Singapore Airlines Intrinsic Value Calculation – SINGAPORE AIRLINES Reports Third Quarter Earnings for FY2023 Ending December 31 2022

Earnings report

Singapore Airlines Intrinsic Value Calculation – On February 21 2023, SINGAPORE AIRLINES ($SGX:C6L) reported their earnings results for the third quarter of FY2023, ending December 31 2022. It was a banner quarter for SINGAPORE AIRLINES as they experienced a major increase in revenue and net income in comparison to the previous year.

During this period, their total revenue increased by a staggering 641.4% year-on-year to SGD 628.0 million and their reported net income increased by 109.3% year-on-year to SGD 4846.4 million. This marks an incredible increase in profit over the past year, demonstrating SINGAPORE AIRLINES’ commitment to providing top-notch service and delighting their customers.

Market Price

At the start of the trading day, its stock opened at SG$5.8 and closed at the same price. The surge in profits can be attributed to increased passenger traffic, which has almost doubled year-on-year since the pandemic ended, and improved efficiency and the optimization of resources. This resulted in a large increase in the last quarter’s earnings which was previously put on hold by the pandemic.

The airline has also announced plans to invest in new technology and maintenance operations to further increase efficiency. These efforts are expected to lead to improved shareholder satisfaction in the long run. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Singapore Airlines. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Singapore Airlines. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Singapore Airlines. More…

Key Ratios Snapshot

Some of the financial key ratios for Singapore Airlines are shown below. More…

Analysis – Singapore Airlines Intrinsic Value Calculation

GoodWhale conducted an analysis of the financials of Singapore Airlines. We used our proprietary Valuation Line to determine that the fair value of Singapore Airlines share is around SG$10.1. However, the Singapore Airlines stock is currently traded at SG$5.8 – this indicates that it is undervalued by 42.7%. Thus, Singapore Airlines presents an opportunity for investors to buy at a discounted price. More…

Peers

In the airline industry, there is intense competition between Singapore Airlines Ltd and its competitors: AirAsia X Bhd, Capital A Bhd, Grupo Aeromexico SAB de CV. Each company is striving to offer the best products and services to their customers at the most competitive prices. This competition benefits consumers as it leads to lower fares and improved services.

– AirAsia X Bhd ($KLSE:5238)

AirAsia X Bhd is a Malaysian low-cost airline that operates long-haul flights. The company has a market cap of 163.85M as of 2022 and a return on equity of 123.04%. AirAsia X was founded in 2007 and is headquartered in Kuala Lumpur, Malaysia. The company operates scheduled passenger services to destinations in Asia, Australia, and the Middle East.

– Capital A Bhd ($KLSE:5099)

Capital A Bhd is a Malaysian investment holding company with interests in banking, insurance, and other financial services. As of 2022, the company had a market capitalization of 2.39 billion Malaysian ringgit and a return on equity of 42.62%. Capital A was founded in 1967 and is headquartered in Kuala Lumpur.

– Grupo Aeromexico SAB de CV ($OTCPK:GRPAF)

Grupo Aeromexico SAB de CV is a Mexican airline company that provides air transportation services in Mexico and internationally. The company has a fleet of 119 aircraft and operates more than 600 daily flights. Grupo Aeromexico SAB de CV has a market cap of 1.26B as of 2022 and a Return on Equity of 67.02%. The company’s main focus is on providing excellent customer service and offering a comfortable and safe travel experience.

Summary

Singapore Airlines has seen a significant growth over the past year, with total revenue increasing by 641.4% to SGD 628.0 million and reported net income rising by 109.3% to SGD 4846.4 million. The strong financial performance is attributed to the airline’s impressive operational efficiency, cost control and its prudent approach to business operations. This indicates that Singapore Airlines is well-positioned for long-term growth and is an attractive investment. Investors should consider the company’s focus on customer service, innovative product offerings, and strategic partnerships when evaluating its future prospects.