Singapore Post (S08) AI Stock Analysis

• Market Cap: $1.39B
• Dividend Yield: 2.19%
• Average Volume (3M): 7.61M
• Price to Earnings (P/E): 6.0
• Beta (1Y): 0.90
• Revenue Growth: 6.39%
• EPS Growth: 123.72%
• Country: SG
• Employees: 4,900
• Sector: Industrials
• Sector Strength: 87
• Industry: Integrated Freight & Logistics
• EPS (TTM): <0.01
• Shares Outstanding: 2,275,089,400
• 10 Day Avg. Volume: 11,281,590
• 30 Day Avg. Volume: 7,611,726
• PEG Ratio: -1.01
• Price to Book (P/B): 1.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.65
• 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: $0.72
• Price Target Upside: 16.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: ―

Singapore Post's stock demonstrates a solid financial foundation with stable profitability and efficient operations. The technical analysis suggests a positive long-term trend, although the absence of detailed momentum indicators introduces some uncertainty. Valuation metrics indicate the stock is fairly valued, offering a reasonable P/E ratio and a modest dividend yield. The main areas for improvement are revenue growth and free cash flow generation.

Singapore Post Business Overview & Revenue Model

Company Description

Singapore Post Limited, together with its subsidiaries, engages in post and parcel, eCommerce logistics, and property businesses in Singapore, Japan, Europe, New Zealand, Hong Kong, Australia, and internationally. It operates through Post and Parcel, Logistics, and Property segments. The Post and Parcel segment offers services for collecting, sorting, transporting, and distributing domestic and international mail, as well as sells philatelic products. This segment also provides agency services, financial services, and parcel deliveries. The Logistics segment offers freight forwarding and eCommerce logistics solutions, which includes front-end related eCommerce solutions, warehousing, fulfilment, delivery, and other value-added services. The Property segment provides commercial property rental, and self-storage services. The company is also involved in the online sale of products; and provision of management and consultancy services to related entities, as well as integrated supply chain and distribution services, and logistics consulting services. In addition, it provides customs brokerage and freight forwarding services; and freight collections transshipments services. Additionally, the company provides online shopping platforms and services. The company was founded in 1819 and is headquartered in Singapore.

How the Company Makes Money

SingPost generates revenue through a diversified business model comprising several key streams. The core revenue streams include postal services, where they earn from mail and parcel delivery for both domestic and international clients. The logistics sector contributes significantly through warehousing, freight, and supply chain management services tailored for e-commerce and traditional businesses. Additionally, SingPost capitalizes on its retail network, offering financial services and digital products, which further bolster its revenue. The company also benefits from strategic partnerships and collaborations with global e-commerce platforms, enhancing its service offerings and expanding its market reach. These diverse revenue sources, combined with ongoing innovation in service delivery and strategic investments, underpin SingPost's financial performance.

Singapore Post Financial Statement Overview

Summary

Singapore Post demonstrates solid profitability and stable financial health, maintaining efficient operations despite revenue challenges. The company's moderate leverage and stable equity base offer a balanced risk profile, though improving revenue growth and free cash flow generation should be focal points for future strategic enhancements.

Income Statement

The company shows a mixed performance with declining revenues over the past year but maintains a healthy gross profit margin of 16.82% for 2024. Net profit margin improved to 4.64%, reflecting better cost management and operational efficiency. However, the revenue growth rate is negative at -9.92%, indicating challenges in top-line expansion.

Balance Sheet

The balance sheet shows a stable equity base with a debt-to-equity ratio of 0.86, indicating moderate leverage. Return on equity stands at 6.92%, suggesting efficient use of shareholders' funds. The equity ratio of 36.10% reflects a sound capital structure, though there is room for improvement in asset efficiency.

Cash Flow

The cash flow statement reveals a decline in free cash flow from the previous year, with a negative growth rate of -40.14%. However, the operating cash flow to net income ratio of 1.19 indicates strong cash generation capacity. The free cash flow to net income ratio is 0.49, suggesting potential constraints in free cash flow generation relative to net earnings.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	1.85B	1.69B	1.87B	1.67B	1.40B	1.31B
Gross Profit	327.18M	283.81M	222.32M	228.23M	160.88M	252.88M
EBITDA	153.20M	212.85M	170.18M	184.51M	118.12M	206.95M
Net Income	89.47M	78.33M	13.95M	83.11M	32.74M	91.08M
Balance Sheet
Total Assets	3.17B	3.14B	2.84B	2.68B	2.72B	2.75B
Cash, Cash Equivalents and Short-Term Investments	436.72M	476.74M	495.70M	288.44M	507.72M	502.50M
Total Debt	1.14B	975.80M	955.62M	600.45M	752.98M	797.42M
Total Liabilities	1.75B	1.71B	1.71B	1.54B	1.40B	1.46B
Stockholders Equity	1.38B	1.13B	1.13B	1.31B	1.28B	1.25B
Cash Flow
Free Cash Flow	61.74M	38.18M	63.75M	40.52M	173.17M	131.96M
Operating Cash Flow	119.46M	93.39M	92.18M	64.78M	195.03M	159.09M
Investing Cash Flow	-226.81M	-145.91M	-189.91M	-56.97M	-73.39M	-24.68M
Financing Cash Flow	86.27M	33.56M	313.00M	-227.35M	-113.42M	-33.63M

Singapore Post Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.62
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:S08, the sentiment is Positive. The current price of 0.62 is above the 20-day moving average (MA) of 0.58, above the 50-day MA of 0.58, and above the 200-day MA of 0.55, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 71.49 is Negative, neither overbought nor oversold. The STOCH value of 89.74 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:S08.

Singapore Post Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
S08	69 Neutral	$1.39B	5.96	19.32%	2.19%	6.39%	123.72%
Sector *	65 Neutral	$10.65B	15.52	5.51%	1.92%	2.72%	-26.34%
HCTPF		$1.53B	14.90	2.56%	12.96%	―	―
W1M		€71.13M	6.34	8.97%	4.10%	―	―
S56	76 Outperform	S$451.95M	4.77	12.39%	1.53%	-9.28%	-30.48%
S61	76 Outperform	S$872.11M	12.39	10.03%	8.00%	2.13%	1.72%
F83	48 Neutral	S$274.31M	50.83	1.11%	―	-3.24%	200.00%

Singapore Post Corporate Events

Singapore Post Announces Strategic Board Committee Appointments

Singapore Post Limited has announced changes to its Board Committees, effective from April 25, 2025. These changes include the appointment of Mr. Ng Chin Hwee and Ms. Gan Siok Hoon to the Finance and Investment Committee, Mr. Chng Lay Chew to the Audit Committee, Board Sustainability Committee, and Board Risk and Technology Committee. These appointments are expected to enhance the governance and strategic oversight of the company, potentially impacting its operational efficiency and stakeholder confidence.

SingPost and Alibaba Unwind Cross-Shareholdings for Strategic Realignment

Singapore Post Limited (SingPost) has announced a mutually agreed unwinding of cross-holdings with Alibaba Group, leading to a cash inflow of approximately S$55.86 million. This strategic move allows SingPost to simplify its investment portfolio by acquiring full ownership of Quantium Solutions International (QSI) while Alibaba’s logistics arm, Cainiao, increases its stake in 4PX. The transaction may result in a potential goodwill impairment of up to S$77.86 million, impacting SingPost’s financials and strategic positioning in the logistics sector.

Singapore Post Holds Strategic EGM with Key Stakeholders

Singapore Post Limited recently held an Extraordinary General Meeting (EGM) on March 13, 2025, at the Suntec Singapore Convention & Exhibition Centre, which was also accessible via virtual meeting technology. The meeting was attended by key figures from the company including the Chairman, various directors, and the Group Chief Operating Officer, as well as representatives from Deloitte & Touche LLP and Allen & Gledhill LLP. The EGM provided a platform for discussing strategic directions and operational updates, potentially impacting the company’s market positioning and stakeholder interests.

SingPost Invests S$30 Million to Expand eCommerce Logistics Capacity

SingPost has announced a S$30 million investment to enhance its Regional eCommerce Logistics Hub’s processing capacity, increasing its ability to handle up to 300,000 small parcels daily. This strategic move aims to consolidate operations and position SingPost as a key player in the fragmented eCommerce logistics market, potentially leading to more integrated and sustainable logistics solutions.

Singapore Post Q3 Revenue Rises Amidst Profit Decline

Singapore Post reported a 12.1% year-over-year increase in revenue for the third quarter of FY24/25, reaching S$510.6 million, primarily driven by strong performances in its Australia business and property leasing, despite softer outcomes in Singapore and international markets. However, the company faced a 23.8% decline in operating profit due to rising operating expenses amid macro-economic challenges such as inflation and supply chain disruptions, with expectations of continued pressure on core operations.