Singapore Exchange (SPXCF) AI Stock Analysis

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Positive Factors

Market Volatility

SGX is expected to benefit from continued market volatility due to pro-growth policymaking and geopolitical tensions, which should boost trading activity.

Strategic Investments

SGX has made strategic investments in platforms like Trumid, BidFX, Cobalt, Freightos, and MaxxTrader, which can help in mitigating market cyclicality.

Negative Factors

Business Growth

Slower-than-expected business growth across various asset classes posits downside to analyst estimates.

Dividends

Dividends disappoint despite earnings surge.

Singapore Exchange (SPXCF) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$11.92B

Dividend Yield2.38%

Average Volume (3M)4.54K

Price to Earnings (P/E)24.3

Beta (1Y)0.38

Revenue GrowthN/A

EPS GrowthN/A

CountryUS

Employees1,140

SectorFinancial

Sector Strength83

IndustryFinancial - Data & Stock Exchanges

Share Statistics

EPS (TTM)0.24

Shares Outstanding1,071,642,500

10 Day Avg. Volume5,679

30 Day Avg. Volume4,544

Financial Highlights & Ratios

PEG Ratio2.01

Price to Book (P/B)7.07

Price to Sales (P/S)0.00

P/FCF Ratio21.39

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$10.50

Price Target Upside-5.83% Downside

Rating ConsensusHold

Number of Analyst Covering4

Singapore Exchange Business Overview & Revenue Model

Company DescriptionSingapore Exchange Limited, together with its subsidiaries, operates as an integrated securities and derivatives exchange, and related clearing houses in Singapore. It operates through Fixed Income, Currencies, and Commodities; Equities; and Data, Connectivity, and Indices segments. The Fixed Income, Currencies, and Commodities segment offers fixed income issuer, trading and clearing, and collateral management services. The Equities segment provides issuer, securities trading and clearing, securities settlement and depository management, derivatives trading and clearing, and collateral management services. The Data, Connectivity, and Indices segment offers market data, connectivity, and indices services. It also provides counterparty guarantee, and depository and related services for securities and derivatives transactions; bond trading services; front-line regulatory functions; computer and software maintenance; operates an electronic foreign exchange trading platform; and management consultancy services for index activities. In addition, the company offers membership and management services to related corporations; distributes bulk freight market indices and information; and operates an electricity market, as well as provides administration services for index calculation, risk analyses, and financial research. It has an agreement in relation to a global partnership to grow New Zealand's Exchange's dairy derivatives market together. Singapore Exchange Limited was incorporated in 1999 and is headquartered in Singapore.

How the Company Makes Money

Singapore Exchange Earnings Call Summary

Earnings Call Date:Feb 06, 2025

(Q2-2025)

% Change Since: 20.28%|

Next Earnings Date:Jul 31, 2025

Earnings Call Sentiment Positive

The earnings call highlighted SGX's robust financial performance, with record revenues and significant growth in key segments like cash equities and derivatives. While there were some challenges such as a decline in the interest coverage ratio and flat treasury income, these were outweighed by the positive financial achievements and strategic growth initiatives.

Q2-2025 Updates

Positive Updates

Record Operating Revenue and Earnings

SGX Group delivered the highest levels of half-year operating revenue and earnings. Group net revenue increased by 15.6% to S$646 million, while adjusted group NPAT increased 27.3% to S$320 million.

Strong Growth in Key Segments

Cash equities net revenue increased by S$35 million or 22%, with SDAV up 31% to S$1.26 billion. Derivatives net revenue grew S$35 million or 14%, with a 20% growth in overall derivative daily average volume.

OTC FX Expansion

OTC FX net revenue grew by S$14 million or 36%, with average daily volume also increasing by 36% to US$136 billion.

Robust Balance Sheet

Moody's reaffirmed SGX's AA2 rating, with a healthy leverage ratio decline to 0.9 times due to improved margins.

Increased Dividend

The Board declared an interim quarterly dividend of $0.09 per share, bringing the total to $0.18 per share, a 6% increase.

Negative Updates

Interest Coverage Ratio Decline

Interest coverage ratio decreased to 56 times from 113 times, mainly due to higher interest expense from refinancing.

Flat Treasury Income

Treasury income was comparable year-on-year, hampered by higher collateral balances but offset by declining interest rates.

Non-Cash Adjustments Impact

Non-cash adjustments and one-off items, including a net fair value gain and impairments, affected reported earnings.

Company Guidance

During the first half of fiscal year 2025, SGX Group reported a robust financial performance with a 15.6% increase in group net revenue, reaching S$646 million and a 27.3% rise in adjusted NPAT to S$320 million. The cash equities segment saw net revenue growth of 22%, with the securities daily average value (SDAV) increasing 31% to S$1.26 billion. The derivatives franchise experienced a 14% net revenue growth, with a 20% increase in overall derivative daily average volume. OTC FX also showed strong performance, with net revenue rising by 36% and average daily volume reaching $136 billion. The fixed income, currencies, and commodities (FICC) segment grew by 13%, contributing to 25% of the total revenue. Operating profit margin and NPAT margin improved by 6.1% and 4.5%, respectively. SGX's expenses remained steady, and capital expenditure was reported at $22 million for the first half, with expectations to stay at the lower end of the $70 million to $75 million guidance for the full year. The board declared an interim quarterly dividend of $0.09 per share, marking an almost 6% increase, aligning with its aim for mid-single-digit percentage CAGR growth in dividends subject to earnings growth.

Singapore Exchange Financial Statement Overview

Summary

Overall, the financial statements of Singapore Exchange depict a healthy and growing company within the financial industry. The consistent revenue growth, solid profitability margins, and strong balance sheet highlight the company's stability and potential for future growth. While there are some concerns regarding increasing liabilities and financing cash flow fluctuations, the company's overall financial health remains robust.

Income Statement

Very Positive

The company has demonstrated solid revenue growth with a steady increase in total revenue from $909.7 million in 2019 to $1.23 billion in 2024. Gross profit margins have remained strong, although there was a slight decrease in 2024. The net profit margin improved over the years, indicating enhanced profitability. EBIT and EBITDA margins are healthy, reflecting strong operational efficiency.

Balance Sheet

Positive

The balance sheet shows a robust financial position with consistent growth in stockholders' equity, increasing from $1.09 billion in 2019 to $1.96 billion in 2024. The debt-to-equity ratio is low, suggesting a conservative leverage approach. The equity ratio has improved, highlighting a strong capital structure. However, total liabilities have grown, which requires monitoring.

Cash Flow

Positive

Operating cash flow has shown a positive trajectory, indicating strong cash generation capabilities. Free cash flow is positive and growing, although capital expenditures have increased slightly. The free cash flow to net income ratio is favorable, reflecting efficient cash management. However, fluctuations in financing cash flow suggest some variability in financial strategy.

TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Breakdown
Income Statement		Total Revenue
1.32B	1.23B	1.19B	1.10B	1.06B	1.05B
	Gross Profit
1.19B	884.11M	1.02B	933.17M	898.49M	909.10M
	EBIT
694.31M	606.38M	655.01M	544.57M	537.84M	567.21M
	EBITDA
715.33M	810.41M	753.33M	641.23M	632.36M	657.07M
	Net Income Common Stockholders
656.31M	597.91M	570.89M	451.40M	445.41M	471.81M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
642.49M	1.13B	1.07B	1.09B	1.10B	955.51M
	Total Assets
1.39B	3.98B	3.78B	3.86B	3.02B	2.68B
	Total Debt
0.00	728.01M	727.22M	788.87M	539.18M	393.10M
	Net Debt
-612.49M	-270.10M	-305.96M	-208.88M	-520.85M	-514.28M
	Total Liabilities
665.34M	2.02B	2.08B	2.31B	1.63B	1.43B
	Stockholders Equity
720.93M	1.96B	1.70B	1.54B	1.38B	1.24B
Cash Flow		Free Cash Flow
668.20M	551.23M	417.38M	562.07M	524.51M	603.08M
	Operating Cash Flow
745.65M	615.80M	470.66M	606.22M	569.80M	637.71M
	Investing Cash Flow
-78.04M	-173.33M	-5.79M	-555.82M	-209.21M	-329.95M
	Financing Cash Flow
-478.75M	-459.69M	-428.43M	-106.36M	-207.79M	-69.63M

Singapore Exchange Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SPXCF		$11.92B	24.29	35.32%	2.38%	―	―
Sector *	64 Neutral	$12.85B	9.81	7.59%	16985.65%	12.30%	-7.71%
DBSDF		$99.43B	12.05	17.99%	4.68%	―	―
OVCHF		$56.63B	10.11	13.78%	5.03%	―	―
UOVEF		$45.65B	10.56	13.43%	4.79%	―	―
4LJ		€1.21B	7.05	11.09%	6.97%	―	―
YF8	73 Outperform	S$2.52B	8.37	7.71%	4.73%	-19.54%	58.03%

* Financial Sector Average

Performance Comparison

SPXCF

Singapore Exchange

11.15

4.46

66.67%

DBSDF

DBS Group Holdings

35.53

10.40

41.38%

OVCHF

OCBC

12.65

2.82

28.69%

UOVEF

UOB

28.11

6.87

32.34%

DE:4LJ

UOB-Kay Hian Holdings Limited

1.19

0.36

43.37%

SG:YF8

Yangzijiang Financial Holding Ltd.

0.72

0.37

105.71%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.