Sembcorp Industries (U96) AI Stock Analysis

• Market Cap: $12.15B
• Dividend Yield: 3.51%
• Average Volume (3M): 2.99M
• Price to Earnings (P/E): 11.9
• Beta (1Y): 0.75
• Revenue Growth: -8.88%
• EPS Growth: 8.31%
• Country: SG
• Employees: 5,347
• Sector: Industrials
• Sector Strength: 87
• Industry: Conglomerates
• EPS (TTM): 0.20
• Shares Outstanding: 1,780,465,300
• 10 Day Avg. Volume: 3,301,120
• 30 Day Avg. Volume: 2,992,348
• PEG Ratio: N/A
• Price to Book (P/B): 2.22
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 64.65
• 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: $8.05
• Price Target Upside: 17.92% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 70 Neutral
• Price Target: S$7.50 ▲(9.81%Upside)

Sembcorp Industries receives a solid overall score driven by positive technical indicators and a favorable valuation, suggesting potential undervaluation and income opportunities. Financial performance is moderate with strengths in operational efficiency, but high leverage and revenue growth challenges are concerns. The absence of earnings call and corporate events data didn't impact the score.

Positive Factors

Renewable Energy Expansion

SCI's 25-year power purchase agreement with Malkoha will see the sale of renewable energy from SCI’s 150MWp floating solar PV project at Kranji Reservoir, thus reinforcing the company’s long-term revenue visibility from renewables.

Strategic Acquisitions

The recent Senoko stake acquisition, long-term PPAs, and India renewables and battery storage projects enhance earnings visibility and regional positioning.

Negative Factors

Market Risks

SCI's 49%-owned BCG GAIA solar plant in Vietnam could be at risk due to government reassessment of electricity prices, although the impact is minimal as it accounts for only 1% of its RE portfolio.

Regulatory Risks

Risks include unfavourable regulatory changes impacting operations and prolonged plant shutdowns.

Sembcorp Industries Business Overview & Revenue Model

Company Description

Sembcorp Industries (U96) is a leading energy and urban development company headquartered in Singapore. The company operates primarily in the energy sector, providing sustainable solutions for energy and water, and in urban development, creating smart and sustainable cities. Its core products and services include power generation, renewable energy, integrated urban and industrial solutions, and water treatment facilities. Sembcorp aims to deliver innovative and sustainable solutions that support the transition to a low-carbon economy.

How the Company Makes Money

Sembcorp Industries makes money through several key revenue streams. Its energy segment generates revenue from power generation and the sale of electricity and renewable energy. This includes operating and maintaining power plants and wind and solar energy projects across various regions. The urban development segment earns income by developing and selling industrial and business parks, as well as providing integrated urban solutions. The company also provides water and wastewater treatment services, contributing to its revenue. Significant partnerships with governments and private entities enhance its ability to secure contracts and expand its market presence, further contributing to its earnings.

Sembcorp Industries Financial Statement Overview

Summary

Sembcorp Industries exhibits solid operational performance with robust EBITDA margins and improved equity returns. However, challenges in revenue growth and high leverage could impact financial flexibility. Cash flow management needs attention due to negative free cash flow.

Income Statement

Sembcorp Industries' income statement shows a mixed performance. The gross profit margin has improved over time, indicating effective cost management. However, the net profit margin for 2024 decreased slightly compared to 2023. Revenue growth has seen fluctuations, with a decline in 2024 compared to 2023, indicating potential challenges in sustaining top-line growth. The absence of EBIT in 2024 may affect operating efficiency assessments. Despite these challenges, EBITDA margin remains robust, suggesting strong operational cash generation.

Balance Sheet

The balance sheet reflects a stable yet leveraged financial position. The debt-to-equity ratio is high, indicating significant leverage which could pose risks in volatile markets. Return on Equity (ROE) has improved, suggesting better profitability from equity investments. The equity ratio indicates a moderate level of financial stability. Overall, while there is improvement in equity returns, high leverage remains a concern.

Cash Flow

Cash flow analysis reveals challenges in free cash flow generation, with a notable decline in 2024. The operating cash flow to net income ratio is healthy, indicating good cash conversion from earnings. However, the free cash flow to net income ratio has turned negative, signaling potential liquidity constraints. While operating cash flows are strong, the decline in free cash flow suggests a need for careful capital expenditure management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.59B	6.42B	7.04B	7.83B	7.79B	5.45B
Gross Profit	1.47B	1.50B	1.57B	1.23B	1.10B	787.00M
EBITDA	1.50B	2.07B	1.83B	1.29B	677.00M	897.00M
Net Income	952.00M	1.01B	942.00M	848.00M	279.00M	179.00M
Balance Sheet
Total Assets	22.29B	18.18B	15.50B	16.02B	14.39B	13.56B
Cash, Cash Equivalents and Short-Term Investments	1.91B	985.00M	830.00M	1.29B	1.43B	1.13B
Total Debt	9.22B	9.40B	7.56B	7.36B	7.65B	7.95B
Total Liabilities	14.13B	12.52B	10.63B	11.80B	10.48B	10.09B
Stockholders Equity	6.70B	5.36B	4.59B	3.98B	3.77B	3.34B
Cash Flow
Free Cash Flow	181.00M	-196.00M	645.00M	1.04B	929.00M	158.00M
Operating Cash Flow	1.22B	1.41B	1.48B	1.65B	1.22B	491.00M
Investing Cash Flow	-770.00M	-1.44B	-878.00M	-1.39B	-100.00M	-1.28B
Financing Cash Flow	-214.00M	154.00M	-1.10B	-203.00M	-855.00M	55.00M

Sembcorp Industries Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.83
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:U96, the sentiment is Positive. The current price of 6.83 is above the 20-day moving average (MA) of 6.81, above the 50-day MA of 6.61, and above the 200-day MA of 5.73, indicating a bullish trend. The MACD of 0.08 indicates Positive momentum. The RSI at 53.27 is Neutral, neither overbought nor oversold. The STOCH value of 28.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:U96.

Sembcorp Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BS6	80 Outperform	$8.77B	7.12	28.14%	6.93%	7.88%	58.71%
BN4	74 Outperform	S$13.03B	14.42	7.90%	8.06%	-5.24%	-77.23%
BEC	74 Outperform	€845.00M	8.70		5.02%	-13.76%	10.28%
Sector *	71 Outperform	¥255.65B	12.95	8.49%	3.09%	6.31%	12.94%
U96	70 Neutral	$12.15B	11.93	20.60%	3.51%	-8.88%	8.31%
S58	63 Neutral	$4.56B	18.77	9.89%	1.95%	60.52%	―
5E2	57 Neutral	$6.92B	44.03	2.48%	0.95%	26.60%	―

Sembcorp Industries Corporate Events

Sembcorp’s Vietnam Hydropower Acquisition Faces Delay

Sembcorp Industries has announced a delay in the completion of its acquisition of a 49MW hydropower asset in Vietnam, pending government approvals expected by the end of 2025. The company emphasizes its cautious approach to new investments in Vietnam due to regulatory uncertainties, which could impact its operations and stakeholder interests.

The most recent analyst rating on (SG:U96) stock is a Buy with a S$7.49 price target. To see the full list of analyst forecasts on Sembcorp Industries stock, see the SG:U96 Stock Forecast page.

Sembcorp Industries’ Subsidiary Issues S$300 Million in Notes

Sembcorp Industries Ltd announced that its subsidiary, Sembcorp Financial Services Pte. Ltd., has successfully priced S$300 million in fixed rate guaranteed notes due 2046 under its S$5 billion Euro Medium Term Note Programme. This issuance marks the longest-tenured unrated corporate bonds by a Singapore company recently and was nearly seven times oversubscribed, reflecting strong investor confidence. The proceeds will be used for general corporate purposes and working capital requirements of Sembcorp and its subsidiaries, with the payment obligations guaranteed by Sembcorp Industries.

The most recent analyst rating on (SG:U96) stock is a Buy with a S$6.95 price target. To see the full list of analyst forecasts on Sembcorp Industries stock, see the SG:U96 Stock Forecast page.

Sembcorp Secures First Round-the-Clock Power Project in India

Sembcorp Industries, through its subsidiary Sembcorp Green Infra Private Limited, has secured its first 50MW Round-the-Clock power project in India from the Solar Energy Corporation of India Ltd. This project, part of a larger 1.2GW tender, will integrate solar, wind, and battery storage to provide continuous renewable energy. The project is expected to enhance Sembcorp’s renewables capacity in India to over 6.5GW and is set to be operational within 24 months of signing a 25-year power purchase agreement. Although the project will not significantly impact Sembcorp’s financial metrics for 2025, it marks a strategic expansion in their renewable energy capabilities.

The most recent analyst rating on (SG:U96) stock is a Buy with a S$7.49 price target. To see the full list of analyst forecasts on Sembcorp Industries stock, see the SG:U96 Stock Forecast page.

Sembcorp Expands Solar-Energy Storage Projects in India

Sembcorp Industries has secured a 150MW solar power project with a 300MWh Battery Energy Storage System in India, marking its second solar-energy storage hybrid project in the country. This project, part of SJVN Limited’s larger tender, will enhance Sembcorp’s renewables capacity in India to 6.3GW. Although the project will not materially impact Sembcorp’s financials for 2025, it signifies the company’s ongoing commitment to expanding its renewable energy footprint.

The most recent analyst rating on (SG:U96) stock is a Buy with a S$7.49 price target. To see the full list of analyst forecasts on Sembcorp Industries stock, see the SG:U96 Stock Forecast page.

Sembcorp Settles Legal Dispute with Universal Terminal

Sembcorp Industries has announced that its subsidiary, Sembcorp Cogen Pte Ltd, has reached a settlement agreement with Universal Terminal (S) Pte. Ltd. and UT Singapore Services Pte. Ltd. regarding a legal suit over gasoil claims. The settlement, whose terms remain confidential, concludes the legal proceedings without any admission of liability and is not expected to materially impact Sembcorp’s financial performance for the year ending December 31, 2025.

The most recent analyst rating on (SG:U96) stock is a Buy with a S$7.49 price target. To see the full list of analyst forecasts on Sembcorp Industries stock, see the SG:U96 Stock Forecast page.

Sembcorp Industries Focuses on Sustainable Growth at Annual Meeting

Sembcorp Industries recently held its twenty-seventh annual general meeting, where key executives and board members gathered to discuss the company’s strategic direction. The meeting underscored Sembcorp’s commitment to sustainable growth and innovation in the energy and urban sectors, which is expected to enhance its market position and benefit stakeholders.

The most recent analyst rating on (SG:U96) stock is a Buy with a S$7.49 price target. To see the full list of analyst forecasts on Sembcorp Industries stock, see the SG:U96 Stock Forecast page.

Sembcorp and Aster Forge S$650 Million Energy Partnership in Southeast Asia

Sembcorp Industries and Aster Chemicals and Energy have signed deals worth over S$650 million to advance energy and utilities projects in Southeast Asia. The partnership includes a comprehensive suite of solutions for Aster’s facilities and a Memorandum of Understanding to explore strategic initiatives in the region, aligning with their vision for sustainable growth and energy demands.

Sembcorp and BPCL Form Joint Venture for Green Hydrogen and Renewable Energy in India

Sembcorp Industries and Bharat Petroleum Corporation Limited (BPCL) have entered into a joint venture to explore renewable energy and green hydrogen projects in India. This partnership aims to support India’s energy transition and climate goals, leveraging Sembcorp’s renewables experience and BPCL’s petroleum sector expertise. The collaboration will explore projects in green ammonia production, emissions reduction, and other green fuel technologies, with a focus on decarbonizing hard-to-abate sectors.