Investors Consider Buying SIA Engineering Company Limited Despite Its Smaller Market Cap
June 17, 2023
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Investors are considering buying SIA ($SGX:S59) Engineering Company Limited despite its smaller market cap. SIA Engineering Company Limited, with its headquarters in Singapore, provides aircraft maintenance, repair, and overhaul services to a global network of airlines and aircraft owners. With its expertise in aircraft engineering and its integrated suite of services, SIA Engineering is well-positioned to benefit from aviation industry expansion in Asia. Given the positive outlook for economic growth and increased air travel in Asia, SIA Engineering has the potential to deliver strong returns for investors. Its competitive edge lies in its excellent service quality and customer relationships – the company prides itself on its commitment to providing customers with quality, reliable, and efficient maintenance and engineering services.
Additionally, by leveraging digital technologies to enhance customer experience, SIA Engineering has been able to differentiate itself from other players in the market. The fact that even a smaller market cap stock such as SIA Engineering Company Limited has managed to display significant share price growth is testament to its potential for investors. Therefore, it is worth taking into consideration whether it would be prudent to make an investment in this small cap stock.
Stock Price
The stock opened at SG$2.4 and closed at the same price, up by 2.5% from its last closing price of SG$2.4. This indicates that there was an increasing amount of investor interest in the company despite its smaller size in comparison to similar companies. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Sia Engineering. More…
| Total Revenues | Net Income | Net Margin |
| 795.97 | 66.39 | 8.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Sia Engineering. More…
| Operations | Investing | Financing |
| 64.61 | -19.46 | -37.1 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Sia Engineering. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.98k | 306.64 | 1.49 |
Key Ratios Snapshot
Some of the financial key ratios for Sia Engineering are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -7.1% | -0.0% | 8.5% |
| FCF Margin | ROE | ROA |
| 0.6% | 2.5% | 2.1% |
Analysis
At GoodWhale, we recently conducted an analysis of SIA ENGINEERING‘s financials. Our star chart classified it as a ‘rhino’, a type of company that we conclude has achieved moderate revenue or earnings growth. This type of company may be of interest to value and growth investors, as well as those seeking stability. We also found that SIA ENGINEERING has a high health score of 10/10 considering its cashflows and debt. This indicates that the company is capable of paying off debt and funding future operations. On the other hand, SIA ENGINEERING is strong in terms of assets, moderately profitable, and weak in dividend growth. More…
Peers
It has a strong presence in Asia Pacific and competes with the likes of Atlas Air Worldwide Holdings Inc, Turk Hava Yollari AO, International Container Terminal Services Inc.
– Atlas Air Worldwide Holdings Inc ($NASDAQ:AAWW)
Atlas Air Worldwide Holdings Inc. is a leading global provider of outsourced aircraft and aviation operating services. It is the world’s largest provider of ACMI freighter services and also operates a fleet of B747, B767, and B777 freighters on behalf of major airlines around the globe. The company has a market cap of $2.84 billion and a return on equity of 15.36%. Atlas Air Worldwide Holdings Inc. also provides charter and ad hoc cargo services, and is a leading provider of military airlift services to the U.S. government.
– Turk Hava Yollari AO ($OTCPK:TKHVY)
Turkey’s flag carrier and largest airline, Turkish Airlines (THY) is headquartered in Istanbul. The airline flies to more than 300 destinations in over 120 countries.
As of 2022, Turkish Airlines has a market cap of $8.3 billion and a return on equity of 21.48%. The company has been profitable every year since 2010, and reported a profit of $1.1 billion in 2020.
– International Container Terminal Services Inc ($PSE:ICT)
As of 2022, International Container Terminal Services Inc has a market cap of 367.49B and a Return on Equity of 59.1%. The company operates a network of container terminals around the world and provides container handling services.
Summary
SIA Engineering Company Limited is an ideal stock to consider investing in as it has seen significant share price growth recently. Finally, its stock price is highly correlated with the Singapore STI index, indicating that it is a safe and reliable investment.
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