Singapore Airlines Intrinsic Value – SINGAPORE AIRLINES Reports Q2 FY2024 Earnings Results

🌥️Earnings Overview

For the second quarter of FY2024, Singapore Airlines ($SGX:C6L) reported total revenue of SGD 4683.4 million, a 3.9% increase from the same period of the previous year. Furthermore, the company saw a 27.1% year-on-year rise in net income, with SGD 707.1 million achieved for the quarter ending on September 30 2023.

Price History

On Tuesday, SINGAPORE AIRLINES reported its earnings results for the second quarter of FY2024. The stock opened at SG$6.3 and eventually closed at SG$6.2, representing a decrease of 1.4% from its previous closing price of SG$6.3. This was a disappointment to investors who were expecting higher returns from the company. SINGAPORE AIRLINES also noted that it has been able to successfully manage its fuel costs and other costs related to the operation of its fleet of aircraft, despite the challenging market environment.

The airline also noted that it had taken multiple measures to reduce costs and protect its financial position, such as cutting jobs and reducing capacity. All in all, SINGAPORE AIRLINES reported mixed results for the second quarter of FY2024 with revenue increasing while passenger services took a hit due to the pandemic. Despite the lower closing stock price, it still presents an opportunity for investors to take advantage of the company’s potential growth in the future. 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

At GoodWhale, we recently conducted an analysis of SINGAPORE AIRLINES‘s wellbeing and have determined that the intrinsic value of their share is around SG$11.8. This value was calculated using our proprietary Valuation Line. Currently, SINGAPORE AIRLINES’ stock is traded at SG$6.2, which is undervalued by 47.5%. This presents a great opportunity for investors to buy the stock at a discounted rate. 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 reported strong results for the second quarter of FY2024, with total revenue of SGD 4683.4 million and net income of SGD 707.1 million reported, a 3.9% and 27.1% increase respectively from the same period in the previous year. This indicates that Singapore Airlines is performing well and is an attractive option for investing. It has a strong financial position and is capable of managing potential risks in the future.

Furthermore, its consistent growth in revenue and income indicates sustainable and reliable long-term performance. Therefore, investors should seriously consider investing in Singapore Airlines for a strong and profitable return on their investment.