Sembcorp Marine Ltd
Sembcorp Marine Ltd Fundamental Analysis
Sembcorp Marine Ltd (SMBMY) shows weak financial fundamentals with a PE ratio of 33.45, profit margin of 2.86%, and ROE of 3.73%. The company generates $8.8B in annual revenue with strong year-over-year growth of 26.60%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 47.9/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SMBMY's fundamental strength across five key dimensions:
Efficiency Score
WeakSMBMY struggles to generate sufficient returns from assets.
Valuation Score
ModerateSMBMY shows balanced valuation metrics.
Growth Score
ModerateSMBMY shows steady but slowing expansion.
Financial Health Score
ExcellentSMBMY maintains a strong and stable balance sheet.
Profitability Score
WeakSMBMY struggles to sustain strong margins.
Key Financial Metrics
Is SMBMY Expensive or Cheap?
P/E Ratio
SMBMY trades at 33.45 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, SMBMY's PEG of 0.29 indicates potential undervaluation.
Price to Book
The market values Sembcorp Marine Ltd at 1.22 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 11.09 times EBITDA. This signals the market has high growth expectations.
How Well Does SMBMY Make Money?
Net Profit Margin
For every $100 in sales, Sembcorp Marine Ltd keeps $2.86 as profit after all expenses.
Operating Margin
Core operations generate 3.72 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.73 in profit for every $100 of shareholder equity.
ROA
Sembcorp Marine Ltd generates $1.39 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Sembcorp Marine Ltd generates limited operating cash flow of $146.29M, signaling weaker underlying cash strength.
Free Cash Flow
Sembcorp Marine Ltd generates weak or negative free cash flow of $40.05M, restricting financial flexibility.
FCF Per Share
Each share generates $0.12 in free cash annually.
FCF Yield
SMBMY converts 0.48% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
33.45
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.29
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.22
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.96
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.43
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.22
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.04
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How SMBMY Stacks Against Its Sector Peers
| Metric | SMBMY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 33.45 | 21.44 | Worse (Expensive) |
| ROE | 3.73% | 945.00% | Weak |
| Net Margin | 2.86% | -63502.00% (disorted) | Weak |
| Debt/Equity | 0.43 | -0.46 (disorted) | Distorted |
| Current Ratio | 1.22 | 6.42 | Neutral |
| ROA | 1.39% | 3336.00% | Weak |
SMBMY outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Sembcorp Marine Ltd's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
251.03%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
222.64%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
148.89%
Industry Style: Cyclical, Value, Commodity
High Growth