SGX:S61

Stock Analysis Report

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Executive Summary

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

Rewards

Trading at 62.5% below our estimate of its fair value

Earnings are forecast to grow 12.09% per year

Risk Analysis

No risks detected for S61 from our risk checks.


Snowflake Analysis

Flawless balance sheet and fair value.

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.3%

S61

-3.6%

SG Transportation

-1.3%

SG Market


1 Year Return

-29.2%

S61

-25.8%

SG Transportation

-21.4%

SG Market

Return vs Industry: S61 underperformed the SG Transportation industry which returned -23.9% over the past year.

Return vs Market: S61 underperformed the SG Market which returned -21.4% over the past year.


Shareholder returns

S61IndustryMarket
7 Day-0.3%-3.6%-1.3%
30 Day1.8%-7.6%0.9%
90 Day-1.4%-4.5%-3.4%
1 Year-27.6%-29.2%-24.4%-25.8%-17.1%-21.4%
3 Year27.1%15.6%-21.8%-26.0%-19.9%-29.6%
5 Year79.9%57.5%-17.7%-25.3%-6.4%-23.4%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: S61 (SGD2.89) is trading below our estimate of fair value (SGD7.71)

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 (13.1x) compared to the XA Transportation industry average (15.7x).

PE vs Market: S61's PE Ratio (13.1x) is in line with the SG market.


Price to Earnings Growth Ratio

PEG Ratio: S61 is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: S61 is overvalued based on its PB Ratio (1.7x) 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 1 analyst?

12.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: S61's forecast earnings growth (12.1% per year) is above the savings rate (2.2%).

Earnings vs Market: S61's earnings (12.1% per year) are forecast to grow slower than the SG market (21.2% per year).

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

Revenue vs Market: S61's revenue (4.5% per year) is forecast to grow slower than the SG market (6.7% per year).

High Growth Revenue: S61's revenue (4.5% 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 (13.3%).


Next Steps

Past Performance

How has SBS Transit performed over the past 5 years?

32.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: S61 has high quality earnings.

Growing Profit Margin: S61's current net profit margins (5.2%) are lower than last year (6.3%).


Past Earnings Growth Analysis

Earnings Trend: S61's earnings have grown significantly by 32.2% per year over the past 5 years.

Accelerating Growth: S61's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: S61 had negative earnings growth (-22.2%) over the past year, making it difficult to compare to the Transportation industry average (-21.3%).


Return on Equity

High ROE: S61's Return on Equity (12.8%) 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 (SGD439.0M) exceed its short term liabilities (SGD419.0M).

Long Term Liabilities: S61's short term assets (SGD439.0M) exceed its long term liabilities (SGD181.4M).


Debt to Equity History and Analysis

Debt Level: S61's debt to equity ratio (13.9%) is considered satisfactory.

Reducing Debt: S61's debt to equity ratio has reduced from 153% to 13.9% over the past 5 years.

Debt Coverage: S61's debt is well covered by operating cash flow (257.3%).

Interest Coverage: S61's interest payments on its debt are well covered by EBIT (21.1x coverage).


Balance Sheet


Next Steps

Dividend

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

3.92%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate S61's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate S61'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 S61's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if S61's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: S61 is not paying a notable dividend for the SG market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of S61'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?

6.0yrs

Average management tenure


CEO

Siak Kian Cheng (50 yo)

0.58

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 Chairman3.42yrsS$253.42kno data
Siak Kian Cheng
Acting Chief Executive Officer0.58yrno datano data
Kum Ee Chew
Chief Financial Officer2.42yrsno datano data
Peng Yen Choo
Comfortdelgro Group10.75yrsno datano data
Siang Pohr Lee
Group General Counsel & Joint Company Secretary0.083yrno datano data
I-Lin Tan
Senior Vice President of Corporate Communicationsno datano datano data
Sok Eng
Senior Vice President of Corporate Development13.67yrsno datano data
Chee Leow
Vice President of Human Resource (Special Grade)6.33yrsno datano data
Eng Kok Tan
Head of Bus Operationsno datano datano data
Yim Leong
Senior VP & Head of Rail9.75yrsno datano data
Beng Goei
Chief Executive Officer of Downtown Line7.75yrsno data0.088%
SGD 797.5k
Jang Kae Foo
Senior VP and Head of Rail Engineering (North East Line & Sengkang Punggol LRT)5.75yrsno datano data

6.0yrs

Average Tenure

Experienced Management: S61's management team is seasoned and experienced (6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ban Seng Yang
Executive Deputy Chairman3.42yrsS$253.42kno data
Jit Poh Lim
Non-Executive & Non-Independent Chairman 17.75yrsS$81.40kno data
Kim Siew Tan
Independent Non-Executive Director1.33yrsS$32.74kno data
Sok Koon Lee
Independent Non-Executive Director3.42yrsS$60.62kno data
John De Payva
Lead Independent Director7.75yrsS$51.52kno data
Seh Lim
Lead Independent Director1.5yrsS$63.92kno data
Yim Pui Kong
Independent Non-Executive Director3yrsS$51.70kno data
Mui Hoong Chua
Independent Non-Executive Director1.5yrsS$38.43kno data

3.2yrs

Average Tenure

65.5yo

Average Age

Experienced Board: S61's board of directors are considered experienced (3.2 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

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$904.408m
  • 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 inclu ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/21 12:31
End of Day Share Price2020/10/21 00:00
Earnings2020/06/30
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.