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 reasonable growth potential.


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 is not significantly more volatile than the rest of SG stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: S59's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

6.3%

S59

-0.2%

SG Infrastructure

1.8%

SG Market


1 Year Return

-28.0%

S59

-6.1%

SG Infrastructure

-13.7%

SG Market

Return vs Industry: S59 underperformed the SG Infrastructure industry which returned -6.1% over the past year.

Return vs Market: S59 underperformed the SG Market which returned -13.7% over the past year.


Shareholder returns

S59IndustryMarket
7 Day6.3%-0.2%1.8%
30 Day23.0%12.2%12.8%
90 Day6.8%5.7%9.7%
1 Year-26.2%-28.0%-3.1%-6.1%-8.9%-13.7%
3 Year-28.9%-36.0%-8.3%-16.1%-11.6%-22.5%
5 Year-31.9%-43.5%5.7%-8.6%10.7%-9.7%

Long-Term 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?

26.13x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: S59 (SGD2.03) is trading above our estimate of fair value (SGD1.13)

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 (26.1x) compared to the XA Infrastructure industry average (16.9x).

PE vs Market: S59 is poor value based on its PE Ratio (26.1x) compared to the SG market (14.1x).


Price to Earnings Growth Ratio

PEG Ratio: S59 is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: S59 is overvalued based on its PB Ratio (1.5x) 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?

62.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: S59's forecast earnings growth (62.4% per year) is above the savings rate (2.2%).

Earnings vs Market: S59's earnings (62.4% per year) are forecast to grow faster than the SG market (26.2% per year).

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

Revenue vs Market: S59's revenue (16.4% per year) is forecast to grow faster than the SG market (8.1% per year).

High Growth Revenue: S59's revenue (16.4% per year) is forecast to grow slower 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 (5.5%).


Next Steps

Past Performance

How has SIA Engineering performed over the past 5 years?

-11.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: S59 has a large one-off loss of SGD44.8M impacting its September 30 2020 financial results.

Growing Profit Margin: S59's current net profit margins (12.4%) are lower than last year (16.6%).


Past Earnings Growth Analysis

Earnings Trend: S59's earnings have declined by 11.5% 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 (-48.8%) over the past year, making it difficult to compare to the Infrastructure industry average (-16.1%).


Return on Equity

High ROE: S59's Return on Equity (4.9%) 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 (SGD939.0M) exceed its short term liabilities (SGD223.8M).

Long Term Liabilities: S59's short term assets (SGD939.0M) exceed its long term liabilities (SGD93.0M).


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 2.6% to 0.8% over the past 5 years.

Debt Coverage: S59's debt is well covered by operating cash flow (753.8%).

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?

3.07%

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?

3.1yrs

Average management tenure


CEO

Chin Hwee Ng (59 yo)

0.58

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 Director0.58yrS$115.00k0.00089%
SGD 20.3k
Kim Chiang Png
0.58yrS$2.71m0.087%
SGD 2.0m
Lay Pheng Ng
Senior VP of Finance & CFO3.08yrsno datano data
Seok Kok Neo
Executive Vice President of Operations4.58yrsno datano data
Kean Shuh Foo
Senior Vice President of Line Maintenance & Cabin Services4.42yrsno datano data
May Lyn Tan
Assistant Manager of Corporate Communicationsno datano datano data
Zarina Piperdi
Senior Vice President of Human Resources14yrsno datano data
Yue Jeen Wong
Senior Vice President of Base Maintenance2.58yrsno datano data
Cher Heong Quek
Senior Vice President of Partnership Management & Business Development5.58yrsno datano data
Jan Lin Ng
Senior Vice President of Fleet Management & Commercial0.58yrno datano data
Ling Ling Lu
Company Secretary3.58yrsno datano data
Ching-Yen Lee
Special Advisor to the Board of Directors2.33yrsS$63.99kno data

3.1yrs

Average Tenure

59yo

Average Age

Experienced Management: S59's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Chin Hwee Ng
CEO & Non-Independent Executive Director0.58yrS$115.00k0.00089%
SGD 20.3k
Kin Fei Tang
Independent Chairman of the Board2.33yrsS$216.00k0.0018%
SGD 40.5k
Swee Wah Mak
Non-Executive & Non-Independent Director0.58yrno datano data
Choon Phong Goh
Non-Executive & Non-Independent Director9.83yrsS$108.00kno data
Siew Kim Wee
Independent Non-Executive Director3.5yrsS$115.00kno data
Yau Seng Chin
Non-Executive & Non-Independent Director2.08yrsS$104.00kno data
Raj Thampuran
Independent Non-Executive Director4.17yrsS$109.00kno data
Kwee Fong Hon
Independent Non-Executive Director6.83yrsS$134.00kno data
Manohar Ramesh Khiatani
Independent Non-Executive Director7.58yrsS$141.00kno data
Teck Soon Chew
Independent Non-Executive Director7.5yrsS$136.00kno data

5.5yrs

Average Tenure

59.5yo

Average Age

Experienced Board: S59's board of directors are considered experienced (5.5 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 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$2.276b
  • 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 Analysis2020/11/28 11:02
End of Day Share Price2020/11/27 00:00
Earnings2020/09/30
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.