Sembcorp Industries Ltd
Sembcorp Industries Ltd Fundamental Analysis
Sembcorp Industries Ltd (U96.SI) shows moderate financial fundamentals with a PE ratio of 12.19, profit margin of 16.97%, and ROE of 18.30%. The company generates $5.8B in annual revenue with weak year-over-year growth of -8.88%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 28.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze U96.SI's fundamental strength across five key dimensions:
Efficiency Score
WeakU96.SI struggles to generate sufficient returns from assets.
Valuation Score
ExcellentU96.SI trades at attractive valuation levels.
Growth Score
WeakU96.SI faces weak or negative growth trends.
Financial Health Score
ModerateU96.SI shows balanced financial health with some risks.
Profitability Score
ExcellentU96.SI achieves industry-leading margins.
Key Financial Metrics
Is U96.SI Expensive or Cheap?
P/E Ratio
U96.SI trades at 12.19 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, U96.SI's PEG of -3.48 indicates potential undervaluation.
Price to Book
The market values Sembcorp Industries Ltd at 2.16 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.97 times EBITDA. This is generally considered low.
How Well Does U96.SI Make Money?
Net Profit Margin
For every $100 in sales, Sembcorp Industries Ltd keeps $16.97 as profit after all expenses.
Operating Margin
Core operations generate 14.74 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $18.30 in profit for every $100 of shareholder equity.
ROA
Sembcorp Industries Ltd generates $5.34 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Sembcorp Industries Ltd produces operating cash flow of $1.22B, showing steady but balanced cash generation.
Free Cash Flow
Sembcorp Industries Ltd produces free cash flow of $260.07M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.15 in free cash annually.
FCF Yield
U96.SI converts 2.17% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.19
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-3.48
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.16
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.07
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.87
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.04
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.18
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How U96.SI Stacks Against Its Sector Peers
| Metric | U96.SI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.19 | 25.96 | Better (Cheaper) |
| ROE | 18.30% | 1263.00% | Weak |
| Net Margin | 16.97% | -41828.00% (disorted) | Strong |
| Debt/Equity | 1.87 | 0.79 | Weak (High Leverage) |
| Current Ratio | 1.04 | 10.05 | Neutral |
| ROA | 5.34% | -1497917.00% (disorted) | Weak |
U96.SI outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Sembcorp Industries Ltd's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-33.13%
Industry Style: Cyclical, Value, Infrastructure
DecliningEPS CAGR
310.23%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
44.85%
Industry Style: Cyclical, Value, Infrastructure
High Growth