Singtel (Z74) AI Stock Analysis

• Market Cap: $65.52B
• Dividend Yield: 5.64%
• Average Volume (3M): 23.77M
• Price to Earnings (P/E): 16.3
• Beta (1Y): 0.79
• Revenue Growth: -2.10%
• EPS Growth: -103.46%
• Country: SG
• Employees: 22,700
• Sector: Communication Services
• Sector Strength: 89
• Industry: Telecommunications Services
• EPS (TTM): 0.04
• Shares Outstanding: 16,514,635,000
• 10 Day Avg. Volume: 19,205,820
• 30 Day Avg. Volume: 23,769,552
• PEG Ratio: 0.09
• Price to Book (P/B): 1.61
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.10
• 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: 9.77% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 59 Neutral
• Price Target: ―

Singtel's overall stock score is influenced by a stable balance sheet and strong cash flow generation. However, declining revenue and profitability pose challenges. The technical analysis suggests a positive trend, but without momentum confirmation. A negative P/E ratio indicates current unprofitability, while a strong dividend yield remains an attractive point.

Positive Factors

Dividend Support

SingTel's higher asset recycling target supports dividend yields of more than 5%.

Geographical Diversification

The company benefits from geographical diversification, being the No.1 integrated telecom player in Singapore and owning the No.2 mobile player in Australia, with significant stakes in telecom associates across India, Indonesia, the Philippines, and Thailand.

Shareholder Value

SingTel's new share buyback programme aims to lift EPS and smooth out the potential for dividends.

Negative Factors

Currency and Competition Risk

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

Regional Associate Contributions

4Q25 underlying earnings came below the consensus due to lower-than-expected contribution from regional associates.

Valuation Cap

SingTel’s valuation at 21.6x P/E is seen as a cap on share price upside.

Singtel Business Overview & Revenue Model

Company Description

Singapore Telecommunications Limited, commonly known as Singtel, is a leading communications technology group in Asia. Headquartered in Singapore, the company operates in various sectors, including telecommunications, information technology, digital services, and cyber security. Singtel provides a comprehensive range of services, including mobile and fixed-line voice and data, broadband, TV, and digital solutions. With a significant presence in Asia and investments in regional mobile operators, Singtel serves millions of customers across multiple countries.

How the Company Makes Money

Singtel generates revenue through multiple streams, primarily from its telecommunications services. This includes mobile and fixed-line voice and data services offered to both individual consumers and businesses. A significant portion of its income comes from mobile services, as it offers prepaid and postpaid plans, international roaming, and various data packages. Additionally, Singtel earns from broadband internet services, pay TV subscriptions, and digital solutions such as cyber security and cloud services. The company also benefits financially from its investments in regional associates and joint ventures, such as its stakes in mobile operators across Asia and Africa, which contribute significantly to its earnings. Strategic partnerships and collaborations in digital innovation further bolster its revenue by expanding service offerings and tapping into emerging markets.

Singtel Financial Statement Overview

Summary

Singtel's financial performance shows a stable balance sheet with a strong equity position and conservative leverage, scoring well in this area. However, the income statement indicates declining revenue and profitability, and the company's income statement performance is a concern with a low net profit margin. The cash flow is robust, reflecting strong cash generation capabilities despite operational challenges.

Income Statement

Singtel's income statement shows a declining revenue trend over the past few years, with a revenue decrease from 2023 to 2024. Gross profit margin for 2024 is approximately 24%, which is moderate for the industry. The company faced challenges with negative EBIT in 2024, indicating operational difficulties. However, the EBITDA margin of 17.47% reflects some level of operational efficiency. The net profit margin decreased significantly to 5.63% in 2024, highlighting a drop in profitability.

Balance Sheet

Singtel's balance sheet reflects a stable equity base with stockholders' equity at approximately 54% of total assets, indicating a strong equity ratio. The debt-to-equity ratio of 0.48 suggests a conservative leverage position. However, the return on equity (ROE) has decreased to 3.19%, pointing to reduced profitability for equity holders. Overall, the balance sheet is stable with reasonable leverage.

Cash Flow

The cash flow analysis shows healthy operating cash flow, with free cash flow increasing by 10.87% from 2023 to 2024, reflecting improved cash generation capabilities. The operating cash flow to net income ratio of 5.93 indicates strong cash conversion. However, the free cash flow to net income ratio stands at 2.96, suggesting moderate efficiency in generating free cash flow relative to net income.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
12.99B	14.13B	14.62B	15.34B	15.64B	16.54B
	Gross Profit
-1.70B	3.39B	2.83B	2.83B	2.91B	3.87B
	EBIT
4.08B	933.60M	916.70M	887.60M	898.20M	1.78B
	EBITDA
7.29B	2.47B	3.99B	4.24B	2.58B	3.33B
	Net Income Common Stockholders
4.82B	795.00M	2.23B	1.95B	553.70M	1.07B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
999.60M	4.63B	1.67B	2.13B	754.70M	999.60M
	Total Assets
48.95B	46.20B	46.53B	49.13B	48.00B	48.95B
	Total Debt
14.17B	11.90B	11.91B	12.88B	12.86B	14.17B
	Net Debt
13.17B	7.29B	10.24B	10.75B	12.10B	13.17B
	Total Liabilities
22.14B	21.23B	21.53B	22.03B	21.49B	22.14B
	Stockholders Equity
26.79B	24.93B	24.99B	27.08B	26.49B	26.79B
Cash Flow		Free Cash Flow
1.40B	2.36B	2.12B	2.41B	2.80B	3.12B
	Operating Cash Flow
2.68B	4.72B	4.41B	4.90B	5.23B	5.51B
	Investing Cash Flow
946.40M	247.30M	-2.35B	-676.10M	-2.68B	-3.08B
	Financing Cash Flow
-4.00B	-1.99B	-2.52B	-2.84B	-2.80B	-1.98B

Singtel Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.91
• 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:Z74, the sentiment is Positive. The current price of 3.91 is above the 20-day moving average (MA) of 3.89, above the 50-day MA of 3.78, and above the 200-day MA of 3.34, indicating a bullish trend. The MACD of 0.05 indicates Positive momentum. The RSI at 54.80 is Neutral, neither overbought nor oversold. The STOCH value of 59.85 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
S68	79 Outperform	$15.20B	23.13	35.32%	2.56%	8.76%	15.45%
N2IU	73 Outperform	$6.48B	11.08	6.29%	8.15%	―	―
C38U	73 Outperform	S$15.88B	15.96	6.32%	5.01%	1.54%	4.48%
Sector *	61 Neutral	$14.57B	5.94	-3.83%	7.78%	2.79%	-33.24%
Z74	59 Neutral	$65.52B	16.31	16.56%	5.64%	-2.10%	-103.46%

Singtel Corporate Events

NCS Expands APAC Presence with Globe Telecom Joint Venture

NCS has announced a joint venture with Globe Telecom to acquire a majority stake in Yondu, Globe’s IT arm in the Philippines. This move significantly expands NCS’s workforce in the Philippines and enhances its Global Delivery Network, offering greater access to digital, cloud, data, and AI services to its global clients. The joint venture, renamed NCS Philippines, aims to drive business transformation and innovation, particularly in the telecommunications sector, leveraging the combined expertise of NCS and Yondu.

Singtel’s Optus Finance Prices SGD 250 Million Fixed Rate Notes

Singtel announced that its subsidiary, Optus Finance Pty Limited, has priced SGD 250 million in 7-year fixed rate notes, set to be issued in March 2025. This issuance, carrying a 3.125% annual coupon, is part of Singtel’s long-term financing strategy to extend its debt maturity profile, with proceeds aimed at funding Optus’s regular business operations.

Singtel Completes Strategic Partnership with Lendlease for Comcentre Redevelopment

Singtel has announced the completion of a strategic partnership with Lendlease for the redevelopment of its Comcentre property. Lendlease has acquired a 49% stake in Singtel Somerset Pte. Ltd., the entity holding the Comcentre property, for S$1.6 billion. This transaction results in a gain of approximately S$1.2 billion for Singtel, after accounting for transaction costs. The redevelopment will be financed through external debt and equity commitments from both Singtel and Lendlease, potentially enhancing Singtel’s operational capabilities and market positioning.

Singtel Updates on AIS Shareholding and Upcoming Amalgamation

Singtel announced that its shareholding in AIS remains unchanged at 23.32% and provided an update on the proposed amalgamation of Intouch and Gulf, scheduled for completion on 1 April 2025. The newly formed entity, Gulf Development Public Company Limited, will begin trading on the Stock Exchange of Thailand on 3 April 2025. Singtel has not yet decided on its stake in Gulf but remains committed to being a long-term investor in Thailand, aiming to support AIS’s growth and maintain its leading position in the telecommunications sector.

Singtel Achieves Robust Q3 2024 Financial Performance with Significant Profit Growth

Singtel reported a strong performance for the third quarter of 2024, with an underlying net profit increase of 22% to S$680 million, driven by contributions from Optus, NCS, Airtel, and AIS. The company’s net profit more than doubled due to a net exceptional gain, while operating revenue and EBITDA remained stable. The financial results highlight Singtel’s improved profitability and strategic positioning in the telecommunications market.

Singtel Secures S$643 Million Green Loan for Sustainable Data Center

Singtel’s regional data center subsidiary, Nxera DCT Pte Ltd., has secured a S$643 million green loan to develop a new 58MW data center, DC Tuas, in Singapore. The center, set to be operational by 2026, will feature advanced sustainable technologies, including next-generation liquid cooling systems, and will cater to high-intensity computing demands such as AI workloads. This development underscores Singtel’s commitment to sustainability, aiming for net-zero emissions by 2028, and represents a significant advancement in efficient digital infrastructure, potentially strengthening its market position and supporting Singapore’s economic and environmental goals.