Singtel (Z74) AI Stock Analysis

• Market Cap: $75.26B
• Dividend Yield: 3.99%
• Average Volume (3M): 26.40M
• Price to Earnings (P/E): 12.2
• Beta (1Y): 0.72
• Revenue Growth: -0.19%
• EPS Growth: N/A
• Country: SG
• Employees: 22,700
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 0.04
• Shares Outstanding: 16,514,635,000
• 10 Day Avg. Volume: 17,560,622
• 30 Day Avg. Volume: 26,404,583
• PEG Ratio: 0.04
• Price to Book (P/B): 2.28
• Price to Sales (P/S): 4.17
• P/FCF Ratio: 167.18
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 4.75
• Enterprise Value/Gross Profit: 21.29
• Enterprise Value/Ebitda: 11.15
• 1Y Price Target: $5.11
• Price Target Upside: 12.27% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: S$4.50 ▼(-1.10% Downside)

Singtel's strong financial performance, characterized by robust profitability and revenue growth, is the primary driver of its stock score. The technical indicators suggest bullish momentum, but caution is advised due to overbought signals. Valuation metrics are favorable, with a reasonable P/E ratio and a solid dividend yield. However, the lack of earnings call data and notable corporate events limits additional insights.

Positive Factors

Revenue Growth

Singtel's strong revenue growth reflects its ability to expand market reach and enhance product offerings, supporting long-term business stability.

Profitability Improvement

Significant improvement in profitability indicates effective cost management and operational efficiency, strengthening Singtel's financial position.

Strategic Divestments

Strategic divestments enhance financial flexibility and allow Singtel to focus resources on core business areas, supporting future growth.

Negative Factors

High Debt Levels

High debt levels can limit financial flexibility and increase risk, potentially impacting Singtel's ability to invest in growth opportunities.

Cash Flow Concerns

Significant drop in free cash flow growth may hinder Singtel's capacity to fund operations and invest in strategic initiatives.

Network Reliability Issues

Frequent network reliability issues can damage customer trust and brand reputation, affecting Singtel's competitive position in the long term.

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 core telecommunications services, which include mobile and fixed-line services, broadband subscriptions, and digital services. The company has a significant customer base in Singapore and Australia, thanks to its ownership stake in Optus. Key revenue streams include mobile service subscriptions, data and broadband services, and equipment sales. Additionally, Singtel earns income from its digital solutions, including cybersecurity services and cloud computing. Strategic partnerships with technology firms and collaborations with various businesses also contribute to its revenue through joint ventures and service bundles, enhancing its market presence and offering innovative solutions to customers.

Singtel Financial Statement Overview

Summary

Singtel demonstrates strong profitability and revenue growth, with improved margins and return on equity. The balance sheet is stable, but high debt levels require careful management. Cash flow performance is mixed, with a significant drop in free cash flow growth, highlighting the need for improved cash management strategies.

Income Statement

Singtel's income statement shows a strong performance with a significant improvement in net profit margin from 5.63% in 2024 to 28.40% in 2025, indicating enhanced profitability. The gross profit margin is exceptionally high at 100% due to the nature of the revenue recognition. Revenue growth rate is positive at 39% in 2025, reflecting a strong recovery from previous declines. EBIT and EBITDA margins have also improved significantly, showcasing operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.45 in 2025, showing a slight improvement from previous years. Return on equity has increased to 15.52%, indicating effective use of equity to generate profits. The equity ratio remains healthy, suggesting a strong capital structure. However, the total debt level remains relatively high, which could pose a risk if not managed carefully.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by 86.84% in 2025, which is a concern. However, the operating cash flow to net income ratio is at 0.55, indicating that operating cash flows are sufficient to cover net income. The free cash flow to net income ratio is lower at 0.08, suggesting limited free cash flow relative to net income, which could impact future investments or debt repayments.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	14.06B	14.15B	14.13B	14.62B	15.34B	15.64B
Gross Profit	3.14B	14.15B	3.39B	2.83B	2.83B	2.91B
EBITDA	5.99B	7.45B	2.47B	3.99B	4.24B	2.58B
Net Income	6.19B	4.02B	795.00M	2.23B	1.95B	553.70M
Balance Sheet
Total Assets	47.78B	46.78B	46.20B	46.53B	49.13B	48.00B
Cash, Cash Equivalents and Short-Term Investments	3.36B	2.77B	4.63B	1.67B	2.13B	754.70M
Total Debt	11.39B	11.67B	11.90B	11.91B	12.88B	12.86B
Total Liabilities	20.53B	20.83B	21.23B	21.53B	22.03B	21.49B
Stockholders Equity	27.09B	25.89B	24.93B	24.99B	27.08B	26.49B
Cash Flow
Free Cash Flow	2.43B	352.60M	2.36B	2.12B	2.41B	2.80B
Operating Cash Flow	5.00B	4.61B	4.72B	4.41B	4.90B	5.23B
Investing Cash Flow	-36.20M	-2.41B	247.30M	-2.35B	-676.10M	-2.68B
Financing Cash Flow	-4.20B	-4.03B	-1.99B	-2.52B	-2.84B	-2.80B

Singtel Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4.55
• 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 Neutral. The current price of 4.55 is below the 20-day moving average (MA) of 4.67, above the 50-day MA of 4.48, and above the 200-day MA of 3.95, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 45.36 is Neutral, neither overbought nor oversold. The STOCH value of 34.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SG:Z74.

Singtel Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Z74	70 Outperform	$75.26B	12.16	24.43%	3.99%	-0.19%	―
CJLU	70 Outperform	S$3.72B	41.16	3.69%	5.64%	-0.38%	-8.30%
CC3	68 Neutral	S$1.94B	15.78	32.00%	5.49%	0.83%	-16.65%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Singtel Corporate Events

Singtel Optus Prices SGD 200 Million Fixed Rate Notes for Long-Term Financing

Singtel, through its subsidiary Optus Finance, has announced the pricing of SGD 200 million in 10-year fixed rate notes, set to be issued on December 3, 2025. This move 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 business operations, with United Overseas Bank Limited serving as the sole lead manager for the issuance.

Singtel Sells Stake in Bharti Airtel, Raising SGD1.5 Billion

Singtel announced the sale of 51 million shares in Bharti Airtel Limited by its subsidiary, Pastel Limited, raising approximately SGD1.5 billion. This transaction, conducted on the National Stock Exchange of India, will result in an estimated gain of SGD1.1 billion for Singtel and reduce its stake in Bharti Airtel from 28.3% to 27.5%, reflecting a strategic adjustment in its investment portfolio.

Singtel Clarifies Position on Potential Data Center Deal

Singtel has clarified its position regarding a media article about a potential $3.9 billion deal involving the full ownership of a Singapore data center firm. The company is in discussions as part of a consortium regarding STT GDC Pte. Ltd., but there is no certainty of a definitive agreement. Singtel advises investors to exercise caution with media reports on potential transactions until official announcements are made.

Singtel Addresses Dapto Tower Issue with Ericsson’s Support

Singtel, in collaboration with Ericsson, is addressing a technical issue that affected a single mobile tower in Dapto, NSW. The incident, which impacted 4G services but left 5G services operational, was due to an anomaly in Ericsson’s equipment. Singtel is working to ensure network reliability and is committed to rebuilding trust with its customers and stakeholders by cooperating with government and industry partners.

Optus Enhances Oversight to Restore Network Confidence

Optus, a subsidiary of Singtel, is taking significant steps to restore confidence in its mobile network following a recent outage that affected emergency services. The company has appointed Kearney, a global consulting firm, to oversee and verify improvements in network management and processes. This move is part of a broader effort to enhance service quality and regain public trust, with the Optus Board and management team committed to critical reforms and full cooperation with regulatory investigations.

Optus Mobile Tower Outage in NSW: Unrelated to Previous Emergency Incident

Singtel’s subsidiary, Optus, experienced a mobile phone tower outage in a New South Wales suburb, which was unrelated to a previous incident affecting emergency services. The outage was confined to a single cell site out of over 3,000 in the region. Optus addressed the issue promptly, ensuring transparency due to the sensitivity surrounding emergency calls in Australia. The incident did not result from any ongoing upgrades or maintenance.

Optus Initiates Independent Review of Triple Zero Call Failure

Singtel’s subsidiary, Optus, is addressing a significant technical failure that affected emergency Triple Zero calls on September 18, 2025. The Optus Board has appointed Dr. Kerry Schott to lead an Independent Review to investigate the incident, focusing on identifying causes, evaluating processes, and ensuring compliance with policies and legislative requirements. The review aims to enhance transparency and prevent future occurrences, with findings to be made public by the end of the year.

Optus Investigates Triple Zero Call Failures After Network Upgrade

Optus, a telecommunications company, experienced a technical failure during a network upgrade that impacted Triple Zero emergency calls in South Australia, the Northern Territory, and Western Australia. The failure, which has since been rectified, resulted in several customers being unable to reach emergency services, and tragically, three calls involved households where a person passed away. Optus CEO Stephen Rue has apologized for the incident and announced an immediate investigation, pledging full cooperation with government agencies and transparency in sharing the investigation’s findings.