Sheng Siong Group Ltd. (OV8) AI Stock Analysis

• Market Cap: S$4.09B
• Dividend Yield: 2.43%
• Average Volume (3M): 2.21M
• Price to Earnings (P/E): 28.3
• Beta (1Y): 0.34
• Revenue Growth: 8.70%
• EPS Growth: 1.48%
• Country: SG
• Employees: 2,500
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Grocery Stores
• EPS (TTM): 0.03
• Shares Outstanding: 1,503,537,000
• 10 Day Avg. Volume: 2,234,800
• 30 Day Avg. Volume: 2,206,103
• PEG Ratio: 6.13
• Price to Book (P/B): 4.61
• Price to Sales (P/S): 1.73
• P/FCF Ratio: 12.28
• 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$2.52
• Price Target Upside: -7.01% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: S$3.00 ▲(10.70% Upside)

Sheng Siong Group Ltd. scores well due to its strong financial performance, characterized by consistent revenue growth and effective cash flow management. Technical analysis indicates neutral market conditions, while the valuation suggests the stock is relatively expensive, offset by a decent dividend yield. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates Sheng Siong's ability to expand its market presence and enhance product offerings, supporting long-term business sustainability.

Cash Flow Management

Strong cash flow management ensures Sheng Siong can fund operations and growth initiatives, providing financial stability and flexibility.

Profit Margins

Healthy profit margins reflect efficient cost management and pricing strategies, contributing to sustained profitability and competitive advantage.

Negative Factors

Debt Levels

While current debt levels are manageable, any increase could strain financial resources, impacting long-term financial health and flexibility.

Valuation Concerns

High valuation may limit upside potential and attract scrutiny, potentially impacting investor sentiment and future capital raising efforts.

Limited Earnings Call Data

Lack of earnings call data limits transparency and investor insights into management's strategic direction and operational performance.

Sheng Siong Group Ltd. Business Overview & Revenue Model

Company Description

Sheng Siong Group Ltd, an investment holding company, operates a chain of supermarket retail stores in Singapore. The company's stores offer an assortment of live, fresh, and chilled produce, such as seafood, meat, fruits, and vegetables; pantry staples, including rice, noodles, oils, spices, and seasonings; packaged, processed, frozen, and/or preserved food products; baby and personal care products; and beverages, wines, beers, and spirits, as well as general merchandise, including toiletries and essential household products. It is also involved in general trading, and wholesale import and export businesses. In addition, the company operates allforyou.sg, an online shopping platform for groceries. It operates 64 stores in Singapore; and four stores in Kunming, China under the Sheng Siong brand name. Sheng Siong Group Ltd. was founded in 1985 and is headquartered in Singapore.

How the Company Makes Money

Sheng Siong Group Ltd. generates revenue primarily through the sale of grocery items in its supermarkets. The company's revenue model is centered around retail sales, where it purchases products from suppliers and sells them at a markup to consumers. Key revenue streams include fresh food items, packaged goods, and household essentials. Additionally, Sheng Siong benefits from economies of scale due to its extensive supply chain and procurement capabilities, which allow it to negotiate better prices with suppliers. The company also attracts revenue through private label products, which typically offer higher margins compared to branded items. Significant partnerships with local and international suppliers enable Sheng Siong to maintain a diverse product assortment and competitive pricing, further enhancing its profitability.

Sheng Siong Group Ltd. Financial Statement Overview

Summary

Sheng Siong Group Ltd. exhibits a strong financial position with consistent revenue growth, healthy profit margins, and robust cash flow generation. The company's low leverage and strong return on equity further enhance its financial stability. While the debt levels have slightly increased, they remain manageable.

Income Statement

Sheng Siong Group Ltd. shows strong financial performance with consistent revenue growth and healthy profit margins. The TTM data indicates a gross profit margin of 30.83% and a net profit margin of 9.46%, reflecting efficient cost management. The EBIT and EBITDA margins are also robust at 11.84% and 16.02% respectively, indicating strong operational efficiency. The revenue growth rate of 1.63% in the TTM period suggests steady growth, although slightly lower compared to previous years.

Balance Sheet

The company's balance sheet is stable with a manageable debt-to-equity ratio of 0.21 in the TTM period, indicating low financial leverage. The return on equity is strong at 25.75%, showcasing effective use of shareholder funds. The equity ratio stands at 60.46%, reflecting a solid capital structure. However, the slight increase in debt levels over the years warrants monitoring.

Cash Flow

Sheng Siong Group Ltd. demonstrates strong cash flow generation with a free cash flow to net income ratio of 90.87% in the TTM period, indicating efficient cash conversion. The operating cash flow to net income ratio is 75.05%, highlighting robust cash flow from operations. The free cash flow growth rate of 23.1% in the TTM period is impressive, although it has fluctuated in previous years.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.53B	1.43B	1.37B	1.34B	1.37B	1.39B
Gross Profit	473.29M	435.47M	410.53M	393.50M	393.29M	381.86M
EBITDA	243.59M	230.87M	219.65M	218.41M	214.96M	217.71M
Net Income	144.61M	137.52M	133.65M	133.30M	132.83M	138.65M
Balance Sheet
Total Assets	937.89M	935.14M	830.19M	785.12M	739.02M	692.06M
Cash, Cash Equivalents and Short-Term Investments	393.67M	353.36M	324.40M	275.50M	246.64M	253.90M
Total Debt	102.18M	125.62M	101.33M	95.65M	81.69M	75.50M
Total Liabilities	379.97M	396.80M	333.21M	329.94M	322.69M	316.96M
Stockholders Equity	554.61M	534.92M	493.77M	452.25M	413.41M	372.39M
Cash Flow
Free Cash Flow	223.88M	200.80M	178.14M	158.01M	141.01M	257.02M
Operating Cash Flow	244.26M	218.99M	188.29M	166.81M	172.70M	274.15M
Investing Cash Flow	-60.77M	-54.35M	-10.05M	-4.97M	-30.32M	-16.12M
Financing Cash Flow	-140.23M	-136.90M	-129.46M	-133.48M	-149.88M	-80.90M

Sheng Siong Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.71
• 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:OV8, the sentiment is Positive. The current price of 2.71 is above the 20-day moving average (MA) of 2.64, above the 50-day MA of 2.64, and above the 200-day MA of 2.13, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 64.49 is Neutral, neither overbought nor oversold. The STOCH value of 76.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:OV8.

Sheng Siong Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5JS	74 Outperform	S$523.46M	5.44	8.46%	2.67%	13.03%	35.10%
OV8	73 Outperform	S$4.09B	28.27	26.05%	2.43%	8.70%	1.48%
Q01	70 Outperform	S$549.38M	21.04	5.51%	5.62%	-0.51%	-25.57%
P34	68 Neutral	S$495.04M	14.06	10.03%	3.56%	-4.54%	-35.71%
F03	66 Neutral	S$1.40B	37.48	9.42%	4.60%	13.97%	-49.60%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%