Singtel (Z74) AI Stock Analysis

• Market Cap: $66.51B
• Dividend Yield: 5.53%
• Average Volume (3M): 22.90M
• Price to Earnings (P/E): 16.6
• Beta (1Y): 0.80
• Revenue Growth: 0.13%
• EPS Growth: 404.98%
• Country: SG
• Employees: 22,700
• Sector: Communication Services
• Sector Strength: 84
• Industry: Telecommunications Services
• EPS (TTM): 0.07
• Shares Outstanding: 16,514,635,000
• 10 Day Avg. Volume: 20,290,550
• 30 Day Avg. Volume: 22,904,732
• PEG Ratio: <0.01
• Price to Book (P/B): 2.62
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 26.85
• 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: $4.29
• Price Target Upside: 2.95% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 76 Outperform
• Price Target: S$4.50 ▲(7.91%Upside)

Singtel's stock score is driven by strong technical analysis indicating bullish momentum and a robust valuation with an attractive dividend yield. Financial performance is stable, but growth challenges and increased leverage are noted.

Positive Factors

Dividend Yields

SingTel's higher asset recycling target supports dividend yields of more than 5%, offering attractive returns to shareholders.

Profit Growth

For FY25, Singapore Telecommunications reported stable overall group revenue, higher EBITDA, and underlying net profit, indicating strong profit growth driven by better earnings from Optus and NCS.

Share Buyback

The group has declared an inaugural three-year S$2b share buyback programme, aiming to improve shareholder value by purchasing shares in the open market for cancellation.

Negative Factors

Competition

Singapore mobile remains under intense competition but is undertaking a significant realignment of costs.

Exchange Rate Risk

A decline in the Australian dollar or irrational competition in Australia could pose challenges to the company's recovery efforts.

Valuation Concerns

SingTel’s valuation at 21.6x P/E is seen as a cap on share price upside, limiting potential gains for investors.

Singtel Business Overview & Revenue Model

Company Description

Singapore Telecommunications Limited, together with its subsidiaries, provides telecommunication services to consumers and small businesses in Singapore, Australia, the United States, Europe, and internationally. The company engages in the carriage business, including mobile, pay television, fixed broadband, voice, and content and digital services, as well as equipment sales; digital media and advertising services; integrated information and communications technology solutions, such as cloud computing, multi-access edge computing, software-defined network, and digital solutions; fund management services to enterprise customers. It also offers mobile phones, accessories, watches, watch straps, cables, adapters, multimedia hubs, cameras, gimbals, cases, chargers, drones, earphones, headphones, microphones, keyboards, laptops, screen protectors, speakers, tablets, trackers, and wearables, as well as mouse, connectivity, gaming, smart home, power solution, and storage solution products; postpaid and prepaid plans; and postpaid add-on, roaming, 5G, and AR/VR entertainment services. In addition, the company provides broadband plans and add-on, WiFi mesh, Wi-Fi 6, Microsoft 365 subscription, TV packages and guides, TV Go, video on demand, instalment plans, wellness, news stand, music, and telephony services; car, home content, domestic helper, and travel insurance; DVR set top boxes; lifestyle products; and Singtel Surf School that offers cyber fun, safety, and education services, as well as tech workshops. Further, it offers cloud, data center, and software-as-a service; Internet of Things; cyber security, IT, professional consulting, and managed services; voice unified communications, cloud conferencing, international calling, and SIP trunking services; managed network and managed unified communications services; satellite services; and Singtel Liquid-X, a suite of cloud centric services. The company was incorporated in 1992 and is headquartered in Singapore.

How the Company Makes Money

Singtel generates revenue through multiple streams, primarily from its consumer services and enterprise solutions. In the consumer segment, it earns money by offering mobile voice and data services, fixed-line telephony, broadband, and pay-TV services. The enterprise division provides managed services, cloud computing, cyber security, and information and communications technology (ICT) solutions. Additionally, Singtel has substantial investments in regional telecom operators, which contribute to its profits through dividends and share of profits. The company's strategic partnerships, such as with Bharti Airtel, Telkomsel, and Advanced Info Service, are significant contributors to its earnings, providing access to large customer bases across Asia.

Singtel Financial Statement Overview

Summary

Singtel demonstrates stability in profitability and operational efficiency, with improved margins and return on equity. However, revenue growth is a challenge, and leverage has slightly increased. Cash flow is robust, but free cash flow growth has been a concern.

Income Statement

Singtel has shown a stable gross profit margin with a significant improvement in net profit margin over the last year. The revenue has remained relatively stable, with a slight decline over the years, indicating challenges in growth. However, the EBIT and EBITDA margins have seen improvements, suggesting better operational efficiency.

Balance Sheet

The company maintains a reasonable debt-to-equity ratio, indicating balanced leverage. The return on equity has improved significantly, reflecting enhanced profitability. However, the equity ratio has slightly decreased, indicating a marginal increase in leverage.

Cash Flow

Operating cash flow has remained strong, although there is a notable decrease in free cash flow growth. The company exhibits a healthy operating cash flow to net income ratio, suggesting efficient cash management despite lower free cash flow to net income ratio.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	14.15B	14.13B	14.62B	15.34B	15.64B
Gross Profit	14.15B	3.39B	2.83B	2.83B	2.91B
EBITDA	7.45B	2.47B	3.99B	4.24B	2.58B
Net Income	4.02B	795.00M	2.23B	1.95B	553.70M
Balance Sheet
Total Assets	46.78B	46.20B	46.53B	49.13B	48.00B
Cash, Cash Equivalents and Short-Term Investments	2.77B	4.63B	1.67B	2.13B	754.70M
Total Debt	11.67B	11.90B	11.91B	12.88B	12.86B
Total Liabilities	20.83B	21.23B	21.53B	22.03B	21.49B
Stockholders Equity	25.89B	24.93B	24.99B	27.08B	26.49B
Cash Flow
Free Cash Flow	352.60M	2.36B	2.12B	2.41B	2.80B
Operating Cash Flow	4.61B	4.72B	4.41B	4.90B	5.23B
Investing Cash Flow	-2.41B	247.30M	-2.35B	-676.10M	-2.68B
Financing Cash Flow	-4.03B	-1.99B	-2.52B	-2.84B	-2.80B

Singtel Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:Z74, the sentiment is Positive. The current price of 4.17 is above the 20-day moving average (MA) of 3.91, above the 50-day MA of 3.88, and above the 200-day MA of 3.41, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 64.53 is Neutral, neither overbought nor oversold. The STOCH value of 75.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:Z74.

Singtel Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Z74	76 Outperform	$66.51B	16.56	16.56%	5.53%	0.13%	404.98%
Sector *	55 Neutral	HK$66.26B	-2.21	-3.61%	6.51%	-4.24%	-17.51%
NETLF	―	$2.70B	37.95	3.90%	6.02%	―	―
SRHBF	―	$1.60B	13.86	40.65%	5.34%	―	―
T41	―	S$68.05M	16.30	12.53%	0.83%	―	―

Singtel Corporate Events

Singtel Launches S$2 Billion Share Buyback to Boost Shareholder Value

Singtel has announced a S$2 billion share buyback program as part of its capital management strategy to enhance shareholder value. This initiative, funded by excess capital from asset recycling, reflects Singtel’s confidence in its long-term growth and commitment to returning capital to shareholders. The program is part of a broader strategy that includes a revised dividend policy and an increased asset recycling target of S$9 billion, aiming to support business growth and optimize capital structure.

The most recent analyst rating on (SG:Z74) stock is a Buy with a S$3.10 price target. To see the full list of analyst forecasts on Singtel stock, see the SG:Z74 Stock Forecast page.

Singtel Sells Stake in Bharti Airtel, Raising SGD2 Billion

Singtel announced the sale of 71 million shares in Bharti Airtel Limited through its subsidiary, Pastel Limited, generating approximately SGD2.0 billion. This transaction, conducted on the National Stock Exchange of India, reduces Singtel’s stake in Bharti Airtel from 29.5% to 28.3% and results in an estimated gain of SGD1.4 billion, reflecting a strategic move to optimize its investment portfolio.

The most recent analyst rating on (SG:Z74) stock is a Buy with a S$3.10 price target. To see the full list of analyst forecasts on Singtel stock, see the SG:Z74 Stock Forecast page.