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Singapore Telecommunications Ltd Z74

Morningstar Rating
SGD 2.35 −0.06 (2.49%)
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Company Report

Singtel: SGD 3.1 billion in Write-Downs, but TPG Regional Network Sharing Deal a Slight Positive

We retain our fair value estimate for narrow-moat Singtel at SGD 2.40 following the company’s announcement of SGD 3.1 billion of write-downs related to Optus and the Asia-Pacific cybersecurity business, and a regional mobile radio access network sharing deal with TPG. The stock looks fairly valued at these levels and we suspect the company will need to show maintained earnings growth from its core operations before it gets a positive rerating.

Price vs Fair Value

Price
SGD 2.40
Fair Value
SGD 4.80
Uncertainty
Low
1-Star Price
SGD 2.00
5-Star Price
SGD 3.68
Economic Moat
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Capital Allocation
Zxbthvnyg

Bulls Say, Bears Say

Bulls

Management is disciplined in capital management initiatives.

Bears

Increased competition and irrational discounting will result in lower pricing and higher acquisition costs to defend market share in Singapore.

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News

Trading Information

Previous Close Price
SGD 2.41
Day Range
SGD 2.332.36
52-Week Range
SGD 2.252.68
Bid/Ask
SGD 2.34 / SGD 2.35
Market Cap
SGD 38.78 Bil
Volume/Avg
95.6 Mil / 32.9 Mil

Key Statistics

Price/Earnings (Normalized)
17.68
Price/Sales
2.77
Dividend Yield (Trailing)
4.34%
Dividend Yield (Forward)
4.34%
Total Yield
4.36%

Company Profile

Singapore Telecommunications is Singapore's leading telecoms company. It owns extensive wired and wireless networks offering data and voice services to a broad customer base. Singtel's diverse investment portfolio spreads across the region. The firm wholly owns Optus in Australia and minority equity stakes in Airtel (29%) in India; Telkomsel (35%) in Indonesia; Globe Telecom (47%) in the Philippines; and Advanced Information Services (23%) and Intouch (21%) in Thailand. Singtel is majority-owned by the Singapore government.
Sector
Communication Services
Industry
Telecom Services
Stock Style Box
Large Value
Total Number of Employees
24,112

Competitors

Valuation

Metric
Z74
VOD
TLS
Price/Earnings (Normalized)
17.6810.4538.12
Price/Book Value
1.520.362.77
Price/Sales
2.770.491.88
Price/Cash Flow
8.931.496.77
Price/Earnings
Z74
VOD
TLS

Financial Strength

Metric
Z74
VOD
TLS
Quick Ratio
0.980.860.52
Current Ratio
1.150.890.66
Interest Coverage
9.455.224.61
Quick Ratio
Z74
VOD
TLS

Profitability

Metric
Z74
VOD
TLS
Return on Assets (Normalized)
4.61%2.36%5.03%
Return on Equity (Normalized)
8.38%6.07%14.83%
Return on Invested Capital (Normalized)
6.37%4.33%6.62%
Return on Assets
Z74
VOD
TLS
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T
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KDDIY
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CHTR
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