Singapore Exchange (S68) AI Stock Analysis

• Market Cap: $17.93B
• Dividend Yield: 2.15%
• Average Volume (3M): 2.03M
• Price to Earnings (P/E): 27.3
• Beta (1Y): 0.65
• Revenue Growth: 11.28%
• EPS Growth: 8.34%
• Country: SG
• Employees: 1,140
• Sector: Financial
• Sector Strength: 72
• Industry: Financial - Data & Stock Exchanges
• EPS (TTM): 0.29
• Shares Outstanding: 1,071,642,500
• 10 Day Avg. Volume: 2,321,040
• 30 Day Avg. Volume: 2,033,752
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.85
• Enterprise Value/Revenue: 11.08
• Enterprise Value/Gross Profit: 14.91
• Enterprise Value/Ebitda: 17.71
• 1Y Price Target: $16.60
• Price Target Upside: -0.81% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 79 Outperform
• Price Target: S$18.50 ▲(10.51% Upside)

Singapore Exchange's overall stock score of 79 reflects its strong financial performance and positive earnings call sentiment. The technical indicators suggest a bullish trend, although the valuation appears slightly high. The company's strategic initiatives and robust growth in key segments contribute positively, while attention to cost management and debt levels remains important.

Positive Factors

Dividend Policy

The introduction of a new dividend policy is highlighted as a key positive for the company.

Financial Performance

SGX's FY25 core net profit of S$609.5m is in line with expectations, showing a year-on-year growth of 15.9%.

Market Development

Announcement of fund managers to be awarded the remaining S$3.9bn of S$5.0bn under the Equity Market Development Programme by the Monetary Authority of Singapore could further re-rate the stock.

Negative Factors

Interest Rate Impact

Falling interest rates remain a headwind as treasury income would decline further from rate cuts.

Revenue Performance

Revenue and earnings were below estimates due to lower-than-expected FICC and treasury income.

Trading Volume

Total equity index futures volumes fell by 6.4%, largely due to major equity indexes such as the FTSE Taiwan Index Futures (-17.6% yoy), MSCI Singapore Index Futures (-35.4% yoy) and the Nikkei 225 Index Futures (-44.1% yoy).

Singapore Exchange Business Overview & Revenue Model

Company Description

Singapore Exchange Limited, together with its subsidiaries, operates as an integrated securities and derivatives exchange, and related clearing houses in Singapore. It operates through Fixed Income, Currencies, and Commodities; Equities; and Data, Connectivity, and Indices segments. The Fixed Income, Currencies, and Commodities segment offers fixed income issuer, trading and clearing, and collateral management services. The Equities segment provides issuer, securities trading and clearing, securities settlement and depository management, derivatives trading and clearing, and collateral management services. The Data, Connectivity, and Indices segment offers market data, connectivity, and indices services. It also provides counterparty guarantee, and depository and related services for securities and derivatives transactions; bond trading services; front-line regulatory functions; computer and software maintenance; operates an electronic foreign exchange trading platform; and management consultancy services for index activities. In addition, the company offers membership and management services to related corporations; distributes bulk freight market indices and information; and operates an electricity market, as well as provides administration services for index calculation, risk analyses, and financial research. It has an agreement in relation to a global partnership to grow New Zealand's Exchange's dairy derivatives market together. Singapore Exchange Limited was incorporated in 1999 and is headquartered in Singapore.

How the Company Makes Money

Singapore Exchange makes money through multiple revenue streams primarily derived from its trading and clearing services across various asset classes. The company earns transaction fees from the trading of equities, derivatives, and fixed income products on its platform. Additionally, SGX charges listing fees to companies that wish to list their shares or securities on the exchange. Another significant revenue stream comes from clearing and settlement services, where the exchange provides the infrastructure for the secure and efficient processing of trades. SGX also generates income from its depository services, offering safekeeping and custody of securities. Furthermore, the exchange capitalizes on market data and indices services, licensing out data and indices to financial institutions and other clients. SGX's strategic partnerships and collaborations with other exchanges and financial institutions enhance its market reach and product offerings, contributing to its revenue growth.

Singapore Exchange Financial Statement Overview

Summary

Singapore Exchange demonstrates strong financial health with consistent revenue growth, robust profitability margins, and effective cash flow management. The balance sheet remains stable with prudent leverage, though increasing debt levels should be monitored. The company is well-positioned in its industry, but attention to cost management and cash flow stability will be crucial for sustaining its financial performance.

Income Statement

The company demonstrates strong revenue growth with a 3.7% increase in the latest year, supported by healthy gross and net profit margins of 74.3% and 47.3% respectively. EBIT and EBITDA margins are robust at 58.6% and 64.8%, indicating efficient operational management. However, the slight decline in net profit margin from the previous year suggests potential cost pressures.

Balance Sheet

The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.31, showing improved leverage compared to previous years. Return on Equity remains strong at 29.5%, although slightly lower than historical highs, indicating effective use of equity. The equity ratio of 53.1% suggests a solid capital structure, but the gradual increase in total debt warrants monitoring.

Cash Flow

Cash flow performance is commendable, with a 15.8% growth in free cash flow, highlighting strong cash generation capabilities. The operating cash flow to net income ratio of 0.70 and free cash flow to net income ratio of 0.92 indicate efficient cash conversion. However, the lower operating cash flow coverage ratio compared to previous years suggests potential volatility in cash flow management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.37B	1.37B	1.23B	1.19B	1.10B	1.06B
Gross Profit	1.02B	1.02B	884.11M	1.02B	933.17M	898.49M
EBITDA	857.02M	888.14M	810.41M	753.33M	641.23M	632.36M
Net Income	647.98M	647.98M	597.91M	570.89M	451.40M	445.41M
Balance Sheet
Total Assets	4.14B	4.14B	3.98B	3.78B	3.86B	3.02B
Cash, Cash Equivalents and Short-Term Investments	1.51B	1.51B	1.13B	1.07B	1.09B	1.10B
Total Debt	688.10M	688.10M	728.01M	727.22M	788.87M	539.18M
Total Liabilities	1.94B	1.94B	2.02B	2.08B	2.31B	1.63B
Stockholders Equity	2.20B	2.20B	1.96B	1.70B	1.54B	1.38B
Cash Flow
Free Cash Flow	795.19M	773.56M	551.23M	417.38M	562.07M	524.51M
Operating Cash Flow	863.30M	841.67M	615.80M	470.66M	606.22M	569.80M
Investing Cash Flow	-300.52M	-265.90M	-137.90M	-5.79M	-555.82M	-209.21M
Financing Cash Flow	-434.90M	-449.36M	-459.69M	-428.43M	-106.36M	-207.79M

Singapore Exchange Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.74
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:S68, the sentiment is Positive. The current price of 16.74 is above the 20-day moving average (MA) of 16.13, above the 50-day MA of 15.53, and above the 200-day MA of 13.56, indicating a bullish trend. The MACD of 0.26 indicates Negative momentum. The RSI at 70.92 is Negative, neither overbought nor oversold. The STOCH value of 87.43 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:S68.

Singapore Exchange Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
S68	79 Outperform	$17.93B	27.28	30.82%	2.15%	11.28%	8.34%
Sector *	68 Neutral	$17.60B	11.93	10.30%	3.77%	9.67%	0.38%
DBSDF	―	$112.27B	14.00	17.10%	4.51%	―	―
OVCHF	―	$58.93B	10.36	12.87%	5.93%	―	―
UOVEF	―	$45.83B	10.17	12.80%	4.14%	―	―
4LJ	―	€1.54B	9.71	10.50%	―	―	―
YF8	63 Neutral	S$3.65B	10.76	8.61%	3.29%	-9.47%	131.72%

Singapore Exchange Corporate Events

SGX to Benefit from Sale of Trading Technologies by 7RIDGE Investments

Singapore Exchange Limited (SGX) announced that 7RIDGE Investments 3 LP, in which SGX is a Limited Partner, has agreed to sell Trading Technologies International, Inc. The transaction is expected to complete upon meeting certain conditions, after which SGX will receive distribution proceeds as per the fund’s schedule, and the fund will be wound up. SGX’s initial investment in the fund was approximately US$200 million, and the investment has been recorded at a fair value higher than the initial amount. The financial impact of this transaction will be reflected in SGX’s full-year results.

The most recent analyst rating on (SG:S68) stock is a Hold with a S$11.00 price target. To see the full list of analyst forecasts on Singapore Exchange stock, see the SG:S68 Stock Forecast page.