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Singapore Technologies Engineering Ltd S63

Morningstar Rating
SGD 4.45 +0.04 (0.91%)
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Company Report

ST Engineering's Growth Outlook Is Robust Through 2026

Singapore Technologies Engineering is driving growth through improved utilization of its capital alongside a plan to contain costs. It has sold and continues to offload noncore activities to focus on areas that will provide synergies to its key commercial aerospace, defence and smart city activities. In this regard, it is adding proprietary product makers to its stable. Overall, we see STE’s EPS growing a five-year compound annual growth rate of 14%, marking an improvement over the 2.7% prepandemic 10-year average, which reflects the pandemic recovery as well as the purchase of U.S. toll road services provider TransCore and an expansion of its passenger-to-freight, or P2F, activities.

Price vs Fair Value

S63 is trading at a 876% premium.
Price
SGD 4.45
Fair Value
SGD 6.17
Uncertainty
Medium
1-Star Price
SGD 6.36
5-Star Price
SGD 2.90
Economic Moat
Zkxwcqf
Capital Allocation
Hndchnb

Bulls Say, Bears Say

Bulls

Aircraft MRO services will rebound sharply as China reopens and international travel continues to recover.

Bears

Slower global growth sees governments reduce spending, delaying some urban solutions sales.

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Trading Information

Previous Close Price
SGD 4.41
Day Range
SGD 4.394.48
52-Week Range
SGD 3.644.48
Bid/Ask
SGD 4.44 / SGD 4.45
Market Cap
SGD 13.88 Bil
Volume/Avg
4.8 Mil / 4.9 Mil

Key Statistics

Price/Earnings (Normalized)
23.20
Price/Sales
1.38
Dividend Yield (Trailing)
3.60%
Dividend Yield (Forward)
3.60%
Total Yield
3.75%

Company Profile

Singapore Technologies Engineering is a Singaporean government-linked commercial and defense engineering group. Its key businesses include aircraft maintenance, repair and overhaul services, in which it is the world’s largest independent third-party provider. The company’s fastest-growing activities involve applications to smart city solutions where it provides tolling solutions, traffic control systems, command and control dashboards, cybersecurity tools, and other related components. Around two thirds of the company’s revenue comes from commercial clients while the remainder is defense.
Sector
Industrials
Industry
Aerospace & Defense
Stock Style Box
Large Core
Total Number of Employees
26,000

Competitors

Valuation

Metric
S63
HEI
Price/Earnings (Normalized)
23.2067.63
Price/Book Value
5.649.06
Price/Sales
1.388.82
Price/Cash Flow
14.0045.62
Price/Earnings
S63
HEI

Financial Strength

Metric
S63
HEI
Quick Ratio
0.641.46
Current Ratio
0.913.52
Interest Coverage
3.935.51
Quick Ratio
S63
HEI

Profitability

Metric
S63
HEI
Return on Assets (Normalized)
4.23%7.79%
Return on Equity (Normalized)
26.32%16.16%
Return on Invested Capital (Normalized)
9.26%11.33%
Return on Assets
S63
HEI
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