SGX:S08

Stock Analysis Report

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Executive Summary

Singapore Post Limited, together with its subsidiaries, engages in post and parcel, eCommerce logistics, and property businesses in Singapore, the United States, Australia, and internationally. More Details


Snowflake Analysis

Excellent balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: S08 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

S08

1.9%

SG Logistics

-0.09%

SG Market


1 Year Return

-28.1%

S08

-27.9%

SG Logistics

-21.9%

SG Market

Return vs Industry: S08 matched the SG Logistics industry which returned -27.9% over the past year.

Return vs Market: S08 underperformed the SG Market which returned -21.9% over the past year.


Shareholder returns

S08IndustryMarket
7 Day0%1.9%-0.09%
30 Day7.8%6.5%1.8%
90 Day-6.8%-7.5%-1.8%
1 Year-26.2%-28.1%-26.5%-27.9%-17.6%-21.9%
3 Year-41.5%-46.5%-42.0%-45.8%-20.1%-29.8%
5 Year-57.4%-63.5%-7.6%-16.3%-5.0%-22.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

22.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: S08 (SGD0.69) is trading below our estimate of fair value (SGD0.89)

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


Price To Earnings Ratio

PE vs Industry: S08 is good value based on its PE Ratio (17.6x) compared to the XA Logistics industry average (19.9x).

PE vs Market: S08 is poor value based on its PE Ratio (17.6x) compared to the SG market (13.2x).


Price to Earnings Growth Ratio

PEG Ratio: S08 is poor value based on its PEG Ratio (3.6x)


Price to Book Ratio

PB vs Industry: S08 is overvalued based on its PB Ratio (1x) compared to the SG Logistics industry average (0.8x).


Next Steps

Future Growth

How is Singapore Post forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

5.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: S08's forecast earnings growth (5% per year) is above the savings rate (2.2%).

Earnings vs Market: S08's earnings (5% per year) are forecast to grow slower than the SG market (22.1% per year).

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

Revenue vs Market: S08's revenue (1.9% per year) is forecast to grow slower than the SG market (6.7% per year).

High Growth Revenue: S08's revenue (1.9% 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 (6.5%).


Next Steps

Past Performance

How has Singapore Post performed over the past 5 years?

-26.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: S08 has high quality earnings.

Growing Profit Margin: S08's current net profit margins (6.7%) are lower than last year (11.3%).


Past Earnings Growth Analysis

Earnings Trend: S08's earnings have declined by 26.5% per year over the past 5 years.

Accelerating Growth: S08's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: S08 had negative earnings growth (-41.2%) over the past year, making it difficult to compare to the Logistics industry average (1.1%).


Return on Equity

High ROE: S08's Return on Equity (6.1%) is considered low.


Next Steps

Financial Health

How is Singapore Post's financial position?


Financial Position Analysis

Short Term Liabilities: S08's short term assets (SGD785.6M) exceed its short term liabilities (SGD756.7M).

Long Term Liabilities: S08's short term assets (SGD785.6M) exceed its long term liabilities (SGD352.6M).


Debt to Equity History and Analysis

Debt Level: S08's debt to equity ratio (22.2%) is considered satisfactory.

Reducing Debt: S08's debt to equity ratio has increased from 16.2% to 22.2% over the past 5 years.

Debt Coverage: S08's debt is well covered by operating cash flow (50.3%).

Interest Coverage: S08's interest payments on its debt are well covered by EBIT (24.9x coverage).


Balance Sheet


Next Steps

Dividend

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

3.91%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: S08's dividend (3.91%) is higher than the bottom 25% of dividend payers in the SG market (2.54%).

High Dividend: S08's dividend (3.91%) is low compared to the top 25% of dividend payers in the SG market (5.36%).


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.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (68.9%), S08's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: S08's dividends in 3 years are forecast to be covered by earnings (79.7% payout ratio).


Next Steps

Management

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

2.2yrs

Average management tenure


CEO

Paul Coutts (63 yo)

3.33yrs

Tenure

S$1,975,200

Compensation

Mr. Paul William Coutts has been Group Chief Executive Officer of Singapore Post Limited since June 1, 2017. Mr. Coutts joined Singapore Post Limited from Toll Global Forwarding, one of the five divisions ...


CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD1.45M) is above average for companies of similar size in the SG market ($USD905.65K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Paul Coutts
Group CEO & Non-Independent Director3.33yrsS$1.98mno data
Tak Loi Lai
Group Chief Financial Officer2.17yrsno datano data
Huan Puar
Group Chief Information Officer0.75yrno datano data
Loh Jiet Lim
Vice President of Investor Relationsno datano datano data
Siew Kin Hoon
Group General Counsel & Group Company Secretary2.17yrsno datano data
Marjorie Ooi
Senior Vice President of Financial Servicesno datano datano data
Hui Ling Goh
Deputy Chief Executive Officer of International Mail4.83yrsno datano data
Heng Phang
CEO of Postal Services and CEO of Singapore1.5yrsno datano data
Jui-I Lim
Chief Executive Officer of Quantium Solutions0.75yrno datano data

2.2yrs

Average Tenure

52.5yo

Average Age

Experienced Management: S08's management team is considered experienced (2.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Paul Coutts
Group CEO & Non-Independent Director3.33yrsS$1.98mno data
Simon Claude Israel
Chairman4.42yrsS$259.60kno data
Steven Leonard
Non-Executive Independent Director3.42yrsS$142.20kno data
Beng Hai Tan
Non-Executive Independent Director4yrsS$153.40kno data
Swee Chu
Non-Executive & Independent Director2.08yrsS$129.80kno data
Ai Lian Fang
Lead Independent Directorno dataS$162.20kno data
Jun Chen
Non-Executive & Non-Independent Director6.25yrsS$102.60kno data
Cheng Cheng Lim
Non-Executive & Non-Independent Director3.5yrsS$105.00kno data
Sau Kong
Non-Executive Independent Director4yrsS$126.00kno data

3.8yrs

Average Tenure

58yo

Average Age

Experienced Board: S08's board of directors are considered experienced (3.8 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Singapore Post Limited
  • Ticker: S08
  • Exchange: SGX
  • Founded: 1819
  • Industry: Air Freight and Logistics
  • Sector: Transportation
  • Market Cap: S$1.552b
  • Shares outstanding: 2.25b
  • Website: https://www.singpost.com

Number of Employees


Location

  • Singapore Post Limited
  • 10 Eunos Road 8
  • Singapore Post Centre
  • Singapore
  • 408600
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SPST.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 2003
SGRDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 2003
S08SGX (Singapore Exchange)YesOrdinary SharesSGSGDMay 2003
SPST.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDNov 2008

Biography

Singapore Post Limited, together with its subsidiaries, engages in post and parcel, eCommerce logistics, and property businesses in Singapore, the United States, Australia, and internationally. It operates ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/26 12:56
End of Day Share Price2020/10/26 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.