SIA Engineering Co (S59) AI Stock Analysis

• Market Cap: S$3.56B
• Dividend Yield: 0.63%
• Average Volume (3M): 1.48M
• Price to Earnings (P/E): 25.4
• Beta (1Y): 0.68
• Revenue Growth: 13.79%
• EPS Growth: 44.05%
• Country: SG
• Employees: 6,253
• Sector: Industrials
• Sector Strength: 86
• Industry: Airlines, Airports & Air Services
• EPS (TTM): 0.06
• Shares Outstanding: 1,124,116,300
• 10 Day Avg. Volume: 980,320
• 30 Day Avg. Volume: 1,484,410
• PEG Ratio: 0.57
• Price to Book (P/B): 1.51
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 49.28
• 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$3.30
• Price Target Upside: 4.21% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 63 Neutral
• Price Target: S$3.00 ▼(-5.36%Downside)

SIA Engineering Co's stock score is primarily driven by its solid financial performance, characterized by robust revenue growth and improved profitability. The company's strong balance sheet further supports its financial stability. Technical analysis shows strong bullish momentum, though overbought conditions suggest caution. Valuation appears moderate with a reasonable P/E ratio and an appealing dividend yield, enhancing the stock's attractiveness to income-focused investors.

Positive Factors

Contracts and Partnerships

New contract with SIA expected to lead to stronger top-line growth and margin expansion.

Market Demand

Anticipated growth in earnings from rising passenger traffic in the region.

Market Positioning

Positioned for long-term MRO demand growth due to established partnerships with leading OEMs.

Negative Factors

Consumer Sentiment

Weaker consumer sentiment and supply chain issues could dampen volumes.

Supply Chain Risks

Supply chain bottlenecks are key risks that could dampen SIA Engineering Co's volumes or increase costs.

SIA Engineering Co Business Overview & Revenue Model

Company Description

SIA Engineering Company Limited (SIAEC) is a Singapore-based company specializing in aircraft maintenance, repair, and overhaul (MRO) services. The company provides a comprehensive suite of MRO services to both commercial airlines and aerospace companies worldwide. With its headquarters at the Singapore Changi Airport, SIAEC operates in the aviation sector, offering services such as line maintenance, base maintenance, and component overhaul, as well as fleet management and technical ground handling support.

How the Company Makes Money

SIA Engineering Company makes money primarily through its broad range of MRO services offered to airlines and aerospace firms. The company's revenue model includes line maintenance services, which involve routine maintenance checks and minor repairs on aircraft between flights, and base maintenance, which provides more in-depth inspections and repairs requiring the aircraft to be out of service for longer periods. Additionally, SIAEC generates income from component overhaul services, which involve the repair and refurbishment of aircraft parts and components. A significant portion of the company's revenue is also derived from fleet management services, offering end-to-end technical support and management for airline fleets. SIAEC's strategic partnerships and joint ventures with major global aerospace companies, such as Boeing and Airbus, enhance its service offerings and expand its market reach, further contributing to its earnings.

SIA Engineering Co Financial Statement Overview

Summary

SIA Engineering Co exhibits a solid financial position with strong revenue growth and improved profitability margins. The balance sheet reflects low leverage and a strong equity base, enhancing financial stability. Cash flow growth and efficient cash generation underscore the company's operational effectiveness. Opportunities include further improving EBIT margins and leveraging its strong cash position for strategic growth.

Income Statement

SIA Engineering Co has shown a healthy revenue growth of approximately 13.8% from 2024 to 2025, along with a strong net profit margin of 11.21% for the latest year. However, gross profit margins have remained stable, indicating room for improvement in cost management. The company has improved its EBIT margin to 1.17%, moving from a loss-making EBIT position in previous years. EBITDA margin improved significantly, suggesting better operational efficiency.

Balance Sheet

The company maintains a strong balance sheet with a debt-to-equity ratio of 0.05, indicating low leverage, which mitigates financial risk. Return on equity stands at 8.11%, showcasing moderate profitability on shareholders' equity. The equity ratio is high at 80.32%, reflecting a solid equity base, which enhances financial stability and reduces bankruptcy risk.

Cash Flow

Operating cash flow increased to 167 million, showing robust cash generation capabilities. Free cash flow also grew significantly by 98.3% from the previous year, indicating potential for reinvestment or debt reduction. The operating cash flow to net income ratio is 1.20, signifying good quality earnings with strong cash backing.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.12B	1.25B	1.09B	795.97M	566.09M	442.99M
Gross Profit	371.10M	305.90M	305.90M	235.95M	183.70M	144.27M
EBITDA	172.67M	214.90M	63.66M	131.45M	36.03M	-1.35M
Net Income	173.80M	139.60M	97.12M	66.39M	67.61M	-11.25M
Balance Sheet
Total Assets	1.85B	2.14B	2.09B	1.98B	1.84B	1.81B
Cash, Cash Equivalents and Short-Term Investments	521.58M	663.40M	645.95M	632.99M	625.48M	615.96M
Total Debt	19.29M	85.20M	110.44M	115.19M	69.73M	84.08M
Total Liabilities	281.25M	399.90M	385.11M	306.64M	216.79M	265.48M
Stockholders Equity	1.53B	1.72B	1.69B	1.67B	1.61B	1.53B
Cash Flow
Free Cash Flow	51.78M	102.60M	51.72M	4.98M	5.91M	145.40M
Operating Cash Flow	101.72M	167.00M	100.40M	64.61M	29.20M	165.79M
Investing Cash Flow	47.67M	-14.80M	30.81M	-19.46M	15.75M	22.82M
Financing Cash Flow	-223.01M	-134.70M	-117.80M	-37.10M	-35.74M	-89.76M

SIA Engineering Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• 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 3.17 is above the 20-day moving average (MA) of 3.12, above the 50-day MA of 2.70, and above the 200-day MA of 2.43, indicating a bullish trend. The MACD of 0.13 indicates Positive momentum. The RSI at 72.93 is Negative, neither overbought nor oversold. The STOCH value of 67.70 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
S63	83 Outperform	S$24.62B	35.06	27.51%	6.08%	11.63%	19.71%
BS6	75 Outperform	$8.85B	7.18	28.14%	6.87%	7.88%	58.71%
U96	70 Neutral	$12.67B	12.44	20.60%	3.37%	-8.88%	8.31%
Sector *	68 Neutral	$2.52B	13.38	7.40%	4.65%	-0.87%	8.24%
S59	63 Neutral	S$3.56B	25.44	8.24%	0.63%	13.79%	44.05%
S58	63 Neutral	S$4.58B	18.83	9.89%	1.95%	60.52%	―
5E2	60 Neutral	$6.99B	44.47	2.48%	0.94%	26.60%	―

SIA Engineering Co Corporate Events

SIA Engineering Announces Board Committee Changes

SIA Engineering Company Limited has announced the appointment of Mr. Ng Chee Khern as a member of its Board Safety & Risk Committee, effective from June 25, 2025. This change is part of a broader restructuring of the company’s board committees, which aims to enhance governance and oversight, potentially impacting the company’s operational efficiency and stakeholder confidence.

The most recent analyst rating on (SG:S59) stock is a Buy with a S$2.80 price target. To see the full list of analyst forecasts on SIA Engineering Co stock, see the SG:S59 Stock Forecast page.

SIA Engineering Secures $1.3 Billion Services Agreements with Singapore Airlines and Scoot

SIA Engineering Company has signed new Comprehensive Services Agreements with Singapore Airlines and its low-cost subsidiary, Scoot, which replace previous agreements from April 2023. Effective from April 1, 2025, these agreements are set for a two-year term with an option to extend for one more year, and they are expected to generate $1.3 billion in labor revenue. This development is significant for SIAEC’s business as it strengthens its position in the MRO industry and reinforces its strategic partnership with major airlines, potentially impacting stakeholders positively.

The most recent analyst rating on (SG:S59) stock is a Buy with a S$2.80 price target. To see the full list of analyst forecasts on SIA Engineering Co stock, see the SG:S59 Stock Forecast page.