Straits Trading Co. Ltd. (S20) AI Stock Analysis

• Market Cap: S$771.45M
• Dividend Yield: 4.94%
• Average Volume (3M): 75.35K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.67
• Revenue Growth: 14.01%
• EPS Growth: -38.52%
• Country: SG
• Employees: 209
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): -0.09
• Shares Outstanding: 472,227,800
• 10 Day Avg. Volume: 50,930
• 30 Day Avg. Volume: 75,353
• PEG Ratio: 1.21
• Price to Book (P/B): 0.45
• Price to Sales (P/S): 1.15
• P/FCF Ratio: -6.05
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: S$1.50 ▼(-7.98% Downside)

The overall stock score of 54 reflects significant financial challenges, particularly in profitability and cash flow management, which weigh heavily on the company's outlook. However, positive technical indicators suggest some market optimism, and the attractive dividend yield provides a potential income stream for investors. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

The positive revenue growth indicates expanding business operations and market presence, which can lead to increased market share and long-term profitability.

Bond Redemption

Reducing outstanding bonds decreases leverage, improving financial stability and flexibility, and potentially lowering interest expenses.

Diversified Business Model

Diversification across sectors mitigates risk and provides multiple revenue streams, enhancing resilience against sector-specific downturns.

Negative Factors

High Leverage

Significant leverage poses financial risks, potentially limiting the company's ability to invest in growth opportunities and increasing vulnerability to interest rate hikes.

Cash Flow Challenges

Poor cash flow management can strain operations and limit the company's ability to fund new projects or return capital to shareholders, impacting long-term sustainability.

Profitability Issues

Ongoing profitability challenges hinder the company's ability to generate sufficient returns, affecting its capacity to reinvest in growth and reward shareholders.

Straits Trading Co. Ltd. Business Overview & Revenue Model

Company Description

The Straits Trading Company Limited, a conglomerate-investment company, engages in the resources, property, and hospitality businesses. The company operates in four segments: Resources, Real Estate, Hospitality, and Others. It engages in the smelting of tin concentrates and tin bearing materials. The company also produces and sells various grades of refined tin metal and by-products; and invests in other metals and mineral resources. In addition, it invests in, develops, leases, and sells real estate properties; provides property and real estate fund management services; and owns and manages hotels. Further, the company engages in treasury services, and securities and other investments business, as well as wholesales metals and metal ores. Additionally, it offers tin warehousing services; membership services to access benefits, events, and privileges; and real estate and support management services. It has operations in Singapore, Malaysia, Australia, Japan, China, Korea, and the United Kingdom. The Straits Trading Company Limited was incorporated in 1887 and is based in Singapore. The Straits Trading Company Limited operates as a subsidiary of The Cairns Pte Ltd.

How the Company Makes Money

Straits Trading generates revenue through several key streams, including its operations in the tin mining and smelting business, which contribute significantly to its earnings. The company also earns income from its investment properties, which provide rental income and potential capital appreciation. Additionally, the hospitality sector, through its investments in hotels and resorts, generates revenue from room bookings, food and beverage sales, and event hosting. Strategic partnerships and joint ventures in various sectors further bolster its revenue, allowing Straits Trading to leverage synergies and expand its market reach.

Straits Trading Co. Ltd. Financial Statement Overview

Summary

Straits Trading Co. Ltd. faces several financial challenges, particularly in profitability and cash flow management. The company exhibits moderate revenue growth but struggles with net losses and high leverage. Improving profitability and reducing debt levels should be priorities to enhance financial stability and shareholder value. Addressing cash flow issues is also essential to ensure sustainable operations and growth.

Income Statement

The income statement shows a mixed performance. While there is a positive revenue growth rate of 3.34% TTM, the company is struggling with profitability, as indicated by a negative net profit margin of -8.36% TTM. The gross profit margin is moderate at 29.93% TTM, but the EBIT and EBITDA margins are relatively healthy at 16.08% and 17.39% TTM, respectively. The company needs to address its net losses to improve its financial health.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio of 1.29 TTM, indicating significant leverage, which could pose financial risks. The return on equity is negative at -3.75% TTM, suggesting inefficiencies in generating returns for shareholders. However, the equity ratio is stable, showing that equity constitutes a reasonable portion of total assets. The company should focus on reducing debt levels to enhance financial stability.

Cash Flow

The cash flow statement reveals challenges in cash generation, with a significant decline in free cash flow growth rate of -1803.49% TTM. The operating cash flow to net income ratio is very low at 0.19% TTM, indicating difficulties in converting income into cash. Additionally, the free cash flow to net income ratio is negative, highlighting cash flow issues. Improving cash flow management is crucial for the company's financial health.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	636.35M	564.63M	491.66M	527.62M	396.56M	327.43M
Gross Profit	190.46M	133.34M	126.08M	122.57M	134.00M	104.49M
EBITDA	110.66M	124.43M	79.47M	609.40M	398.31M	48.51M
Net Income	-53.23M	-7.23M	-28.57M	551.26M	234.25M	51.48M
Balance Sheet
Total Assets	3.55B	3.56B	3.44B	3.50B	3.19B	3.09B
Cash, Cash Equivalents and Short-Term Investments	849.63M	516.60M	507.94M	327.05M	219.71M	523.31M
Total Debt	1.80B	1.75B	1.63B	1.39B	1.05B	1.22B
Total Liabilities	2.01B	1.98B	1.84B	1.63B	1.25B	1.36B
Stockholders Equity	1.40B	1.44B	1.46B	1.74B	1.77B	1.54B
Cash Flow
Free Cash Flow	-6.35M	-107.84M	-103.15M	-384.76M	20.65M	-46.65M
Operating Cash Flow	3.16M	15.51M	39.81M	64.85M	40.09M	-37.32M
Investing Cash Flow	-51.86M	-56.18M	-18.07M	-350.08M	-144.15M	-73.49M
Financing Cash Flow	-19.57M	41.56M	175.82M	384.38M	-203.69M	256.41M

Straits Trading Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.63
• 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:S20, the sentiment is Positive. The current price of 1.63 is above the 20-day moving average (MA) of 1.61, above the 50-day MA of 1.62, and above the 200-day MA of 1.54, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 57.95 is Neutral, neither overbought nor oversold. The STOCH value of 77.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:S20.

Straits Trading Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
P52	62 Neutral	S$804.73M	18.73	17.05%	2.87%	3.76%	9.64%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
S20	54 Neutral	S$771.45M	-13.95	-3.85%	4.94%	14.01%	-38.52%

Straits Trading Co. Ltd. Corporate Events

Straits Trading Faces Receivership Over Shanghai Mall Stake, Flags Potential Impairment

Straits Trading has disclosed that receivers and managers from FTI Consulting have been appointed over mortgaged shares related to its joint venture holding in a Shanghai retail mall, effectively suspending the powers of its subsidiary SRE Venture 16 Pte. Ltd. as shareholder in respect of those assets. The receivers intend to realise value from the mortgaged property, including preparing a sale process, and the company has warned that loss of control over the joint venture shares would end equity accounting for the investment and could trigger a material, though non-cash, impairment charge that may adversely impact the group’s reported financial performance for the relevant period.

The most recent analyst rating on (SG:S20) stock is a Hold with a S$1.50 price target. To see the full list of analyst forecasts on Straits Trading Co. Ltd. stock, see the SG:S20 Stock Forecast page.

Straits Trading Launches Silver Movement Pilot to Build Senior Living Value Chain

Straits Trading has launched The Silver Movement pilot programme as part of its strategy to build an integrated independent-living value chain in the senior living business, targeting the growing demand for quality housing and services for seniors in Singapore. The initiative focuses on three pillars—property, operations and services—and aims to offer customised, lifestyle-centric platforms that foster engagement and enable seamless access to trusted service providers and digital solutions, signalling a deeper push into senior living that could reshape the group’s portfolio and positioning in this growth segment.

The most recent analyst rating on (SG:S20) stock is a Hold with a S$1.50 price target. To see the full list of analyst forecasts on Straits Trading Co. Ltd. stock, see the SG:S20 Stock Forecast page.

Straits Trading Faces Loan Default Notice on Shanghai Mall Investment

Straits Trading Co. Ltd. announced that its joint venture, Ivory SL Joint Venture Limited, received a demand notice from its lender due to a failure to repay a loan related to a Shanghai retail mall acquisition. The lender has declared the outstanding sum of approximately USD 52.5 million as immediately due, and may exercise rights over the joint venture shares if the amount is not settled, potentially impacting Straits Trading’s control over its investment.

The most recent analyst rating on (SG:S20) stock is a Hold with a S$1.50 price target. To see the full list of analyst forecasts on Straits Trading Co. Ltd. stock, see the SG:S20 Stock Forecast page.

Straits Trading Announces Changes in Company Secretaries

The Straits Trading Company Limited has announced a change in its company secretaries, with Ms. See-Toh Yuit Mei resigning and Ms. Aw Siew Yen and Mr. Lun Chee Leong being appointed, effective November 14, 2025. This change in company secretaries may impact the company’s administrative operations, and the board expressed gratitude for Ms. See-Toh Yuit Mei’s contributions.

The most recent analyst rating on (SG:S20) stock is a Hold with a S$1.50 price target. To see the full list of analyst forecasts on Straits Trading Co. Ltd. stock, see the SG:S20 Stock Forecast page.