SBS Transit Ltd (S61) AI Stock Analysis

• Market Cap: S$959.63M
• Dividend Yield: 3.35%
• Average Volume (3M): 107.26K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 0.28
• Revenue Growth: 2.13%
• EPS Growth: 1.72%
• Country: SG
• Employees: 9,609
• Sector: Industrials
• Sector Strength: 94
• Industry: Railroads
• EPS (TTM): N/A
• Shares Outstanding: 312,583,400
• 10 Day Avg. Volume: 164,330
• 30 Day Avg. Volume: 107,263
• PEG Ratio: 0.40
• Price to Book (P/B): 1.25
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.68
• 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

• Rating: 75 Outperform
• Price Target: S$3.50 ▲(14.01%Upside)

SBS Transit Ltd receives a strong evaluation driven by its robust financial performance, highlighted by solid revenue growth and financial stability. The valuation is attractive due to a reasonable P/E ratio and a high dividend yield. While the technical indicators show bullish momentum, overbought signals suggest caution. The company's operational efficiencies need improvement to enhance profitability margins.

SBS Transit Ltd Business Overview & Revenue Model

Company Description

SBS Transit Ltd provides bus and rail public transport services primarily in Singapore. It operates through Public Transport Services and Other Commercial Services segments. The company operates scheduled buses. It also operates North East MRT Line, an automatic underground heavy rail system; Downtown Line, an underground line; and Sengkang and Punggol light rail transits. In addition, the company offers advertisement on the buses and trains, as well as at bus interchanges, and railway stations; and commercial and shop space for lease at bus interchanges and rail stations. It operates 228 bus route services with a fleet of 3,548 buses; and 78 stations with a fleet of 192 trains. The company was formerly known as Singapore Bus Services Limited and changed its name to SBS Transit Ltd in November 2001. The company was founded in 1973 and is based in Singapore. SBS Transit Ltd is a subsidiary of ComfortDelGro Corporation Limited.

How the Company Makes Money

SBS Transit Ltd generates revenue primarily through the provision of public transport services, including bus and rail operations. The company's key revenue streams include fares collected from passengers using its extensive network of buses and trains. Additionally, SBS Transit benefits from government contracts and subsidies, which are integral to its operations given the essential nature of public transport services. The company also earns ancillary income from advertising and rental of commercial spaces within its transportation hubs. Strategic partnerships with governmental agencies and compliance with regulatory frameworks are significant factors contributing to its earnings, ensuring a stable and sustainable revenue model.

SBS Transit Ltd Financial Statement Overview

Summary

SBS Transit Ltd demonstrates strong revenue growth and financial stability, supported by a robust balance sheet with low leverage and solid equity position. However, the decline in cash flow metrics suggests potential challenges in maintaining cash efficiency. The company shows promising growth potential but needs to address operational efficiencies to improve profitability margins.

Income Statement

SBS Transit Ltd has shown steady revenue growth with a 2.13% increase from 2023 to 2024. The net profit margin improved slightly to 4.51% in 2024, indicating effective cost management. However, the decline in EBIT margin from 5.02% in 2023 to 4.69% in 2024 suggests some operational challenges. Overall, the company's income statement reflects a stable and growing revenue base, but with room for margin improvement.

Balance Sheet

The balance sheet of SBS Transit Ltd is solid with a low debt-to-equity ratio of 0.02, indicating low leverage. The equity ratio stands at 61.96%, demonstrating strong financial stability. Return on Equity (ROE) increased to 9.77%, highlighting efficient use of equity to generate profits. Overall, the balance sheet shows strong financial health and prudent debt management.

Cash Flow

SBS Transit Ltd experienced a significant decline in free cash flow from 59.21 million in 2023 to 21.50 million in 2024. The operating cash flow to net income ratio also decreased, reflecting reduced cash conversion efficiency. Despite these declines, the company maintains positive free cash flow, which supports liquidity. However, the lower cash generation may indicate challenges in sustaining cash flow levels.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.95B	1.56B	1.53B	1.52B	1.31B	1.23B
Gross Profit	631.15M	198.93M	169.19M	163.32M	179.78M	186.69M
EBITDA	208.13M	171.39M	183.85M	161.57M	159.19M	189.30M
Net Income	85.90M	70.30M	69.08M	68.02M	51.63M	78.96M
Balance Sheet
Total Assets	1.14B	1.16B	1.17B	1.21B	1.15B	1.14B
Cash, Cash Equivalents and Short-Term Investments	329.89M	384.99M	371.96M	345.30M	204.03M	85.56M
Total Debt	15.47M	17.71M	19.31M	79.12M	91.61M	96.53M
Total Liabilities	436.94M	441.19M	490.11M	566.90M	552.22M	552.77M
Stockholders Equity	699.68M	719.47M	682.08M	644.29M	601.57M	587.03M
Cash Flow
Free Cash Flow	-3.23M	21.50M	59.21M	171.88M	191.24M	132.90M
Operating Cash Flow	15.55M	41.85M	74.87M	182.57M	224.34M	151.22M
Investing Cash Flow	-13.39M	18.08M	-2.78M	-6.27M	-32.54M	-16.19M
Financing Cash Flow	-46.43M	-46.91M	-45.44M	-35.03M	-73.33M	-80.93M

SBS Transit Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.07
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:S61, the sentiment is Positive. The current price of 3.07 is above the 20-day moving average (MA) of 2.89, above the 50-day MA of 2.81, and above the 200-day MA of 2.48, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 84.63 is Negative, neither overbought nor oversold. The STOCH value of 94.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:S61.

SBS Transit Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
S61	75 Outperform	S$959.63M	13.63	10.03%	3.35%	2.13%	1.72%
Sector *	65 Neutral	$11.06B	15.73	5.16%	1.93%	3.12%	-25.59%
CDGLF	―	$2.55B	15.30	8.14%	5.51%	―	―
SPSTF	―	$1.15B	6.57	19.32%	1.01%	―	―
S56	69 Neutral	S$543.42M	5.74	12.39%	11.24%	-9.28%	-30.48%
H30	60 Neutral	S$674.75M	22.30	1.03%	1.23%	-5.00%	-73.03%
F83	57 Neutral	S$568.77M	52.92	1.11%	―	-3.24%	200.00%

SBS Transit Ltd Corporate Events

SBS Transit Announces Board Restructuring Amid Leadership Changes

SBS Transit Ltd has announced changes to its Board and Board Committees, with Mr. Desmond Choo stepping down due to his appointment as Minister of State for the Ministry of Defence of Singapore. The company expressed gratitude for Mr. Choo’s contributions, particularly in navigating the public transport industry’s evolving landscape. Additionally, Mr. Lim Tien Hock will cease to be a Non-Independent Executive Director, leading to a restructured board composition effective from June 2025, which will include a majority of Independent Non-Executive Directors.

SBS Transit Ltd’s 32nd Annual General Meeting Highlights Future Strategies

SBS Transit Ltd held its thirty-second annual general meeting, attended by its board of directors and key executives, to discuss the company’s performance and future strategies. The meeting highlighted the company’s commitment to enhancing its services and maintaining its position as a leading public transport operator in Singapore, with implications for stakeholders including potential operational improvements and strategic initiatives.