OTCPK:VEML.Y

Stock Analysis Report

Executive Summary

Venture Corporation Limited provides technology solutions, products, and services in Singapore, other countries in the Asia Pacific, and internationally.


Snowflake Analysis

Flawless balance sheet, good value and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

n/a

VEML.Y

12.0%

US Electronic

10.5%

US Market


1 Year Return

n/a

VEML.Y

-18.0%

US Electronic

-11.5%

US Market

Return vs Industry: Insufficient data to determine how VEML.Y performed against the US Electronic industry.

Return vs Market: Insufficient data to determine how VEML.Y performed against the US Market.


Shareholder returns

VEML.YIndustryMarket
7 Dayn/a12.0%10.5%
30 Dayn/a-18.1%-15.4%
90 Dayn/a-28.0%-21.4%
1 Yearn/a-17.2%-18.0%-9.6%-11.5%
3 Year37.7%21.9%0.6%-2.2%12.6%5.4%
5 Yearn/a25.9%19.6%32.8%18.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

28.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VEML.Y ($49.99) is trading below our estimate of fair value ($70.04)

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


Price To Earnings Ratio

PE vs Industry: VEML.Y is good value based on its PE Ratio (11.1x) compared to the Electronic industry average (14.5x).

PE vs Market: VEML.Y is good value based on its PE Ratio (11.1x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: VEML.Y is poor value based on its PEG Ratio (3.5x)


Price to Book Ratio

PB vs Industry: VEML.Y is overvalued based on its PB Ratio (1.6x) compared to the US Electronic industry average (1.5x).


Next Steps

Future Growth

How is Venture forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

3.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VEML.Y's forecast earnings growth (3.2% per year) is above the savings rate (1.7%).

Earnings vs Market: VEML.Y's earnings (3.2% per year) are forecast to grow slower than the US market (12.3% per year).

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

Revenue vs Market: VEML.Y's revenue (3.2% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: VEML.Y's revenue (3.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VEML.Y's Return on Equity is forecast to be low in 3 years time (13.4%).


Next Steps

Past Performance

How has Venture performed over the past 5 years?

30.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VEML.Y has high quality earnings.

Growing Profit Margin: VEML.Y's current net profit margins (10%) are lower than last year (10.6%).


Past Earnings Growth Analysis

Earnings Trend: VEML.Y's earnings have grown significantly by 30.2% per year over the past 5 years.

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

Earnings vs Industry: VEML.Y had negative earnings growth (-1.9%) over the past year, making it difficult to compare to the Electronic industry average (3.2%).


Return on Equity

High ROE: VEML.Y's Return on Equity (14.5%) is considered low.


Next Steps

Financial Health

How is Venture's financial position?


Financial Position Analysis

Short Term Liabilities: VEML.Y's short term assets (SGD2.3B) exceed its short term liabilities (SGD755.3M).

Long Term Liabilities: VEML.Y's short term assets (SGD2.3B) exceed its long term liabilities (SGD20.4M).


Debt to Equity History and Analysis

Debt Level: VEML.Y's debt to equity ratio (0.04%) is considered satisfactory.

Reducing Debt: VEML.Y's debt to equity ratio has reduced from 9.4% to 0.04% over the past 5 years.

Debt Coverage: VEML.Y's debt is well covered by operating cash flow (21710.9%).

Interest Coverage: VEML.Y earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: VEML.Y's debt is covered by short term assets (assets are 2216.8x debt).


Next Steps

Dividend

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

5.01%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: VEML.Y's dividend (5.01%) is higher than the bottom 25% of dividend payers in the US market (1.98%).

High Dividend: VEML.Y's dividend (5.01%) is low compared to the top 25% of dividend payers in the US market (5.45%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (55.6%), VEML.Y's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: VEML.Y's dividends in 3 years are forecast to be covered by earnings (53.1% payout ratio).


Next Steps

Management

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

3.0yrs

Average management tenure


CEO

Ngit Wong (78yo)

no data

Tenure

S$8,913,100

Compensation

Mr. Ngit Liong Wong has been the Chairman and Chief Executive Officer of Venture Group of Companies since 1986. Mr. Wong serves as the Chief Executive Officer of Venture Corporation Limited. He serves as C ...


CEO Compensation Analysis

Compensation vs Market: Ngit's total compensation ($USD6.24M) is about average for companies of similar size in the US market ($USD5.51M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Ngit Wong
Chairman & CEOno dataS$8.91m7.08% SGD199.6m
Chee Ng
Chief Financial Officer5.08yrsno datano data
Karin Xiao
Senior Managerno datano datano data
Sita Lim
Chief Human Resource Officerno datano datano data
Ghai Lee
Executive Vice President of Technology Products & Solutions8.17yrsno datano data
Chin Tong Wong
Chief Marketing Officer of USA Sales & Marketingno datano datano data
Dharma Nadarajah
Executive Vice President of Advanced Manufacturing & Design Solutionsno datano datano data
Chee Wong
VP of Design Servicesno datano datano data
Devika Davar
Joint Company Secretary1yrno datano data
Kong Chan
Joint Company Secretary0.25yrno datano data

3.0yrs

Average Tenure

Experienced Management: VEML.Y's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ngit Wong
Chairman & CEOno dataS$8.91m7.08% SGD199.6m
Jonathan Huberman
Independent Non-Executive Director5.17yrsS$110.00kno data
Oon Kwong Kuok
Independent Non-Executive Director2.17yrsS$60.00kno data
Lee Koh
Lead Independent Director5.92yrsS$140.00k0.0010% SGD29.3k
Kok Loon Goon
Independent Non-Executive Director16.08yrsS$145.00k0.0017% SGD48.8k
Yew Meng Wong
Independent Non-Executive Director10.5yrsS$135.00kno data
Thong Han
Independent Non Executive Director4.17yrsS$110.00kno data
Seok Hoong Tan
Independent Non-Executive Director1.33yrsS$10.00k0.0010% SGD29.3k

5.5yrs

Average Tenure

71yo

Average Age

Experienced Board: VEML.Y's board of directors are considered experienced (5.5 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

Venture Corporation Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Venture Corporation Limited
  • Ticker: VEML.Y
  • Exchange: OTCPK
  • Founded: 1984
  • Industry: Electronic Manufacturing Services
  • Sector: Tech
  • Market Cap: S$4.029b
  • Listing Market Cap: S$2.819b
  • Shares outstanding: 288.62m
  • Website: https://www.venture.com.sg

Number of Employees


Location

  • Venture Corporation Limited
  • 5006 Ang Mo Kio Avenue 5
  • No. 05-01/12 TECHplace II
  • Singapore
  • 569873
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VEML.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 1992
V03SGX (Singapore Exchange)YesOrdinary SharesSGSGDNov 1992
VEMDB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 1992
VEML.YOTCPK (Pink Sheets LLC)ADRUSUSDJan 2009

Biography

Venture Corporation Limited provides technology solutions, products, and services in Singapore, other countries in the Asia Pacific, and internationally. The company operates through Advanced Manufacturing & Design Solutions, and Technology Products & Design Solutions segments. It engages in the design, manufacture, assemble, and distribution of electronic, and other computer products and peripherals; manufacture and sale of terminal units; manufacturing and trading of mechanical products; development and marketing of color imaging products for label printing; and design, integration, and trading of electronic security systems and products. The company is also involved in the provision of electronics services; engineering, customization, logistic, and repair services; information system development and support services; design solutions and services; administrative and technical, and management services. In addition, it engages in the manufacture, design, fabrication, stamping and injection, metal punching, and spraying of industrial metal parts, tools, and dies; design, customization, and marketing of tool-making and precision engineering solutions; manufacture of plastic injection molds and moldings with secondary processes and subassembly; manufacture of high technology products, and import and export of electronic parts, components, equipment, devices, and instruments. Venture Corporation Limited was founded in 1984 and is headquartered in Singapore. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 01:50
End of Day Share Price2020/03/26 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.