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Singapore Exchange Ltd (SPXCY)
OTHER OTC:SPXCY
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Singapore Exchange
(OTC:SPXCY)
Rating:76Outperform
Price Target:
$27.00
â–²(9.98%Upside)
Singapore Exchange (SPXCY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.02B
Dividend Yield2.28%
Average Volume (3M)459.00
Price to Earnings (P/E)26.7
Beta (1Y)0.31
Revenue Growth9.31%
EPS Growth16.03%
CountryUS
Employees1,140
SectorFinancial
Sector Strength75
IndustryFinancial - Data & Stock Exchanges
Share Statistics
EPS (TTM)0.48
Shares Outstanding535,821,200
10 Day Avg. Volume705
30 Day Avg. Volume459
Financial Highlights & Ratios
PEG Ratio2.35
Price to Book (P/B)8.27
Price to Sales (P/S)0.00
P/FCF Ratio25.02
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$25.00Price Target Upside1.83% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
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 MoneySingapore Exchange makes money through several key revenue streams. The primary sources of revenue include securities trading and clearing fees, which are charged to market participants for executing trades and clearing transactions. Additionally, SGX earns from listing fees paid by companies that list their shares on the exchange. The derivatives market is another significant contributor, with fees generated from trading and clearing of derivative contracts. SGX also derives income from its depository services, where it charges for the safekeeping and administration of securities. Market data and connectivity services provide another revenue stream, as SGX charges for access to real-time market data and connectivity solutions. Furthermore, SGX engages in partnerships and collaborations, both regionally and globally, to enhance its product offerings and expand its market reach, thereby contributing to its earnings.
Singapore Exchange Earnings Call Summary
Earnings Call Date:Feb 06, 2025
(Q2-2025)
| % Change Since: 31.92%|
Next Earnings Date:Aug 08, 2025
Earnings Call Sentiment Positive
The earnings call reflects strong overall financial performance with significant revenue growth across segments, increased dividends, and strategic expansion in derivatives and FX markets. However, increased staff costs, declining interest coverage, and impairment charges present some challenges.Q2-2025 Updates
Positive Updates
Record-Breaking Financial Performance
SGX Group reported record-high net revenue of S$646 million, a 15.6% increase, and adjusted NPAT of S$320 million, up 27.3% year-on-year. Both adjusted operating profit margin and adjusted NPAT margin showed strong improvement by 6.1% and 4.5% respectively.
Strong Growth in Cash Equities
The cash equities business saw a significant net revenue increase of S$35 million or 22%, with the securities daily average value rising 31% to S$1.26 billion.
Derivatives Market Expansion
Total net revenue from derivatives grew by S$35 million or 14%, driven by a 20% increase in overall derivative daily average volume. The T+1 session contributed significantly, accounting for 20% of the overall derivatives volume.
OTC FX Business Growth
The OTC FX business saw net revenue grow by S$14 million or 36%, with the average daily volume increasing to $136 billion. Its EBITDA contribution to the group increased to 5% from 3% the previous year.
FX Franchise Achievements
The FX franchise achieved a record average daily volume of over US$154 billion, with listed FX futures daily average volumes rising 40% year-on-year.
Dividend Increase
The Board declared a quarterly dividend of $0.09 per share, bringing the total dividends for the first half of FY 2025 to $0.18 per share, a 6% increase.
Negative Updates
Increased Staff Costs
Staff costs increased by $9 million or 6% due to higher variable bonuses in line with higher profits.
Interest Coverage Ratio Decline
The interest coverage ratio decreased to 56 times from 113 times due to higher interest expenses related to refinancing.
Impairment and Adjustments
A $2 million impairment was taken due to the lower-than-expected performance of an associated company, and there were further adjustments of $5 million from the amortization of purchased intangible assets.
Company Guidance
During the SGX Group's First Half FY 2025 Results Briefing, new CFO Daniel Koh reported a robust financial performance with group net revenue increasing by 15.6% to S$646 million. The adjusted group net profit after tax (NPAT) rose by 27.3% to S$320 million, with improvements in adjusted operating profit margin and NPAT margin by 6.1% and 4.5%, respectively. This growth was driven by significant contributions from the cash equities segment, which saw a 22% increase in net revenue, and derivatives, where net revenue grew by 14% due to a 20% increase in derivative daily average volume. The OTC FX business experienced a 36% rise in net revenue, with its EBITDA contribution growing from 3% to 5%. Despite these revenue gains, group expenses remained comparable to the previous year, with staff costs increasing by 6% and other expenses decreasing by $4 million. The company expects full-year expenses to be at the lower end of the 2% to 4% increase guidance and anticipates capital expenditure to be at the lower end of the $70 million to $75 million range. Additionally, an interim quarterly dividend of $0.09 per share was declared, representing an almost 6% increase in total dividends for the first half of FY 2025.Singapore Exchange Financial Statement Overview
Summary
Singapore Exchange demonstrates strong financial performance with solid revenue growth, high profitability margins, and effective cash flow management. The balanced capital structure and prudent leverage contribute to financial stability. However, there is room for improvement in liability reduction and cash flow conversion.Income Statement
Singapore Exchange has demonstrated a solid revenue growth trend over the past few years, with a revenue growth rate of 3.12% from 2023 to 2024. The company maintains strong profitability, evidenced by a high gross profit margin of 86.57% and a net profit margin of 48.54% for 2024. Both EBIT and EBITDA margins are robust at 49.23% and 66.19%, respectively. Consistent revenue growth and high profitability margins are indicative of strong performance in the capital markets industry.85
Very Positive
Balance Sheet
The balance sheet of Singapore Exchange shows a healthy financial position with a moderate debt-to-equity ratio of 0.37, indicating lower leverage. The return on equity (ROE) stands at 30.51%, reflecting efficient use of equity to generate profit. The equity ratio is solid at 49.17%, suggesting a balanced capital structure. The company's strong equity base and prudent leverage highlight financial stability, although there is room for improvement in reducing liabilities further.78
Positive
Cash Flow
Singapore Exchange exhibits strong cash flow generation with a free cash flow growth rate of 40.50% from 2023 to 2024. The operating cash flow to net income ratio is 1.03, showing efficient conversion of income into cash. The free cash flow to net income ratio is 0.92, indicating substantial free cash flow relative to profits. These metrics underscore the company's ability to generate and manage cash effectively, supporting its operations and strategic initiatives.82
Very Positive
| Breakdown | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.23B | 1.19B | 1.10B | 1.06B | 1.05B |
| Gross Profit | 1.07B | 1.03B | 948.48M | 918.62M | 909.10M |
| EBITDA | 815.18M | 621.53M | 569.84M | 553.53M | 663.70M |
| Net Income | 597.91M | 570.89M | 451.40M | 445.41M | 471.81M |
Balance Sheet | |||||
| Total Assets | 3.98B | 3.78B | 3.85B | 3.02B | 2.68B |
| Cash, Cash Equivalents and Short-Term Investments | 1.13B | 1.07B | 1.09B | 1.10B | 955.51M |
| Total Debt | 728.01M | 727.22M | 788.87M | 539.18M | 393.10M |
| Total Liabilities | 2.02B | 2.08B | 2.30B | 1.63B | 1.43B |
| Stockholders Equity | 1.96B | 1.70B | 1.54B | 1.38B | 1.24B |
Cash Flow | |||||
| Free Cash Flow | 551.23M | 392.39M | 539.38M | 507.65M | 603.08M |
| Operating Cash Flow | 615.80M | 446.70M | 583.53M | 552.94M | 637.71M |
| Investing Cash Flow | -137.90M | 12.34M | -549.72M | -197.96M | -329.95M |
| Financing Cash Flow | -459.69M | -432.89M | -108.70M | -209.92M | -69.63M |
Singapore Exchange Technical Analysis
Positive
24.55
Price Trends
22.43
Positive
21.18
Positive
19.57
Positive
Market Momentum
0.67
Negative
69.40
Neutral
93.84
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SPXCY, the sentiment is Positive. The current price of 24.55 is above the 20-day moving average (MA) of 23.41, above the 50-day MA of 22.43, and above the 200-day MA of 19.57, indicating a bullish trend. The MACD of 0.67 indicates Negative momentum. The RSI at 69.40 is Neutral, neither overbought nor oversold. The STOCH value of 93.84 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SPXCY.
Singapore Exchange Peers Comparison
Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $50.77B | 40.10 | 11.43% | 1.21% | 25.89% | 16.37% | |
80 Outperform | $24.83B | 31.18 | 18.93% | 1.06% | 15.76% | 1.97% | |
79 Outperform | $99.10B | 27.65 | 13.40% | 1.80% | 11.72% | 13.31% | |
79 Outperform | $103.71B | 37.68 | 10.27% | 1.06% | 13.25% | 10.82% | |
76 Outperform | $13.02B | 26.74 | 35.32% | 2.28% | 9.31% | 16.03% | |
72 Outperform | $43.57B | 38.72 | -117.99% | 1.26% | 11.67% | -0.89% | |
68 Neutral | $16.73B | 11.75 | 9.79% | 3.76% | 11.87% | -7.97% |
* Financial Sector Average
Performance Comparison
SPXCY
Singapore Exchange
24.55
10.38
73.25%
CBOE
Cboe Global Markets
237.84
55.37
30.34%
CME
CME Group
277.82
86.59
45.28%
ICE
Intercontinental Exchange
181.94
35.90
24.58%
MSCI
MSCI
580.18
90.09
18.38%
NDAQ
Nasdaq
89.95
28.23
45.74%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.