S63 Intrinsic Stock Value – SINGAPORE TECHNOLOGIES ENGINEERING Reports Positive Year-on-Year Increase in FY2023 Second Quarter Earnings Results
August 16, 2023
☀️Earnings Overview
On August 10 2023, Singapore Technologies Engineering ($SGX:S63) Ltd. reported their FY2023 second quarter earnings results, with total revenue of SGD 4863.4 million, showing a 13.9% year-on-year increase. Net income for the same quarter was SGD 280.6 million, a slight 0.2% rise compared to the prior year.
Market Price
The stock opened at SG$3.7 and closed at the same price, up by 0.5% from the previous closing price. This marked a year-on-year increase in the company’s earnings, indicating a strong financial performance. On the other hand, revenue from international markets only went up by 0.5%. These figures show that the majority of the company’s success is being driven by its domestic operations in Singapore.
This further demonstrates the company’s ability to capture market opportunities in a variety of regions. Overall, ST Engineering reported positive year-on-year increases in its second quarter earnings results. This indicates that their strategies are paying off and that the company is on track for a successful financial year. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for S63. More…
| Total Revenues | Net Income | Net Margin |
| 9.63k | 535.65 | 5.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for S63. More…
| Operations | Investing | Financing |
| 1.21k | -697.01 | -640.81 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for S63. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 15.1k | 12.37k | 0.79 |
Key Ratios Snapshot
Some of the financial key ratios for S63 are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 6.7% | 2.0% | 8.4% |
| FCF Margin | ROE | ROA |
| 4.0% | 20.9% | 3.3% |
Analysis – S63 Intrinsic Stock Value
We have recently performed an analysis of the wellbeing of SINGAPORE TECHNOLOGIES ENGINEERING, and our findings reveal a great opportunity. Our proprietary Valuation Line has calculated the intrinsic value of SINGAPORE TECHNOLOGIES ENGINEERING share to be around SG$4.4. However, the stock is currently trading at SG$3.7, making it a fair price that is undervalued by 16.4%. This presents a great investment opportunity for those looking to purchase stocks at a discounted rate. We believe that investing in SINGAPORE TECHNOLOGIES ENGINEERING is a great way to capitalize on this opportunity and reap the benefits of this undervalued share price. More…
Peers
The competition in the engineering industry is fierce, especially between Singapore Technologies Engineering Ltd (STEL) and its many competitors. Companies such as CSSC Offshore & Marine Engineering (Group) Co Ltd, Paras Defence And Space Technologies Ltd, and Laxmipati Engineering Works Ltd all strive to out-perform and out-innovate one another to gain the upper hand in the industry. This competition has resulted in a great deal of innovation and progress, pushing all companies involved to be at the forefront of engineering technology.
– CSSC Offshore & Marine Engineering (Group) Co Ltd ($SHSE:600685)
CSSC Offshore & Marine Engineering (Group) Co Ltd is a leading provider of offshore and marine engineering services in China. The company specializes in the design and construction of ships, offshore platforms, drilling rigs, and other related marine engineering products. As of 2022, the company has a market capitalization of 22.33 billion and a return on equity of 1.45%. The company’s market capitalization reflects its large size and its success in competing in the offshore and marine engineering services industry. The return on equity of 1.45% indicates that the company is generating a satisfactory level of return on its investments. CSSC Offshore & Marine Engineering (Group) Co Ltd has consistently delivered strong performance over the years and is well-positioned to capitalize on future growth opportunities in the industry.
– Paras Defence And Space Technologies Ltd ($BSE:543367)
Paras Defence And Space Technologies Ltd is a leading defense and space technology provider based in India. The company is involved in the design, development, and manufacture of electronic systems, subsystems, and components for the defense and aerospace industries. The company has a market capitalization of 24.11B as of 2022 and boasts a Return on Equity of 7.89%. This reflects its strong financial performance, as well as its success in developing innovative and reliable defense and aerospace technology products.
– Laxmipati Engineering Works Ltd ($BSE:537669)
Laxmipati Engineering Works Ltd is an Indian automotive parts manufacturer located in Gujarat. The company specializes in manufacturing a wide range of components for the automotive industry, including exhausts, engine components, chassis components and more. As of 2022, the company has a market capitalization of 207.07M and a return on equity of 39.42%, indicating its strong financial performance. The market cap is a measure of the company’s current market value, while the return on equity is a measure of the company’s profitability. Both of these figures show that Laxmipati Engineering Works Ltd is a successful and profitable company, indicating that it is well positioned to continue its successful operations in the future.
Summary
The second quarter of FY2023 for SINGAPORE TECHNOLOGIES ENGINEERING showed total revenue of SGD 4863.4 million, a 13.9% rise from the previous year. Net income for the same quarter was SGD 280.6 million, a slight 0.2% increase compared to last year. This indicates that the company is performing well despite some economic headwinds.
Investment analysts should take note of the strong revenue growth and look out for further performance improvements as the year progresses. The stock price is likely to benefit from these positive trends and investors may want to consider holding or adding the stock to their portfolios.
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