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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 increasing equity provide durable financial flexibility for an MRO operator. A conservatively financed balance sheet supports necessary capex for hangars and tooling, helps retain contract credibility with airlines, and offers downside protection through aviation cycles.
Negative Factors
2026 margin compression
Meaningful margin compression and thin 2026 operating margins weaken the earnings buffer and point to rising costs or pricing pressure. If margins remain constrained, the business has less ability to self-fund capex, compete on tenders, or absorb a downturn in airline activity over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strength
Very low leverage and steadily increasing equity provide durable financial flexibility for an MRO operator. A conservatively financed balance sheet supports necessary capex for hangars and tooling, helps retain contract credibility with airlines, and offers downside protection through aviation cycles.
Read all positive factors
SIA Engineering Co (S59) vs. iShares MSCI Singapore ETF (EWS)
Market Cap
S$3.76B
Dividend Yield2.68%
Average Volume (3M)1.66M
Price to Earnings (P/E)21.9
Beta (1Y)0.64
Revenue Growth14.28%
EPS Growth21.19%
CountrySG
Employees6,253
SectorIndustrials
Sector Strength72
IndustryAirlines, Airports & Air Services
Share Statistics
EPS (TTM)0.15
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, a Singapore-headquartered firm established in 1982, delivers a full spectrum of maintenance, repair, and overhaul (MRO) solutions globally. Its clientele includes airline operators and aerospace equipment manufactu...
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 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.42B | 1.25B | 1.09B | 795.97M | 566.09M |
| Gross Profit | 189.30M | 305.90M | 305.90M | 235.95M | 183.70M |
| EBITDA | 98.75M | 214.90M | 166.81M | 131.45M | 36.03M |
| Net Income | 168.88M | 139.60M | 97.12M | 66.39M | 67.61M |
Balance Sheet | |||||
| Total Assets | 2.27B | 2.14B | 2.09B | 1.98B | 1.84B |
| Cash, Cash Equivalents and Short-Term Investments | 564.76M | 663.40M | 645.95M | 632.99M | 625.48M |
| Total Debt | 161.18M | 85.20M | 110.44M | 115.19M | 69.73M |
| Total Liabilities | 492.88M | 399.90M | 385.11M | 306.64M | 216.79M |
| Stockholders Equity | 1.76B | 1.72B | 1.69B | 1.67B | 1.61B |
Cash Flow | |||||
| Free Cash Flow | 52.24M | 102.60M | 61.18M | 4.98M | 5.91M |
| Operating Cash Flow | 89.11M | 167.00M | 100.40M | 64.61M | 29.20M |
| Investing Cash Flow | -48.09M | -14.80M | 30.81M | -19.46M | 15.75M |
| Financing Cash Flow | -138.58M | -134.70M | -117.80M | -37.10M | -35.74M |
SIA Engineering Co Technical Analysis
Neutral
3.26
Price Trends
3.29
Positive
3.28
Positive
3.40
Negative
Market Momentum
0.02
Positive
48.26
Neutral
17.45
Positive
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 below the 20-day moving average (MA) of 3.42, below the 50-day MA of 3.29, and below the 200-day MA of 3.40, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 48.26 is Neutral, neither overbought nor oversold. The STOCH value of 17.45 is Positive, 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 |
|---|---|---|---|---|---|---|---|
66 Neutral | S$3.76B | 21.87 | 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$6.81B | 24.16 | 10.80% | 1.44% | 9.01% | 17.18% | |
61 Neutral | S$49.08M | 12.32 | 5.72% | 1.09% | -18.82% | 1.91% | |
59 Neutral | S$33.56B | 71.72 | 17.50% | 2.01% | 9.50% | -34.09% |
* Industrials Sector Average
SG:S59
SIA Engineering Co
3.30
0.04
1.35%
SG:BTJ
A-Sonic Aerospace
0.48
0.15
44.58%
SG:S63
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10.70
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30.74%
SG:S58
SATS
4.59
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43.17%
SIA Engineering Co Corporate Events
SIA Engineering and Air India Eye Deeper MRO Partnership in India
Jul 3, 2026
SIA Engineering Company and Air India have signed a non-binding memorandum of understanding to explore deeper collaboration in maintenance, repair and overhaul services, in a bid to support India’s ambition of becoming a global aviation MRO ...
SIA Engineering, Safran to Launch CFM LEAP Engine MRO Joint Venture in Singapore
Jun 6, 2026
SIA Engineering Company and Safran Aircraft Engines have agreed to form a joint venture in Singapore to build a full-fledged CFM LEAP engine maintenance, repair and overhaul facility for LEAP-1A and LEAP-1B engines. The new shop will integrate SIA...
SIA Engineering, Safran Launch LEAP Engine MRO Joint Venture in Singapore
Jun 6, 2026
SIA Engineering Company and Safran Aircraft Engines have agreed to form a joint venture in Singapore to provide full maintenance, repair and overhaul services for CFM LEAP-1A and LEAP-1B engines. The new engine shop will integrate SIAEC’s ex...
SIA Engineering Deepens Malaysia Push With New Subang Base Maintenance Hub
May 22, 2026
SIA Engineering Company has officially opened Base Maintenance Malaysia, a wholly owned heavy maintenance facility at Sultan Abdul Aziz Shah Airport in Subang, adding two hangars capable of handling up to six concurrent checks on widebody and narr...
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.