BRC Asia Limited (BEC) AI Stock Analysis

• Market Cap: S$1.27B
• Dividend Yield: 4.77%
• Average Volume (3M): 89.09K
• Price to Earnings (P/E): 13.4
• Beta (1Y): 0.76
• Revenue Growth: 4.84%
• EPS Growth: 0.79%
• Country: SG
• Employees: 726
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 0.19
• Shares Outstanding: 275,976,680
• 10 Day Avg. Volume: 98,260
• 30 Day Avg. Volume: 89,093
• PEG Ratio: 0.00
• Price to Book (P/B): 2.28
• Price to Sales (P/S): 0.75
• P/FCF Ratio: 10.06
• 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$5.35
• Price Target Upside: 15.80% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.36
• Revenue Forecast (FY): S$1.62B

• Rating: 68 Neutral
• Price Target: S$5.00 ▲(8.23% Upside)
• Action: Downgraded Date: 12/11/25
• Date: Action: Downgraded 12/11/25

BRC Asia Limited's strong financial performance, characterized by consistent revenue growth and robust cash flow generation, is the primary driver of its stock score. The valuation is reasonable, supported by a solid dividend yield. However, technical indicators suggest a lack of upward momentum, which tempers the overall score.

Positive Factors

Strong cash generation

Material FCF growth and high cash conversion indicate the business reliably turns earnings into cash. This durable cash generation supports capex, dividends, and debt reduction, giving management flexibility to fund projects and weather sector downcycles over the next 2–6 months and beyond.

Improved balance sheet and strong ROE

Reduced leverage and a solid equity ratio provide financial resilience and lower refinancing risk. A high ROE shows efficient use of capital to generate profits, enabling the company to competitively bid for projects and sustain returns while maintaining room to invest or de-lever further.

Consistent revenue and stable operating margins

Steady top-line growth and sustained gross/EBITDA margins reflect operational efficiency in fabrication and delivery. That consistency points to repeatable project workflows and contract execution capability, supporting predictable cashflows and long-term customer relationships.

Negative Factors

Thin net margins with recent decline

A modest net margin provides limited buffer against cost spikes or project overruns. The recent decline reduces earnings resilience and increases the impact of adverse input-cost moves or lower project volumes on free cash flow and retained earnings over the medium term.

High exposure to steel input-costs

Revenue and margins are materially exposed to volatile steel prices. If procurement or contract pass-through is constrained, cost inflation can compress margins quickly. This structural commodity sensitivity makes earnings and cashflow less predictable across cycles.

Concentration in construction/infrastructure demand

Heavy reliance on building and civil works ties performance to project timing and public/private capex cycles. Industry cyclicality and lumpy large contracts can cause revenue and working-capital swings, limiting revenue visibility and increasing execution risk over a multi-month horizon.

BRC Asia Limited Business Overview & Revenue Model

Company Description

BRC Asia Limited, together with its subsidiaries, engages in the prefabrication of steel reinforcement for use in concrete in Singapore, China, Brunei, Hong Kong, Malaysia, Indonesia, Thailand, and internationally. It operates through Fabrication and Manufacturing, and Others segments. The company is involved in the trading of steel reinforcing bars; manufacture and sale of wire mesh fences; prefabrication, manufacturing, trading, distribution, and sale of steel products; and provision of weldfences and cages, as well as prefabrication, rebar, and cut and bend services. It also operates and manages airports, hotels, and resorts; and develops properties. The company was incorporated in 1938 and is based in Singapore. BRC Asia Limited is a subsidiary of Esteel Enterprise Pte. Ltd.

How the Company Makes Money

BRC Asia Limited generates revenue primarily through the sale of its steel products to construction companies, contractors, and other industries requiring steel materials. The company's revenue model is based on direct sales and long-term contracts with clients, ensuring a steady flow of income. Key revenue streams include the sale of different types of steel products, such as rebar and wire rods, as well as value-added services like customized steel processing. Additionally, BEC may engage in partnerships with construction firms and suppliers, which can lead to bulk orders and recurring business, further enhancing its earnings potential.

BRC Asia Limited Financial Statement Overview

Summary

BRC Asia Limited presents a strong financial profile with consistent revenue growth, improved leverage, and robust cash flow generation. The company has effectively managed its operations to maintain healthy margins and strong returns on equity. While the balance sheet shows improved leverage, continuous monitoring of debt levels is advisable to sustain financial stability.

Income Statement

BRC Asia Limited has demonstrated consistent revenue growth, with a 7.95% increase in the most recent year. The company maintains a stable gross profit margin of around 10%, and its net profit margin has slightly decreased to 6.07%. The EBIT and EBITDA margins are healthy, indicating efficient operations. Overall, the income statement reflects strong revenue growth and profitability, although there is a slight decline in margin efficiency.

Balance Sheet

The company has improved its debt-to-equity ratio to 0.42, indicating a reduction in leverage compared to previous years. The return on equity is strong at 18.32%, showcasing effective use of equity to generate profits. The equity ratio stands at 54.93%, reflecting a solid capital structure. While the balance sheet shows improved leverage and strong equity returns, the company should continue to monitor debt levels to maintain financial stability.

Cash Flow

BRC Asia Limited has shown a significant 23.60% growth in free cash flow, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 1.31, suggesting efficient conversion of income to cash. The free cash flow to net income ratio is high at 0.94, reflecting robust cash flow relative to profits. Overall, the cash flow statement highlights strong cash generation and efficient cash management.

Breakdown	TTM	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	1.44B	1.55B	1.48B	1.63B	1.70B	1.17B
Gross Profit	146.54M	159.70M	153.80M	139.05M	153.72M	82.13M
EBITDA	112.22M	138.90M	141.65M	122.51M	129.56M	79.03M
Net Income	97.09M	94.30M	93.54M	75.75M	90.22M	47.03M
Balance Sheet
Total Assets	907.69M	936.91M	904.02M	952.36M	973.11M	884.72M
Cash, Cash Equivalents and Short-Term Investments	143.81M	203.12M	191.37M	184.62M	154.57M	82.97M
Total Debt	259.95M	215.35M	245.73M	380.68M	457.98M	435.77M
Total Liabilities	429.09M	407.54M	428.73M	525.05M	574.32M	583.77M
Stockholders Equity	478.60M	514.68M	475.28M	427.31M	398.79M	300.95M
Cash Flow
Free Cash Flow	94.20M	116.43M	188.66M	156.26M	46.05M	-128.10M
Operating Cash Flow	97.41M	123.24M	192.97M	159.53M	48.96M	-126.16M
Investing Cash Flow	3.77M	-18.11M	2.82M	2.66M	-1.38M	-1.13M
Financing Cash Flow	-84.61M	-93.39M	-183.03M	-127.02M	22.82M	135.86M

BRC Asia Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.62
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:BEC, the sentiment is Positive. The current price of 4.62 is above the 20-day moving average (MA) of 4.40, above the 50-day MA of 4.27, and above the 200-day MA of 3.88, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 68.36 is Neutral, neither overbought nor oversold. The STOCH value of 73.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:BEC.

BRC Asia Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

BRC Asia Limited Corporate Events

BRC Asia Confirms Quorum and Opens 2026 AGM at Raffles Marina

BRC Asia Limited held its Annual General Meeting on 29 January 2026 at Raffles Marina in Singapore, with Independent Chairman Teo Ser Luck presiding and the full Board, key executives, shareholders, and proxies in attendance. The company confirmed that the meeting was duly convened with proper notice and that quorum requirements were satisfied, formally opening the session for the conduct of official AGM business.

The presence of the company’s executive and independent directors, including the Group Chief Executive Officer and Group Chief Financial Officer, underscored the importance of the AGM as a platform for corporate governance and shareholder engagement. By confirming proper procedures and attendance, BRC Asia reinforced its compliance with listing and regulatory standards, supporting transparency and accountability to its investors.

The most recent analyst rating on (SG:BEC) stock is a Hold with a S$5.00 price target. To see the full list of analyst forecasts on BRC Asia Limited stock, see the SG:BEC Stock Forecast page.

BRC Asia Starts FY2026 with Strong Profit and Solid Net Cash Position

BRC Asia Limited reported first-quarter 2026 revenue of S$444.3 million, generating gross profit of S$46.7 million and profit attributable to owners of S$27.3 million. Total comprehensive income attributable to shareholders reached S$28.8 million, underscoring continued profitability at the start of the financial year.

The group ended the period with net assets of S$563.0 million and a net cash position of S$41.9 million, supported by S$189.7 million in cash and cash equivalents. Strong operating cash flow of S$52.7 million and modest investing outflows were offset by S$67.9 million used in financing activities, signalling active balance sheet management and a solid liquidity profile for ongoing operations.

The most recent analyst rating on (SG:BEC) stock is a Buy with a S$5.10 price target. To see the full list of analyst forecasts on BRC Asia Limited stock, see the SG:BEC Stock Forecast page.