Sembcorp Industries Intrinsic Stock Value – SEMBCORP INDUSTRIES Reports Q2 FY2023 Earnings Results on August 4, 2023
August 27, 2023
🌥️Earnings Overview
On August 4 2023, SEMBCORP INDUSTRIES ($SGX:U96) released its earnings results for the quarter ending June 30 2023. There was a 23.1% decrease in total revenue from the same quarter the previous year, recording SGD 3658.0 million. Nevertheless, net income increased 8.2% year over year, totalling SGD 530.0 million.
Price History
On August 4, 2023, SEMBCORP INDUSTRIES released its financial results for the second quarter of the fiscal year 2023. The figures showed that the company’s stock opened at SG$5.6 and closed at SG$5.6, indicating that no major changes were seen in the stock value during the day. The results further revealed that operating revenues for the company had remained largely flat over the quarter, while net profit dropped marginally compared to the same period in the previous year.
The company’s balance sheet also showed that it had increased its liquidity position, with total debt increasing by 6%. Overall, while the results of SEMBCORP INDUSTRIES for Q2 FY2023 were largely in line with analysts’ expectations, investors will be closely monitoring its performance over the remainder of the year to see if it can maintain its momentum. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Sembcorp Industries. More…
| Total Revenues | Net Income | Net Margin |
| 7.58k | 888 | 12.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Sembcorp Industries. More…
| Operations | Investing | Financing |
| 1.83k | -1.32k | -838 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Sembcorp Industries. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 15.46k | 10.7k | 2.52 |
Key Ratios Snapshot
Some of the financial key ratios for Sembcorp Industries are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -2.9% | 51.5% | 19.9% |
| FCF Margin | ROE | ROA |
| 13.4% | 22.3% | 6.1% |
Analysis – Sembcorp Industries Intrinsic Stock Value
GoodWhale has analyzed the financials of SEMBCORP INDUSTRIES and have come up with an intrinsic value for the company’s share which is estimated at around SG$2.8. This is calculated by our proprietary Valuation Line which is based on the company’s financials. Currently, SEMBCORP INDUSTRIES stock is trading at SG$5.6, which is overvalued by 100.3%. Investors should therefore be cautious of the fact that SEMBCORP INDUSTRIES stock is highly overvalued and guard against potential losses. More…
Peers
Sembcorp Industries Ltd is one of the leading energy, water and marine companies in the world. As a Singapore-based conglomerate, it is engaged in a wide range of businesses across the energy, water, waste, industrial and marine sectors. Its competitors include Endur ASA, Mytilineos SA and Fitters Diversified Bhd, all of which are well-recognized international companies in their respective sectors.
– Endur ASA ($LTS:0JGO)
Endur ASA is a Norwegian energy company that specializes in crude oil and derivatives trading. The company has a market capitalization of 962.36M as of 2022 and a Return on Equity (ROE) of 5.71%. Endur ASA’s large market capitalization reflects its ability to successfully convert a strong portfolio of energy investments into significant returns. The company’s ROE of 5.71% indicates its ability to generate profits from its equity investments, showing that the company is a financially sound investment.
– Mytilineos SA ($OTCPK:MYTHY)
Mytilineos SA is a Greek industrial and energy company with a focus on energy, metal and engineering. It is one of the largest diversified energy companies in Greece, with operations in the fields of electricity, natural gas, renewables, aluminium and construction. With a market cap of 2.91B as of 2022, Mytilineos SA is one of the top companies in Greece. Additionally, Mytilineos SA has a very impressive return on equity (ROE) of 14.63%, which is significantly higher than the industry average. This indicates that the company is able to generate more profit from its assets compared to other companies in the same industry.
– Fitters Diversified Bhd ($KLSE:9318)
Fitters Diversified Berhad is a Malaysian-based conglomerate that is engaged in various businesses ranging from manufacturing to property development. The company has a market capitalization of 66.88 million as of 2022 and a Return on Equity of -2.15%. Market capitalization is the total value of the company’s outstanding shares, while Return on Equity measures how effectively the company is using its shareholders’ equity to generate returns. The company’s negative ROE indicates that it is not efficiently utilizing its resources to generate profits.
Summary
SEMBCORP Industries reported its earnings results for the second quarter of fiscal year 2023, showing a total revenue of SGD 3658.0 million, a decrease of 23.1% compared to the same period last year. Net income however increased by 8.2%. This indicates that the company is still making profits despite the decrease in revenue, making it a viable investment opportunity for investors. In light of this, investors should consider the potential upside and downside risks of investing in SEMBCORP Industries, including its liquidity, financial health, competitive landscape and other factors before making a decision.
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