CSE Global (544) AI Stock Analysis

• Market Cap: S$972.64M
• Dividend Yield: 2.41%
• Average Volume (3M): 6.29M
• Price to Earnings (P/E): 18.7
• Beta (1Y): 1.00
• Revenue Growth: 8.52%
• EPS Growth: -6.22%
• Country: SG
• Employees: 1,503
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.03
• Shares Outstanding: 724,138,700
• 10 Day Avg. Volume: 5,095,130
• 30 Day Avg. Volume: 6,291,166
• PEG Ratio: 0.54
• Price to Book (P/B): 2.55
• Price to Sales (P/S): 0.73
• P/FCF Ratio: -7.34
• 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: S$1.34
• Price Target Upside: 4.62% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 0.07
• Revenue Forecast (FY): S$1.14B

• Rating: 58 Neutral
• Price Target: S$1.50 ▲(17.19% Upside)
• Action: Reiterated Date: 03/03/26
• Date: Action: Reiterated 03/03/26

The score is held back primarily by weaker financial quality in 2025—negative operating/free cash flow, higher leverage, and a revenue decline—despite continued profitability. Offsetting this, technicals are strong with clear positive trend signals, while valuation is only moderate given a ~25 P/E and modest ~1.78% yield.

Positive Factors

Recurring & aftermarket revenue

CSE’s aftermarket, maintenance and multi-year service contracts create steadier, more predictable revenue beyond lumpy project work. That recurring stream lengthens customer relationships, supports aftermarket margins and reduces sensitivity to single large project cycles over months to years.

Stable profitability and ROE

Reported ROE near 13.6% and positive operating/net income indicate the business can generate returns on capital. Sustained profitability gives capacity for internal reinvestment, supports servicing debt if cash conversion improves, and underpins long-term operational viability.

Historical growth track record

The company’s multi-year expansion through 2022–2024 demonstrates ability to win and scale project work and integrations. That track record implies commercial competitiveness and execution capability, increasing the likelihood of recovery if market or execution issues driving 2025 weakness are addressed.

Negative Factors

Weak cash generation

Cash conversion deteriorated materially in 2025 despite positive net income, pointing to working-capital or collection stress. Persistent negative operating/free cash flow erodes liquidity, forces external funding or higher leverage, and constrains capex, service delivery and dividend sustainability over the coming months.

Rising leverage

Leverage stepped up materially in 2025, reducing financial flexibility. Higher debt increases interest burden and refinancing risk, leaving the firm more exposed to project delays or margin compression; if cash flows remain inconsistent, this elevates solvency and covenant risks over the medium term.

Revenue decline and thin margins

A notable top-line decline paired with modest net margins highlights growth volatility and limited buffer against cost shocks. For a project-driven systems integrator, shrinking revenue and thin profitability amplify execution and fixed-cost risks, making it harder to rebuild reserves or absorb future project overruns.

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

Profitability is positive with improved earnings and healthy ROE (~13.6%), but 2025 revenue declined (~11.1%), leverage increased sharply (debt-to-equity ~1.12), and cash generation deteriorated materially with negative operating and free cash flow despite positive net income.

Income Statement

Profitability has improved versus earlier years, with 2025 showing higher net income and solid operating profitability (about 5.8% operating margin and 3.9% net margin). However, growth has turned volatile: after strong expansion in 2022–2024, revenue declined ~11.1% in 2025, and margins remain relatively thin versus the earlier peak in 2020 (about 5.6% net margin then). Overall: steady profitability, but a weaker near-term growth trajectory.

Balance Sheet

The balance sheet expanded alongside the business (assets and equity up over time), and returns on equity are healthy in 2025 (~13.6%). The key concern is leverage: debt rose sharply in 2025, pushing debt-to-equity to ~1.12 (up from ~0.60–0.66 in prior years), which reduces flexibility if earnings or cash flows soften. Overall: improving scale and returns, offset by a meaningful step-up in leverage.

Cash Flow

Cash generation weakened materially in 2025, with operating cash flow turning negative and free cash flow deeply negative, despite reporting positive net income—suggesting working-capital or cash-conversion pressure. Prior years (2023–2024) showed positive operating cash flow and free cash flow, but the latest year’s reversal raises near-term funding and execution risk, particularly given the higher debt load. Overall: inconsistent cash conversion with a notable deterioration in the most recent period.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.09B	968.92M	861.17M	725.05M	557.70M	468.66M
Gross Profit	307.04M	261.91M	241.16M	199.86M	146.18M	135.88M
EBITDA	83.94M	84.79M	72.39M	64.17M	34.05M	43.13M
Net Income	33.29M	37.49M	26.34M	22.53M	4.77M	15.00M
Balance Sheet
Total Assets	618.19M	757.54M	632.63M	598.37M	493.66M	397.51M
Cash, Cash Equivalents and Short-Term Investments	49.37M	46.18M	57.40M	39.43M	34.21M	46.51M
Total Debt	181.32M	309.70M	154.64M	143.20M	128.09M	118.95M
Total Liabilities	366.65M	482.00M	376.60M	382.29M	281.36M	205.51M
Stockholders Equity	251.54M	275.46M	255.99M	216.15M	212.30M	192.04M
Cash Flow
Free Cash Flow	-22.41M	-95.74M	12.31M	37.09M	-16.01M	19.08M
Operating Cash Flow	-1.48M	-67.22M	33.10M	55.90M	10.00K	29.38M
Investing Cash Flow	-4.57M	-241.00K	-33.28M	-24.39M	-45.72M	-15.50M
Financing Cash Flow	-63.69M	57.34M	19.31M	-16.84M	25.05M	-17.96M

CSE Global Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.28
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 1.28 is above the 20-day moving average (MA) of 1.26, above the 50-day MA of 1.12, and above the 200-day MA of 0.81, indicating a bullish trend. The MACD of 0.06 indicates Positive momentum. The RSI at 55.90 is Neutral, neither overbought nor oversold. The STOCH value of 55.00 is Neutral, 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
E28	71 Outperform	S$872.65M	15.07	9.11%	1.88%	11.57%	0.89%
8AZ	71 Outperform	S$574.99M	12.58	12.72%	17.05%	-50.75%	-61.46%
BBW	69 Neutral	S$336.00M	11.82	70.97%	5.52%	32.76%	54.96%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
AWX	61 Neutral	S$958.46M	31.84	2.87%	―	4.60%	―
544	58 Neutral	S$972.64M	18.74	10.84%	2.41%	8.52%	-6.22%
MZH	54 Neutral	S$433.40M	32.46	3.50%	1.12%	22.66%	83.49%

CSE Global Corporate Events

CSE Global Restructures Subsidiaries and Boosts Capital in China Unit

CSE Global has implemented several corporate housekeeping measures across its subsidiaries in the second half of 2025, including renaming its Australian unit Astib Group Pty Ltd to Logic Technologies Pty Ltd and merging Epic Automation, LLC into Epic Engineering, LLC, with the latter as the surviving entity. These steps form part of an ongoing restructuring plan aimed at streamlining operations, enhancing efficiency, optimising capital allocation by increasing share capital in CSE Hankin (China) Co. Ltd, and winding up the dormant Transtel Engineering (Tianjin) Co. Ltd, signalling a tighter focus on active, growth-aligned businesses in key markets.

The name change and merger could sharpen brand clarity and reduce administrative overlap within CSE Global’s engineering and automation portfolio, improving internal coordination and cost efficiency. The capital injection into CSE Hankin China strengthens the group’s financial commitment to its China operations, while the liquidation of a dormant Chinese subsidiary removes non-core entities from the structure, which may marginally lower overheads and improve transparency for stakeholders.

The most recent analyst rating on (SG:544) stock is a Buy with a S$1.50 price target. To see the full list of analyst forecasts on CSE Global stock, see the SG:544 Stock Forecast page.

CSE Global Allows Partial Elections Under Scrip Dividend Scheme

CSE Global Limited has amended the terms of its Scrip Dividend Scheme, originally adopted in April 2024, to allow shareholders to make partial elections for scrip rather than opting solely for full scrip or full cash. The board has approved a restated Scheme Statement reflecting these changes, which is intended to give investors greater flexibility in how they receive their dividend distributions and may enhance the scheme’s attractiveness to different types of shareholders.

The updated terms are set out in a restated Scheme Statement that replaces the earlier version, with all modifications formally endorsed by the board of directors. This move could improve capital management options for the company while offering shareholders more tailored participation in the dividend reinvestment mechanism, potentially supporting longer-term shareholder engagement.

The most recent analyst rating on (SG:544) stock is a Buy with a S$1.50 price target. To see the full list of analyst forecasts on CSE Global stock, see the SG:544 Stock Forecast page.

CSE Global hits record S$1 billion in FY2025 orders on U.S. electrification surge

CSE Global reported record new orders of S$1.0 billion for FY2025, a 28.3% increase from the prior year, driven primarily by strong growth in its Electrification and Communications segments. The Group’s fourth-quarter order intake more than doubled year-on-year to S$514.7 million, supported by heightened demand for electrification solutions in the U.S. and an extension from an existing hyperscaler customer.

Electrification led the performance with orders surging 196.4% in 4Q2025 to S$414.5 million, bolstered by four major U.S. contracts worth S$348.0 million for power distribution centres and integrated electrical and control systems in the LNG market. The strong order momentum lifted CSE’s ending order book to S$709.5 million, and management signalled cautious optimism about sustaining growth despite macroeconomic and geopolitical headwinds, underscoring the company’s strengthening position in critical energy and infrastructure markets.

The most recent analyst rating on (SG:544) stock is a Buy with a S$1.50 price target. To see the full list of analyst forecasts on CSE Global stock, see the SG:544 Stock Forecast page.

CSE Global Wins US$143.5 Million in U.S. Data Centre Contract Variations

CSE Global has secured US$143.5 million in major contract variations from an existing hyperscale data centre customer in the United States, extending a current agreement to cover the design, engineering, fabrication, installation and integration of power management systems. The additional work strengthens CSE Global’s order book in the fast-growing data centre market, underscores the customer’s confidence in its solutions, and is expected to boost the Group’s financial performance in the 2026 financial year, although it will not materially affect net tangible assets or earnings per share for the current year.

The most recent analyst rating on (SG:544) stock is a Buy with a S$1.22 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$161.7 Million Electrification Contracts in USA

CSE Global Limited has secured three significant contracts worth approximately S$161.7 million in the USA, aimed at designing and manufacturing power distribution centers and integrating complex electrical and control systems for the LNG market. These contracts, expected to be executed between 2026 and 2028, reflect the company’s robust integration capabilities and are anticipated to enhance its financial performance during this period, although they will not materially impact the current financial year’s net tangible assets or earnings per share.

The most recent analyst rating on (SG:544) stock is a Buy with a S$1.22 price target. To see the full list of analyst forecasts on CSE Global stock, see the SG:544 Stock Forecast page.

CSE Global Announces Board Changes

CSE Global Limited, a company incorporated in Singapore, has announced changes in its Board of Directors and Board Committees effective from December 10, 2025. Mr. Tan Teck Koon has resigned as Non-Executive Non-Independent Director, Board Chairman, and member of the Nominating and Remuneration Committees. The company expressed appreciation for Mr. Tan’s contributions. Mr. Eugene Paul Lai Chin Look has been appointed to fill these roles, nominated by Heliconia Capital Management, the controlling shareholder. Mr. Lai’s extensive experience and expertise are expected to enhance the board’s diversity and effectiveness, providing valuable insights to the company.

The most recent analyst rating on (SG:544) stock is a Buy with a S$1.22 price target. To see the full list of analyst forecasts on CSE Global stock, see the SG:544 Stock Forecast page.