Venture (V03) AI Stock Analysis

• Market Cap: S$3.24B
• Dividend Yield: 8.9%
• Average Volume (3M): 532.48K
• Price to Earnings (P/E): 13.3
• Beta (1Y): 0.93
• Revenue Growth: -9.56%
• EPS Growth: -8.94%
• Country: SG
• Employees: 9,987
• Sector: Technology
• Sector Strength: 84
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.19
• Shares Outstanding: 289,121,200
• 10 Day Avg. Volume: 454,310
• 30 Day Avg. Volume: 532,480
• PEG Ratio: 0.72
• Price to Book (P/B): 1.75
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 21.07
• 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$11.37
• Price Target Upside: -0.71% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 80 Outperform
• Price Target: S$13.00 ▲(13.54%Upside)

Venture's strong financial performance, particularly its robust balance sheet and cash flow, is the most significant factor driving its stock score. The company offers a compelling valuation with a reasonable P/E ratio and high dividend yield. However, technical indicators suggest mixed momentum, which could pose short-term challenges.

Positive Factors

Financial Stability

Venture ended FY24 with net cash of S$1.3bn, providing financial stability.

Innovation

VMS is focused on creating new innovative products and solutions through its differentiating capabilities to deliver greater value for its customers.

Market Position

VMS is well-positioned to proactively create competitive solutions for its customers and partners, with opportunities to expand market share in several technology domains.

Negative Factors

Earnings Performance

Venture Corporation's 1Q25 earnings of S$56m missed expectations, forming only 22% of the full-year estimate due to lower demand in the Lifestyle Consumer technology domain.

Global Economic Environment

The ongoing tariff situation has created significant uncertainty in the global economic environment, with no clear visibility in the tariff landscape.

Revenue Trends

Revenue has been falling for eight consecutive quarters, with 4Q24 revenue being the lowest since FY16.

Venture Business Overview & Revenue Model

Company Description

Venture Corporation Limited provides technology solutions, products, and services in Singapore, the Asia Pacific, and internationally. The company operates through Advanced Manufacturing & Design Solutions, and Technology Products & Design Solutions segments. It engages in the design, manufacture, assemble, installation, and distribution of electronic, and other computer products and peripherals; manufacture and sale of terminal units; development and marketing of color imaging products for label printing; and research and development of biotechnology, life, and medical science products, as well as engages in repair of engineering and scientific instruments. The company is also involved in the provision of engineering, customization, logistics, and repair services; information system development and support services; design solutions and services; administrative and technical, and management services; and manufacturing, product design and development, engineering, and supply-chain management services. In addition, it engages in the manufacturing, fabricating, and dealing of precision plastic tools, components and sub-assemblies; design, customization, and marketing of tool-making and precision engineering solutions; manufacture of plastic injection molds and moldings with secondary processes and subassembly; manufacture of high technology products; and import and export of electronic parts, components, equipment, devices, and instruments. Further, the company wholesales computer hardware and peripheral equipment; manufactures and repairs engineering and scientific instruments; and manufactures and sells data and telecommunications products in industrial electronics industries. Additionally, the company manages portfolio of approximately 5,000 products and solutions. Venture Corporation Limited was incorporated in 1984 and is headquartered in Singapore.

How the Company Makes Money

Venture (V03) generates revenue through multiple streams: First, it collects transaction fees from sellers and buyers using its e-commerce platform, which serves as a marketplace for a wide range of products. Second, the company earns money through its digital payment gateway by charging a percentage fee on each transaction processed. Additionally, Venture (V03) has significant partnerships with logistics companies, allowing it to offer integrated shipping solutions, for which it receives a commission on each delivery. These combined revenue streams, along with potential premium service offerings and advertising opportunities on its platform, contribute to its overall earnings.

Venture Financial Statement Overview

Summary

Venture exhibits a solid financial foundation with strong cash flow and balance sheet metrics. However, the income statement highlights concerns with declining profit margins and inconsistent revenue growth, suggesting potential competitive and market challenges. The company's low leverage and high equity ratio provide financial stability, while efficient cash management supports operational resilience.

Income Statement

The income statement reveals a mixed trend. The gross profit margin for the latest year is approximately 26.0%, a solid indication of effective cost management. However, the net profit margin has decreased from 8.9% in 2022 to 8.3% in 2023, suggesting reduced profitability. Revenue growth has been inconsistent, with a decline in recent years, indicating potential challenges in market expansion or competition pressures. The EBIT margin is unavailable for the latest year, but past data suggests decreasing profitability. The EBITDA margin shows a decrease from 10.4% in 2022 to 9.3% in 2023, further indicating declining profitability.

Balance Sheet

The balance sheet is relatively strong with a low debt-to-equity ratio of approximately 0.01, indicating low financial leverage. Return on Equity (ROE) has decreased from 9.7% in 2022 to 8.5% in 2023, reflecting reduced profit generation relative to equity. The equity ratio is robust at approximately 77.9%, highlighting financial stability and significant asset backing. Overall, the company maintains a strong balance sheet position with minimal debt and a high equity base.

Cash Flow

The cash flow statement shows positive free cash flow growth, indicating effective cash management and operational efficiency. The operating cash flow to net income ratio is strong at 1.78, suggesting efficient cash generation relative to earnings. However, the free cash flow to net income ratio shows a slight decline to 1.72, though it remains robust. Overall, the company demonstrates strong cash flow performance, supporting ongoing operations and potential investments.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.74B	3.03B	3.86B	3.11B	3.01B
	Gross Profit
711.15M	770.01M	939.03M	808.77M	792.35M
	EBIT
262.24M	413.73M	449.10M	358.69M	343.30M
	EBITDA
340.25M	315.82M	481.94M	396.69M	384.94M
	Net Income Common Stockholders
245.03M	270.02M	369.62M	312.05M	297.32M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.32B	1.06B	812.59M	807.93M	928.74M
	Total Assets
3.70B	3.55B	3.75B	3.64B	3.24B
	Total Debt
30.25M	27.53M	24.29M	13.53M	20.95M
	Net Debt
-1.29B	-1.03B	-788.31M	-794.40M	-907.79M
	Total Liabilities
805.62M	716.93M	908.51M	915.81M	650.44M
	Stockholders Equity
2.89B	2.83B	2.84B	2.72B	2.59B
Cash Flow		Free Cash Flow
465.74M	473.89M	235.49M	90.47M	425.10M
	Operating Cash Flow
482.51M	521.42M	269.08M	101.83M	453.15M
	Investing Cash Flow
10.49M	-47.56M	-24.88M	-2.09M	-19.89M
	Financing Cash Flow
-248.95M	-236.47M	-226.73M	-225.72M	-214.25M

Venture Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.45
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:V03, the sentiment is Positive. The current price of 11.45 is above the 20-day moving average (MA) of 11.12, above the 50-day MA of 10.98, and below the 200-day MA of 12.19, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 62.31 is Neutral, neither overbought nor oversold. The STOCH value of 90.19 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:V03.

Venture Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
V03	80 Outperform	S$3.24B	13.30	8.59%	8.90%	-9.56%	-8.94%
8AZ	78 Outperform	S$439.92M	6.24	20.62%	35.09%	-30.65%	-29.55%
E28	69 Neutral	S$491.15M	13.23	8.89%	2.27%	6.93%	14.19%
AWX	63 Neutral	S$397.99M	34.70	2.40%	―	-20.96%	―
Sector *	62 Neutral	$11.93B	10.60	-7.51%	3.00%	7.40%	-8.09%
BBW		S$489.00M	17.06	86.78%	3.62%	―	―
MZH	58 Neutral	S$374.85M	47.88	2.02%	1.17%	15.39%	140.82%

Venture Corporate Events

Venture Corporation Holds 40th Annual General Meeting

Venture Corporation Limited held its 40th Annual General Meeting on April 24, 2025, in Singapore, attended by its board of directors, management team, and representatives from Deloitte & Touche LLP and Rajah & Tann Singapore LLP. The meeting was a significant event for the company, indicating its ongoing commitment to transparency and stakeholder engagement, and it provided an opportunity for shareholders to engage with the company’s leadership.

The most recent analyst rating on (SG:V03) stock is a Hold with a S$14.00 price target. To see the full list of analyst forecasts on Venture stock, see the SG:V03 Stock Forecast page.

Venture Corporation Updates Board and Committees

Venture Corporation Limited has announced changes to its Board of Directors and Board Committees following its Annual General Meeting on April 24, 2025. These adjustments reflect the company’s strategic focus on strengthening its governance structure, potentially enhancing its operational efficiency and market competitiveness.