Singtel (Z74) AI Stock Analysis

• Market Cap: $63.87B
• Dividend Yield: 4.18%
• Average Volume (3M): 37.69M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.79
• Revenue Growth: -2.10%
• EPS Growth: -103.46%
• Country: SG
• Employees: 22,700
• Sector: Communication Services
• Sector Strength: 85
• Industry: Telecommunications Services
• EPS (TTM): 0.04
• Shares Outstanding: 16,514,635,000
• 10 Day Avg. Volume: 25,580,709
• 30 Day Avg. Volume: 37,690,474
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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: $3.73
• Price Target Upside: -3.26% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

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

Asset Sales

Singtel to receive net proceeds of SGD1.0bn from 49% stake sale in Comcentre property, in line with market expectations.

Dividend Growth

Singtel has committed to 16.5Scts dividends per share (DPS) for FY25F including value realisation dividend (VRD).

Geographical Diversification

Singtel benefits from geographical diversification, with significant stakes in telecom associates in India, Indonesia, the Philippines, and Thailand, contributing over 67% of the group’s operating profit.

Negative Factors

Currency and Competition Risks

A decline in AUD or irrational competition in Australia pose risks to recovery.

Market Competition

Singapore continues to face revenue pressure from mobile competition, dragging down Average Revenue Per User (ARPU) and structural weakness in legacy voice.

Price Competition

Price competition in Singapore and Indonesia, with ARPU declining low to mid-single digits in both countries.

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 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

Income Statement

Balance Sheet

Cash Flow

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
14.13B	14.62B	15.34B	15.64B	16.54B
	Gross Profit
3.39B	2.83B	2.83B	2.91B	3.87B
	EBIT
-97.40M	916.70M	887.60M	898.20M	1.78B
	EBITDA
2.47B	3.99B	4.24B	2.58B	3.33B
	Net Income Common Stockholders
795.00M	2.23B	1.95B	553.70M	1.07B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.63B	1.67B	2.13B	754.70M	999.60M
	Total Assets
46.20B	46.53B	49.13B	48.00B	48.95B
	Total Debt
11.90B	11.91B	12.88B	12.86B	14.17B
	Net Debt
7.29B	10.24B	10.75B	12.10B	13.17B
	Total Liabilities
21.23B	21.53B	22.03B	21.49B	22.14B
	Stockholders Equity
24.93B	24.99B	27.08B	26.49B	26.79B
Cash Flow		Free Cash Flow
2.36B	2.12B	2.41B	2.80B	3.12B
	Operating Cash Flow
4.72B	4.41B	4.90B	5.23B	5.51B
	Investing Cash Flow
247.30M	-2.35B	-676.10M	-2.68B	-3.08B
	Financing Cash Flow
-1.99B	-2.52B	-2.84B	-2.80B	-1.98B

Singtel Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.86
• 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 3.86 is above the 20-day moving average (MA) of 3.72, above the 50-day MA of 3.52, and above the 200-day MA of 3.20, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 69.18 is Neutral, neither overbought nor oversold. The STOCH value of 96.49 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
Sector *	60 Neutral	$13.41B	7.23	-2.74%	3.81%	2.12%	-37.24%
Z74	59 Neutral	$63.87B	―	-0.40%	4.18%	-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.