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SIA Engineering

SGX:S59
Snowflake Description

Flawless balance sheet and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
S59
SGX
SGD2B
Market Cap
  1. Home
  2. SG
  3. Transportation
Company description

SIA Engineering Company Limited, together with its subsidiaries, provides maintenance, repair, and overhaul (MRO) services to airlines carriers and aerospace equipment manufacturers worldwide. The last earnings update was 62 days ago. More info.


Add to Portfolio Compare Print
  • SIA Engineering has significant price volatility in the past 3 months.
S59 Share Price and Events
7 Day Returns
9.2%
SGX:S59
4%
Asia Infrastructure
4%
SG Market
1 Year Returns
-28.8%
SGX:S59
-26.2%
Asia Infrastructure
-24.7%
SG Market
S59 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
SIA Engineering (S59) 9.2% -19.8% -36.2% -28.8% -51.5% -57.4%
Asia Infrastructure 4% -8.2% -21.2% -26.2% -25.9% -33.5%
SG Market 4% -10.8% -23.1% -24.7% -25.4% -30.9%
1 Year Return vs Industry and Market
  • S59 underperformed the Infrastructure industry which returned -26.2% over the past year.
  • S59 underperformed the Market in Singapore which returned -24.7% over the past year.
Price Volatility
S59
Industry
5yr Volatility vs Market

S59 Value

 Is SIA Engineering undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of SIA Engineering to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for SIA Engineering.

SGX:S59 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.3%
Perpetual Growth Rate 10-Year SG Government Bond Rate 1.8%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SGX:S59
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year SG Govt Bond Rate 1.8%
Equity Risk Premium S&P Global 5.4%
Infrastructure Unlevered Beta Simply Wall St/ S&P Global 0.72
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.722 (1 + (1- 17%) (6.43%))
0.84
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.84
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.75% + (0.84 * 5.44%)
6.32%

Discounted Cash Flow Calculation for SGX:S59 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for SIA Engineering is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

SGX:S59 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (SGD, Millions) Source Present Value
Discounted (@ 6.32%)
2020 174.90 Analyst x1 164.51
2021 181.20 Analyst x2 160.30
2022 192.20 Analyst x2 159.93
2023 200.51 Est @ 4.32% 156.92
2024 207.62 Est @ 3.55% 152.84
2025 213.87 Est @ 3.01% 148.08
2026 219.50 Est @ 2.63% 142.95
2027 224.70 Est @ 2.37% 137.63
2028 229.60 Est @ 2.18% 132.28
2029 234.32 Est @ 2.05% 126.97
Present value of next 10 years cash flows SGD1,482.00
SGX:S59 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= SGD234.32 × (1 + 1.75%) ÷ (6.32% – 1.75%)
SGD5,218.33
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= SGD5,218.33 ÷ (1 + 6.32%)10
SGD2,827.67
SGX:S59 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= SGD1,482.00 + SGD2,827.67
SGD4,309.67
Equity Value per Share
(SGD)
= Total value / Shares Outstanding
= SGD4,309.67 / 1,120.31
SGD3.85
SGX:S59 Discount to Share Price
Calculation Result
Value per share (SGD) From above. SGD3.85
Current discount Discount to share price of SGD1.78
= -1 x (SGD1.78 - SGD3.85) / SGD3.85
53.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price SIA Engineering is available for.
Intrinsic value
>50%
Share price is SGD1.78 vs Future cash flow value of SGD3.85
Current Discount Checks
For SIA Engineering to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • SIA Engineering's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • SIA Engineering's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for SIA Engineering's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are SIA Engineering's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SGX:S59 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in SGD SGD0.17
SGX:S59 Share Price ** SGX (2020-04-09) in SGD SGD1.78
Asia Infrastructure Industry PE Ratio Median Figure of 146 Publicly-Listed Infrastructure Companies 10.08x
Singapore Market PE Ratio Median Figure of 389 Publicly-Listed Companies 10.47x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of SIA Engineering.

SGX:S59 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SGX:S59 Share Price ÷ EPS (both in SGD)

= 1.78 ÷ 0.17

10.44x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • SIA Engineering is overvalued based on earnings compared to the Asia Infrastructure industry average.
  • SIA Engineering is good value based on earnings compared to the Singapore market.
Price based on expected Growth
Does SIA Engineering's expected growth come at a high price?
Raw Data
SGX:S59 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 10.44x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
-0.6%per year
Asia Infrastructure Industry PEG Ratio Median Figure of 50 Publicly-Listed Infrastructure Companies 1.16x
Singapore Market PEG Ratio Median Figure of 128 Publicly-Listed Companies 1.04x

*Line of best fit is calculated by linear regression .

SGX:S59 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 10.44x ÷ -0.6%

-17.64x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • SIA Engineering earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on SIA Engineering's assets?
Raw Data
SGX:S59 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in SGD SGD1.38
SGX:S59 Share Price * SGX (2020-04-09) in SGD SGD1.78
Asia Infrastructure Industry PB Ratio Median Figure of 160 Publicly-Listed Infrastructure Companies 0.8x
Singapore Market PB Ratio Median Figure of 614 Publicly-Listed Companies 0.6x
SGX:S59 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SGX:S59 Share Price ÷ Book Value per Share (both in SGD)

= 1.78 ÷ 1.38

1.29x

* Primary Listing of SIA Engineering.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • SIA Engineering is overvalued based on assets compared to the Asia Infrastructure industry average.
X
Value checks
We assess SIA Engineering's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Infrastructure industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Infrastructure industry average (and greater than 0)? (1 check)
  5. SIA Engineering has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

S59 Future Performance

 How is SIA Engineering expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-0.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is SIA Engineering expected to grow at an attractive rate?
  • SIA Engineering's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 1.8%.
Growth vs Market Checks
  • SIA Engineering's earnings are expected to decrease over the next 1-3 years, this is below the Singapore market average.
  • SIA Engineering's revenue growth is positive but not above the Singapore market average.
Annual Growth Rates Comparison
Raw Data
SGX:S59 Future Growth Rates Data Sources
Data Point Source Value (per year)
SGX:S59 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts -0.6%
SGX:S59 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 0.7%
Asia Infrastructure Industry Earnings Growth Rate Market Cap Weighted Average 11.8%
Asia Infrastructure Industry Revenue Growth Rate Market Cap Weighted Average 9.3%
Singapore Market Earnings Growth Rate Market Cap Weighted Average 4.7%
Singapore Market Revenue Growth Rate Market Cap Weighted Average 3.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SGX:S59 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in SGD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SGX:S59 Future Estimates Data
Date (Data in SGD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-03-31 1,004 105 175 5
2021-03-31 955 97 153 5
2020-04-09
2020-03-31 978 91 172 4
SGX:S59 Past Financials Data
Date (Data in SGD Millions) Revenue Cash Flow Net Income *
2019-12-31 1,021 118 191
2019-09-30 1,025 98 170
2019-06-30 1,021 78 162
2019-03-31 1,021 75 161
2018-12-31 1,041 78 168
2018-09-30 1,056 86 190
2018-06-30 1,080 93 191
2018-03-31 1,095 54 187
2017-12-31 1,114 54 176
2017-09-30 1,115 102 174
2017-06-30 1,105 97 171
2017-03-31 1,104 132 332

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • SIA Engineering's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • SIA Engineering's revenue is expected to grow by 0.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SGX:S59 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from SIA Engineering Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SGX:S59 Future Estimates Data
Date (Data in SGD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-03-31 0.16 0.19 0.13 4.00
2021-03-31 0.14 0.17 0.09 5.00
2020-04-09
2020-03-31 0.15 0.16 0.15 5.00
SGX:S59 Past Financials Data
Date (Data in SGD Millions) EPS *
2019-12-31 0.17
2019-09-30 0.15
2019-06-30 0.14
2019-03-31 0.14
2018-12-31 0.15
2018-09-30 0.17
2018-06-30 0.17
2018-03-31 0.17
2017-12-31 0.16
2017-09-30 0.16
2017-06-30 0.15
2017-03-31 0.30

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • SIA Engineering is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess SIA Engineering's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Asia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Asia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
SIA Engineering has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

S59 Past Performance

  How has SIA Engineering performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare SIA Engineering's growth in the last year to its industry (Infrastructure).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • SIA Engineering's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • SIA Engineering's 1-year earnings growth exceeds its 5-year average (13.7% vs -4.7%)
  • SIA Engineering's earnings growth has exceeded the Asia Infrastructure industry average in the past year (13.7% vs 4.6%).
Earnings and Revenue History
SIA Engineering's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from SIA Engineering Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SGX:S59 Past Revenue, Cash Flow and Net Income Data
Date (Data in SGD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 1,020.80 190.87 522.69
2019-09-30 1,024.60 169.97 527.89
2019-06-30 1,021.30 161.97 531.79
2019-03-31 1,020.90 160.87 538.49
2018-12-31 1,041.28 167.81 539.21
2018-09-30 1,056.38 190.01 539.71
2018-06-30 1,079.78 190.61 542.11
2018-03-31 1,094.88 186.81 543.61
2017-12-31 1,113.94 176.47 552.86
2017-09-30 1,115.24 173.77 554.46
2017-06-30 1,105.34 170.67 548.56
2017-03-31 1,104.14 332.37 562.56
2016-12-31 1,102.87 327.93 548.52
2016-09-30 1,105.77 324.73 539.92
2016-06-30 1,106.97 333.73 535.82
2016-03-31 1,112.67 176.63 512.62
2015-12-31 1,094.49 176.58 514.81
2015-09-30 1,084.59 173.48 513.81
2015-06-30 1,103.79 171.08 520.11
2015-03-31 1,120.59 183.28 529.71
2014-12-31 1,155.72 207.08 538.90
2014-09-30 1,174.22 221.28 550.10
2014-06-30 1,182.92 250.18 558.70
2014-03-31 1,178.22 265.68 558.90
2013-12-31 1,150.62 266.36 562.80
2013-09-30 1,145.02 272.86 560.60
2013-06-30 1,135.62 268.96 552.10

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • SIA Engineering has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • SIA Engineering used its assets more efficiently than the Asia Infrastructure industry average last year based on Return on Assets.
  • SIA Engineering's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess SIA Engineering's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Infrastructure industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
SIA Engineering has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

S59 Health

 How is SIA Engineering's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up SIA Engineering's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • SIA Engineering is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • SIA Engineering's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of SIA Engineering's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 68.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from SIA Engineering Company Filings, last reported 3 months ago.

SGX:S59 Past Debt and Equity Data
Date (Data in SGD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 1,577.40 13.80 496.90
2019-09-30 1,573.10 15.70 503.50
2019-06-30 1,603.90 17.70 593.50
2019-03-31 1,564.03 19.29 523.07
2018-12-31 1,524.80 20.30 471.40
2018-09-30 1,518.20 20.90 455.00
2018-06-30 1,575.90 22.20 570.90
2018-03-31 1,514.95 21.92 501.74
2017-12-31 1,484.00 25.20 449.60
2017-09-30 1,483.80 26.80 467.20
2017-06-30 1,613.80 27.20 628.70
2017-03-31 1,588.00 25.96 604.22
2016-12-31 1,561.30 29.70 560.20
2016-09-30 1,525.30 32.30 539.80
2016-06-30 1,576.60 35.10 650.60
2016-03-31 1,511.91 33.27 395.29
2015-12-31 1,497.70 38.00 335.70
2015-09-30 1,365.30 36.10 406.20
2015-06-30 1,387.70 33.70 488.10
2015-03-31 1,349.60 33.22 465.46
2014-12-31 1,288.90 29.50 364.90
2014-09-30 1,296.20 26.70 391.20
2014-06-30 1,444.30 25.00 605.60
2014-03-31 1,390.46 21.85 537.04
2013-12-31 1,320.40 17.80 462.10
2013-09-30 1,328.00 11.50 465.80
2013-06-30 1,419.20 9.40 628.70
  • SIA Engineering's level of debt (0.9%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (2.3% vs 0.9% today).
  • Debt is well covered by operating cash flow (856.1%, greater than 20% of total debt).
  • SIA Engineering earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess SIA Engineering's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. SIA Engineering has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

S59 Dividends

 What is SIA Engineering's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
6.18%
Current annual income from SIA Engineering dividends. Estimated to be 6.46% next year.
If you bought SGD2,000 of SIA Engineering shares you are expected to receive SGD124 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • SIA Engineering's pays a higher dividend yield than the bottom 25% of dividend payers in Singapore (3.1%).
  • SIA Engineering's dividend is below the markets top 25% of dividend payers in Singapore (6.84%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SGX:S59 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
Asia Infrastructure Industry Average Dividend Yield Market Cap Weighted Average of 126 Stocks 3.4%
Singapore Market Average Dividend Yield Market Cap Weighted Average of 317 Stocks 5.4%
Singapore Minimum Threshold Dividend Yield 10th Percentile 1.8%
Singapore Bottom 25% Dividend Yield 25th Percentile 3.1%
Singapore Top 25% Dividend Yield 75th Percentile 6.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SGX:S59 Future Dividends Estimate Data
Date (Data in SGD) Dividend per Share (annual) Avg. No. Analysts
2022-03-31 0.12 4.00
2021-03-31 0.11 4.00
2020-04-09
2020-03-31 0.12 4.00
SGX:S59 Past Annualized Dividends Data
Date (Data in SGD) Dividend per share (annual) Avg. Yield (%)
2019-11-01 0.110 4.515
2019-07-19 0.110 4.271
2018-11-08 0.120 4.844
2018-06-28 0.130 4.376
2018-05-15 0.130 4.035
2017-11-03 0.130 4.028
2017-06-28 0.130 3.688
2017-05-12 0.130 3.239
2016-11-01 0.120 3.363
2016-06-28 0.140 3.713
2015-11-02 0.145 3.975
2015-06-29 0.145 3.922
2014-05-07 0.200 4.576
2013-11-07 0.220 4.509
2013-05-14 0.220 4.464
2012-10-30 0.220 4.734
2012-05-07 0.210 5.122
2011-10-28 0.200 5.416
2011-05-10 0.200 4.945
2010-11-02 0.190 4.488
2010-06-28 0.180 4.235
2010-05-14 0.180 4.706
2009-11-03 0.160 4.717
2009-05-11 0.160 6.025

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of SIA Engineering's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.3x coverage).
X
Income/ dividend checks
We assess SIA Engineering's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can SIA Engineering afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. SIA Engineering has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

S59 Management

 What is the CEO of SIA Engineering's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Chin Hwee Ng
COMPENSATION SGD114,000
AGE 58
TENURE AS CEO 0 years
CEO Bio

Mr. Chin Hwee Ng serves as Chief Executive Officer at SIA Engineering Company Limited since April 1, 2020 and also has been its Executive Director since April 1, 2020. Mr. Ng served as a Non-Executive and Non-Independent Director of SIA Engineering Company Limited since July 18, 2008 until April 1, 2020. He has been an Executive Vice President for Human Resources and Planning at Singapore Airlines Limited since January 2008. Mr. Ng joined SIA Singapore in 1985 and has been appointed to various Inland senior positions in Singapore and overseas. Among the overseas stints, he served as Manager of Myanmar for SIA's regional carrier Tradewinds (later renamed as SilkAir), SIA's Manager Victoria and Tasmania in Australia and General Manager of Germany. Upon his return to Singapore in 1988, he served as Vice President of Ground Services. He served as Divisional Vice President in 1999 and Senior Vice President Americas in 2001. He served as the President and Chief Executive Officer of SATS Ltd. (Singapore Airport Terminal Services Ltd.). He served as the Head of Human Resources at Singapore Airlines Limited since January 2008. He serves as the Chairman at SIA Properties (Pte) Ltd. He serves as a Director of Singapore Airlines Cargo Pte Ltd. He was appointed Executive Vice President Human Resources and Operations on 1 February 2011 at SIA and takes charge of the divisions of Cabin Crew, Engineering, Flight Operations, Customer Services and Operations, and Human Resources. Mr. Ng is a Director of Budget Aviation Holdings Pte Ltd and NokScoot Airlines Co Ltd. He is also the Co-Chairman of the Advisory Council on Community Relations in Defence (Employer and Business) and a member of the Future Economy Council, Trade and Connectivity Sub-Committee. He has been Non-Executive and Non-Independent Director of Tiger Airways Holdings Limited since March 03, 2015. He holds a Master of Science in Management from Massachusetts Institute of Technology, USA and a Bachelor of Engineering (1st Class Honours) from National University of Singapore.

CEO Compensation
  • Chin Hwee's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.
  • Chin Hwee's remuneration is lower than average for companies of similar size in Singapore.
Management Team Tenure

Average tenure and age of the SIA Engineering management team in years:

3.8
Average Tenure
59
Average Age
  • The tenure for the SIA Engineering management team is about average.
Management Team

Chin Hwee Ng

TITLE
CEO & Executive Director
COMPENSATION
SGD114K
AGE
58

Kim Chiang Png

TITLE
COMPENSATION
SGD2M
AGE
60

Stephen Lee

TITLE
Special Advisor to the Board of Directors
COMPENSATION
SGD215K
AGE
72
TENURE
1.8 yrs

Lay Pheng Ng

TITLE
Senior VP of Finance & CFO
TENURE
2.6 yrs

Ivan Neo

TITLE
Executive VP of Operations
TENURE
4 yrs

Kean Shuh Foo

TITLE
Senior VP of Line Maintenance & Cabin Services
TENURE
3.8 yrs

Wilin Ng

TITLE
Senior Vice President of Innovation
TENURE
1 yrs

May Lyn Tan

TITLE
Assistant Manager of Corporate Communications

Zarina Piperdi

TITLE
Senior VP of Human Resources
AGE
58
TENURE
13.4 yrs

Yue Jeen Wong

TITLE
Senior VP of Aircraft & Component Services
TENURE
4.6 yrs
Board of Directors Tenure

Average tenure and age of the SIA Engineering board of directors in years:

6.3
Average Tenure
58.5
Average Age
  • The tenure for the SIA Engineering board of directors is about average.
Board of Directors

Kin Fei Tang

TITLE
Independent Chairman of the Board
COMPENSATION
SGD154K
AGE
68
TENURE
1.8 yrs

Chin Hwee Ng

TITLE
CEO & Executive Director
COMPENSATION
SGD114K
AGE
58
TENURE
11.8 yrs

Manohar Ramesh Khiatani

TITLE
Independent Non-Executive Director
COMPENSATION
SGD124K
AGE
59
TENURE
7 yrs

Teck Soon Chew

TITLE
Independent Non-Executive Director
COMPENSATION
SGD142K
AGE
67
TENURE
6.9 yrs

Christina Ong Hon

TITLE
Non-Executive & Independent Director
COMPENSATION
SGD135K
AGE
68
TENURE
6.3 yrs

Choon Phong Goh

TITLE
Non-Executive & Non-Independent Director
COMPENSATION
SGD107K
AGE
56
TENURE
9.3 yrs

Raj Thampuran

TITLE
Non-Executive & Independent Director
COMPENSATION
SGD103K
AGE
55
TENURE
3.6 yrs

Siew Kim Wee

TITLE
Independent Non-Executive Director
COMPENSATION
SGD99K
AGE
59
TENURE
2.9 yrs

Yau Seng Chin

TITLE
Non-Executive Non independent Director
AGE
48
TENURE
1.5 yrs

Swee Wah Mak

TITLE
Non-Independent Non-Executive Director
AGE
58
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (SGD) Value (SGD)
X
Management checks
We assess SIA Engineering's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. SIA Engineering has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

S59 News

Simply Wall St News

Is SIA Engineering Company Limited's (SGX:S59) 10% ROE Strong Compared To Its Industry?

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for SIA Engineering: 10% = S$162m ÷ S$1.6b (Based on the trailing twelve months to June 2019.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … A company that can achieve a high return on equity without debt could be considered a high quality business. … If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

Simply Wall St -

SIA Engineering Company Limited (SGX:S59): Does The -15% Earnings Drop Reflect A Longer Term Trend?

Today I will run you through a basic sense check to gain perspective on how SIA Engineering is doing by comparing its latest earnings with its long-term trend as well as the performance of its infrastructure industry peers. … View our latest analysis for SIA Engineering Was S59's recent earnings decline worse than the long-term trend and the industry? … Typically companies that endure a prolonged period of diminishing earnings are undergoing some sort of reinvestment phase in order to keep up with the recent industry growth and disruption.

Simply Wall St -

Why It Might Not Make Sense To Buy SIA Engineering Company Limited (SGX:S59) For Its Upcoming Dividend

See our latest analysis for SIA Engineering Dividends are typically paid from company earnings. … A useful secondary check can be to evaluate whether SIA Engineering generated enough free cash flow to afford its dividend. … SIA Engineering paid out less in dividends than it reported in profits, but unfortunately it didn't generate enough cash to cover the dividend.

Simply Wall St -

Examining SIA Engineering Company Limited’s (SGX:S59) Weak Return On Capital Employed

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for SIA Engineering: 0.036 = S$58m ÷ (S$1.8b - S$246m) (Based on the trailing twelve months to March 2019.) So, SIA Engineering has an ROCE of 3.6%. … Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE.

Simply Wall St -

What Should You Know About SIA Engineering Company Limited's (SGX:S59) Future?

Generally, analysts seem fairly confident, with earnings expected to grow by 4.5% in the upcoming year compared with the past 5-year average growth rate of -4.5%. … To reduce the year-on-year volatility of analyst earnings forecast, I've inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line. … SGX:S59 Past and Future Earnings, July 1st 2019 This results in an annual growth rate of 4.4% based on the most recent earnings level of S$161m to the final forecast of S$184m by 2022.

Simply Wall St -

Is SIA Engineering Company Limited (SGX:S59) A Good Dividend Stock?

While SIA Engineering's dividends were covered by the company's reported profits, free cash flow is somewhat more important, so it's not great to see that the company didn't generate enough cash to pay its dividend. … A shrinking dividend over a ten-year period is not ideal, and we'd be concerned about investing in a dividend stock that lacks a solid record of growing dividends per share. … Dividend Growth Potential With a relatively unstable dividend, it's even more important to see if earnings per share (EPS) are growing. Why take the risk of a dividend getting cut, unless there's a good chance of bigger dividends in future? It's not great to see that SIA Engineering's have fallen at approximately 9.6% over the past five years. If earnings continue to decline, the dividend may come under pressure. Every investor should make an assessment of whether the company is taking steps to stabilise the situation. Conclusion Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing.

Simply Wall St -

Is SIA Engineering Company Limited's (SGX:S59) CEO Pay Fair?

At the time of writing our data says that SIA Engineering Company Limited has a market cap of S$2.8b, and is paying total annual CEO compensation of S$2.0m. … Thus we can conclude that Kim Chiang Png receives more in total compensation than the median of a group of companies in the same market, and of similar size to SIA Engineering Company Limited. … We compared total CEO remuneration at SIA Engineering Company Limited with the amount paid at companies with a similar market capitalization.

Simply Wall St -

Despite Its High P/E Ratio, Is SIA Engineering Company Limited (SGX:S59) Still Undervalued?

The formula for price to earnings is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for SIA Engineering: P/E of 16.9 = SGD2.43 ÷ SGD0.14 (Based on the trailing twelve months to March 2019.) Is A High Price-to-Earnings Ratio Good? … The higher the P/E ratio, the higher the price tag of a business, relative to its trailing earnings. … All else being equal, it's better to pay a low price -- but as Warren Buffett said, 'It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.' How Growth Rates Impact P/E Ratios Companies that shrink earnings per share quickly will rapidly decrease the 'E' in the equation.

Simply Wall St -

What Do Analysts Think About SIA Engineering Company Limited's (SGX:S59) Long Term Outlook?

Below, I've laid out key numbers on how market analysts predict SIA Engineering's earnings growth trajectory over the next few years and whether the future looks brighter. … View our latest analysis for SIA Engineering Analysts' expectations for this coming year seems rather subdued, with earnings increasing by a single digit 3.8%. … SGX:S59 Past and Future Earnings, May 12th 2019 Even though it’s useful to understand the growth rate year by year relative to today’s figure, it may be more valuable evaluating the rate at which the earnings are growing every year, on average.

Simply Wall St -

A Look At The Intrinsic Value Of SIA Engineering Company Limited (SGX:S59)

Today we will run through one way of estimating the intrinsic value of SIA Engineering Company Limited (SGX:S59). … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model? … The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period.

Simply Wall St -

S59 Company Info

Description

SIA Engineering Company Limited, together with its subsidiaries, provides maintenance, repair, and overhaul (MRO) services to airlines carriers and aerospace equipment manufacturers worldwide. The company operates through two segments, Airframe and Line Maintenance; and Engine and Component. The Airframe and Line Maintenance segment provides airframe maintenance, line maintenance, and fleet management programs. Its services include scheduled routine maintenance and overhaul, specialized and non-routine maintenance, and modification and refurbishment programs; aircraft certification and technical ground handling services, such as push-back and towing, as well as the provision of aircraft ground support equipment and rectification work; and fleet technical management and inventory technical management services, which include the provision of engineering and MRO solutions. The Engine and Component segment provides component overhaul, and engine repair and overhaul services. SIA Engineering Company Limited also manufactures aircraft cabin parts and tooling for the aerospace industry. The company was incorporated in 1982 and is based in Singapore. SIA Engineering Company Limited is a subsidiary of Singapore Airlines Limited.

Details
Name: SIA Engineering Company Limited
S59
Exchange: SGX
Founded: 1982
SGD1,926,939,362
1,120,313,583
Website: http://www.siaec.com.sg
Address: SIA Engineering Company Limited
31 Airline Road,
Singapore,
819831,
Singapore
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SGX S59 Ordinary Shares Singapore Exchange SG SGD 12. May 2000
OTCPK SEGS.F Ordinary Shares Pink Sheets LLC US USD 12. May 2000
BST O3H Ordinary Shares Boerse-Stuttgart DE EUR 12. May 2000
OTCPK SEGS.Y UNSPONSORD ADR Pink Sheets LLC US USD 11. Nov 2008
Number of employees
Current staff
Staff numbers
4,540
SIA Engineering employees.
Industry
Airport Services
Transportation
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/09 12:44
End of day share price update: 2020/04/09 00:00
Last estimates confirmation: 2020/03/20
Last earnings filing: 2020/02/07
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.