SGX:S59

Stock Analysis Report

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Executive Summary

SIA Engineering Company Limited, together with its subsidiaries, provides maintenance, repair, and overhaul (MRO) services to airlines carriers and aerospace equipment manufacturers worldwide. More Details


Snowflake Analysis

Flawless balance sheet with proven track record.


Similar Companies

Share Price & News

How has SIA Engineering's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: S59 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.2%

S59

-0.5%

SG Infrastructure

-0.09%

SG Market


1 Year Return

-34.5%

S59

-17.0%

SG Infrastructure

-21.9%

SG Market

Return vs Industry: S59 underperformed the SG Infrastructure industry which returned -17% over the past year.

Return vs Market: S59 underperformed the SG Market which returned -21.9% over the past year.


Shareholder returns

S59IndustryMarket
7 Day1.2%-0.5%-0.09%
30 Day4.2%0.5%1.8%
90 Day-6.0%-0.4%-1.8%
1 Year-32.1%-34.5%-14.3%-17.0%-17.6%-21.9%
3 Year-40.3%-46.9%-20.0%-27.1%-20.1%-29.8%
5 Year-46.2%-56.0%-4.2%-17.7%-5.0%-22.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is SIA Engineering undervalued compared to its fair value and its price relative to the market?

18.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: S59 (SGD1.73) is trading below our estimate of fair value (SGD2.12)

Significantly Below Fair Value: S59 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: S59 is good value based on its PE Ratio (10x) compared to the XA Infrastructure industry average (16.5x).

PE vs Market: S59 is good value based on its PE Ratio (10x) compared to the SG market (13.2x).


Price to Earnings Growth Ratio

PEG Ratio: S59's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: S59 is overvalued based on its PB Ratio (1.2x) compared to the XA Infrastructure industry average (0.9x).


Next Steps

Future Growth

How is SIA Engineering forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

-17.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: S59's earnings are forecast to decline over the next 3 years (-17.8% per year).

Earnings vs Market: S59's earnings are forecast to decline over the next 3 years (-17.8% per year).

High Growth Earnings: S59's earnings are forecast to decline over the next 3 years.

Revenue vs Market: S59's revenue is expected to decline over the next 3 years (-3.8% per year).

High Growth Revenue: S59's revenue is forecast to decline over the next 3 years (-3.8% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: S59's Return on Equity is forecast to be low in 3 years time (8.1%).


Next Steps

Past Performance

How has SIA Engineering performed over the past 5 years?

-5.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: S59 has high quality earnings.

Growing Profit Margin: S59's current net profit margins (19.5%) are higher than last year (15.8%).


Past Earnings Growth Analysis

Earnings Trend: S59's earnings have declined by 5% per year over the past 5 years.

Accelerating Growth: S59's earnings growth over the past year (20.5%) exceeds its 5-year average (-5% per year).

Earnings vs Industry: S59 earnings growth over the past year (20.5%) exceeded the Infrastructure industry -14.1%.


Return on Equity

High ROE: S59's Return on Equity (11.5%) is considered low.


Next Steps

Financial Health

How is SIA Engineering's financial position?


Financial Position Analysis

Short Term Liabilities: S59's short term assets (SGD998.1M) exceed its short term liabilities (SGD240.8M).

Long Term Liabilities: S59's short term assets (SGD998.1M) exceed its long term liabilities (SGD103.7M).


Debt to Equity History and Analysis

Debt Level: S59's debt to equity ratio (0.8%) is considered satisfactory.

Reducing Debt: S59's debt to equity ratio has reduced from 2.5% to 0.8% over the past 5 years.

Debt Coverage: S59's debt is well covered by operating cash flow (689.4%).

Interest Coverage: S59 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is SIA Engineering current dividend yield, its reliability and sustainability?

4.62%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: S59's dividend (4.62%) is higher than the bottom 25% of dividend payers in the SG market (2.54%).

High Dividend: S59's dividend (4.62%) is low compared to the top 25% of dividend payers in the SG market (5.36%).


Stability and Growth of Payments

Stable Dividend: S59's dividend payments have been volatile in the past 10 years.

Growing Dividend: S59's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (46.2%), S59's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: S59's dividends in 3 years are not forecast to be well covered by earnings (93.5% payout ratio).


Next Steps

  • Explore strong dividend paying companies in the Transportation industry.

Management

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

3.0yrs

Average management tenure


CEO

Chin Hwee Ng (59 yo)

0.50

Tenure

S$115,000

Compensation

Mr. Chin Hwee Ng serves as Chief Executive Officer at SIA Engineering Company Limited since April 1, 2020 and also has been its Non-Independent Executive Director since April 1, 2020. Mr. Ng served as a No ...


Leadership Team

NamePositionTenureCompensationOwnership
Chin Hwee Ng
CEO & Non-Independent Executive Director0.50yrS$115.00k0.00089%
SGD 17.2k
Kim Chiang Png
0.50yrS$2.71m0.087%
SGD 1.7m
Lay Pheng Ng
Senior VP of Finance & CFO3yrsno datano data
Seok Kok Neo
Executive Vice President of Operations4.5yrsno datano data
Kean Shuh Foo
Senior Vice President of Line Maintenance & Cabin Services4.33yrsno datano data
May Lyn Tan
Assistant Manager of Corporate Communicationsno datano datano data
Zarina Piperdi
Senior Vice President of Human Resources13.92yrsno datano data
Yue Jeen Wong
Senior Vice President of Base Maintenance2.5yrsno datano data
Cher Heong Quek
Senior Vice President of Partnership Management & Business Development5.5yrsno datano data
Jan Lin Ng
Senior Vice President of Fleet Management & Commercial0.50yrno datano data
Ling Ling Lu
Company Secretary3.5yrsno datano data
Ching-Yen Lee
Special Advisor to the Board of Directors2.25yrsS$63.99kno data

3.0yrs

Average Tenure

59yo

Average Age

Experienced Management: S59's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Chin Hwee Ng
CEO & Non-Independent Executive Director0.50yrS$115.00k0.00089%
SGD 17.2k
Kin Fei Tang
Independent Chairman of the Board2.25yrsS$216.00k0.0018%
SGD 34.3k
Swee Wah Mak
Non-Executive & Non-Independent Director0.50yrno datano data
Choon Phong Goh
Non-Executive & Non-Independent Director9.75yrsS$108.00kno data
Siew Kim Wee
Independent Non-Executive Director3.42yrsS$115.00kno data
Yau Seng Chin
Non-Executive & Non-Independent Director2yrsS$104.00kno data
Raj Thampuran
Independent Non-Executive Director4.08yrsS$109.00kno data
Kwee Fong Hon
Independent Non-Executive Director6.75yrsS$134.00kno data
Manohar Ramesh Khiatani
Independent Non-Executive Director7.5yrsS$141.00kno data
Teck Soon Chew
Independent Non-Executive Director7.42yrsS$136.00kno data

5.4yrs

Average Tenure

59.5yo

Average Age

Experienced Board: S59's board of directors are considered experienced (5.4 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.


Top Shareholders

Company Information

SIA Engineering Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SIA Engineering Company Limited
  • Ticker: S59
  • Exchange: SGX
  • Founded: 1982
  • Industry: Airport Services
  • Sector: Transportation
  • Market Cap: S$1.929b
  • Shares outstanding: 1.12b
  • Website: https://www.siaec.com.sg

Number of Employees


Location

  • SIA Engineering Company Limited
  • 31 Airline Road
  • Singapore
  • 819831
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SEGS.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 2000
S59SGX (Singapore Exchange)YesOrdinary SharesSGSGDMay 2000
O3HBST (Boerse-Stuttgart)YesOrdinary SharesDEEURMay 2000
SEGS.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDNov 2008

Biography

SIA Engineering Company Limited, together with its subsidiaries, provides maintenance, repair, and overhaul (MRO) services to airlines carriers and aerospace equipment manufacturers worldwide. The company ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/26 12:40
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.