Singapore Telecommunications Limited
Singapore Telecommunications Limited Fundamental Analysis
Singapore Telecommunications Limited (SNGNF) shows strong financial fundamentals with a PE ratio of 13.47, profit margin of 44.01%, and ROE of 23.38%. The company generates $14.1B in annual revenue with weak year-over-year growth of -3.40%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 53.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze SNGNF's fundamental strength across five key dimensions:
Efficiency Score
ExcellentSNGNF demonstrates superior asset utilization.
Valuation Score
ExcellentSNGNF trades at attractive valuation levels.
Growth Score
WeakSNGNF faces weak or negative growth trends.
Financial Health Score
ExcellentSNGNF maintains a strong and stable balance sheet.
Profitability Score
ExcellentSNGNF achieves industry-leading margins.
Key Financial Metrics
Is SNGNF Expensive or Cheap?
P/E Ratio
SNGNF trades at 13.47 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, SNGNF's PEG of 0.18 indicates potential undervaluation.
Price to Book
The market values Singapore Telecommunications Limited at 3.08 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 12.58 times EBITDA. This signals the market has high growth expectations.
How Well Does SNGNF Make Money?
Net Profit Margin
For every $100 in sales, Singapore Telecommunications Limited keeps $44.01 as profit after all expenses.
Operating Margin
Core operations generate 15.71 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $23.38 in profit for every $100 of shareholder equity.
ROA
Singapore Telecommunications Limited generates $12.96 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Singapore Telecommunications Limited generates strong operating cash flow of $5.01B, reflecting robust business health.
Free Cash Flow
Singapore Telecommunications Limited generates strong free cash flow of $2.43B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.15 in free cash annually.
FCF Yield
SNGNF converts 2.91% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.47
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.18
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.08
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.93
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.42
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.20
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.23
vs 25 benchmark
ROA
Return on assets percentage
0.13
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How SNGNF Stacks Against Its Sector Peers
| Metric | SNGNF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.47 | 21.28 | Better (Cheaper) |
| ROE | 23.38% | 1116.00% | Weak |
| Net Margin | 44.01% | -55491.00% (disorted) | Strong |
| Debt/Equity | 0.42 | 1.38 | Strong (Low Leverage) |
| Current Ratio | 1.20 | 1.61 | Neutral |
| ROA | 12.96% | -204827.00% (disorted) | Strong |
SNGNF outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Singapore Telecommunications Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-19.58%
Industry Style: Growth, Technology, Streaming
DecliningEPS CAGR
-74.60%
Industry Style: Growth, Technology, Streaming
DecliningFCF CAGR
-6.50%
Industry Style: Growth, Technology, Streaming
Declining