SGX:S61

Stock Analysis Report

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Executive Summary

SBS Transit Ltd provides bus and rail public transport services primarily in Singapore.


Snowflake Analysis

Excellent balance sheet with acceptable track record.

Share Price & News

How has SBS Transit's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: S61's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.3%

S61

1.1%

SG Transportation

-1.1%

SG Market


1 Year Return

-32.8%

S61

-17.0%

SG Transportation

-22.6%

SG Market

Return vs Industry: S61 underperformed the SG Transportation industry which returned -17.9% over the past year.

Return vs Market: S61 underperformed the SG Market which returned -22.5% over the past year.


Shareholder returns

S61IndustryMarket
7 Day-5.3%1.1%-1.1%
30 Day-7.9%1.4%-1.3%
90 Day-22.3%-8.8%-21.3%
1 Year-31.6%-32.8%-15.4%-17.0%-19.0%-22.6%
3 Year7.5%-1.5%-7.3%-12.0%-17.0%-26.5%
5 Year60.9%42.6%-10.5%-19.0%-14.9%-29.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is SBS Transit undervalued compared to its fair value and its price relative to the market?

10.28x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: S61 (SGD2.68) is trading above our estimate of fair value (SGD2.2)

Significantly Below Fair Value: S61 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: S61 is good value based on its PE Ratio (10.3x) compared to the Transportation industry average (12.4x).

PE vs Market: S61 is good value based on its PE Ratio (10.3x) compared to the SG market (11.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate S61's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: S61 is overvalued based on its PB Ratio (1.6x) compared to the XA Transportation industry average (0.9x).


Next Steps

Future Growth

How is SBS Transit forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

12.6%

Forecasted Transportation industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as SBS Transit has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has SBS Transit performed over the past 5 years?

38.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: S61 has high quality earnings.

Growing Profit Margin: S61's current net profit margins (5.6%) are lower than last year (5.8%).


Past Earnings Growth Analysis

Earnings Trend: S61's earnings have grown significantly by 38% per year over the past 5 years.

Accelerating Growth: S61's earnings growth over the past year (1.5%) is below its 5-year average (38% per year).

Earnings vs Industry: S61 earnings growth over the past year (1.5%) exceeded the Transportation industry -1.4%.


Return on Equity

High ROE: S61's Return on Equity (15.4%) is considered low.


Next Steps

Financial Health

How is SBS Transit's financial position?


Financial Position Analysis

Short Term Liabilities: S61's short term assets (SGD397.2M) do not cover its short term liabilities (SGD419.6M).

Long Term Liabilities: S61's short term assets (SGD397.2M) exceed its long term liabilities (SGD190.9M).


Debt to Equity History and Analysis

Debt Level: S61's debt to equity ratio (14.2%) is considered satisfactory.

Reducing Debt: S61's debt to equity ratio has reduced from 155.7% to 14.2% over the past 5 years.

Debt Coverage: S61's debt is well covered by operating cash flow (111.5%).

Interest Coverage: S61's interest payments on its debt are well covered by EBIT (25.2x coverage).


Balance Sheet


Next Steps

Dividend

What is SBS Transit's current dividend yield, its reliability and sustainability?

4.87%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: S61's dividend (4.87%) is higher than the bottom 25% of dividend payers in the SG market (2.79%).

High Dividend: S61's dividend (4.87%) is low compared to the top 25% of dividend payers in the SG market (6.61%).


Stability and Growth of Payments

Stable Dividend: S61's dividend payments have been volatile in the past 10 years.

Growing Dividend: S61's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (50.1%), S61's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

6.6yrs

Average management tenure


CEO

Siak Kian Cheng (49yo)

0.17

Tenure

Mr. Siak Kian Cheng serves as Acting Chief Executive Officer at SBS Transit Limited since March 1, 2020. Mr. Cheng serves as Acting Chief Executive Officer of SBS Transit Limited at ComfortDelGro Corporati ...


Leadership Team

NamePositionTenureCompensationOwnership
Ban Seng Yang
Executive Deputy Chairman3yrsS$253.42kno data
Siak Kian Cheng
Acting Chief Executive Officer0.17yrno datano data
Kum Ee Chew
Chief Financial Officer2yrsno datano data
Peng Yen Choo
Comfortdelgro Group10.33yrsno datano data
I-Lin Tan
Senior Vice President of Corporate Communicationsno datano datano data
Sok Eng
Senior Vice President of Corporate Development13.25yrsno datano data
Chee Leow
Vice President of Human Resource (Special Grade)5.92yrsno datano data
Eng Kok Tan
Head of Bus Operationsno datano datano data
Yim Leong
Senior VP & Head of Rail9.33yrsno datano data
Beng Goei
Chief Executive Officer of Downtown Line7.33yrsno data0.088% SGD737.0k

6.6yrs

Average Tenure

Experienced Management: S61's management team is seasoned and experienced (6.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ban Seng Yang
Executive Deputy Chairman3yrsS$253.42kno data
Jit Poh Lim
Non-Executive & Non-Independent Chairman 17.33yrsS$81.40kno data
Kim Siew Tan
Independent Non-Executive Director0.92yrS$32.74kno data
Sok Koon Lee
Independent Non-Executive Director3yrsS$60.62kno data
John De Payva
Lead Independent Director7.33yrsS$51.52kno data
Seh Lim
Lead Independent Director1.08yrsS$63.92kno data
Yim Pui Kong
Independent Non-Executive Director2.58yrsS$51.70kno data
Ching Yu
Independent Non-Executive Director2.08yrsS$50.66kno data
Siang Hoe Lim
Independent Non-Executive Director2.08yrsS$56.10kno data
Mui Hoong Chua
Independent Non-Executive Director1.08yrsS$38.43kno data

2.3yrs

Average Tenure

63yo

Average Age

Experienced Board: S61's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


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

SBS Transit Ltd's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SBS Transit Ltd
  • Ticker: S61
  • Exchange: SGX
  • Founded: 1992
  • Industry: Trucking
  • Sector: Transportation
  • Market Cap: S$835.798m
  • Shares outstanding: 311.86m
  • Website: https://www.sbstransit.com.sg

Number of Employees


Location

  • SBS Transit Ltd
  • 205 Braddell Road
  • Singapore
  • 579701
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
S61SGX (Singapore Exchange)YesOrdinary SharesSGSGDDec 1997

Biography

SBS Transit Ltd provides bus and rail public transport services primarily in Singapore. The company operates through Public Transport Services and Other Commercial Services segments. Its bus services include basic, special, express, wheelchair-accessible, short trips, city direct, wireless Nextbus services, Chinatown Direct, and Nite Owl services. The company also operates North East Line, an automatic underground heavy rail system; Downtown Line, an underground and driverless mass rapid transit (MRT) line; and Sengkang and Punggol light rail transits (LRT). In addition, it offers advertisement on the buses and trains, as well as at bus interchanges, and railway stations; and commercial and shop space for lease at bus interchanges and rail stations. SBS Transit Ltd operates 223 bus route services with a fleet of 3,512 buses; and 78 stations with a fleet of 192 trains. The company was formerly known as Singapore Bus Services Limited and changed its name to SBS Transit Ltd in November 2001 to reflect its multi-modal status as a bus and rail operator. The company was incorporated in 1992 and is based in Singapore. SBS Transit Ltd is a subsidiary of ComfortDelGro Corporation Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/24 12:51
End of Day Share Price2020/05/22 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.