SIA Engineering Co Ltd (SG:S59)
SGX:S59
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SIA Engineering Co
(SGX:S59)
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Rating:66Neutral
Price Target:
S$3.50
â–²(7.36% Upside)
Action:Reiterated
Date:05/13/26
The score is driven primarily by solid financial strength (low leverage) and improved profitability with strong revenue growth, partially offset by 2026 margin compression and weaker cash conversion. Technical indicators point to subdued/weak trend strength, and valuation is moderate with only modest support from the dividend yield.
Positive Factors
Balance sheet strength
Very low leverage and steadily growing equity provide durable financial flexibility, supporting capital spending on hangars and tooling, backing multi-year maintenance contracts, and offering downside protection in aviation cyclicality. This strengthens long-term solvency and strategic optionality.
Negative Factors
Margin compression in 2026
Meaningful 2026 margin compression suggests structural cost or pricing pressure—higher labour, parts, or competitive pricing—that can erode the quality of earnings. Persistent margin weakness would limit cash generation and the payoff from revenue growth over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strength
Very low leverage and steadily growing equity provide durable financial flexibility, supporting capital spending on hangars and tooling, backing multi-year maintenance contracts, and offering downside protection in aviation cyclicality. This strengthens long-term solvency and strategic optionality.
Read all positive factors
SIA Engineering Co (S59) vs. iShares MSCI Singapore ETF (EWS)
Market Cap
S$3.63B
Dividend Yield2.68%
Average Volume (3M)1.66M
Price to Earnings (P/E)31.8
Beta (1Y)0.70
Revenue Growth14.28%
EPS Growth21.19%
CountrySG
Employees6,253
SectorIndustrials
Sector Strength72
IndustryAirlines, Airports & Air Services
Share Statistics
EPS (TTM)0.13
Shares Outstanding1,124,116,300
10 Day Avg. Volume1,004,680
30 Day Avg. Volume1,655,990
Financial Highlights & Ratios
PEG Ratio0.86
Price to Book (P/B)2.07
Price to Sales (P/S)2.55
P/FCF Ratio69.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
S$3.93Price Target Upside20.55% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.16
Revenue Forecast (FY)S$1.59B
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...
How the Company Makes Money
SIA Engineering makes money primarily by charging airlines and other aircraft operators for MRO services performed on their fleets. Key revenue streams typically include: (1) Line maintenance—recurring fees for routine inspections, defect rectific...
SIA Engineering Co Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
88
Very Positive
Cash Flow
62
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.33B | 1.42B | 1.25B | 1.09B | 795.97M | 566.09M |
| Gross Profit | 726.59M | 189.30M | 305.90M | 305.90M | 235.95M | 183.70M |
| EBITDA | 50.67M | 98.75M | 214.90M | 166.81M | 131.45M | 36.03M |
| Net Income | 149.22M | 168.88M | 139.60M | 97.12M | 66.39M | 67.61M |
Balance Sheet | ||||||
| Total Assets | 0.00 | 2.27B | 2.14B | 2.09B | 1.98B | 1.84B |
| Cash, Cash Equivalents and Short-Term Investments | 663.36M | 564.76M | 663.40M | 645.95M | 632.99M | 625.48M |
| Total Debt | 0.00 | 161.18M | 85.20M | 110.44M | 115.19M | 69.73M |
| Total Liabilities | -1.74B | 492.88M | 399.90M | 385.11M | 306.64M | 216.79M |
| Stockholders Equity | 1.74B | 1.76B | 1.72B | 1.69B | 1.67B | 1.61B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 52.24M | 102.60M | 61.18M | 4.98M | 5.91M |
| Operating Cash Flow | 0.00 | 89.11M | 167.00M | 100.40M | 64.61M | 29.20M |
| Investing Cash Flow | 0.00 | -48.09M | -14.80M | 30.81M | -19.46M | 15.75M |
| Financing Cash Flow | 0.00 | -138.58M | -134.70M | -117.80M | -37.10M | -35.74M |
SIA Engineering Co Technical Analysis
Neutral
3.26
Price Trends
3.23
Negative
3.33
Negative
3.37
Negative
Market Momentum
-0.01
Negative
52.89
Neutral
65.40
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:S59, the sentiment is Neutral. The current price of 3.26 is above the 20-day moving average (MA) of 3.20, above the 50-day MA of 3.23, and below the 200-day MA of 3.37, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 52.89 is Neutral, neither overbought nor oversold. The STOCH value of 65.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SG:S59.
SIA Engineering Co Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | S$57.09M | 22.94 | 5.72% | 1.09% | -18.82% | 1.91% | |
66 Neutral | S$3.63B | 31.75 | 6.65% | 2.68% | 14.28% | 21.19% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | S$5.72B | 20.08 | 10.43% | 1.44% | 9.01% | 17.18% | |
59 Neutral | S$35.46B | 76.77 | 17.50% | 2.01% | 9.50% | -34.09% |
* Industrials Sector Average
SG:S59
SIA Engineering Co
3.23
0.61
23.09%
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SIA Engineering Co Corporate Events
SIA Engineering to Take 30% Stake in Fujian MRO Joint Venture
Mar 10, 2026
SIA Engineering Company, a leading Asia-Pacific aircraft maintenance, repair and overhaul provider, supports over 80 international carriers and aerospace manufacturers across a broad network of airports and joint ventures. Its extensive regulatory...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.