnings Growth Analysis

Earnings Trend: S08's earnings have declined by 2.3% per year over the past 5 years.

Accelerating Growth: S08's earnings growth over the past year (112.1%) exceeds its 5-year average (-2.3% per year).

Earnings vs Industry: S08 earnings growth over the past year (112.1%) exceeded the Logistics industry 55.8%.

Return on Equity

High ROE: S08's Return on Equity (7.7%) is considered low.

Discover strong past performing companies

Financial Health

How is Singapore Post's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: S08's short term assets (SGD564.3M) do not cover its short term liabilities (SGD831.4M).

Long Term Liabilities: S08's short term assets (SGD564.3M) do not cover its long term liabilities (SGD705.9M).

Debt to Equity History and Analysis

Debt Level: S08's net debt to equity ratio (19.6%) is considered satisfactory.

Reducing Debt: S08's debt to equity ratio has increased from 20.7% to 45.3% over the past 5 years.

Debt Coverage: S08's debt is not well covered by operating cash flow (17.3%).

Interest Coverage: S08's interest payments on its debt are well covered by EBIT (11.1x coverage).

Balance Sheet

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Dividend

What is Singapore Post current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

2.73%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: S08's dividend (2.73%) is higher than the bottom 25% of dividend payers in the SG market (2.29%).

High Dividend: S08's dividend (2.73%) is low compared to the top 25% of dividend payers in the SG market (6.14%).

Stability and Growth of Payments

Stable Dividend: S08's dividend payments have been volatile in the past 10 years.

Growing Dividend: S08's dividend payments have fallen over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (58.3%), S08's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (62%), S08's dividend payments are covered by cash flows.

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Management

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

2.4yrs

Average management tenure

CEO

Vincent Phang (47 yo)

0.75

Tenure

S$883,900

Compensation

Mr. Heng Wee Phang, also known as Vincent, has been the Chief Executive Officer of Postal Services and Chief Executive Officer of Singapore at Singapore Post Limited since April 01, 2019. He has been CEO o...

CEO Compensation Analysis

Compensation vs Market: Vincent's total compensation ($USD638.73K) is below average for companies of similar size in the SG market ($USD935.32K).

Compensation vs Earnings: Insufficient data to compare Vincent's compensation with company performance.

Leadership Team

Experienced Management: S08's management team is considered experienced (2.4 years average tenure).

Board Members

Experienced Board: S08's board of directors are considered experienced (5.7 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.

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/06/28 00:00
End of Day Share Price	2022/06/28 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31