CSE Global (544) AI Stock Analysis

• Market Cap: $558.37M
• Dividend Yield: 2.71%
• Average Volume (3M): 6.29M
• Price to Earnings (P/E): 19.8
• Beta (1Y): 1.02
• Revenue Growth: 8.52%
• EPS Growth: -6.22%
• Country: SG
• Employees: 1,503
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.02
• Shares Outstanding: 724,138,700
• 10 Day Avg. Volume: 5,095,130
• 30 Day Avg. Volume: 6,291,166
• PEG Ratio: 1.56
• Price to Book (P/B): 1.09
• Price to Sales (P/S): 0.33
• P/FCF Ratio: 22.75
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 0.49
• Enterprise Value/Gross Profit: 1.73
• Enterprise Value/Ebitda: 6.33
• 1Y Price Target: $0.85
• Price Target Upside: 0.72% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 74 Outperform
• Price Target: S$1.00 ▲(19.05% Upside)

CSE Global's strong financial performance and positive technical indicators are the primary drivers of its stock score. However, cash flow challenges and a stretched valuation moderate the overall score. The absence of recent earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

The significant revenue growth indicates robust demand for CSE Global's services, suggesting strong market positioning and the potential for continued expansion.

Profitability

Stable profitability with healthy margins reflects efficient operations and pricing power, which can support long-term financial health and shareholder returns.

Balanced Capital Structure

A balanced capital structure with manageable leverage enhances financial stability, providing flexibility for future investments and growth opportunities.

Negative Factors

Cash Flow Challenges

Negative cash flow trends highlight potential liquidity issues, which could constrain the company's ability to invest in growth and meet financial obligations.

EBITDA Margin Decline

A decline in EBITDA margin suggests rising costs or pricing pressures, which could impact profitability if not addressed, affecting long-term financial performance.

Earnings Per Share Decline

A decline in EPS growth can indicate challenges in maintaining profitability, potentially affecting investor confidence and the company's ability to reinvest in its operations.

CSE Global Business Overview & Revenue Model

Company Description

CSE Global Limited, an investment holding company, provides integrated industrial automation, information technology, and intelligent transport solutions in the Asia Pacific, the Americas, Europe, the Middle East, and Africa. The company offers automation solutions, including process control, safety shutdown, fire and gas detection, supervisory control and data acquisition (SCADA), wellhead and subsea control, process skid, electrical drive and high/medium voltage, electrical protection and control, real-time information, and intelligent transport systems, as well as I&E construction and safe secure solutions. It also provides environmental solutions comprising multiple hearth furnaces, fluid bed incinerators, carbon and energy recovery systems, and rotary kiln incinerators. In addition, the company offers telecommunication solutions, including construction communications, fiber optic, microwave radio, conventional and trunked radio, and public address and general alarm systems; VSAT satellite communications, telephone, local and wide area, Internet protocol based, and SCADA and telemetry networks; and CCTV, access control, and FIDS systems. Further, it provides e-business integration, research and development, and computer system integration services; computer network systems; computer systems; infrastructure engineering services; plant and environmental engineering services; contracting resources and permanent placement; and two-way radio services. Additionally, the company distributes electrical engineering equipment; designs and installs high temperature thermal process and incineration systems; designs and develops water treatment and disposal technology; provides commercial building controls and automation services; and leases office and warehouse space. It serves oil and gas, infrastructure, and mining industries. CSE Global Limited was founded in 1985 and is headquartered in Singapore.

How the Company Makes Money

CSE Global generates revenue primarily through the sale of its engineering and technology solutions, including automation and control systems tailored for specific industries. The company's revenue model is built on project-based contracts, long-term service agreements, and recurring maintenance services. Key revenue streams include the design and implementation of SCADA systems, telemetry solutions, and integrated control systems, which are often accompanied by ongoing support and maintenance contracts. Additionally, CSE Global benefits from strategic partnerships with major industry players, enabling access to new markets and enhancing its service offerings. The company's ability to adapt to industry trends and technological advancements also plays a significant role in sustaining its earnings.

CSE Global Financial Statement Overview

Summary

CSE Global shows strong revenue growth and improving profitability metrics, supported by a stable balance sheet. However, cash flow challenges, particularly negative operating cash flow, need to be addressed to ensure financial stability.

Income Statement

CSE Global has demonstrated strong revenue growth with a TTM increase of 55.4% and consistent gross profit margins around 28%. The net profit margin is stable at approximately 3%, and EBIT and EBITDA margins are improving, indicating efficient cost management. However, the net profit margin remains relatively low, suggesting room for improvement in profitability.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.72, reflecting a balanced approach to leveraging. Return on equity has improved to 13.1% in the TTM, showcasing effective use of equity to generate profits. The equity ratio remains stable, indicating a solid capital structure. However, the increasing debt levels could pose a risk if not managed carefully.

Cash Flow

CSE Global's cash flow performance is mixed. Despite a significant increase in free cash flow growth, the operating cash flow is negative in the TTM, which could impact liquidity. The free cash flow to net income ratio is exceptionally high, suggesting potential issues with cash conversion. Improving operating cash flow is crucial for sustaining long-term growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.09B	861.17M	725.05M	557.70M	468.66M	502.79M
Gross Profit	307.04M	241.16M	199.86M	146.18M	135.88M	146.20M
EBITDA	83.94M	72.39M	64.17M	34.05M	43.13M	58.46M
Net Income	33.29M	26.34M	22.53M	4.77M	15.00M	28.00M
Balance Sheet
Total Assets	618.19M	632.63M	598.37M	493.66M	397.51M	401.87M
Cash, Cash Equivalents and Short-Term Investments	49.37M	57.40M	39.43M	34.21M	46.51M	52.52M
Total Debt	181.32M	154.64M	143.20M	128.09M	118.95M	116.02M
Total Liabilities	366.65M	376.60M	382.29M	281.36M	205.51M	210.23M
Stockholders Equity	251.54M	255.99M	216.15M	212.30M	192.04M	191.77M
Cash Flow
Free Cash Flow	-22.41M	12.31M	37.09M	-16.01M	19.08M	29.27M
Operating Cash Flow	-1.48M	33.10M	55.90M	10.00K	29.38M	40.10M
Investing Cash Flow	-4.57M	-33.28M	-24.39M	-45.72M	-15.50M	-9.64M
Financing Cash Flow	-63.69M	19.31M	-16.84M	25.05M	-17.96M	-32.12M

CSE Global Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.84
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:544, the sentiment is Positive. The current price of 0.84 is above the 20-day moving average (MA) of 0.76, above the 50-day MA of 0.73, and above the 200-day MA of 0.55, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 69.83 is Neutral, neither overbought nor oversold. The STOCH value of 98.04 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:544.

CSE Global Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BBW	―	S$459.00M	16.01	86.78%	4.31%	44.28%	96.41%
544	―	$558.37M	19.77	10.84%	2.71%	8.52%	-6.22%
8AZ	―	S$520.96M	13.03	12.72%	16.30%	-50.75%	-61.46%
E28	―	S$602.20M	15.48	9.11%	1.58%	11.57%	0.89%
AWX	―	S$576.61M	42.30	2.87%	―	4.60%	―
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
MZH	―	S$456.21M	35.00	3.50%	0.95%	22.66%	83.49%

CSE Global Corporate Events

CSE Global Implements Strategic Restructuring for Enhanced Efficiency

CSE Global Limited has announced a series of strategic changes aimed at streamlining its operations and enhancing efficiency. These changes include the liquidation and striking off of dormant subsidiaries in the Middle East and India, the merger and winding up of several subsidiaries in the United States, and an increase in capital for its wholly-owned subsidiary, CSE Crosscom International Pte Ltd. These moves are part of the company’s ongoing restructuring plan to optimize its organizational structure and improve financial performance.

CSE Global Secures S$211.3 Million in 2Q2025 Orders Amid Currency Challenges

CSE Global Limited announced securing S$211.3 million in new orders for the second quarter of 2025, marking a 3.8% increase year-on-year. Despite currency volatility affecting the order intake, the Electrification segment led with S$94.8 million in orders, driven by data center demand. The Communications segment saw significant growth with a major contract for a data center communications network, while the Automation segment contributed S$44.1 million in new orders.

CSE Global Secures $46 Million Contract Variations in U.S. Data Centre Market

CSE Global Limited has secured significant contract variations worth US$46.0 million in the U.S. data centre market, extending its current contract with a hyperscaler customer. This development highlights the company’s growing momentum in the expanding data centre sector, driven by increased demand for cloud services, and is expected to positively impact its financial performance in 2025 and 2026.