ST Engineering (SG:S63)
SGX:S63
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ST Engineering
(SGX:S63)
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Rating:59Neutral
Price Target:
S$12.00
▲(6.48% Upside)
Action:ReiteratedDate:03/04/26
The score is held back mainly by expensive valuation (high P/E) and weaker 2025 profitability plus elevated leverage, partially offset by steady revenue/cash flow performance and supportive technical momentum despite near-term overbought signals.
Positive Factors
Recurring, diversified revenue streams
ST Engineering's mix of aerospace MRO, digital/managed services, defence procurement and marine contracts creates a high share of long-duration and recurring revenue. This breadth and contract stickiness support predictable cash flows, reduce single-market cyclicality and underpin multi-year revenue resilience.
Negative Factors
Elevated leverage
Leverage materially above conservative peer norms limits financial flexibility. High debt levels increase interest and refinancing risk, constrain capacity for large CAPEX or acquisitions without adding debt, and make earnings and cash flow more sensitive to macro shocks over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring, diversified revenue streams
ST Engineering's mix of aerospace MRO, digital/managed services, defence procurement and marine contracts creates a high share of long-duration and recurring revenue. This breadth and contract stickiness support predictable cash flows, reduce single-market cyclicality and underpin multi-year revenue resilience.
Read all positive factors
ST Engineering (S63) vs. iShares MSCI Singapore ETF (EWS)
Market Cap
S$33.22B
Dividend Yield2.01%
Average Volume (3M)4.27M
Price to Earnings (P/E)109.6
Beta (1Y)0.69
Revenue Growth9.50%
EPS Growth-34.09%
CountrySG
Employees27,359
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.15
Shares Outstanding3,122,495,000
10 Day Avg. Volume3,529,872
30 Day Avg. Volume4,274,169
Financial Highlights & Ratios
PEG Ratio-1.63
Price to Book (P/B)10.20
Price to Sales (P/S)2.13
P/FCF Ratio24.53
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
S$11.81Price Target Upside4.81% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)0.33
Revenue Forecast (FY)S$13.56B
ST Engineering Business Overview & Revenue Model
Company Description
Singapore 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 Secu...
How the Company Makes Money
ST Engineering makes money primarily by selling engineering services, long-term support/maintenance, and engineered products/systems to commercial and government customers. Key revenue streams include: (1) Aerospace: revenue from aircraft MRO (e.g...
ST Engineering Earnings Call Summary
Earnings Call Date:Feb 26, 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.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.
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.
Read all updates
Q4-2024 Updates
Positive
Negative
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.
Read all positive updates
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
Income Statement
68
Positive
Balance Sheet
55
Neutral
Cash Flow
63
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 12.35B | 11.28B | 10.10B | 9.04B | 7.69B |
| Gross Profit | 2.16B | 2.17B | 1.97B | 1.70B | 1.54B |
| EBITDA | 1.60B | 1.62B | 1.42B | 1.22B | 1.06B |
| Net Income | 462.77M | 702.26M | 586.47M | 535.01M | 570.54M |
Balance Sheet | |||||
| Total Assets | 16.03B | 16.22B | 15.38B | 14.96B | 10.67B |
| Cash, Cash Equivalents and Short-Term Investments | 576.44M | 430.64M | 353.34M | 601.75M | 815.92M |
| Total Debt | 4.83B | 5.82B | 6.11B | 6.53B | 2.12B |
| Total Liabilities | 13.11B | 13.27B | 12.63B | 12.31B | 8.01B |
| Stockholders Equity | 2.57B | 2.67B | 2.46B | 2.40B | 2.41B |
Cash Flow | |||||
| Free Cash Flow | 1.07B | 1.17B | 562.64M | -89.83M | 676.20M |
| Operating Cash Flow | 1.58B | 1.72B | 1.18B | 673.10M | 1.10B |
| Investing Cash Flow | 117.89M | -414.33M | -200.76M | -4.57B | -453.48M |
| Financing Cash Flow | -1.62B | -1.22B | -1.23B | 3.70B | -567.05M |
ST Engineering Technical Analysis
Positive
11.27
Price Trends
10.73
Positive
9.75
Positive
9.04
Positive
Market Momentum
0.18
Positive
57.47
Neutral
39.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:S63, the sentiment is Positive. The current price of 11.27 is above the 20-day moving average (MA) of 11.13, above the 50-day MA of 10.73, and above the 200-day MA of 9.04, indicating a bullish trend. The MACD of 0.18 indicates Positive momentum. The RSI at 57.47 is Neutral, neither overbought nor oversold. The STOCH value of 39.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | S$15.80B | 4.24 | 28.61% | 3.46% | 5.09% | 27.85% | |
69 Neutral | S$3.66B | 20.51 | 6.65% | 2.68% | 20.88% | 45.05% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | S$7.79B | ― | 3.11% | 0.70% | 24.28% | 107.38% | |
62 Neutral | S$4.96B | 16.71 | 10.43% | 1.44% | 10.26% | 30.63% | |
59 Neutral | S$33.22B | 109.64 | 17.50% | 2.01% | 9.50% | -34.09% | |
57 Neutral | S$19.17B | ― | 3.58% | 3.29% | -3.52% | -16.41% |
* Industrials Sector Average
SG:S63
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3.22
43.32%
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ST Engineering Corporate Events
ST Engineering Lands Record S$18.7 Billion in Contracts for 2025 on Aerospace and Defence Strength
Jan 28, 2026
ST Engineering reported S$4.7 billion in new contract wins for the fourth quarter of 2025, lifting total contract awards for the year to a record S$18.7 billion, a 49% increase from 2024, underscoring a strong rebound in demand across its key busi...
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.