Education
About Us
Working with TipRanks
Follow Us
Singapore Exchange Ltd (SPXCY)
OTHER OTC:SPXCY
Top Page
Singapore Exchange
(OTC:SPXCY)
Select Model
Select Model
Rating:79Outperform
Price Target:
$32.00
▲(15.90% Upside)
Action:ReiteratedDate:02/05/26
The score is driven primarily by strong financial performance (high margins, healthy growth, and strong free cash flow) and a positive earnings update with reiterated growth guidance and rising dividends. Technicals are supportive with an established uptrend. These positives are moderated by a relatively high P/E and only a modest dividend yield.
Positive Factors
High Profitability & ROE
Sustained high gross and net margins, coupled with strong ROE (~29%), indicate SGX operates a scalable, low‑marginal‑cost marketplace with pricing power and network effects. This durability supports long‑term cash generation, reinvestment for growth, and resilient operating leverage across cycles.
Robust Free Cash Flow Generation
Very strong FCF growth and near‑par FCF/net income conversion show SGX reliably turns profits into cash. That capacity underpins a growing dividend policy, capital allocation optionality (debt paydown, buybacks, reinvestment) and financial flexibility through varied market environments.
Product & Franchise Diversification
Introduction of new multi‑asset products (crypto perpetuals, long‑dated JGB futures) and ongoing platform/data modernization broaden SGX's addressable market. These structural product additions and FX franchise scale support more stable, diversified fee pools beyond single‑market trading cycles.
Negative Factors
Treasury Income Sensitivity
Material swings in treasury income tied to interest rates and collateral currency mix create recurring revenue volatility. Because treasury income has been a component of total net revenue, sensitivity to macro rate moves can compress reported revenues and margins unpredictably across reporting periods.
Scientific Beta Impairment
A $15m impairment on the acquired Scientific Beta index business signals integration or product‑market fit issues in the data/index segment. This suggests execution risk for M&A and limits near‑term incremental earnings from that channel, tempering the durability of index/data revenue expansion.
Volume & Macro Dependence
A meaningful portion of SGX's revenue is trading‑and‑volatility dependent. Strong prior‑year comparatives and episodic macro events (e.g., China stimulus) mean future revenue and fee growth remain exposed to market volatility, reducing predictability of top‑line trends and making multi‑period planning harder.
Singapore Exchange (SPXCY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$15.20B
Dividend Yield1.98%
Average Volume (3M)15.63K
Price to Earnings (P/E)30.3
Beta (1Y)0.31
Revenue Growth13.26%
EPS Growth10.25%
CountryUS
Employees1,140
SectorFinancial
Sector Strength70
IndustryFinancial - Data & Stock Exchanges
Share Statistics
EPS (TTM)0.50
Shares Outstanding535,821,200
10 Day Avg. Volume13,482
30 Day Avg. Volume15,633
Financial Highlights & Ratios
PEG Ratio2.74
Price to Book (P/B)7.21
Price to Sales (P/S)11.57
P/FCF Ratio20.50
Enterprise Value/Market Cap1.17
Enterprise Value/Revenue12.48
Enterprise Value/Gross Profit17.90
Enterprise Value/Ebitda19.70
Forecast
1Y Price Target
$13.68Price Target Upside-50.45% Downside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 generates revenue through multiple streams, primarily from trading fees, clearing and settlement fees, and listing fees. Trading fees are charged on transactions executed on the exchange, while clearing and settlement fees are collected for processing trades and ensuring the transfer of securities. Additionally, SPXCY earns revenue from initial public offerings (IPOs) and ongoing listing fees from companies that choose to list their shares on the exchange. The exchange also derives income from market data services and technology solutions provided to market participants. Strategic partnerships with financial institutions and technology providers enhance its service offerings and contribute to its revenue growth.
Singapore Exchange Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call conveyed strong, broad-based operating performance across multiple business lines with record or multi-year highs in revenue, FX volume, SDAV and derivatives activity. Management highlighted margin expansion, a healthy balance sheet, a meaningful rise in dividends, continued investment in platform and product innovation (including crypto perpetual futures and long-dated JGB futures), and an expanding IPO pipeline including the NASDAQ GLB partnership. Key headwinds were a decline in treasury income, a $15 million impairment at Scientific Beta, a modest fall in equity derivatives revenue (-6%), and some higher operating costs. Overall, the positive operational momentum and financial strength substantially outweigh the identified challenges, which appear manageable and mostly non-recurring or being actively mitigated.Q2-2026 Updates
Positive Updates
Record Half-Year Financial Performance
Group net revenue increased 7.6% to $695 million; net revenue excluding treasury income grew 10% year-on-year and 8% half-on-half. Adjusted group NPAT rose 11.6% to $357 million. Adjusted expenses increased modestly by 3.8%, and adjusted operating profit margin and adjusted NPAT margin improved by 1.4 and 1.8 percentage points respectively.
Equities-Cash (Stock Exchange) Momentum
Equities-cash revenue grew 16% (up $31 million) and contributed 32% of total revenue. Singapore SDAV rose 20% to SGD 1.51 billion (highest in 5 years). STI posted a 23% 1-year return. Small and mid-cap SDAV surged over 2x, contributing nearly half of overall SDAV growth; ETFs and SDRs contributed over 10% to SDAV growth.
SGX FX Franchise Expansion and Record Volumes
SGX FX net revenue increased 8% with a record average daily value of USD 180 billion. Management cited average daily value growth of ~32% year-on-year and a reported CAGR of ~39% since inception. SGX FX won industry recognition (World's Best FX Exchange and World's Best Solution for FX NDFs).
Derivatives and Commodities Growth
Overall derivatives DAV grew 8% year-on-year from a high base and SGX achieved its highest half-year DDAV of 1.35 million contracts. FX and rates derivatives delivered 18% DDAV growth year-on-year. FICC revenue grew $20 million or 12%, accounting for 26% of total revenue; total commodities volume rose 24%, led by iron ore record volumes.
Platform, Data and Connectivity Revenue Expansion
Platform & other revenue increased 7% (up $8 million), driven by higher colocation sales and repricing of data and connectivity services. Data and platform modernization (data lake) underway to support new products and analytics.
Balance Sheet Strength and Capital Return
Moody's reaffirmed AA2 rating; leverage ratio at a healthy 0.8x. Board declared interim dividend of $0.11 per share (quarter), with H1 total dividend $0.2175 per share, up over 20% YoY. Management reiterated commitment to incremental dividend increases of $0.025 every quarter through FY '28.
One-Off Cash Realization from 7RIDGE Sale
Proceeds from the divestment of 7RIDGE (sale of trading technologies) resulted in a material cash inflow reported in cash flow lines (management confirmed the sale closed in Nov 2025), providing optionality to reduce near-term debt maturities.
Product Innovation and Market Development
Launched the world's first regulated exchange crypto perpetual futures and introduced a 20-year JGB futures contract; rubber T+1 night trading launched Jan 26. These product innovations broaden the multi-asset offering and position SGX for new client segments.
Stronger IPO Activity and Global Listing Board (GLB) Initiative
SGX led Southeast Asia in IPO funds raised in H1 with nearly SGD 3 billion. IPO pipeline expanded (management noted more than 30 in pipeline; 18 of the prior 30 have listed since announcement). Partnership with NASDAQ to launch the Global Listing Board (GLB) expected mid-year to attract high-growth companies and dual-listings.
Retail and Institutional Participation Gains
Retail participation in cash equities reached a four-year high; institutional net purchases of small and mid-cap stocks reached SGD 450 million. ETFs AUM reached SGD 18 billion and STI ETF AUM rose to SGD 3.7 billion.
Negative Updates
Treasury Income Compression
Treasury income declined materially due to the global rate environment and collateral currency mix, negatively impacting total net revenue and contributing to revenue mix headwinds. Management noted continuing sensitivity to rate moves and currency mix and is managing duration to mitigate impact.
Equity Derivatives Revenue Decline
Equity derivatives revenue decreased $10 million or 6% (mainly attributed to lower treasury income), even though total equity derivatives volume remained comparable at 91 million contracts.
Scientific Beta Impairment
Management recorded a $15 million impairment for Scientific Beta due to lower-than-expected performance and investor preference dynamics, prompting a goodwill write-down and signaling underperformance of this acquired index business.
Rising Other Expenses and Professional Fees
Other expenses increased by $5 million (partly due to professional fees and prior FSDF grants for the SGX FX business). Staff costs rose $4 million or 2.6% due to higher headcount. Management expects some investment skewing to second half but reiterated unchanged full-year expense and CapEx guidance.
No Near-Term Clarity on Bolt-on Acquisitions
Management continues to evaluate bolt-on acquisition opportunities (notably in freight/digitalization of freight) but provided no concrete targets or timeline, indicating potential uncertainty around inorganic growth execution.
Dependence on Strong Prior-Year Base and Market Volatility
Some of the reported growth is measured against an already strong FY '25 base driven by unusual macro events (China stimulus, past volatility). Management acknowledged recovery and momentum but reliance on macro-driven volumes introduces variability in future comparatives.
Company Guidance
SGX reiterated its guidance to deliver 6–8% organic top‑line CAGR (excluding treasury income), kept FY‑26 expense and CapEx guidance unchanged, and committed to a sustainable, growing dividend with an incremental $0.025 every quarter through end‑FY28; for H1 FY26 management highlighted strong underlying momentum with net revenue ex‑treasury income +10% YoY, total net revenue +7.6% to $695m, adjusted group NPAT +11.6% to $357m, adjusted expenses +3.8%, operating profit and NPAT margins up 1.4ppt and 1.8ppt, and a strong balance sheet (leverage 0.8x, Moody’s AA2); segment metrics cited include equities‑cash revenue +16% (32% of group revenue) with SDAV +20% to SGD1.51bn, derivatives DAV +8%, SGX FX net revenue +8% with ADV USD180bn (+32% YoY) and a 39% CAGR in ADV since inception, FICC revenue +12% ($20m, 26% of revenue) with commodities volume +24%, equity derivatives -6% ($10m, 24% of revenue), platform & other +7% ($8m, 18% of revenue), and an interim dividend of $0.11/share (H1 total $0.2175, >20% YoY); management said it will continue to reinvest for growth while maintaining cost discipline and may reduce debt as bonds mature.Singapore Exchange Financial Statement Overview
Summary
Strong fundamentals supported by high profitability (net margin ~47%), solid revenue growth (~11%), and robust free cash flow growth (~40%). Balance sheet leverage is prudent (D/E ~0.31) with strong ROE (~29%), though slight gross margin compression and a moderate equity ratio temper the score.Income Statement
The company exhibits strong revenue growth with an 11.28% increase in the latest year, indicating robust business expansion. Gross profit and net profit margins are high at 74.31% and 47.28%, respectively, showcasing operational efficiency and profitability. However, a slight decline in gross profit margin from the previous year suggests potential cost pressures.85
Very Positive
Balance Sheet
The balance sheet is solid with a manageable debt-to-equity ratio of 0.31, reflecting prudent financial leverage. Return on equity is strong at 29.45%, indicating effective use of shareholder funds. However, the equity ratio is moderate, suggesting room for improvement in asset financing through equity.78
Positive
Cash Flow
Cash flow performance is impressive with a 40.33% growth in free cash flow, highlighting strong cash generation capabilities. The operating cash flow to net income ratio of 0.70 suggests efficient conversion of earnings into cash. The free cash flow to net income ratio of 0.92 further underscores robust cash flow management.82
Very Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.42B | 1.37B | 1.23B | 1.19B | 1.10B | 1.06B |
| Gross Profit | 993.11M | 1.02B | 884.11M | 1.02B | 933.17M | 898.49M |
| EBITDA | 902.50M | 888.14M | 815.18M | 753.33M | 641.23M | 632.36M |
| Net Income | 650.70M | 647.98M | 597.91M | 570.89M | 451.40M | 445.41M |
Balance Sheet | ||||||
| Total Assets | 4.16B | 4.14B | 3.98B | 3.78B | 3.86B | 3.02B |
| Cash, Cash Equivalents and Short-Term Investments | 2.05B | 1.51B | 1.13B | 1.07B | 1.09B | 1.10B |
| Total Debt | 722.54M | 688.10M | 728.01M | 727.22M | 788.87M | 539.18M |
| Total Liabilities | 1.87B | 1.94B | 2.02B | 2.08B | 2.31B | 1.63B |
| Stockholders Equity | 2.29B | 2.20B | 1.96B | 1.70B | 1.54B | 1.38B |
Cash Flow | ||||||
| Free Cash Flow | 765.47M | 773.56M | 551.23M | 417.38M | 562.07M | 524.51M |
| Operating Cash Flow | 836.52M | 841.67M | 615.80M | 470.66M | 606.22M | 569.80M |
| Investing Cash Flow | 179.53M | -265.90M | -137.90M | -5.79M | -555.82M | -209.21M |
| Financing Cash Flow | -464.60M | -449.36M | -459.69M | -428.43M | -106.36M | -207.79M |
Singapore Exchange Technical Analysis
Neutral
27.61
Price Trends
27.56
Positive
26.75
Positive
25.31
Positive
Market Momentum
0.24
Positive
51.33
Neutral
40.15
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SPXCY, the sentiment is Neutral. The current price of 27.61 is below the 20-day moving average (MA) of 28.43, above the 50-day MA of 27.56, and above the 200-day MA of 25.31, indicating a neutral trend. The MACD of 0.24 indicates Positive momentum. The RSI at 51.33 is Neutral, neither overbought nor oversold. The STOCH value of 40.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SPXCY.
Singapore Exchange Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
85 Outperform | $116.60B | 29.13 | 14.65% | 3.92% | 5.84% | 8.51% | |
79 Outperform | $15.20B | 30.33 | 30.82% | 1.98% | 13.26% | 10.25% | |
75 Outperform | $31.86B | 29.22 | 23.25% | 1.06% | 16.74% | 26.74% | |
72 Outperform | $93.58B | 28.58 | 11.72% | 1.19% | 8.96% | 30.16% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $49.69B | 28.29 | 15.28% | 1.07% | 16.41% | 68.03% | |
61 Neutral | $48.16B | 41.54 | 10.05% | ― | 47.86% | 96.46% |
* Financial Sector Average
SPXCY
Singapore Exchange
28.25
8.87
45.74%
CBOE
Cboe Global Markets
304.43
94.41
44.95%
CME
CME Group
325.13
75.41
30.20%
ICE
Intercontinental Exchange
164.78
-4.91
-2.89%
NDAQ
Nasdaq
87.42
9.58
12.30%
COIN
Coinbase Global
182.36
-40.09
-18.02%
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.