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U96

Sembcorp Industries SGX:U96 Stock Report

Last Price

S$2.87

Market Cap

S$5.1b

7D

3.6%

1Y

43.5%

Updated

22 May, 2022

Data

Company Financials +
U96 fundamental analysis
Snowflake Score
Valuation4/6
Future Growth2/6
Past Performance3/6
Financial Health1/6
Dividends2/6

U96 Stock Overview

Sembcorp Industries Ltd, an investment holding company, engages in the renewables, integrated urban solutions, conventional energy, and other businesses in Singapore, rest of southeast Asia, the Middle East, China, India, the United Kingdom, and internationally.

Sembcorp Industries Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Sembcorp Industries
Historical stock prices
Current Share PriceS$2.87
52 Week HighS$3.04
52 Week LowS$1.78
Beta0.92
1 Month Change-2.05%
3 Month Change13.44%
1 Year Change43.50%
3 Year Change16.19%
5 Year Change-8.89%
Change since IPO143.22%

Recent News & Updates

May 05
Is Sembcorp Industries (SGX:U96) A Risky Investment?

Is Sembcorp Industries (SGX:U96) A Risky Investment?

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' When we think about how risky a company...

Apr 17
Sembcorp Industries (SGX:U96) Is Reducing Its Dividend To S$0.03

Sembcorp Industries (SGX:U96) Is Reducing Its Dividend To S$0.03

The board of Sembcorp Industries Ltd ( SGX:U96 ) has announced that the dividend on 10th of May will be reduced by 25...

Shareholder Returns

U96SG Integrated UtilitiesSG Market
7D3.6%-1.5%1.4%
1Y43.5%-1.6%-0.3%

Return vs Industry: U96 exceeded the SG Integrated Utilities industry which returned -1.6% over the past year.

Return vs Market: U96 exceeded the SG Market which returned -0.3% over the past year.

Price Volatility

Is U96's price volatile compared to industry and market?
U96 volatility
U96 Average Weekly Movement4.2%
Integrated Utilities Industry Average Movement5.8%
Market Average Movement5.2%
10% most volatile stocks in SG Market12.3%
10% least volatile stocks in SG Market2.5%

Stable Share Price: U96 is not significantly more volatile than the rest of SG stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: U96's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19985,740Kim Yin Wonghttps://www.sembcorp.com

Sembcorp Industries Ltd, an investment holding company, engages in the renewables, integrated urban solutions, conventional energy, and other businesses in Singapore, rest of southeast Asia, the Middle East, China, India, the United Kingdom, and internationally. The Renewables segment provides electricity from solar and wind resources and energy storage solutions, as well as system services that support integration of renewables into grid; and trades in energy attribute certificates. This segment also includes the development and provision of installation, operation, and maintenance of solar, wind, and energy storage assets.

Sembcorp Industries Fundamentals Summary

How do Sembcorp Industries's earnings and revenue compare to its market cap?
U96 fundamental statistics
Market CapS$5.12b
Earnings (TTM)S$266.00m
Revenue (TTM)S$7.80b

19.3x

P/E Ratio

0.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
U96 income statement (TTM)
RevenueS$7.80b
Cost of RevenueS$6.69b
Gross ProfitS$1.10b
Other ExpensesS$836.00m
EarningsS$266.00m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.15
Gross Margin14.14%
Net Profit Margin3.41%
Debt/Equity Ratio189.6%

How did U96 perform over the long term?

See historical performance and comparison

Dividends

2.1%

Current Dividend Yield

34%

Payout Ratio

Valuation

Is Sembcorp Industries undervalued compared to its fair value and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: U96 (SGD2.87) is trading below our estimate of fair value (SGD5.9)

Significantly Below Fair Value: U96 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: U96 is poor value based on its PE Ratio (19.3x) compared to the Asian Integrated Utilities industry average (16.9x).

PE vs Market: U96 is poor value based on its PE Ratio (19.3x) compared to the SG market (11.9x).


Price to Earnings Growth Ratio

PEG Ratio: U96 is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: U96 is good value based on its PB Ratio (1.4x) compared to the XA Integrated Utilities industry average (1.5x).


Future Growth

How is Sembcorp Industries forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


19.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: U96's forecast earnings growth (19.8% per year) is above the savings rate (1.8%).

Earnings vs Market: U96's earnings (19.8% per year) are forecast to grow faster than the SG market (11.8% per year).

High Growth Earnings: U96's earnings are forecast to grow, but not significantly.

Revenue vs Market: U96's revenue is expected to decline over the next 3 years (-1.1% per year).

High Growth Revenue: U96's revenue is forecast to decline over the next 3 years (-1.1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: U96's Return on Equity is forecast to be low in 3 years time (11%).


Past Performance

How has Sembcorp Industries performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-15.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: U96 has a large one-off loss of SGD190.0M impacting its December 31 2021 financial results.

Growing Profit Margin: U96's current net profit margins (3.4%) are higher than last year (2.6%).


Past Earnings Growth Analysis

Earnings Trend: U96's earnings have declined by 15.2% per year over the past 5 years.

Accelerating Growth: U96's earnings growth over the past year (90%) exceeds its 5-year average (-15.2% per year).

Earnings vs Industry: U96 earnings growth over the past year (90%) exceeded the Integrated Utilities industry 42.2%.


Return on Equity

High ROE: U96's Return on Equity (7.7%) is considered low.


Financial Health

How is Sembcorp Industries's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: U96's short term assets (SGD3.9B) exceed its short term liabilities (SGD2.9B).

Long Term Liabilities: U96's short term assets (SGD3.9B) do not cover its long term liabilities (SGD7.6B).


Debt to Equity History and Analysis

Debt Level: U96's net debt to equity ratio (152.5%) is considered high.

Reducing Debt: U96's debt to equity ratio has increased from 113% to 189.6% over the past 5 years.

Debt Coverage: U96's debt is not well covered by operating cash flow (16.4%).

Interest Coverage: U96's interest payments on its debt are not well covered by EBIT (2x coverage).


Balance Sheet


Dividend

What is Sembcorp Industries's current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


2.09%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: U96's dividend (2.09%) isn’t notable compared to the bottom 25% of dividend payers in the SG market (2.22%).

High Dividend: U96's dividend (2.09%) is low compared to the top 25% of dividend payers in the SG market (5.95%).


Stability and Growth of Payments

Stable Dividend: U96's dividend payments have been volatile in the past 10 years.

Growing Dividend: U96's dividend payments have fallen over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (33.5%), U96's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (11.5%), U96's dividend payments are thoroughly covered by cash flows.


Discover strong dividend paying companies

Management

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

2.3yrs

Average management tenure


CEO

Kim Yin Wong (51 yo)

1.83yrs

Tenure

S$4,354,000

Compensation

Mr. Kim Yin Wong serves as Group President, Chief Executive Officer, Director and Member of Technology Advisory Panel at Sembcorp Industries Ltd since July 1, 2020. Mr. Wong serves as Non-Executive Chairma...


CEO Compensation Analysis

Compensation vs Market: Kim Yin's total compensation ($USD3.15M) is above average for companies of similar size in the SG market ($USD1.10M).

Compensation vs Earnings: Kim Yin's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: U96's management team is considered experienced (2.3 years average tenure).


Board Members

Experienced Board: U96's board of directors are considered experienced (5.9 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

Sembcorp Industries Ltd's employee growth, exchange listings and data sources


Key Information

  • Name: Sembcorp Industries Ltd
  • Ticker: U96
  • Exchange: SGX
  • Founded: 1998
  • Industry: Multi-Utilities
  • Sector: Utilities
  • Implied Market Cap: S$5.123b
  • Shares outstanding: 1.79b
  • Website: https://www.sembcorp.com

Number of Employees


Location

  • Sembcorp Industries Ltd
  • No. 05-04, 30 Hill Street
  • Singapore
  • 179360
  • Singapore

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/22 00:00
End of Day Share Price2022/05/20 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


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.