Straco Corporation Limited (S85) AI Stock Analysis

• Market Cap: S$333.44M
• Dividend Yield: 3.85%
• Average Volume (3M): 48.62K
• Price to Earnings (P/E): 15.1
• Beta (1Y): 0.37
• Revenue Growth: -8.94%
• EPS Growth: -25.86%
• Country: SG
• Employees: 456
• Sector: Consumer Cyclical
• Sector Strength: 83
• Industry: Leisure
• EPS (TTM): <0.01
• Shares Outstanding: 868,929,570
• 10 Day Avg. Volume: 48,650
• 30 Day Avg. Volume: 48,616
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: S$0.50
• Price Target Upside: 28.21% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 63 Neutral
• Price Target: S$0.50 ▲(28.21% Upside)

Straco Corporation Limited's overall stock score is driven primarily by its strong financial performance, characterized by excellent profitability and a stable balance sheet. The technical analysis indicates a neutral to slightly bearish trend, which slightly dampens the overall score. Valuation metrics are fair, with an attractive dividend yield providing some support. The absence of earnings call data and corporate events means these factors do not influence the score.

Straco Corporation Limited Business Overview & Revenue Model

Company Description

Straco Corporation Limited, together with its subsidiaries, develops and manages tourism-related businesses in Singapore and China. The company operates in two segments, Aquariums and Giant Observation Wheel (GOW). The Aquariums segment operates aquatic-related facilities and tourist attractions, including sea mammal performances. The Giant Observation Wheel segment operates circular giant observation structure, as well as provides commercial space. The company also operates cable-car facilities; and provides management and consulting services, and project management services for the company and third parties. Straco Corporation Limited was incorporated in 2002 and is based in Singapore.

How the Company Makes Money

Straco Corporation Limited generates revenue through the operation of its tourism-related attractions. The primary revenue streams include ticket sales from visitors to its attractions, such as aquariums and observation wheels. Additional income is derived from ancillary services such as food and beverage sales, merchandise, and souvenirs offered at these locations. The company may also engage in strategic partnerships and marketing collaborations to enhance its brand presence and attract more visitors, thereby boosting its earnings.

Straco Corporation Limited Financial Statement Overview

Summary

Straco Corporation Limited has a strong financial foundation with excellent profitability, a stable balance sheet, and robust cash flow generation. The company's efficient cost structure and low leverage position it well within the leisure industry. However, the inconsistency in revenue growth and modest free cash flow growth rate present areas for potential improvement.

Income Statement

The company demonstrates strong profitability with high gross and net profit margins, indicating efficient cost management. Despite a slight decline in revenue from the previous year, the company maintains robust EBIT and EBITDA margins, suggesting operational efficiency. However, the revenue growth trajectory is mixed, with fluctuations observed over the years.

Balance Sheet

Straco Corporation Limited exhibits a solid balance sheet with a favorable debt-to-equity ratio, indicating low leverage and financial stability. The high equity ratio suggests the company is less reliant on debt, enhancing financial security. The return on equity showcases effective use of shareholder funds to generate profits.

Cash Flow

The company's cash flow is robust, with consistent positive operating cash flow and free cash flow, indicating strong cash generation capabilities. The free cash flow to net income ratio is healthy, reflecting efficient cash conversion. While the free cash flow growth rate is positive, it shows modest growth, implying room for improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	84.25M	81.50M	82.14M	28.19M	41.91M	29.56M
Gross Profit	83.01M	79.98M	80.46M	27.42M	41.18M	28.98M
EBITDA	54.12M	46.79M	45.56M	-296.82K	29.08M	11.31M
Net Income	29.58M	27.22M	25.68M	-10.81M	11.57M	-975.52K
Balance Sheet
Total Assets	409.08M	360.91M	350.79M	338.89M	376.91M	382.21M
Cash, Cash Equivalents and Short-Term Investments	199.45M	187.04M	170.92M	151.68M	178.49M	178.67M
Total Debt	70.01M	44.30M	46.52M	48.97M	51.42M	66.79M
Total Liabilities	108.64M	75.72M	78.40M	79.58M	87.61M	101.21M
Stockholders Equity	288.42M	273.59M	262.85M	249.85M	278.98M	269.54M
Cash Flow
Free Cash Flow	43.16M	33.59M	33.05M	-5.54M	16.20M	-5.08M
Operating Cash Flow	48.88M	37.27M	37.13M	-2.99M	20.27M	496.41K
Investing Cash Flow	-1.71M	444.00K	730.00K	1.17M	326.86K	438.23K
Financing Cash Flow	-44.72M	-20.73M	-13.49M	-11.83M	-28.08M	-31.12M

Straco Corporation Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.39
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:S85, the sentiment is Negative. The current price of 0.39 is below the 20-day moving average (MA) of 0.40, below the 50-day MA of 0.41, and below the 200-day MA of 0.41, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 15.14 is Positive, 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 Negative sentiment for SG:S85.

Straco Corporation Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
S85	63 Neutral	S$333.44M	15.12	8.60%	3.85%	-8.94%	-25.86%
Sector *	61 Neutral	$17.99B	12.87	-3.58%	2.97%	1.27%	-14.28%
BYNEF	―	$391.13M	12.02	6.35%	651.81%	―	―
B28	60 Neutral	S$413.56M	75.74	0.66%	0.78%	0.58%	-9.33%
CNE	―	S$30.60M	23.77	1.80%	―	―	―
H18	55 Neutral	S$536.08M	59.50	-1.41%	2.07%	-2.09%	-302.48%
M01	―	S$372.62M	35.47	-17.39%	―	―	―

Straco Corporation Limited Corporate Events

Straco Corporation Announces New Board Appointment

Straco Corporation Limited has announced the appointment of Mr. Peh Nam Chuan, Adrian as an Independent Non-Executive Director, effective from May 20, 2025. This appointment leads to a reconfiguration of the Board of Directors and Board Committees, potentially impacting the company’s governance and strategic oversight.

Straco Corporation Reports Revenue Decline Amid Trade Tensions

Straco Corporation Limited reported a 12.1% year-on-year decline in revenue for the first quarter of 2025, mainly due to trade and tariff developments affecting Chinese consumer confidence. Despite the challenges, the company remains profitable with a net profit of S$2.27 million and maintains a strong financial position with net cash holdings of S$182.87 million. The ongoing trade tensions have also indirectly impacted their Singapore Flyer business, but the company remains cautiously optimistic about potential stimulus measures to boost domestic consumption in China.