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S61

SBS TransitSGX:S61 Stock Report

Last Price

S$2.94

Market Cap

S$916.9m

7D

-0.3%

1Y

-2.3%

Updated

26 Jan, 2022

Data

Company Financials +
S61 fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance2/6
Financial Health6/6
Dividends4/6

S61 Stock Overview

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

Price History & Performance

Summary of all time highs, changes and price drops for SBS Transit
Historical stock prices
Current Share PriceS$2.94
52 Week HighS$3.21
52 Week LowS$2.86
Beta0.64
1 Month Change-1.34%
3 Month Change-2.00%
1 Year Change-2.33%
3 Year Change0%
5 Year Change32.43%
Change since IPO219.57%

Recent News & Updates

Apr 16
Returns On Capital Are A Standout For SBS Transit (SGX:S61)

Returns On Capital Are A Standout For SBS Transit (SGX:S61)

What trends should we look for it we want to identify stocks that can multiply in value over the long term? Ideally, a...

Shareholder Returns

S61SG TransportationSG Market
7D-0.3%-0.06%-1.1%
1Y-2.3%-4.4%4.0%

Return vs Industry: S61 exceeded the SG Transportation industry which returned -4.4% over the past year.

Return vs Market: S61 underperformed the SG Market which returned 4% over the past year.

Price Volatility

Is S61's price volatile compared to industry and market?
S61 volatility
S61 Average Weekly Movement1.6%
Transportation Industry Average Movement4.1%
Market Average Movement4.5%
10% most volatile stocks in SG Market11.9%
10% least volatile stocks in SG Market2.1%

Stable Share Price: S61 is less volatile than 75% of SG stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: S61's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
197310,534Siak Kian Chenghttps://www.sbstransit.com.sg

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. It operates scheduled buses.

SBS Transit Fundamentals Summary

How do SBS Transit's earnings and revenue compare to its market cap?
S61 fundamental statistics
Market CapS$916.88m
Earnings (TTM)S$82.85m
Revenue (TTM)S$1.27b

11.1x

P/E Ratio

0.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
S61 income statement (TTM)
RevenueS$1.27b
Cost of RevenueS$863.11m
Gross ProfitS$405.43m
ExpensesS$322.58m
EarningsS$82.85m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.27
Gross Margin31.96%
Net Profit Margin6.53%
Debt/Equity Ratio0%

How did S61 perform over the long term?

See historical performance and comparison

Dividends

3.9%

Current Dividend Yield

45%

Payout Ratio

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: S61 (SGD2.94) is trading below our estimate of fair value (SGD11.83)

Significantly Below Fair Value: S61 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: S61 is good value based on its PE Ratio (11.1x) compared to the Asian Transportation industry average (14.8x).

PE vs Market: S61 is good value based on its PE Ratio (11.1x) compared to the SG market (12.8x).


Price to Earnings Growth Ratio

PEG Ratio: S61 is poor value based on its PEG Ratio (3.1x)


Price to Book Ratio

PB vs Industry: S61 is overvalued based on its PB Ratio (1.5x) compared to the XA Transportation industry average (1x).


Future Growth

How is SBS Transit forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

3.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: S61's forecast earnings growth (3.6% per year) is above the savings rate (1.8%).

Earnings vs Market: S61's earnings (3.6% per year) are forecast to grow slower than the SG market (14.3% per year).

High Growth Earnings: S61's earnings are forecast to grow, but not significantly.

Revenue vs Market: S61's revenue (4.4% per year) is forecast to grow slower than the SG market (7.6% per year).

High Growth Revenue: S61's revenue (4.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: S61's Return on Equity is forecast to be low in 3 years time (10.4%).


Past Performance

How has SBS Transit performed over the past 5 years?

20.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: S61 has a large one-off loss of SGD107.3M impacting its June 30 2021 financial results.

Growing Profit Margin: S61's current net profit margins (6.5%) are higher than last year (5.2%).


Past Earnings Growth Analysis

Earnings Trend: S61's earnings have grown significantly by 20.5% per year over the past 5 years.

Accelerating Growth: S61's earnings growth over the past year (20%) is below its 5-year average (20.5% per year).

Earnings vs Industry: S61 earnings growth over the past year (20%) underperformed the Transportation industry 23.3%.


Return on Equity

High ROE: S61's Return on Equity (13.7%) is considered low.


Financial Health

How is SBS Transit's financial position?


Financial Position Analysis

Short Term Liabilities: S61's short term assets (SGD501.1M) exceed its short term liabilities (SGD362.0M).

Long Term Liabilities: S61's short term assets (SGD501.1M) exceed its long term liabilities (SGD143.0M).


Debt to Equity History and Analysis

Debt Level: S61 is debt free.

Reducing Debt: S61 has no debt compared to 5 years ago when its debt to equity ratio was 71.5%.

Debt Coverage: S61 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: S61 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

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

3.91%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: S61's dividend (3.91%) is higher than the bottom 25% of dividend payers in the SG market (2.07%).

High Dividend: S61's dividend (3.91%) is low compared to the top 25% of dividend payers in the SG market (5.48%).


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 reasonably low payout ratio (45.4%), S61's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: S61's dividends in 3 years are forecast to be well covered by earnings (49.4% payout ratio).


Next Steps

Management

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

7.3yrs

Average management tenure


CEO

Siak Kian Cheng (51 yo)

1.83yrs

Tenure

S$538,191

Compensation

Mr. Siak Kian Cheng serves as the Chief Executive Officer at SBS Transit Ltd since March 1, 2021 and serves as its Non-Independent Executive Director since April 29, 2021. He served as Acting Chief Executi...


CEO Compensation Analysis

Compensation vs Market: Siak Kian's total compensation ($USD400.27K) is below average for companies of similar size in the SG market ($USD603.09K).

Compensation vs Earnings: Insufficient data to compare Siak Kian's compensation with company performance.


Leadership Team

Experienced Management: S61's management team is seasoned and experienced (7.3 years average tenure).


Board Members

Experienced Board: S61's board of directors are not considered experienced ( 2.8 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 employee growth, exchange listings and data sources


Key Information

  • Name: SBS Transit Ltd
  • Ticker: S61
  • Exchange: SGX
  • Founded: 1973
  • Industry: Trucking
  • Sector: Transportation
  • Implied Market Cap: S$916.882m
  • Shares outstanding: 311.86m
  • Website: https://www.sbstransit.com.sg

Number of Employees


Location

  • SBS Transit Ltd
  • 205 Braddell Road
  • Singapore
  • 579701
  • 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
Earnings2021/06/30
Annual Earnings2020/12/31


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.