SBS Transit Ltd (S61) AI Stock Analysis

• Market Cap: S$1.01B
• Dividend Yield: 8.65%
• Average Volume (3M): 90.60K
• Price to Earnings (P/E): 14.9
• Beta (1Y): 0.35
• 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

• Rating: 75 Outperform
• Price Target: S$3.50 ▲(8.70% Upside)

SBS Transit Ltd's stock score is primarily driven by its strong financial performance and attractive valuation. The company's robust balance sheet and high dividend yield are significant strengths. However, technical indicators suggest a lack of strong momentum, and challenges in cash flow efficiency need to be addressed to enhance profitability.

SBS Transit Ltd Business Overview & Revenue Model

Company Description

SBS Transit Ltd (S61) is a leading public transport operator in Singapore, primarily engaged in the provision of bus and rail services. The company operates a comprehensive network of bus routes and the North East Line of the Mass Rapid Transit (MRT) system, offering efficient and reliable transportation solutions to commuters in the region. SBS Transit is committed to enhancing public transport accessibility and sustainability, leveraging technology to improve service delivery and customer experience.

How the Company Makes Money

SBS Transit generates revenue primarily through the operation of its bus and rail services. Key revenue streams include fare collections from passengers using its bus and MRT services, which are governed by a regulated fare structure set by the Land Transport Authority of Singapore. Additionally, the company benefits from government subsidies for public transport operations, which help to offset operational costs. SBS Transit may also engage in partnerships with other organizations for advertising on its buses and stations, contributing further to its income. Furthermore, the company may explore ancillary services and initiatives to enhance its service offerings and generate additional revenue.

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 a 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	1.52B	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: Positive
• Last Price: 3.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 3.22 is above the 20-day moving average (MA) of 3.22, above the 50-day MA of 3.21, and above the 200-day MA of 2.74, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 50.92 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 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
S61	75 Outperform	S$1.01B	14.86	9.82%	8.65%	-2.55%	-0.55%
S56	74 Outperform	S$484.23M	3.98	16.35%	1.58%	16.82%	62.71%
C52	68 Neutral	$3.19B	14.40	8.37%	2.62%	15.63%	12.07%
S08	67 Neutral	$911.08M	3.89	19.32%	1.80%	-18.19%	247.00%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
H30	59 Neutral	S$625.07M	18.97	1.11%	1.29%	1.94%	-69.89%
F83	51 Neutral	S$537.42M	46.15	1.18%	―	6.34%	160.00%