OTCPK:SMBM.Y

Stock Analysis Report

Executive Summary

Sembcorp Marine Ltd, an investment holding company, provides offshore and marine engineering solutions worldwide.

Snowflake

Fundamentals

Moderate growth potential and overvalued.

Share Price & News

How has Sembcorp Marine's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SMBM.Y has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

SMBM.Y

-0.2%

US Machinery

0.5%

US Market


1 Year Return

-15.4%

SMBM.Y

17.0%

US Machinery

12.8%

US Market

Return vs Industry: SMBM.Y underperformed the US Machinery industry which returned 17% over the past year.

Return vs Market: SMBM.Y underperformed the US Market which returned 12.8% over the past year.


Shareholder returns

SMBM.YIndustryMarket
7 Day0%-0.2%0.5%
30 Dayn/a10.0%4.3%
90 Dayn/a18.9%8.0%
1 Year-15.4%-15.4%19.2%17.0%15.3%12.8%
3 Yearn/a46.6%37.3%48.3%38.7%
5 Year-58.2%-61.1%61.2%41.7%62.6%44.5%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

1.21x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: SMBM.Y ($10.21) is trading above our estimate of fair value ($0.5)

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


Price To Earnings Ratio

PE vs Industry: SMBM.Y is unprofitable, so we can't compare its PE Ratio to the Machinery industry average.

PE vs Market: SMBM.Y is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SMBM.Y is good value based on its PB Ratio (1.2x) compared to the US Machinery industry average (2.5x).


Next Steps

Future Growth

How is Sembcorp Marine forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

129.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SMBM.Y is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.7%).

Earnings vs Market: SMBM.Y is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: SMBM.Y's is expected to become profitable in the next 3 years.

Revenue vs Market: SMBM.Y's revenue (6.2% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: SMBM.Y's revenue (6.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SMBM.Y's Return on Equity is forecast to be low in 3 years time (2.3%).


Next Steps

Past Performance

How has Sembcorp Marine performed over the past 5 years?

-35.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SMBM.Y has large one-off items impacting its financial results.

Growing Profit Margin: SMBM.Y's current net profit margins (-0.8%) are lower than last year (3.8%).


Past Earnings Growth Analysis

Earnings Trend: SMBM.Y is unprofitable, and losses have increased over the past 5 years at a rate of -35.3% per year.

Accelerating Growth: Unable to compare SMBM.Y's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SMBM.Y is unprofitable, making it difficult to compare its past year earnings growth to the Machinery industry (11.4%).


Return on Equity

High ROE: SMBM.Y has a negative Return on Equity (-1.49%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Sembcorp Marine's financial position?


Financial Position Analysis

Short Term Liabilities: SMBM.Y's short term assets (SGD2.7B) do not cover its short term liabilities (SGD3.9B)

Long Term Liabilities: SMBM.Y's short term assets (2.7B) exceeds its long term liabilities (2.5B)


Debt to Equity History and Analysis

Debt Level: SMBM.Y's debt to equity ratio (175.6%) is considered high

Reducing Debt: SMBM.Y's debt to equity ratio has increased from 32.7% to 175.6% over the past 5 years.

Debt Coverage: SMBM.Y's debt is not well covered by operating cash flow (4.3%).

Interest Coverage: SMBM.Y is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

Inventory Level: SMBM.Y has a high level of physical assets or inventory.

Debt Coverage by Assets: SMBM.Y's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

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

0.45%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years0.5%

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate SMBM.Y's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SMBM.Y's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: SMBM.Y is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SMBM.Y's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Sembcorp Marine's salary, the management and board of directors tenure and is there insider trading?

4.4yrs

Average management tenure


CEO

Weng Sun Wong (57yo)

10.5yrs

Tenure

S$2,667,000

Compensation

Mr. Wong Weng Sun serves as Chairman and Managing Director at Jurong Shipyard Pte Ltd. Mr. Wong serves as Chief Executive Officer at SembCorp Marine Ltd since May 01, 2009 and has been its Group President  ...


CEO Compensation Analysis

Compensation vs Market: Weng Sun's total compensation ($USD1.96M) is below average for companies of similar size in the US market ($USD3.92M).

Compensation vs Earnings: Weng Sun's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.4yrs

Average Tenure

Experienced Management: SMBM.Y's management team is considered experienced (4.4 years average tenure).


Board Age and Tenure

5.1yrs

Average Tenure

65yo

Average Age

Experienced Board: SMBM.Y's board of directors are considered experienced (5.1 years average tenure).


Insider Trading

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.


Management Team

  • Weng Sun Wong (57yo)

    CEO, President & Executive Director

    • Tenure: 10.5yrs
    • Compensation: S$2.67m
  • Poh Kwee Ong

    Chief Operating Officer

    • Tenure: 4.4yrs
    • Compensation: S$779.00k
  • Yah Tan

    Head of Legal & Corporate Secretariat and Secretary

    • Tenure: 0yrs
  • Cheng Tan

    Chief Financial Officer

    • Tenure: 13.7yrs
    • Compensation: S$615.00k
  • Zijian Wang

    Head of Singapore Yard Operations

    • Tenure: 0yrs
    • Compensation: S$1.05m
  • Jessie Lau

    Head of Administration

    • Tenure: 0yrs
  • San Chua

    Chief Human Resource Officer

    • Tenure: 0yrs
    • Compensation: S$883.00k
  • Lisa Lee

    Head of Investor Relations

    • Tenure: 0yrs
  • William Gu

    Senior VP and Head of Rigs & Floaters

    • Tenure: 4.4yrs
    • Compensation: S$1.02m
  • William Goh

    Director of Group Finance

    • Tenure: 2.5yrs
    • Compensation: S$961.00k

Board Members

  • Neil McGregor (64yo)

    Non-Executive and Non-Independent Director

    • Tenure: 2.6yrs
    • Compensation: S$145.00k
  • Mohd bin Marican (65yo)

    Independent Chairman

    • Tenure: 5.6yrs
    • Compensation: S$540.00k
  • Weng Sun Wong (57yo)

    CEO, President & Executive Director

    • Tenure: 10.5yrs
    • Compensation: S$2.67m
  • Eric Ang (65yo)

    Independent Director

    • Tenure: 6.6yrs
    • Compensation: S$203.00k
  • William Tan (67yo)

    Independent Director

    • Tenure: 2.6yrs
    • Compensation: S$215.00k
  • Bob Tan (67yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: S$251.00k
  • Patrick Daniel (65yo)

    Non-Executive Independent Director

    • Tenure: 1.6yrs
    • Compensation: S$111.00k
  • Ron Foo (72yo)

    Non Executive & Independent Director

    • Tenure: 13.4yrs
    • Compensation: S$191.00k
  • Chiap Khiong Koh (52yo)

    Non-Executive & Non-Independent Director

    • Tenure: 8.5yrs
    • Compensation: S$173.00k
  • Gina Lee-Wan (62yo)

    Non Executive & Independent Director

    • Tenure: 4.6yrs
    • Compensation: S$173.00k

Company Information

Sembcorp Marine Ltd's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sembcorp Marine Ltd
  • Ticker: SMBM.Y
  • Exchange: OTCPK
  • Founded: 1963
  • Industry: Construction Machinery and Heavy Trucks
  • Sector: Capital Goods
  • Market Cap: S$2.802b
  • Listing Market Cap: S$2.057b
  • Shares outstanding: 2.09b
  • Website: https://www.sembmarine.com

Number of Employees


Location

  • Sembcorp Marine Ltd
  • 29 Tanjong Kling Road
  • Singapore
  • 628054
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SMBM.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
S51SGX (Singapore Exchange)YesOrdinary SharesSGSGDJan 1992
S8NDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
SMBM.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDNov 2008

Biography

Sembcorp Marine Ltd, an investment holding company, provides offshore and marine engineering solutions worldwide. The company engages in the turnkey design, engineering, procurement, construction, and comm ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/13 00:15
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.