Sembcorp Industries Ltd Fundamental Analysis (SES: U96.SI)
Sembcorp Industries Ltd (SES: U96.SI) shows weak financial fundamentals with a PE ratio of 18.10, profit margin of 9.02%, and ROE of 10.86%. The company generates $6.6B in annual revenue with weak year-over-year growth of -9.63%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 13.7/100 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
WeakU96.SI struggles to sustain strong margins.
Key Financial Metrics
Is U96.SI Expensive or Cheap?
P/E Ratio
U96.SI trades at 18.10 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, U96.SI's PEG of -0.43 indicates potential undervaluation.
Price to Book
The market values Sembcorp Industries Ltd at 1.97 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -2.68 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 $9.02 as profit after all expenses.
Operating Margin
Core operations generate 11.19 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.86 in profit for every $100 of shareholder equity.
ROA
Sembcorp Industries Ltd generates $2.33 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 $751.84M, showing steady but balanced cash generation.
Free Cash Flow
Sembcorp Industries Ltd generates weak or negative free cash flow of $-132.97M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.07 in free cash annually.
FCF Yield
U96.SI converts -1.24% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
18.10
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.43
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.97
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.62
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.83
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.15
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How U96.SI Stacks Against Its Sector Peers
| Metric | U96.SI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 18.10 | 20.12 | Better (Cheaper) |
| ROE | 10.86% | 1034.00% | Weak |
| Net Margin | 9.02% | -565.00% (disorted) | Weak |
| Debt/Equity | 2.83 | 1.74 | Weak (High Leverage) |
| Current Ratio | 1.15 | 1.71 | Neutral |
| ROA | 2.33% | 4551311.00% | Weak |
U96.SI outperforms its industry in 1 out of 6 key metrics, 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
6.86%
Industry Style: Defensive, Dividend, Income
GrowingEPS CAGR
197.41%
Industry Style: Defensive, Dividend, Income
High GrowthFCF CAGR
125.69%
Industry Style: Defensive, Dividend, Income
High Growth