OTCPK:SGAP.Y

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Singapore Telecommunications

Market Cap

US$28.4b

Last Updated

2021/06/20 23:23 UTC

Data Sources

Company Financials +

Executive Summary

Singapore Telecommunications Limited, together with its subsidiaries, provides telecommunication services to consumers and small businesses in Singapore, Australia, the United States, Europe, and internationally. More Details


Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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

Volatility Over Time: SGAP.Y's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-2.5%

SGAP.Y

-2.5%

US Telecom

-1.9%

US Market


1 Year Return

-4.2%

SGAP.Y

-0.2%

US Telecom

38.2%

US Market

Return vs Industry: SGAP.Y underperformed the US Telecom industry which returned -0.2% over the past year.

Return vs Market: SGAP.Y underperformed the US Market which returned 38.2% over the past year.


Shareholder returns

SGAP.YIndustryMarket
7 Day-2.5%-2.5%-1.9%
30 Day-6.5%-2.2%1.1%
90 Day-2.4%-1.7%4.3%
1 Year-0.2%-4.2%5.2%-0.2%40.4%38.2%
3 Year-13.4%-25.1%17.4%0.6%57.5%47.8%
5 Year-22.6%-39.0%7.8%-16.9%127.2%101.7%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

30.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SGAP.Y ($17.17) is trading below our estimate of fair value ($24.57)

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


Price To Earnings Ratio

PE vs Industry: SGAP.Y is poor value based on its PE Ratio (68.3x) compared to the US Telecom industry average (12.2x).

PE vs Market: SGAP.Y is poor value based on its PE Ratio (68.3x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: SGAP.Y is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: SGAP.Y is good value based on its PB Ratio (1.4x) compared to the US Telecom industry average (3.2x).


Future Growth

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

27.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SGAP.Y's forecast earnings growth (27% per year) is above the savings rate (2%).

Earnings vs Market: SGAP.Y's earnings (27% per year) are forecast to grow faster than the US market (15.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SGAP.Y's revenue (2.2% per year) is forecast to grow slower than the US market (9.5% per year).

High Growth Revenue: SGAP.Y's revenue (2.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SGAP.Y's Return on Equity is forecast to be low in 3 years time (9.2%).


Past Performance

How has Singapore Telecommunications performed over the past 5 years?

-26.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SGAP.Y has a large one-off loss of SGD610.4M impacting its March 31 2021 financial results.

Growing Profit Margin: SGAP.Y's current net profit margins (3.5%) are lower than last year (6.5%).


Past Earnings Growth Analysis

Earnings Trend: SGAP.Y's earnings have declined by 26.5% per year over the past 5 years.

Accelerating Growth: SGAP.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: SGAP.Y had negative earnings growth (-48.5%) over the past year, making it difficult to compare to the Telecom industry average (124.7%).


Return on Equity

High ROE: SGAP.Y's Return on Equity (2.1%) is considered low.


Financial Health

How is Singapore Telecommunications's financial position?


Financial Position Analysis

Short Term Liabilities: SGAP.Y's short term assets (SGD6.5B) do not cover its short term liabilities (SGD9.1B).

Long Term Liabilities: SGAP.Y's short term assets (SGD6.5B) do not cover its long term liabilities (SGD12.4B).


Debt to Equity History and Analysis

Debt Level: SGAP.Y's debt to equity ratio (40.2%) is considered high.

Reducing Debt: SGAP.Y's debt to equity ratio has increased from 38.8% to 40.2% over the past 5 years.

Debt Coverage: SGAP.Y's debt is well covered by operating cash flow (52.6%).

Interest Coverage: SGAP.Y's interest payments on its debt are well covered by EBIT (3.1x coverage).


Balance Sheet


Dividend

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

3.25%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SGAP.Y's dividend (3.25%) is higher than the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: SGAP.Y's dividend (3.25%) is low compared to the top 25% of dividend payers in the US market (3.49%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (221.6%), SGAP.Y's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SGAP.Y's dividends in 3 years are forecast to be covered by earnings (73.5% payout ratio).


Next Steps

Management

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

6.2yrs

Average management tenure


CEO

Kuan Moon Yuen (53 yo)

0.42

Tenure

S$1,547,488

Compensation

Mr. Kuan Moon Yuen has been Chief Executive Officer and Executive and Non-Independent Director of Singapore Telecommunications Limited d/b/a Singtel since January 1, 2021. Mr. Yuen served as Group Chief Di...


CEO Compensation Analysis

Compensation vs Market: Kuan Moon's total compensation ($USD1.15M) is below average for companies of similar size in the US market ($USD11.31M).

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


Leadership Team

Experienced Management: SGAP.Y's management team is seasoned and experienced (6.2 years average tenure).


Board Members

Experienced Board: SGAP.Y'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

Singapore Telecommunications Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Singapore Telecommunications Limited
  • Ticker: SGAP.Y
  • Exchange: OTCPK
  • Founded: 1992
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: S$38.149b
  • Listing Market Cap: S$28.353b
  • Shares outstanding: 16.51b
  • Website: https://www.singtel.com

Number of Employees


Location

  • Singapore Telecommunications Limited
  • 31 Exeter Road
  • No. 19-00 Comcentre
  • Singapore
  • 239732
  • Singapore

Listings


Biography

Singapore Telecommunications Limited, together with its subsidiaries, provides telecommunication services to consumers and small businesses in Singapore, Australia, the United States, Europe, and internati...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/20 23:23
End of Day Share Price2021/06/18 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


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.