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Singapore Telecommunications Ltd Z74

Morningstar Rating
SGD 3.02 −0.03 (0.98%)
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Company Report

Singtel Looking to Improve Profitability in Core Businesses Through Cost-Cutting

Singtel is the incumbent telecommunications company in Singapore and has expanded into emerging markets in the Asia-Pacific region and India. Singtel’s solid free cash flow is supported by its market-leading position in Singapore and as the second-largest service provider in Australia. Emerging-markets investments hold significant presence in their respective markets and deliver cash flow through dividends to the group. Along with consistent dividend streams from its investments, we expect Singtel to deliver moderate growth in profits and free cash flow despite strong competition in its core Australian and Singapore markets. Most excess cash generated from its core telecom businesses and investments will likely be paid back to shareholders through dividends with the company committing to a 70%-90% dividend payout ratio.

Price vs Fair Value

Z74 is trading at a 635% premium.
Price
SGD 3.05
Fair Value
SGD 4.50
Uncertainty
Low
1-Star Price
SGD 6.32
5-Star Price
SGD 5.00
Economic Moat
Bsmgxds
Capital Allocation
Mgtkflnl

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.

Is it the right time to buy, sell, or hold?
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News

Trading Information

Previous Close Price
SGD 3.05
Day Range
SGD 3.013.08
52-Week Range
SGD 2.253.10
Bid/Ask
SGD 3.01 / SGD 3.02
Market Cap
SGD 49.87 Bil
Volume/Avg
24.7 Mil / 36.5 Mil

Key Statistics

Price/Earnings (Normalized)
22.16
Price/Sales
3.57
Dividend Yield (Trailing)
3.44%
Dividend Yield (Forward)
3.44%
Total Yield
3.44%

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
22,700

Competitors

Valuation

Metric
Z74
CC3
VOD
Price/Earnings (Normalized)
22.1610.5818.64
Price/Book Value
2.106.060.38
Price/Sales
3.570.930.62
Price/Cash Flow
11.985.622.08
Price/Earnings
Z74
CC3
VOD

Financial Strength

Metric
Z74
CC3
VOD
Quick Ratio
1.181.170.57
Current Ratio
1.351.441.31
Interest Coverage
2.995.641.45
Quick Ratio
Z74
CC3
VOD

Profitability

Metric
Z74
CC3
VOD
Return on Assets (Normalized)
4.85%4.65%1.37%
Return on Equity (Normalized)
9.03%40.78%3.34%
Return on Invested Capital (Normalized)
6.73%8.07%3.53%
Return on Assets
Z74
CC3
VOD
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