Singtel (Z74) AI Stock Analysis

• Market Cap: $71.63B
• Dividend Yield: 2.86%
• Average Volume (3M): 21.13M
• Price to Earnings (P/E): 17.5
• Beta (1Y): 0.73
• Revenue Growth: 0.13%
• EPS Growth: 404.98%
• Country: SG
• Employees: 22,700
• Sector: Communication Services
• Sector Strength: 90
• Industry: Telecommunications Services
• EPS (TTM): 0.04
• Shares Outstanding: 16,514,635,000
• 10 Day Avg. Volume: 27,985,119
• 30 Day Avg. Volume: 21,128,533
• 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: 0.93
• Enterprise Value/Revenue: 4.72
• Enterprise Value/Gross Profit: 18.77
• Enterprise Value/Ebitda: 19.81
• 1Y Price Target: $4.57
• Price Target Upside: 6.22% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 76 Outperform
• Price Target: S$4.50 ▲(4.65% 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

Asset Monetization

Singtel has achieved S$4bn of its S$9bn mid-term recycling target, with asset monetisation opportunities remaining.

Business Growth

Analyst expects the value of the core business to grow significantly, driven by a re-rating to a higher price-to-earnings ratio.

Financial Performance

Singtel’s 1QFY26 underlying net profit grew by 14% yoy, driven by EBIT improvement from Optus and NCS and stronger Airtel and AIS contribution.

Negative Factors

Currency and Competition

A decline in the Australian dollar or irrational competition in Australia could hinder recovery for Optus.

Mobile Revenue

Singapore mobile service revenue fell due to a decline in mobile ARPU and roaming competition.

Valuation Concerns

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

Singtel Business Overview & Revenue Model

Company Description

Singtel (Z74), short for Singapore Telecommunications Limited, is a leading telecommunications company based in Singapore. It operates in several sectors, including mobile, broadband, and fixed-line telephony services. The company is also involved in digital solutions and cyber security through its various subsidiaries and partnerships. Singtel is one of Asia's largest telecom operators, with a significant presence in multiple countries, including Australia, India, Indonesia, and Thailand, through strategic investments in regional telecom companies.

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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	14.15B	14.15B	14.13B	14.62B	15.34B	15.64B
Gross Profit	3.56B	14.15B	3.39B	2.83B	2.83B	2.91B
EBITDA	3.37B	7.45B	2.47B	3.99B	4.24B	2.58B
Net Income	4.02B	4.02B	795.00M	2.23B	1.95B	553.70M
Balance Sheet
Total Assets	46.78B	46.78B	46.20B	46.53B	49.13B	48.00B
Cash, Cash Equivalents and Short-Term Investments	2.77B	2.77B	4.63B	1.67B	2.13B	754.70M
Total Debt	11.67B	11.67B	11.90B	11.91B	12.88B	12.86B
Total Liabilities	20.83B	20.83B	21.23B	21.53B	22.03B	21.49B
Stockholders Equity	25.89B	25.89B	24.93B	24.99B	27.08B	26.49B
Cash Flow
Free Cash Flow	2.48B	352.60M	2.36B	2.12B	2.41B	2.80B
Operating Cash Flow	4.61B	4.61B	4.72B	4.41B	4.90B	5.23B
Investing Cash Flow	-2.41B	-2.41B	247.30M	-2.35B	-676.10M	-2.68B
Financing Cash Flow	-4.03B	-4.03B	-1.99B	-2.52B	-2.84B	-2.80B

Singtel Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 4.3 is above the 20-day moving average (MA) of 4.08, above the 50-day MA of 3.96, and above the 200-day MA of 3.48, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 68.88 is Neutral, neither overbought nor oversold. The STOCH value of 89.94 is Negative, 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	$71.63B	17.46	16.56%	2.86%	0.13%	404.98%
Sector *	60 Neutral	$43.56B	4.52	-12.81%	4.07%	1.87%	-43.08%
NETLF	―	$2.79B	39.19	3.90%	―	―	―
SRHBF	―	$1.51B	16.20	32.00%	5.37%	―	―
T41	―	S$77.12M	10.31	22.23%	―	―	―

Singtel Corporate Events

Singtel Announces SGD 160 Million Fixed Rate Notes Issuance

Singtel, through its subsidiary Optus, has announced the pricing of SGD 160 million in 10-year fixed rate notes, set to be issued on 25 July 2025. This issuance is part of Singtel’s long-term financing strategy, aimed at extending its debt maturity profile. The proceeds will be converted into Australian Dollars to support Optus’s regular business activities. Oversea-Chinese Banking Corporation Limited acted as the sole lead manager and bookrunner for this issuance.

The most recent analyst rating on (SG:Z74) stock is a Buy with a S$4.30 price target. To see the full list of analyst forecasts on Singtel stock, see the SG:Z74 Stock Forecast page.

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.