SBS Transit Ltd (S61) AI Stock Analysis

• Market Cap: S$1.01B
• Dividend Yield: 8.79%
• Average Volume (3M): 90.60K
• Price to Earnings (P/E): 14.9
• Beta (1Y): 0.34
• Revenue Growth: -2.55%
• EPS Growth: -0.55%
• Country: SG
• Employees: 9,609
• Sector: Industrials
• Sector Strength: 72
• Industry: Railroads
• EPS (TTM): 0.10
• Shares Outstanding: 312,583,400
• 10 Day Avg. Volume: 64,900
• 30 Day Avg. Volume: 90,603
• PEG Ratio: 2.38
• Price to Book (P/B): 1.06
• Price to Sales (P/S): 0.49
• P/FCF Ratio: 35.45
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: S$3.50 ▲(10.41% Upside)

SBS Transit Ltd's overall stock score is driven by its stable financial performance and attractive valuation, particularly the high dividend yield. However, challenges in revenue growth and cash flow generation, along with neutral technical indicators, moderate the score.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage enhances financial resilience, allowing SBS Transit to withstand economic fluctuations and invest in growth opportunities.

Stable Profitability

Consistent profitability margins suggest operational efficiency and the ability to maintain cost controls, supporting long-term financial health.

Dividend Yield

A high dividend yield indicates strong cash flow generation and a commitment to returning value to shareholders, enhancing investor confidence.

Negative Factors

Declining Revenue Growth

Decreasing revenue growth can limit future expansion and market competitiveness, necessitating strategic adjustments to sustain long-term performance.

Cash Flow Challenges

A declining cash flow trend may affect the company's ability to fund operations and investments, posing risks to financial stability and growth potential.

Volatile Revenue Growth

Volatility in revenue growth can create uncertainty in financial planning and investor expectations, impacting strategic decision-making and market perception.

SBS Transit Ltd Business Overview & Revenue Model

Company Description

SBS Transit Ltd (S61) is a leading public transport operator in Singapore, providing bus and rail services to millions of commuters daily. The company operates an extensive network of bus routes and the North East Line, contributing to Singapore's integrated public transport system. As a subsidiary of the ComfortDelGro Corporation, SBS Transit is committed to delivering safe, efficient, and reliable transportation options while embracing innovative technologies to enhance the commuting experience.

How the Company Makes Money

SBS Transit generates revenue primarily through passenger fares collected from its bus and rail services. The company operates on a fare structure regulated by the Land Transport Authority of Singapore, which ensures a steady income stream from commuters. Additional revenue sources include government grants and subsidies aimed at supporting public transport operations, advertising and promotional activities on its vehicles and stations, and partnerships with various stakeholders, including technology providers for smart transport solutions. The company's focus on efficiency and customer satisfaction helps maintain ridership levels, further bolstering its financial performance.

SBS Transit Ltd Financial Statement Overview

Summary

SBS Transit Ltd demonstrates stable profitability and a strong balance sheet with low leverage. However, the declining revenue growth and cash flow metrics indicate potential challenges in sustaining growth and liquidity. The company should focus on improving cash generation and managing revenue growth to enhance financial performance.

Income Statement

SBS Transit Ltd has shown a stable gross profit margin of around 12-15% over the years, with a slight decline in recent years. The net profit margin has remained steady at around 4-6%, indicating consistent profitability. However, the revenue growth rate has been volatile, with a significant decline in the latest year. Despite this, EBIT and EBITDA margins have been relatively stable, suggesting operational efficiency.

Balance Sheet

The company maintains a low debt-to-equity ratio, indicating conservative leverage and financial stability. Return on equity has been consistent, reflecting effective use of equity to generate profits. The equity ratio is healthy, showing a strong equity base relative to total assets, which enhances financial resilience.

Cash Flow

Operating cash flow has been positive but shows a declining trend, which could impact liquidity. Free cash flow has also decreased significantly, raising concerns about cash availability for investments and debt servicing. The operating cash flow to net income ratio is low, suggesting potential challenges in converting profits into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.52B	1.56B	1.53B	1.52B	1.31B	1.23B
Gross Profit	-345.22M	198.93M	169.19M	163.32M	179.78M	186.69M
EBITDA	154.40M	171.39M	183.85M	186.01M	159.19M	189.30M
Net Income	67.69M	70.30M	69.08M	68.02M	51.63M	78.96M
Balance Sheet
Total Assets	1.07B	1.16B	1.17B	1.21B	1.15B	1.14B
Cash, Cash Equivalents and Short-Term Investments	340.79M	384.99M	371.96M	345.30M	204.03M	85.56M
Total Debt	12.02M	17.71M	19.31M	79.12M	91.61M	96.53M
Total Liabilities	389.85M	441.19M	490.11M	566.90M	552.22M	552.77M
Stockholders Equity	678.65M	719.47M	682.08M	644.29M	601.57M	587.03M
Cash Flow
Free Cash Flow	0.00	21.50M	59.21M	171.88M	191.24M	132.90M
Operating Cash Flow	0.00	41.85M	74.87M	182.57M	224.34M	151.22M
Investing Cash Flow	0.00	18.08M	-2.78M	-6.27M	-32.54M	-16.19M
Financing Cash Flow	0.00	-46.91M	-45.44M	-35.03M	-73.33M	-80.93M

SBS Transit Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.17
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 3.17 is below the 20-day moving average (MA) of 3.17, below the 50-day MA of 3.20, and above the 200-day MA of 2.90, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 46.15 is Neutral, neither overbought nor oversold. The STOCH value of 62.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	72 Outperform	S$516.52M	4.12	16.35%	8.65%	16.82%	62.71%
S61	66 Neutral	S$1.01B	14.91	9.82%	8.79%	-2.55%	-0.55%
C52	66 Neutral	$3.12B	14.10	8.37%	5.67%	15.63%	12.07%
S08	65 Neutral	$933.57M	3.99	20.03%	21.88%	-68.90%	194.56%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
H30	62 Neutral	S$625.07M	18.97	1.11%	1.24%	1.94%	-69.89%
F83	53 Neutral	S$546.38M	46.92	1.18%	―	6.34%	160.00%