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ST Engineering (SG:S63)
SGX:S63
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ST Engineering
(SGX:S63)
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Rating:70Outperform
Price Target:
S$9.50
▲(16.14% Upside)
ST Engineering's strong financial performance, characterized by consistent revenue growth and robust cash flow, is the primary driver of its stock score. Technical indicators show a positive trend, although valuation metrics suggest the stock may be overvalued. The absence of earnings call data and corporate events limits additional insights.
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial health.
Contract Wins
Securing large contracts enhances revenue visibility and strengthens market position, contributing to sustained business growth.
Cash Flow Generation
Robust cash flow generation supports investment in growth opportunities and provides financial flexibility for strategic initiatives.
Negative Factors
High Leverage
High leverage can increase financial risk, potentially impacting the company's ability to invest in growth and manage economic downturns.
Equity Financing
A lower equity ratio may limit the company's ability to raise additional capital without increasing debt, affecting long-term financial stability.
Profitability Margins
While profitability margins are healthy, maintaining or improving them is crucial for sustaining competitive advantage and shareholder value.
ST Engineering (S63) vs. iShares MSCI Singapore ETF (EWS)
Market Cap
$25.83B
Dividend Yield1.47%
Average Volume (3M)4.62M
Price to Earnings (P/E)33.6
Beta (1Y)0.78
Revenue Growth8.49%
EPS Growth19.65%
CountrySG
Employees27,359
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.13
Shares Outstanding3,122,495,000
10 Day Avg. Volume3,565,280
30 Day Avg. Volume4,615,593
Financial Highlights & Ratios
PEG Ratio0.98
Price to Book (P/B)5.44
Price to Sales (P/S)1.29
P/FCF Ratio12.38
Enterprise Value/Market Cap1.16
Enterprise Value/Revenue2.57
Enterprise Value/Gross Profit13.34
Enterprise Value/Ebitda17.53
Forecast
1Y Price Target
$8.66Price Target Upside5.90% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)0.36
Revenue Forecast (FY)$16.00B
ST Engineering Business Overview & Revenue Model
Company DescriptionSingapore Technologies Engineering Ltd operates as a technology and engineering company in Asia, Europe, the Middle East, and the United States. The company operates through Commercial Aerospace, Urban Solutions & Satcom, and Defense & Public Security segments. The Commercial Aerospace segments engages in maintenance, repair, and overhaul of airframe, engines, and components; operates as an original equipment manufacturer for nacelles, composite floorboards, and passenger to freight conversions; and provision of aviation asset management solutions. The Urban Solutions & Satcom segment offers smart mobility, utilities, infrastructure, and urban environment solutions, as well as satellite communication solutions. The Defense & Public Security segment offers public safety, security, defense, critical information infrastructure, and other solutions. It serves customers in the commercial, government, and defense sectors. Singapore Technologies Engineering Ltd was incorporated in 1997 and is headquartered in Singapore.
How the Company Makes MoneyST Engineering generates revenue through diverse streams across its four sectors. In the Aerospace segment, the company earns money from aircraft maintenance, repair, and overhaul (MRO) services, as well as manufacturing aircraft components. The Electronics sector contributes through the provision of cybersecurity products, smart city solutions, and integrated electronics systems for various applications. Revenue from the Land Systems segment comes from the sale of military vehicles, weapon systems, and logistics support services. The Marine sector generates income from building and repairing ships and offshore platforms. Additionally, ST Engineering engages in strategic partnerships and collaborations with government agencies and private enterprises, enhancing its market reach and creating opportunities for long-term contracts and projects, which are crucial for stable revenue generation.
ST Engineering Earnings Call Summary
Earnings Call Date:Aug 13, 2025
(Q4-2024)
| % Change Since: |
Next Earnings Date:Aug 19, 2026
Earnings Call Sentiment Positive
ST Engineering reported a strong financial performance for 2024, with significant growth across key financial metrics, a record order book, and increased dividends, indicating a positive outlook. Challenges remain in the Urban Solutions & Satcom segment, but early signs of recovery are noted.Q4-2024 Updates
Positive Updates
Impressive Financial Performance
ST Engineering reported a 12% growth in revenue to $11.3 billion, 11% growth in EBITDA to $1.6 billion, 18% growth in EBIT to $1.1 billion, and 20% growth in net profit to $702 million for the full year 2024.
Record Order Book
The Group ended the year with a robust order book of $28.5 billion, with $8.8 billion expected to deliver in 2025, providing visibility for future revenue.
Commercial Aerospace Growth
Commercial Aerospace revenue grew 12% to $4.4 billion, with EBIT improving 19% to $400 million. The segment secured $4.7 billion of new contracts in 2024.
Defence & Public Security Expansion
DPS revenue grew 16% to $4.9 billion, with EBIT increasing 15% to $636 million. DPS secured $5.3 billion of new contracts in 2024.
Debt Reduction
Borrowings reduced by 5% year-on-year from $6.1 billion to $5.8 billion, with the gross debt to EBITDA leverage ratio reducing from 4.2 times to 3.6 times.
Increased Dividend Payout
The Board recommended a final tax exempt cash dividend of $0.05 per ordinary share, increasing the total dividend for the year to $0.17 per share.
Negative Updates
Urban Solutions & Satcom Segment Challenges
USS segment revenue grew only 1% to close to $2 billion. The Satcom sub-segment faced vast challenges and its transformation is ongoing, though there are early signs of recovery.
PTF Business Volume Impact
Existing aircraft fleet remain in service longer due to OEM delays, impacting PTF business volume. However, capacity is being optimized by increasing airframe MRO revenue.
Company Guidance
The recent call from ST Engineering provided comprehensive guidance for the second half and full year of 2024, highlighting robust financial performance across various metrics. For the second half of 2024, the company reported a 10% year-on-year growth in revenue, 11% in EBITDA, 18% in EBIT, 26% in PBT, and a 20% increase in net profit. For the full year, revenue grew by 12% to surpass $11 billion, with EBITDA rising by 11% to $1.6 billion and EBIT by 18% to $1.1 billion. PBT increased by 23% to $863 million, while net profit climbed 20% to $702 million. The strong results were largely attributed to effective execution of the company's $28.5 billion order book, with $8.8 billion slated for delivery in 2025. The revenue was diversified across segments, with Commercial Aerospace contributing 39%, Defence & Public Security 44%, and Urban Solutions & Satcom 17%. ST Engineering also reported significant contract wins, totaling $12.6 billion for the year, and a reduction in borrowings by 5% to $5.8 billion, leading to an improved gross debt to EBITDA leverage ratio of 3.6 times. The company announced a final dividend of $0.05 per share, bringing the total dividend for 2024 to $0.17 per share, reflecting its strong financial position and commitment to shareholder returns.ST Engineering Financial Statement Overview
Summary
ST Engineering exhibits strong financial health with consistent revenue growth and solid profitability margins. While the company is highly leveraged, it effectively utilizes equity to generate returns. Cash flow generation is robust, supporting its financial stability.Income Statement
ST Engineering has demonstrated consistent revenue growth over the years, with a notable 4.81% increase in 2024. The company maintains healthy profitability margins, with a gross profit margin of 19.28% and a net profit margin of 6.23% in 2024. EBIT and EBITDA margins are also strong at 9.64% and 14.41%, respectively, indicating efficient operations and cost management.85
Very Positive
Balance Sheet
The balance sheet reflects a high debt-to-equity ratio of 2.18 in 2024, which suggests significant leverage. However, the return on equity is robust at 26.30%, indicating effective use of equity to generate profits. The equity ratio stands at 16.46%, showing a moderate level of equity financing relative to total assets.70
Positive
Cash Flow
Cash flow performance is strong, with an impressive free cash flow growth rate of 81.98% in 2024. The operating cash flow to net income ratio is 2.45, indicating solid cash generation relative to net income. The free cash flow to net income ratio is 0.68, reflecting good cash conversion efficiency.78
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 11.67B | 11.28B | 10.10B | 9.04B | 7.69B | 7.16B |
| Gross Profit | 2.25B | 2.17B | 1.97B | 1.70B | 1.54B | 1.51B |
| EBITDA | 1.71B | 1.62B | 1.42B | 1.22B | 1.06B | 932.23M |
| Net Income | 768.56M | 702.26M | 586.47M | 535.01M | 570.54M | 521.84M |
Balance Sheet | ||||||
| Total Assets | 15.91B | 16.22B | 15.38B | 14.96B | 10.67B | 10.21B |
| Cash, Cash Equivalents and Short-Term Investments | 354.01M | 430.64M | 353.34M | 601.75M | 815.92M | 730.62M |
| Total Debt | 5.52B | 5.82B | 6.11B | 6.53B | 2.12B | 2.05B |
| Total Liabilities | 12.87B | 13.27B | 12.63B | 12.31B | 8.01B | 7.64B |
| Stockholders Equity | 2.71B | 2.67B | 2.46B | 2.40B | 2.41B | 2.29B |
Cash Flow | ||||||
| Free Cash Flow | 1.12B | 1.17B | 562.64M | -89.83M | 676.20M | 1.20B |
| Operating Cash Flow | 1.67B | 1.72B | 1.18B | 673.10M | 1.10B | 1.49B |
| Investing Cash Flow | -532.42M | -414.33M | -200.76M | -4.57B | -453.48M | -295.18M |
| Financing Cash Flow | -1.16B | -1.22B | -1.23B | 3.70B | -567.05M | -913.67M |
ST Engineering Technical Analysis
Negative
8.18
Price Trends
8.39
Negative
8.30
Negative
7.41
Positive
Market Momentum
-0.03
Positive
38.23
Neutral
29.95
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:S63, the sentiment is Negative. The current price of 8.18 is below the 20-day moving average (MA) of 8.41, below the 50-day MA of 8.39, and above the 200-day MA of 7.41, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 38.23 is Neutral, neither overbought nor oversold. The STOCH value of 29.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SG:S63.
ST Engineering Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $13.55B | 9.51 | 30.76% | 3.55% | 0.42% | 40.48% | |
71 Outperform | $11.30B | 11.13 | 19.65% | 1.42% | -6.69% | 6.76% | |
71 Outperform | S$17.68B | 18.00 | 8.75% | 3.36% | -0.62% | 34.52% | |
70 Outperform | $25.83B | 33.62 | 28.83% | 1.47% | 8.49% | 19.65% | |
70 Outperform | $20.57B | 7.37 | 17.47% | 6.04% | 2.77% | 3.88% | |
65 Neutral | $7.40B | 27.75 | 4.07% | 0.69% | 25.68% | ― | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
SG:S63
ST Engineering
8.18
3.58
77.90%
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ST Engineering Corporate Events
ST Engineering Secures $4.9 Billion in Q3 2025 Contracts
Oct 23, 2025
ST Engineering announced significant contract wins totaling $4.9 billion for the third quarter of 2025, bringing the total for the first nine months of the year to $14 billion. The contracts span across its Commercial Aerospace, Defence & Public Security, and Urban Solutions & Satcom sectors, reflecting strong market demand and customer confidence. The Commercial Aerospace division secured $1.4 billion in contracts, including a multi-year agreement for Airbus A380 maintenance, while the Defence & Public Security division won $2.4 billion in contracts, highlighting the company’s robust capabilities in digital systems, cybersecurity, and satellite solutions.
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.