SIA Engineering Co (S59) AI Stock Analysis

• Market Cap: $3.94B
• Dividend Yield: 2.71%
• Average Volume (3M): 1.66M
• Price to Earnings (P/E): 25.5
• Beta (1Y): 0.68
• Revenue Growth: 20.88%
• EPS Growth: 45.05%
• Country: SG
• Employees: 6,253
• Sector: Industrials
• Sector Strength: 72
• Industry: Airlines, Airports & Air Services
• EPS (TTM): 0.04
• Shares Outstanding: 1,124,116,300
• 10 Day Avg. Volume: 1,004,680
• 30 Day Avg. Volume: 1,655,990
• PEG Ratio: 0.46
• Price to Book (P/B): 1.45
• Price to Sales (P/S): 2.01
• P/FCF Ratio: 24.35
• Enterprise Value/Market Cap: 0.48
• Enterprise Value/Revenue: 1.42
• Enterprise Value/Gross Profit: 2.61
• Enterprise Value/Ebitda: 37.36
• 1Y Price Target: $3.70
• Price Target Upside: 5.38% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: S$4.00 ▲(13.96% Upside)

SIA Engineering Co's strong financial performance and positive technical indicators are the primary drivers of its stock score. The company's robust balance sheet and consistent revenue growth support its financial health. However, the relatively high P/E ratio suggests potential overvaluation, which slightly offsets the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a stable demand for MRO services, supporting long-term business sustainability and market position.

Cash Generation

Strong cash generation enhances financial flexibility, enabling strategic investments and cushioning against economic downturns.

Balance Sheet Health

A strong balance sheet with low leverage ensures financial resilience, allowing the company to withstand industry fluctuations.

Negative Factors

Operational Efficiency

Low EBIT margins highlight inefficiencies that could hinder profitability, necessitating improvements to sustain competitive advantage.

Profit Margin Pressure

Decreasing gross margins may indicate rising costs or pricing pressures, which could impact long-term profitability if not addressed.

Cash Flow Management

Suboptimal cash flow management could limit investment capacity and affect the company's ability to capitalize on growth opportunities.

SIA Engineering Co Business Overview & Revenue Model

Company Description

SIA Engineering Company Limited, together with its subsidiaries, provides maintenance, repair, and overhaul (MRO) services to airline carriers and aerospace equipment manufacturers worldwide. The company operates through two segments, Airframe and Line Maintenance; and Engine and Component. The Airframe and Line Maintenance segment provides airframe maintenance, line maintenance, and fleet management programs. Its services include scheduled routine maintenance and overhaul, specialized and non-routine maintenance, and modification and refurbishment programs; aircraft certification and technical and non-technical ground handling services, such as push-back and towing, as well as the provision of aircraft ground support equipment and rectification work; and fleet technical management and inventory technical management services, which include the provision of engineering and MRO solutions. The Engine and Component segment provides component overhaul, and engine repair and overhaul services. SIA Engineering Company Limited also manufactures aircraft cabin parts and tooling for the aerospace industry; and provides repair and overhaul services for hydro-mechanical equipment for aircraft. In addition, it offers engine maintenance, parts repair, storage and preservation, material management, on-wing, and engine testing services. The company was incorporated in 1982 and is based in Singapore. SIA Engineering Company Limited is a subsidiary of Singapore Airlines Limited.

How the Company Makes Money

SIA Engineering generates revenue primarily through its MRO services, which are charged based on the maintenance contracts with airlines and aircraft operators. Key revenue streams include airframe maintenance services, which involve comprehensive checks and repairs, as well as component repair and overhaul services for various aircraft parts. The company also earns from line maintenance services, which provide on-the-spot support for aircraft on the ground. Significant partnerships with major airlines and collaborations with aircraft manufacturers enhance its service offerings and attract a consistent customer base. Additionally, SIA Engineering benefits from long-term contracts with clients, providing stable and recurring revenue streams.

SIA Engineering Co Financial Statement Overview

Summary

SIA Engineering Co exhibits a strong financial position with consistent revenue growth and solid profitability margins. The balance sheet is robust with low leverage, and cash flow generation is improving. While there are areas for operational efficiency improvements, the company is well-positioned for future growth.

Income Statement

SIA Engineering Co has shown a consistent revenue growth rate of 4.67% in the latest year, indicating a positive trend. The gross profit margin is healthy at 24.57%, though it has slightly decreased from previous years. The net profit margin improved to 11.21%, reflecting better profitability. However, the EBIT margin is relatively low at 1.21%, suggesting room for operational efficiency improvements.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.05, indicating low leverage and financial stability. The return on equity is moderate at 8.11%, showing decent profitability from shareholders' investments. The equity ratio stands at 80.34%, highlighting a solid equity base relative to total assets.

Cash Flow

SIA Engineering Co has experienced a significant free cash flow growth rate of 32.14%, demonstrating strong cash generation capabilities. The operating cash flow to net income ratio is 1.20, indicating efficient cash conversion. However, the free cash flow to net income ratio is 0.61, suggesting some room for improvement in cash flow management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.33B	1.25B	1.09B	795.97M	566.09M	442.99M
Gross Profit	726.59M	305.90M	305.90M	235.95M	183.70M	144.27M
EBITDA	50.67M	214.90M	166.81M	131.45M	36.03M	-1.35M
Net Income	149.22M	139.60M	97.12M	66.39M	67.61M	-11.25M
Balance Sheet
Total Assets	0.00	2.14B	2.09B	1.98B	1.84B	1.81B
Cash, Cash Equivalents and Short-Term Investments	663.36M	663.40M	645.95M	632.99M	625.48M	615.96M
Total Debt	0.00	85.20M	110.44M	115.19M	69.73M	84.08M
Total Liabilities	-1.74B	399.90M	385.11M	306.64M	216.79M	265.48M
Stockholders Equity	1.74B	1.72B	1.69B	1.67B	1.61B	1.53B
Cash Flow
Free Cash Flow	0.00	102.60M	61.18M	4.98M	5.91M	145.40M
Operating Cash Flow	0.00	167.00M	100.40M	64.61M	29.20M	165.79M
Investing Cash Flow	0.00	-14.80M	30.81M	-19.46M	15.75M	22.82M
Financing Cash Flow	0.00	-134.70M	-117.80M	-37.10M	-35.74M	-89.76M

SIA Engineering Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.51
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:S59, the sentiment is Positive. The current price of 3.51 is below the 20-day moving average (MA) of 3.52, below the 50-day MA of 3.54, and above the 200-day MA of 2.99, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 48.84 is Neutral, neither overbought nor oversold. The STOCH value of 66.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:S59.

SIA Engineering Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BS6	79 Outperform	S$13.31B	9.35	30.76%	3.56%	0.42%	40.48%
U96	71 Outperform	S$10.41B	10.26	19.65%	4.44%	-6.69%	6.76%
S63	70 Outperform	$25.49B	33.17	28.83%	2.08%	8.49%	19.65%
S59	69 Neutral	$3.94B	25.47	9.03%	2.71%	20.88%	45.05%
5E2	65 Neutral	S$7.01B	26.47	4.07%	0.72%	25.68%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
S58	62 Neutral	S$5.56B	21.49	9.76%	1.47%	10.26%	30.63%

SIA Engineering Co Corporate Events

SIA Engineering and Safran Aircraft Engines to Expand LEAP Engine Maintenance Collaboration

SIA Engineering Company Limited and Safran Aircraft Engines have signed a Letter of Intent to expand their collaboration in CFM LEAP engine maintenance services in Singapore. This partnership aims to enhance the maintenance capabilities and capacity of the LEAP engine network, potentially through a joint venture, to meet the increasing global demand. The collaboration builds on SIAEC’s existing relationship with Safran Group and positions the company to contribute significantly to the LEAP maintenance network, leveraging its strategic location and expertise.