SBS Transit Ltd (S61) AI Stock Analysis

• Market Cap: S$872.11M
• Dividend Yield: 8%
• Average Volume (3M): 74.09K
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.27
• Revenue Growth: 2.13%
• EPS Growth: 1.72%
• Country: SG
• Employees: 9,609
• Sector: Industrials
• Sector Strength: 87
• Industry: Railroads
• EPS (TTM): N/A
• Shares Outstanding: 312,583,400
• 10 Day Avg. Volume: 80,300
• 30 Day Avg. Volume: 74,086
• 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: 76 Outperform
• Price Target: ―

SBS Transit Ltd showcases strong financial stability with low leverage and robust equity positions, supporting its growth potential. However, challenges in cash flow efficiency need attention to improve overall profitability. The technical analysis indicates positive momentum, though the lack of detailed indicators suggests some caution. Valuation metrics show a balanced risk-reward profile, making it a moderately attractive investment opportunity.

SBS Transit Ltd Business Overview & Revenue Model

Company Description

SBS Transit Ltd (S61) is a leading public transport operator in Singapore, specializing in the provision of bus and rail services. The company operates an extensive network of bus routes and manages several key rail lines, including the North East Line, Downtown Line, and the Sengkang and Punggol Light Rail Transit (LRT) systems. As a subsidiary of ComfortDelGro Corporation, SBS Transit is committed to delivering safe, reliable, and efficient public transport solutions to millions of commuters daily.

How the Company Makes Money

SBS Transit Ltd generates revenue primarily through its public transport services, which include both bus and rail operations. The company earns money by collecting fares from passengers using its extensive network of buses and rail lines. Additionally, SBS Transit benefits from government contracts and subsidies, which are designed to support the infrastructure and operational costs associated with public transport systems. Ancillary revenue streams include advertising on buses and trains, as well as leasing retail and commercial spaces in transit stations. The company's financial performance is also supported by strategic partnerships and its relationship with parent company ComfortDelGro, which can provide additional resources and opportunities for growth.

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: 2.76
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 2.76 is below the 20-day moving average (MA) of 2.76, above the 50-day MA of 2.74, and above the 200-day MA of 2.42, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 60.21 is Neutral, neither overbought nor oversold. The STOCH value of 77.68 is Neutral, 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
S56	76 Outperform	S$451.95M	4.77	12.39%	1.53%	-9.28%	-30.48%
S61	76 Outperform	S$872.11M	12.39	10.03%	8.00%	2.13%	1.72%
S08	69 Neutral	S$1.39B	5.96	19.32%	2.19%	6.39%	123.72%
Sector *	68 Neutral	$2.50B	13.28	7.40%	4.67%	-0.87%	8.24%
C52	68 Neutral	$3.12B	14.81	8.14%	9.78%	15.36%	16.55%
H30	66 Neutral	S$612.65M	20.00	1.03%	1.74%	-5.00%	-73.03%
F83	48 Neutral	S$274.31M	50.83	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.

SBS Transit Engages Shareholders Ahead of Annual General Meeting

SBS Transit Ltd’s Board of Directors has expressed gratitude to shareholders who submitted questions ahead of the company’s Thirty-Second Annual General Meeting. The meeting is scheduled to be held both electronically and in person at the ComfortDelGro Headquarters in Singapore, indicating a commitment to shareholder engagement and transparency.