Want to see SG:S63 full AI Analyst Report?
Top Page
ST Engineering
(SGX:S63)
Select Model
Select Model
Rating:53Neutral
Price Target:
S$10.50
â–¼(-0.85% Downside)
Action:Reiterated
Date:08/06/26
Overall score reflects solid but not exceptional fundamentals (steady revenue growth and improved cash generation) tempered by elevated leverage and a notable 2025 drop in net profitability. The score is further pressured by weak technical signals (below key moving averages with negative MACD) and a stretched valuation (P/E 67.56), partially offset by a modest ~2.28% dividend yield.
Positive Factors
Strong cash generation
Sustained positive operating and free cash flow through 2023–2025 and FCF covering ~68% of net income indicate durable internal funding. This supports capex, maintenance of long-term service contracts, debt servicing and dividends, reducing reliance on external financing over the medium term.
Negative Factors
Elevated leverage
Material reliance on debt (D/E near 1.9x) constrains financial flexibility and increases interest and refinancing exposure. In an environment of compressing margins, elevated leverage raises solvency risk and limits capacity for large strategic investments or cushioning against cyclical downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Sustained positive operating and free cash flow through 2023–2025 and FCF covering ~68% of net income indicate durable internal funding. This supports capex, maintenance of long-term service contracts, debt servicing and dividends, reducing reliance on external financing over the medium term.
Read all positive factors
ST Engineering (S63) vs. iShares MSCI Singapore ETF (EWS)
Market Cap
S$31.41B
Dividend Yield2.28%
Average Volume (3M)4.27M
Price to Earnings (P/E)67.6
Beta (1Y)0.68
Revenue Growth9.50%
EPS Growth-34.09%
CountrySG
Employees27,000
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-1.61
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$12.09Price Target Upside14.14% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)0.33
Revenue Forecast (FY)S$13.50B
ST Engineering Business Overview & Revenue Model
Company Description
Singapore Technologies Engineering Ltd operates as a technology, defence, and engineering company worldwide. The company operates through Commercial Aerospace, Defence & Public Security, and Urban Solutions & Satcom segments. It provides cabin int...
How the Company Makes Money
ST Engineering makes money primarily by selling engineered products, project-based solutions, and long-term services/contracted support to government and commercial customers across its major segments.
1) Aerospace (commercial and military aviati...
ST Engineering Earnings Call Summary
Earnings Call Date:Feb 26, 2025
(Q4-2024)
| % Change Since: |
Next Earnings Date:Aug 13, 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 | 2.31B | 2.13B | 1.93B | 1.70B | 1.50B |
| EBITDA | 1.74B | 1.65B | 1.54B | 1.29B | 1.14B |
| 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 Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | S$15.49B | 9.35 | 28.61% | 5.00% | 5.09% | 27.85% | |
71 Outperform | S$7.03B | 24.89 | 10.57% | 1.47% | 9.01% | 17.18% | |
66 Neutral | S$3.48B | 20.54 | 9.78% | 2.94% | 14.28% | 21.19% | |
65 Neutral | S$7.28B | 22.49 | 7.75% | 1.29% | 10.77% | 108.44% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | S$20.09B | 40.25 | 5.07% | 2.89% | 10.65% | -44.54% | |
53 Neutral | S$31.41B | 67.56 | 17.50% | 2.17% | 9.50% | -34.09% |
* Industrials Sector Average
SG:S63
ST Engineering
10.32
1.90
22.58%
SG:S59
SIA Engineering Co
3.11
0.14
4.78%
SG:5E2
Seatrium Limited
2.14
-0.20
-8.51%
SG:S58
SATS
4.82
1.64
51.76%
SG:BS6
Yangzijiang Shipbuilding (Holdings)
4.20
1.44
52.39%
SG:BN4
Keppel Corporation Limited
11.18
2.83
33.89%
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.