Sembcorp Industries (SCRPF) AI Stock Analysis

• Market Cap: $9.46B
• Dividend Yield: 3.12%
• Average Volume (3M): 20.00
• Price to Earnings (P/E): 12.9
• Beta (1Y): 0.51
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 5,347
• Sector: Industrials
• Sector Strength: 90
• Industry: Conglomerates
• EPS (TTM): 0.15
• Shares Outstanding: 1,780,465,300
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 20
• PEG Ratio: N/A
• Price to Book (P/B): 2.22
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 64.65
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $6.15
• Price Target Upside: 11.01% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

Positive Factors

Dividend and Cashflow

SCI’s 2024 results beat expectations, with a meaningful step-up in its dividend and payout ratio which management emphasised was sustainable given its strong cashflow generation.

Earnings Visibility

The recent Senoko stake acquisition, long-term PPAs, and India renewables and battery storage projects enhance earnings visibility and regional positioning.

Renewable Energy Portfolio

Sembcorp Industries announced a 25-year Renewable Energy Purchase Agreement to build and operate a floating solar photovoltaic system, enhancing its renewable energy portfolio.

Negative Factors

Government Reassessment Impact

SCI's 49%-owned BCG GAIA solar plant in Vietnam could be at risk due to government reassessment of electricity prices, although the impact is minimal as it accounts for only 1% of its RE portfolio.

Regulatory Risks

Risks include unfavourable regulatory changes impacting operations and prolonged plant shutdowns.

Sembcorp Industries Business Overview & Revenue Model

Company Description

Sembcorp Industries Ltd, an investment holding company, engages in the renewables, integrated urban solutions, conventional energy, and other businesses in Singapore, rest of southeast Asia, the Middle East, China, India, the United Kingdom, and internationally. The Renewables segment provides electricity from solar and wind resources and energy storage solutions, as well as system services that support integration of renewables into grid; and trades in energy attribute certificates. This segment also includes the development and provision of installation, operation, and maintenance of solar, wind, and energy storage assets. The Integrated Urban Solutions segment develops large-scale integrated urban and integrated townships, such as industrial parks, business, commercial and residential spaces, and production and reclamation of water and industrial wastewater treatment, as well as solid waste management and waste-to-resource solutions. This segment also comprises carbon capture, utilization, and storage projects. The Conventional Energy segment sells energy molecules, including natural gas, steam, and electricity from various fossil fuels, such as natural gas and coal. This segment also sells water products from its integrated assets. The company also engages in the terminalling and storage of petroleum products and chemicals; solid waste management, public cleaning, and recycling services; and construction and engineering related activities. In addition, it offers water products; and reclamation of water and industrial wastewater treatment services. The company was formerly known as Minaret Limited and changed its name to Sembcorp Industries Ltd in July 1998. Sembcorp Industries Ltd was incorporated in 1998 and is headquartered in Singapore.

How the Company Makes Money

Sembcorp Industries Financial Statement Overview

Summary

Sembcorp Industries exhibits solid operational performance with robust EBITDA margins and improved equity returns. However, challenges in revenue growth and high leverage could impact financial flexibility. Cash flow management needs attention due to negative free cash flow.

Income Statement

Sembcorp Industries' income statement shows a mixed performance. The gross profit margin has improved over time, indicating effective cost management. However, the net profit margin for 2024 decreased slightly compared to 2023. Revenue growth has seen fluctuations, with a decline in 2024 compared to 2023, indicating potential challenges in sustaining top-line growth. The absence of EBIT in 2024 may affect operating efficiency assessments. Despite these challenges, EBITDA margin remains robust, suggesting strong operational cash generation.

Balance Sheet

The balance sheet reflects a stable yet leveraged financial position. The debt-to-equity ratio is high, indicating significant leverage which could pose risks in volatile markets. Return on Equity (ROE) has improved, suggesting better profitability from equity investments. The equity ratio indicates a moderate level of financial stability. Overall, while there is improvement in equity returns, high leverage remains a concern.

Cash Flow

Cash flow analysis reveals challenges in free cash flow generation, with a notable decline in 2024. The operating cash flow to net income ratio is healthy, indicating good cash conversion from earnings. However, the free cash flow to net income ratio has turned negative, signaling potential liquidity constraints. While operating cash flows are strong, the decline in free cash flow suggests a need for careful capital expenditure management.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
6.59B	6.42B	7.04B	7.83B	7.79B	5.45B
	Gross Profit
1.47B	1.50B	1.57B	1.23B	1.10B	787.00M
	EBIT
1.04B	1.11B	1.15B	1.16B	830.00M	696.00M
	EBITDA
1.50B	2.07B	1.83B	1.29B	677.00M	897.00M
	Net Income Common Stockholders
952.00M	1.01B	942.00M	848.00M	279.00M	179.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.91B	985.00M	830.00M	1.29B	1.43B	1.13B
	Total Assets
22.29B	18.18B	15.50B	16.02B	14.39B	13.56B
	Total Debt
9.22B	9.40B	7.56B	7.36B	7.65B	7.95B
	Net Debt
7.34B	8.53B	6.80B	6.10B	6.30B	6.92B
	Total Liabilities
14.13B	12.52B	10.63B	11.80B	10.48B	10.09B
	Stockholders Equity
6.70B	5.36B	4.59B	3.98B	3.77B	3.34B
Cash Flow		Free Cash Flow
181.00M	-196.00M	645.00M	1.04B	929.00M	158.00M
	Operating Cash Flow
1.22B	1.41B	1.48B	1.65B	1.22B	491.00M
	Investing Cash Flow
-770.00M	-1.44B	-878.00M	-1.39B	-100.00M	-1.28B
	Financing Cash Flow
-214.00M	154.00M	-1.10B	-203.00M	-855.00M	55.00M

Sembcorp Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SCRPF		$9.46B	12.93	20.60%	3.12%	―	―
Sector *	66 Neutral	$4.50B	12.29	5.40%	248.66%	4.13%	-12.33%
SMBMF		$5.56B	51.16	2.48%	0.64%	―	―
SPASF		$3.62B	16.19	9.89%	1.13%	―	―
YSHLF		$7.03B	7.67	28.14%	5.05%	―	―
BRGA			―		―	―	―
BN4	72 Outperform	S$12.53B	13.85	7.90%	4.75%	-5.24%	-77.23%