CSE Global (544) AI Stock Analysis

• Market Cap: $345.43M
• Dividend Yield: 4.62%
• Average Volume (3M): 3.05M
• Price to Earnings (P/E): 12.3
• Beta (1Y): 0.87
• Revenue Growth: 18.77%
• EPS Growth: 7.38%
• Country: SG
• Employees: 1,503
• Sector: Technology
• Sector Strength: 78
• Industry: Information Technology Services
• EPS (TTM): N/A
• Shares Outstanding: 715,892,640
• 10 Day Avg. Volume: 5,343,140
• 30 Day Avg. Volume: 3,047,310
• PEG Ratio: -0.55
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -11.33
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $0.68
• Price Target Upside: 41.36% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 79 Outperform
• Price Target: S$0.50 ▲(4.17%Upside)

CSE Global's overall stock score is driven by its strong financial performance and attractive valuation, despite challenges in cash flow generation. The stock's bullish technical indicators are promising, but caution is warranted due to potential overbought conditions.

Positive Factors

Dividend Policy

Management's decision to increase the dividend payout ratio to a minimum of 50% underscores confidence in the company’s earnings resilience and stable cash flow.

Earnings Performance

CSE's 2024 earnings of S$26m (+17% yoy) beat expectations by 18%, due to better-than-expected margins.

Orderbook and Market Position

The orderbook remains healthy at S$673m (+6% qoq), backed by a healthy order win momentum.

Negative Factors

Dividend Reduction

Final dividend was 23% lower on management’s efforts to reinvest in long-term growth.

Financial Risks

Downside risks include cost overruns and a significant slowdown in order wins.

Order Wins

Order wins declined as customers delayed awards due to uncertainty caused by trade tariffs.

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 its diverse portfolio of technological solutions and services. The company's key revenue streams include providing integrated automation solutions, telecommunications systems, and environmental engineering services. By offering end-to-end solutions that encompass design, engineering, implementation, and maintenance, CSE Global establishes long-term partnerships with its clients, ensuring recurring revenue through maintenance contracts and service agreements. Additionally, strategic partnerships and collaborations with leading technology firms enhance its offerings and market reach, contributing to its earnings. The company also benefits from its global presence, allowing it to tap into various regional markets and sectors, further bolstering its revenue streams.

CSE Global Financial Statement Overview

Summary

CSE Global has shown strong revenue growth and improved profitability margins, with stable gross profit and net profit margins. The balance sheet reflects reduced leverage and improved equity ratios, yet cash flow generation has declined due to increased capital expenditures.

Income Statement

CSE Global has demonstrated strong and consistent revenue growth, evidenced by a revenue increase from $725 million in 2023 to $861 million in 2024. The gross profit margin has remained stable, with a slight improvement from 27.6% in 2023 to 28.0% in 2024, indicating efficient cost management. The net profit margin also improved from 3.1% in 2023 to 3.6% in 2024, reflecting enhanced profitability. Additionally, both EBIT and EBITDA margins have shown positive trends, contributing to overall financial stability.

Balance Sheet

The company's balance sheet is relatively strong with a manageable debt-to-equity ratio of 0.60 in 2024, down from 0.66 in 2023, indicating reduced leverage. Stockholders' equity has increased, contributing to a healthier equity ratio of 40.5% in 2024 compared to 36.1% in 2023. Return on equity improved to 10.3% in 2024 from 10.4% in 2023, showing effective use of equity to generate profits. However, the company needs to maintain its focus on managing liabilities to ensure sustained financial health.

Cash Flow

CSE Global's cash flow from operations decreased from $55.9 million in 2023 to $33.1 million in 2024, indicating some challenges in cash generation. Free cash flow also declined to $12.3 million in 2024 from $37.1 million in 2023, attributed to higher capital expenditures. The operating cash flow to net income ratio remains healthy, but the free cash flow to net income ratio has weakened, which could impact liquidity if not addressed.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
861.17M	725.05M	557.70M	468.66M	502.79M
	Gross Profit
241.16M	199.86M	146.18M	135.88M	146.20M
	EBIT
54.21M	38.36M	8.14M	20.14M	36.80M
	EBITDA
72.39M	64.17M	34.05M	43.13M	58.46M
	Net Income Common Stockholders
26.34M	22.53M	4.77M	15.00M	28.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
57.40M	39.43M	24.15M	45.52M	49.39M
	Total Assets
632.63M	598.37M	493.66M	397.51M	401.87M
	Total Debt
154.64M	143.20M	128.09M	118.95M	116.02M
	Net Debt
97.24M	104.82M	103.94M	73.43M	66.63M
	Total Liabilities
376.60M	382.29M	281.36M	205.51M	210.23M
	Stockholders Equity
255.99M	216.15M	212.30M	192.04M	191.77M
Cash Flow		Free Cash Flow
12.31M	37.09M	-16.01M	19.08M	29.27M
	Operating Cash Flow
33.10M	55.90M	10.00K	29.38M	40.10M
	Investing Cash Flow
-33.28M	-24.39M	-45.72M	-15.50M	-9.64M
	Financing Cash Flow
19.31M	-16.84M	25.05M	-17.96M	-32.12M

CSE Global Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.48
• 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 0.48 is above the 20-day moving average (MA) of 0.45, above the 50-day MA of 0.43, and above the 200-day MA of 0.43, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 69.37 is Neutral, neither overbought nor oversold. The STOCH value of 88.57 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
544	79 Outperform	$345.43M	12.31	11.20%	4.62%	18.77%	7.38%
Sector *	62 Neutral	$11.80B	10.08	-7.46%	2.99%	7.37%	-8.21%
SCRPF		$9.56B	12.93	20.60%	4.76%	―	―
SGGKF		$18.82B	38.91	27.51%	1.95%	―	―
TBVPF		$9.12B	13.07	15.42%	5.00%	―	―
WLMIF		$14.80B	12.59	5.84%	6.53%	―	―
BN4	72 Outperform	S$12.46B	13.99	7.90%	8.31%	-5.24%	-77.23%

CSE Global Corporate Events

CSE Global Limited Conducts Annual General Meeting

CSE Global Limited held its Annual General Meeting (AGM) at the Suntec Singapore Convention & Exhibition Centre on April 21, 2025. The meeting was attended by the company’s board of directors and key financial personnel. The AGM commenced with a quorum present, and the chairman welcomed the shareholders, introducing the board members in attendance.

The most recent analyst rating on (SG:544) stock is a Buy with a S$0.56 price target. To see the full list of analyst forecasts on CSE Global stock, see the SG:544 Stock Forecast page.

CSE Global Secures S$155.3 Million in 1Q2025 Orders with Strong Growth in Communications and Automation

CSE Global Limited announced securing S$155.3 million in new orders for the first quarter of 2025, with significant contributions from its Communications and Automation segments. The Communications segment saw a 20.4% increase in orders due to a substation radio communication project in the Asia Pacific and recent acquisitions in the USA, while Automation grew by 19.8% driven by a major contract in the oil and gas sector. However, the Electrification segment experienced a 52.4% decline due to a strategic shift towards data centers and utilities. The Group closed the quarter with an order book of S$616.0 million, reflecting its strategic focus and market adaptability.

CSE Global Secures $15 Million in Orders for Data Center Communications

CSE Global Limited announced that its subsidiary, CSE Crosscom USA, Inc., has secured orders worth US$15 million to provide critical communications services to a major data center hyperscaler. The project involves engineering design, installation, and maintenance of advanced communications networks, including two-way radio systems and Distributed Antenna Systems, across multiple regions. This development highlights CSE Global’s ability to tailor solutions for different industries and underscores the growing demand for communications solutions in the data center sector, driven by the rise of AI. The contracts are not expected to significantly impact the company’s financial metrics for the current year.

CSE Global Introduces New Dividend Guidance Policy

CSE Global Limited has announced a new dividend guidance policy, aiming to distribute at least 50% of its consolidated net profit attributable to equity holders as dividends annually. This approach balances shareholder returns with reinvestment for growth, providing predictability and stability for income-focused investors while retaining flexibility for future investments and capital expenditures.