SIA - Singapore Airlines (C6L) AI Stock Analysis

• Market Cap: $21.17B
• Dividend Yield: 5.7%
• Average Volume (3M): 5.78M
• Price to Earnings (P/E): 7.9
• Beta (1Y): 0.94
• Revenue Growth: 4.47%
• EPS Growth: -26.05%
• Country: SG
• Employees: 22,819
• Sector: Industrials
• Sector Strength: 86
• Industry: Airlines, Airports & Air Services
• EPS (TTM): 0.14
• Shares Outstanding: 3,025,683,600
• 10 Day Avg. Volume: 5,502,670
• 30 Day Avg. Volume: 5,775,539
• PEG Ratio: -0.05
• Price to Book (P/B): 1.75
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.65
• 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: $6.70
• Price Target Upside: -4.75% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

• Rating: 74 Outperform
• Price Target: ―

SIA stands out with strong financial performance marked by robust revenue and profit growth, effective cost management, and sound cash flow strategies. While the technical indicators point to potential downward movement, the stock's attractive valuation provides a buffer. Industry volatility remains a risk, but the company's strategic financial management positions it well for resilience.

Positive Factors

Dividend and Shareholder Returns

The dividend payout ratio rose to 70% in FY25 due to aircraft delivery delays, indicating a strong return to shareholders.

Market Share

The closure of Jetstar Asia presents an opportunity for SIA/Scoot to capture additional market share at Changi Airport.

Passenger Traffic

Passengers carried by SIA and Scoot rose 8.1% YoY, reflecting resilient demand from both corporate and leisure segments.

Negative Factors

Cost Pressures

SIA to grapple with margin pressure amid pricing and cost challenges.

Geopolitical Risks

Rising geopolitical tensions in the Middle East pose upside risks to jet fuel prices.

Hedging Losses

Hedging losses may impact the bottom line, as SIA hedges 49% of its fuel position at an average price of US$90 per barrel.

SIA - Singapore Airlines Business Overview & Revenue Model

Company Description

Singapore Airlines (SIA) is a leading global airline founded in 1947, headquartered in Singapore. It operates within the aviation sector, offering scheduled passenger and cargo air transport services. SIA is renowned for its commitment to service excellence, innovation, and safety, with a comprehensive network spanning across Asia, Europe, the Americas, Africa, and the Middle East. SIA's subsidiaries include regional airline SilkAir, low-cost carrier Scoot, and SIA Engineering Company, which specializes in aircraft maintenance, repair, and overhaul services.

How the Company Makes Money

Singapore Airlines generates revenue primarily through its passenger and cargo air transport services. The majority of its income is derived from ticket sales for passenger flights, which are offered across multiple class categories, including economy, premium economy, business, and first class. Additionally, SIA earns revenue from its cargo operations, transporting goods across its extensive flight network. Ancillary services such as in-flight sales, seat selection fees, and loyalty programs also contribute to earnings. Strategic partnerships and code-sharing agreements with other airlines further expand its market reach and enhance revenue opportunities. The airline's subsidiaries, particularly in aircraft maintenance and the budget travel sector, provide additional revenue streams, supporting its financial performance.

SIA - Singapore Airlines Financial Statement Overview

Summary

SIA has shown strong financial recovery with significant revenue and profit growth, efficient cost management, and robust cash flow. While the company has effectively managed its debt levels, the industry remains volatile, posing risks.

Income Statement

SIA has demonstrated substantial revenue growth, increasing from 7.6 billion to 19 billion in three years. The company has improved its profitability with a notable rise in gross profit and net profit margins. The EBIT and EBITDA margins are strong, indicating efficient cost management. However, the industry remains volatile, which could impact future revenue stability.

Balance Sheet

The balance sheet shows a strong equity base with an equity ratio of 36.9%. Debt-to-equity has decreased, reflecting improved leverage management, though liabilities remain high due to industry capital requirements. Return on equity is healthy, boosted by recent profitability. The high cash reserves offer financial flexibility.

Cash Flow

Free cash flow has improved significantly, demonstrating effective cash management and investment strategies. Operating cash flow remains strong, but the decline in free cash flow growth rate indicates potential challenges in sustaining cash generation levels. Overall, cash flow management appears robust, supporting operational needs.

Breakdown	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	19.01B	17.77B	7.61B	3.82B	15.98B
Gross Profit	5.96B	3.03B	-198.60M	-1.51B	1.20B
EBITDA	5.57B	5.17B	1.42B	-2.43B	2.27B
Net Income	2.67B	2.16B	-962.00M	-4.27B	-212.00M
Balance Sheet
Total Assets	44.26B	50.19B	49.72B	37.58B	33.71B
Cash, Cash Equivalents and Short-Term Investments	11.79B	16.73B	14.17B	8.05B	3.11B
Total Debt	13.45B	15.34B	15.92B	14.34B	11.78B
Total Liabilities	27.52B	29.94B	26.92B	21.30B	23.98B
Stockholders Equity	16.34B	19.86B	22.41B	15.91B	9.31B
Cash Flow
Free Cash Flow	3.73B	7.47B	-289.20M	-6.21B	-2.54B
Operating Cash Flow	5.05B	9.15B	2.83B	-3.44B	2.66B
Investing Cash Flow	-1.44B	-490.10M	-2.32B	-1.40B	-5.10B
Financing Cash Flow	-8.78B	-5.88B	5.44B	9.97B	2.14B

SIA - Singapore Airlines Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.03
• 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:C6L, the sentiment is Positive. The current price of 7.03 is above the 20-day moving average (MA) of 6.94, above the 50-day MA of 6.92, and above the 200-day MA of 6.56, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 57.97 is Neutral, neither overbought nor oversold. The STOCH value of 89.57 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:C6L.

SIA - Singapore Airlines Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
C07	76 Outperform	$9.88B	7.81	11.58%	7.66%	-0.21%	-22.52%
C6L	74 Outperform	$21.17B	7.86	17.47%	5.70%	4.47%	-26.05%
C52	68 Neutral	$3.14B	14.92	8.14%	9.71%	15.36%	16.55%
S58	63 Neutral	$4.56B	18.77	9.89%	1.95%	60.52%	―
M44U	62 Neutral	$6.04B	32.60	2.74%	1.63%	-0.97%	-40.20%
Sector *	61 Neutral	C$6.56B	9.38	3.44%	2.88%	6.99%	-11.09%

SIA - Singapore Airlines Corporate Events

Singapore Airlines Reports Mixed March 2025 Results

In March 2025, Singapore Airlines reported a mixed performance with a slight increase in available seat kilometers and passengers carried, but a decrease in passenger load factor compared to the previous year. The cargo segment showed growth in gross capacity and cargo carried, although the cargo load factor declined. These results reflect the company’s ongoing adjustments in response to market conditions, impacting its operational efficiency and market positioning.

Singapore Airlines Reports Mixed February 2025 Results

In February 2025, Singapore Airlines reported a positive performance in its passenger services, with an increase in available seat-kilometers and revenue passenger-kilometers, leading to a higher passenger load factor. However, its subsidiary Scoot experienced a decline in these metrics. The cargo segment faced challenges, with a decrease in cargo load factor despite an increase in gross capacity. These results reflect mixed operational outcomes, indicating a strong passenger demand but challenges in the cargo sector, impacting the company’s overall market positioning.

Singapore Airlines Reports Strong Passenger Growth in January 2025

In January 2025, Singapore Airlines reported an increase in both passenger and cargo services, with notable improvements in passenger load factors across most regions. The company’s performance showcases positive growth in passenger numbers and revenue passenger kilometers, indicating a strengthening market position despite a slight decline in cargo load factor.