Singapore Telecommunications' (SGX:Z74) Conservative Accounting Might Explain Soft Earnings
Jul 04
Singaporean (SGX) Market Analysis & Valuation
UpdatedJul 09, 2024
DataAggregated Company Financials
Companies523
- 7D1.4%
- 3M3.6%
- 1Y2.4%
- YTD2.4%
The market is up 1.4% over the last week, with the Financials sector leading the way, up 3.1%. The market has been flat overall in the last year. Looking forward, earnings are forecast to grow by 8.9% annually.
Trending IndustriesOil and Gas
Market Valuation and Performance
Has the Singaporean Market valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Tue, 09 Jul 2024 | S$671.2b | S$547.7b | S$44.6b | 11.9x | 15x | 1.2x |
| Thu, 06 Jun 2024 | S$662.0b | S$547.4b | S$44.4b | 11.7x | 14.9x | 1.2x |
| Sat, 04 May 2024 | S$654.3b | S$546.4b | S$46.6b | 11.9x | 14.1x | 1.2x |
| Mon, 01 Apr 2024 | S$645.8b | S$545.7b | S$47.1b | 11.8x | 13.7x | 1.2x |
| Wed, 28 Feb 2024 | S$635.8b | S$543.9b | S$49.3b | 11.6x | 12.9x | 1.2x |
| Fri, 26 Jan 2024 | S$643.5b | S$571.4b | S$51.9b | 12.3x | 12.4x | 1.1x |
| Sun, 24 Dec 2023 | S$648.8b | S$569.7b | S$52.1b | 12.6x | 12.4x | 1.1x |
| Tue, 21 Nov 2023 | S$645.7b | S$573.3b | S$52.5b | 12x | 12.3x | 1.1x |
| Thu, 19 Oct 2023 | S$653.6b | S$574.9b | S$52.5b | 12.3x | 12.5x | 1.1x |
| Sat, 16 Sep 2023 | S$678.7b | S$573.5b | S$52.4b | 12.8x | 12.9x | 1.2x |
| Mon, 14 Aug 2023 | S$692.8b | S$574.3b | S$54.5b | 12.6x | 12.7x | 1.2x |
| Wed, 12 Jul 2023 | S$677.6b | S$577.9b | S$56.8b | 11.5x | 11.9x | 1.2x |
| Fri, 09 Jun 2023 | S$679.5b | S$579.1b | S$56.9b | 11.2x | 12x | 1.2x |
| Sun, 07 May 2023 | S$702.1b | S$570.6b | S$54.7b | 11.5x | 12.8x | 1.2x |
| Tue, 04 Apr 2023 | S$707.2b | S$569.0b | S$54.1b | 11.4x | 13.1x | 1.2x |
| Thu, 02 Mar 2023 | S$699.5b | S$569.5b | S$57.7b | 11.2x | 12.1x | 1.2x |
| Sat, 28 Jan 2023 | S$726.9b | S$557.9b | S$57.9b | 10.6x | 12.6x | 1.3x |
| Mon, 26 Dec 2022 | S$697.1b | S$562.1b | S$57.8b | 10.4x | 12.1x | 1.2x |
| Wed, 23 Nov 2022 | S$694.1b | S$566.0b | S$58.3b | 10.2x | 11.9x | 1.2x |
| Fri, 21 Oct 2022 | S$649.3b | S$562.0b | S$54.6b | 10x | 11.9x | 1.2x |
| Sun, 18 Sep 2022 | S$709.4b | S$560.2b | S$54.7b | 10.7x | 13x | 1.3x |
| Tue, 16 Aug 2022 | S$712.4b | S$550.6b | S$54.0b | 11.1x | 13.2x | 1.3x |
| Thu, 14 Jul 2022 | S$690.0b | S$534.3b | S$47.6b | 11.3x | 14.5x | 1.3x |
| Sat, 11 Jun 2022 | S$692.7b | S$531.1b | S$47.8b | 11.8x | 14.5x | 1.3x |
| Mon, 09 May 2022 | S$717.1b | S$527.0b | S$46.5b | 12.1x | 15.4x | 1.4x |
| Wed, 06 Apr 2022 | S$742.7b | S$524.0b | S$45.7b | 12.3x | 16.2x | 1.4x |
| Fri, 04 Mar 2022 | S$706.5b | S$520.0b | S$42.3b | 12.3x | 16.7x | 1.4x |
| Sun, 30 Jan 2022 | S$695.4b | S$485.0b | S$33.0b | 12.7x | 21.1x | 1.4x |
| Tue, 28 Dec 2021 | S$677.0b | S$483.2b | S$31.2b | 13.1x | 21.7x | 1.4x |
| Thu, 25 Nov 2021 | S$700.7b | S$482.5b | S$31.6b | 13.5x | 22.2x | 1.5x |
| Sat, 23 Oct 2021 | S$721.4b | S$479.5b | S$25.0b | 13.7x | 28.9x | 1.5x |
| Mon, 20 Sep 2021 | S$676.9b | S$479.7b | S$24.4b | 13.5x | 27.8x | 1.4x |
| Wed, 18 Aug 2021 | S$692.7b | S$481.6b | S$24.0b | 13.4x | 28.9x | 1.4x |
Price to Earnings Ratio
29.2x
Current Market PE
- Investors are relatively neutral on the Singaporean market at the moment, indicating that they expect earnings will grow in line with historical growth rates.
- The market is trading close to its 3-year average PE ratio of 15.5x.
Past Earnings Growth
- The earnings for Singaporean listed companies have grown 23% per year over the last three years.
- Revenues for these companies have grown 4.4% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Sector Trends
Which sectors have driven the changes within the Singaporean Market?
| SG Market | 1.41% | |
| Energy | 4.69% | |
| Financials | 3.13% | |
| Telecom | 2.56% | |
| Tech | 2.32% | |
| Healthcare | 1.48% | |
| Industrials | 0.31% | |
| Real Estate | -0.041% | |
| Consumer Staples | -0.051% | |
| Materials | -0.059% | |
| Consumer Discretionary | -0.89% | |
| Utilities | -2.28% | |
Sector PE
- Investors favour the Telecom sector the most for future growth, which is trading above its 3-year average PE ratio of 32.1x.
- Analysts are expecting annual earnings growth of 21.9%, which is lower than the prior year's growth of 56.1% per year.
- The Utilities sector is the least preferred by investors for future growth, which is trading below its 3-year average of 12.5x.
Forecasted Growth
- Analysts are most optimistic on the Energy sector, expecting annual earnings growth of 31% over the next 5 years.
- This is better than its past earnings decline of 38% per year.
- In contrast, the Utilities industry is expected to see its earnings growth to stay flat over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | Sector | |
|---|---|---|---|---|---|---|
| D05 DBS Group Holdings | S$37.18 | 2.9% +S$3.0b | 32.3% | PB1.7x | Financials | |
| O39 Oversea-Chinese Banking | S$15.05 | 3.8% +S$2.5b | 24.5% | PB1.2x | Financials | |
| U11 United Overseas Bank | S$32.53 | 3.9% +S$2.1b | 18.7% | PB1.3x | Financials | |
| Z74 Singapore Telecommunications | S$2.84 | 2.9% +S$1.3b | 14.5% | PE59x | Telecom | |
| C6L Singapore Airlines | S$6.96 | 1.2% +S$285.2m | -4.8% | PE9.3x | Industrials |
