Singapore Airlines Stock Fair Value – Singapore Airlines’ Scoot Adjusts Business Model in Response to Post-Pandemic World
October 26, 2023
🌥️Trending News
Singapore Airlines ($SGX:C6L)’ budget subsidiary carrier, Scoot, has adjusted its business model in response to the pandemic’s impacts on the aviation industry. The airline has focused its efforts on restructuring its network and product offerings to cater to the needs of passengers in the post-pandemic world. It is a highly respected airline brand renowned for its world-class service and safety standards. Scoot has made several adjustments to adapt to the current situation. For example, the airline now offers contactless check-ins and boarding with digital boarding passes; temperature screenings during boarding; and enhanced cabin cleaning practices.
In addition, Scoot also reduced its airfares by up to 50% in order to make travel more affordable for passengers. The changes made by Scoot are expected to be beneficial for both passengers and the airline itself in the long run. With a revised product portfolio, competitive prices, and stringent safety measures, the airline is well-positioned to take advantage of the opportunities arising from the post-pandemic market.
Stock Price
On Monday, SINGAPORE AIRLINES stock opened at SG$6.0 and closed at SG$6.0, down by 0.3% from the previous closing price of 6.0. This indicates that the company has taken drastic measures in changing its operations in order to survive the crisis. The new business model adopted by Scoot will focus on either short-haul regional flights with low cost fares or long-haul flights from Singapore with slightly higher fares. The airline is also looking into innovative digital marketing solutions to reach potential customers.
These measures are all part of a larger effort by Singapore Airlines to adjust to the realities of a post-pandemic world. By taking these steps, the company is hoping to rebound from the economic impact of the pandemic and continue to provide quality service to its customers. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Singapore Airlines. More…
| Total Revenues | Net Income | Net Margin |
| 18.33k | 2.52k | 13.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Singapore Airlines. More…
| Operations | Investing | Financing |
| 9.13k | -134 | -6.21k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Singapore Airlines. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 46.06k | 46.06k | 5.78 |
Key Ratios Snapshot
Some of the financial key ratios for Singapore Airlines are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 12.9% | 157.4% | 18.1% |
| FCF Margin | ROE | ROA |
| 40.6% | 11.2% | 4.5% |
Analysis – Singapore Airlines Stock Fair Value
At GoodWhale, we have conducted an analysis on the well-being of Singapore Airlines. Our proprietary Valuation Line has calculated the fair value of Singapore Airlines share to be around SG$11.9. At the moment, Singapore Airlines stock is trading at SG$6.0, which is undervalued by 49.6%. This presents a great opportunity for investors who are looking to gain exposure to this aviation giant. More…
Peers
In the airline industry, there is intense competition between Singapore Airlines Ltd and its competitors: AirAsia X Bhd, Capital A Bhd, Grupo Aeromexico SAB de CV. Each company is striving to offer the best products and services to their customers at the most competitive prices. This competition benefits consumers as it leads to lower fares and improved services.
– AirAsia X Bhd ($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 (SIA) is one of the most successful airlines in Asia, and has been actively adapting to the changing landscape of air travel since the pandemic. In response to the decrease in demand for travel, SIA has shifted its focus to optimizing its fleet size and network through a fleet reduction and collaboration with other airlines. It has also implemented cost-cutting initiatives such as staff retrenchment and salary reductions, and taking proactive steps to raise capital through bond offerings and property sales. Moving forward, analysts believe SIA is well-positioned to benefit from the eventual rebound in air travel, and may even be able to capitalize on new opportunities in the industry depending on its ability to react quickly to market changes.
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