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S59

SIA EngineeringSGX:S59 Stock Report

Last Price

S$2.15

Market Cap

S$2.4b

7D

-0.9%

1Y

9.1%

Updated

26 Jan, 2022

Data

Company Financials +
S59 fundamental analysis
Snowflake Score
Valuation0/6
Future Growth5/6
Past Performance0/6
Financial Health5/6
Dividends0/6

S59 Stock Overview

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

SIA Engineering Competitors

Deutsche Lufthansa

XTRA:LHA

€8.0b

Garuda Maintenance Facility Aero Asia

IDX:GMFI

Rp1.8t

Price History & Performance

Summary of all time highs, changes and price drops for SIA Engineering
Historical stock prices
Current Share PriceS$2.15
52 Week HighS$2.55
52 Week LowS$1.85
Beta1.13
1 Month Change-1.38%
3 Month Change-0.92%
1 Year Change9.14%
3 Year Change-14.00%
5 Year Change-39.44%
Change since IPO3.37%

Recent News & Updates

Dec 05
Is SIA Engineering (SGX:S59) Using Debt In A Risky Way?

Is SIA Engineering (SGX:S59) Using Debt In A Risky Way?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Nov 09
Is SIA Engineering Company Limited (SGX:S59) Trading At A 39% Discount?

Is SIA Engineering Company Limited (SGX:S59) Trading At A 39% Discount?

In this article we are going to estimate the intrinsic value of SIA Engineering Company Limited ( SGX:S59 ) by taking...

Shareholder Returns

S59SG InfrastructureSG Market
7D-0.9%-1.8%-1.1%
1Y9.1%4.3%4.0%

Return vs Industry: S59 exceeded the SG Infrastructure industry which returned 5% over the past year.

Return vs Market: S59 exceeded the SG Market which returned 4.1% over the past year.

Price Volatility

Is S59's price volatile compared to industry and market?
S59 volatility
S59 Average Weekly Movement3.0%
Infrastructure Industry Average Movement4.0%
Market Average Movement4.5%
10% most volatile stocks in SG Market11.9%
10% least volatile stocks in SG Market2.1%

Stable Share Price: S59 is not significantly more volatile than the rest of SG stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: S59's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19826,253Chin Hwee Nghttps://www.siaec.com.sg

SIA Engineering Company Limited, together with its subsidiaries, provides maintenance, repair, and overhaul (MRO) services to airline carriers and aerospace equipment manufacturers worldwide. The company operates through two segments, Airframe and Line Maintenance; and Engine and Component. The Airframe and Line Maintenance segment provides airframe maintenance, line maintenance, and fleet management programs.

SIA Engineering Fundamentals Summary

How do SIA Engineering's earnings and revenue compare to its market cap?
S59 fundamental statistics
Market CapS$2.40b
Earnings (TTM)S$32.74m
Revenue (TTM)S$483.56m

73.7x

P/E Ratio

5.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
S59 income statement (TTM)
RevenueS$483.56m
Cost of RevenueS$103.22m
Gross ProfitS$380.34m
ExpensesS$347.60m
EarningsS$32.74m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.029
Gross Margin78.65%
Net Profit Margin6.77%
Debt/Equity Ratio0.4%

How did S59 perform over the long term?

See historical performance and comparison

Valuation

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

73.73x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: S59 (SGD2.14) is trading above our estimate of fair value (SGD1.61)

Significantly Below Fair Value: S59 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: S59 is poor value based on its PE Ratio (73.4x) compared to the Asian Infrastructure industry average (13.8x).

PE vs Market: S59 is poor value based on its PE Ratio (73.4x) compared to the SG market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: S59 is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: S59 is overvalued based on its PB Ratio (1.5x) compared to the XA Infrastructure industry average (1.1x).


Future Growth

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

39.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: S59's forecast earnings growth (39.2% per year) is above the savings rate (1.8%).

Earnings vs Market: S59's earnings (39.2% per year) are forecast to grow faster than the SG market (14.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: S59's revenue (26.3% per year) is forecast to grow faster than the SG market (7.5% per year).

High Growth Revenue: S59's revenue (26.3% per year) is forecast to grow faster than 20% 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 (6.5%).


Past Performance

How has SIA Engineering performed over the past 5 years?

-32.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: S59 has a large one-off gain of SGD140.9M impacting its September 30 2021 financial results.

Growing Profit Margin: S59's current net profit margins (6.8%) are lower than last year (12.4%).


Past Earnings Growth Analysis

Earnings Trend: S59's earnings have declined by 32.2% per year over the past 5 years.

Accelerating Growth: S59's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: S59 had negative earnings growth (-62.5%) over the past year, making it difficult to compare to the Infrastructure industry average (18.5%).


Return on Equity

High ROE: S59's Return on Equity (2.1%) is considered low.


Financial Health

How is SIA Engineering's financial position?


Financial Position Analysis

Short Term Liabilities: S59's short term assets (SGD934.6M) exceed its short term liabilities (SGD194.3M).

Long Term Liabilities: S59's short term assets (SGD934.6M) exceed its long term liabilities (SGD70.2M).


Debt to Equity History and Analysis

Debt Level: S59 has more cash than its total debt.

Reducing Debt: S59's debt to equity ratio has reduced from 2.1% to 0.4% over the past 5 years.

Debt Coverage: S59's debt is well covered by operating cash flow (2848.7%).

Interest Coverage: Insufficient data to determine if S59's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

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

3.10%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate S59's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate S59's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if S59's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if S59's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: S59 is not paying a notable dividend for the SG market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of S59's dividend in 3 years as they are not forecast to pay a notable one for the SG market.


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Chin Hwee Ng (60 yo)

1.75yrs

Tenure

S$1,525,649

Compensation

Mr. Chin Hwee Ng has served as a 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 a...


CEO Compensation Analysis

Compensation vs Market: Chin Hwee's total compensation ($USD1.13M) is about average for companies of similar size in the SG market ($USD1.12M).

Compensation vs Earnings: Chin Hwee's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: S59's management team is considered experienced (3.8 years average tenure).


Board Members

Experienced Board: S59's board of directors are considered experienced (5 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 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
  • Implied Market Cap: S$2.402b
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/26 11:03
End of Day Share Price2022/01/26 00:00
Earnings2021/09/30
Annual Earnings2021/03/31


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.