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SBS Transit Ltd (SG:S61)
SGX:S61
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SBS Transit Ltd (S61) AI Stock Analysis

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SG:S61

SBS Transit Ltd

(SGX:S61)

Rating:75Outperform
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 (S61) vs. iShares MSCI Singapore ETF (EWS)

SBS Transit Ltd Business Overview & Revenue Model

Company DescriptionSBS 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 MoneySBS 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
78
Positive
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
82
Very Positive
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
70
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.95B1.56B1.53B1.52B1.31B1.23B
Gross Profit631.15M198.93M169.19M163.32M179.78M186.69M
EBITDA208.13M171.39M183.85M161.57M159.19M189.30M
Net Income85.90M70.30M69.08M68.02M51.63M78.96M
Balance Sheet
Total Assets1.14B1.16B1.17B1.21B1.15B1.14B
Cash, Cash Equivalents and Short-Term Investments329.89M384.99M371.96M345.30M204.03M85.56M
Total Debt15.47M17.71M19.31M79.12M91.61M96.53M
Total Liabilities436.94M441.19M490.11M566.90M552.22M552.77M
Stockholders Equity699.68M719.47M682.08M644.29M601.57M587.03M
Cash Flow
Free Cash Flow-3.23M21.50M59.21M171.88M191.24M132.90M
Operating Cash Flow15.55M41.85M74.87M182.57M224.34M151.22M
Investing Cash Flow-13.39M18.08M-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 Price3.07
Price Trends
50DMA
2.81
Positive
100DMA
2.72
Positive
200DMA
2.48
Positive
Market Momentum
MACD
0.07
Negative
RSI
84.63
Negative
STOCH
94.67
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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
S$959.63M13.6310.03%3.35%2.13%1.72%
65
Neutral
$11.06B15.735.16%1.93%3.12%-25.59%
$2.55B15.308.14%5.51%
$1.15B6.5719.32%1.01%
69
Neutral
S$543.42M5.7412.39%11.24%-9.28%-30.48%
60
Neutral
S$674.75M22.301.03%1.23%-5.00%-73.03%
57
Neutral
S$568.77M52.921.11%-3.24%200.00%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SG:S61
SBS Transit Ltd
3.07
0.84
37.67%
CDGLF
Comfortdelgro
1.11
0.13
13.27%
SPSTF
Singapore Post
0.49
0.17
53.12%
SG:H30
Hong Fok Corporation Limited
0.82
0.03
3.80%
SG:F83
COSCO Shipping International Singapore Co Ltd
0.13
-0.02
-13.33%
SG:S56
Samudera Shipping Line Ltd
1.00
0.09
9.89%

SBS Transit Ltd Corporate Events

SBS Transit Announces Board Restructuring Amid Leadership Changes
May 26, 2025

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
May 13, 2025

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.

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.Date of analysis: Jul 15, 2025