Singapore Technologies Engineering Limited

Singapore Technologies Engineering Limited

Singapore Technologies Engineering Limited

Home : Singapore Stock Exchange (www.sgx.com)

Singapore Technologies Engineering Limited

 Stock Code  : S63

Singapore Technologies Engineering Limited

Website : www.stengg.com

Singapore Technologies Engineering Limited operates in the field of Aerospace, Electronics, Land Systems, Marine, Defence, Commercial and Other Systems. Singapore Technologies Engineering Limited is listed on the Main Board of the Singapore Exchange Securities Trading Limited (SGX-ST) since 1997. It is traded with stock code S63 and short name ST Engg.

Singapore Technologies Engineering Limited is an engineering based congloramate with headquarters in Singapore and partner countries globally.  It is engaged in defence technologies and commericalization of commercial engineering technologies.

ST Engg Overall Performance Measures

  est 2012 2011 2010 2009 2008
Return on assets 0.087 0.083 0.084 0.076 0.089
Return on invested capital 0.146 0.138 0.136 0.120 0.183
Return on shareholder’s equity 0.329 0.299 0.303 0.283 0.300
Return on capital employed 0.163 0.155 0.158 0.134 0.201

The ratios for overall performance measures are in the double digits. Furthermore, the numbers appear to return the values consistently. Consistency represents quality earning and business is healthy. 

Note that Return on assets is single digit. See supporting argument from investment utilization.

ST Engg Limited Profitability Measures

  est 2012 2011 2010 2009 2008
Gross margin 0.224 0.218 0.211 0.207 0.216
Profit margin 0.092 0.090 0.084 0.082 0.091
earnings per share (cents) 0.181 0.173 0.161 0.148 0.158

Margins are consistent through the 4 years of analysis. Earnings per share returns a PE ratio in the range of 20 based on the current price of $3.70.

ST Engg Ratio on Investment Utilization

  est 2012 2011 2010 2009 2008
Asset turnover 0.822 0.809 0.823 0.806 0.892
Invested capital turnover 1.584 1.525 1.610 1.459 2.001
Equity turnover 3.421 3.193 3.466 3.310 3.187
Capital Intensity 4.597 4.416 4.598 4.755 5.244
cash cost per day, $mil na 14.3 14.4 13.4 12.7

 The low return on asset is supported by its higher asset turnover of above 0.8 times every year.

Analysis

The business is forecasted to close the year with rising top line growth, translated into rising operating income and also rising bottom line. The business is expected to improve share holder’s equity ratio by the end of the financial year. It is not expected to be much headwinds for the financial year.

If we expect a christmas rally, Singapore Technologies Engineering Limited is expected to break new 52 week highs with the christmas rally.

 

Singapore Technologies Engineering Limited