Straits Trading Co. Ltd. (S20) AI Stock Analysis

17 Followers

Straits Trading Co. Ltd.

(SGX:S20)

Select Model

Rating:44Neutral

Price Target:SGD 1.50▲(4.17% Upside)

Action:reiterated

Date:09/06/26

The overall score is driven primarily by weak and volatile financial performance, with sustained net losses, eroding equity, and historically fragile cash flows offsetting recent operational and free cash flow improvement. Technical indicators point to a neutral, range-bound trend without strong upside momentum, while valuation is mixed, combining a respectable dividend yield with negative earnings that undermine confidence in the stock’s fundamental value.

Positive Factors

Revenue and operating margin growthStrong TTM revenue growth alongside materially higher gross and EBIT margins indicates improved operating performance and potentially better economics in the core business. If sustained, this combination can support stronger internal funding, resilience, and reinvestment over the next several quarters.

Negative Factors

Persistent net lossesDeeply negative net income remains the clearest fundamental weakness despite improved operating metrics. Persistent bottom-line losses reduce retained capital, weaken earnings quality, and make it harder for shareholders to rely on reported revenue or operating gains translating into durable profitability.

Straits Trading Co. Ltd. (S20) vs. iShares MSCI Singapore ETF (EWS)

Market Cap: SGD 699.98M
Dividend Yield: 5.56%
Average Volume (3M): 92.05K
Price to Earnings (P/E): -3.1
Beta (1Y): 0.61
Revenue Growth: 30.40%
EPS Growth: -297.36%
Country: Singapore
Employees: 125
Sector: Basic Materials
Sector Strength: 61
Industry: Other Precious Metals

Straits Trading Co. Ltd. Business Overview & Revenue Model

Company Description

The Straits Trading Company Limited, a conglomerate-investment company, engages in the resources, property, and hospitality businesses. The company operates in four segments: Resources, Real Estate, Hospitality, and Others. It engages in the smelting...

How the Company Makes Money

Straits Trading generates earnings primarily through (i) the sale and trading of refined tin and tin-related products from its tin operations (revenue driven by tin volumes sold and prevailing global tin prices), and (ii) returns from its investment...

Straits Trading Co. Ltd. Financial Statement Overview

Summary

Solid revenue growth and improving operating margins in the TTM period are outweighed by persistent net losses, shrinking equity, volatile cash generation, and thin coverage of obligations, leaving the overall financial profile weak and risky despite early signs of recovery.

Income Statement

36Negative

Balance Sheet

46Neutral

Cash Flow

32Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	771.50M	623.30M	564.63M	491.66M	527.62M	396.56M
Gross Profit	199.82M	99.73M	133.34M	126.08M	122.57M	134.00M
EBITDA	119.73M	62.03M	115.94M	69.52M	609.40M	398.31M
Net Income	-219.47M	-249.13M	-7.23M	-28.57M	551.26M	234.25M
Balance Sheet
Total Assets	2.79B	3.07B	3.56B	3.44B	3.50B	3.19B
Cash, Cash Equivalents and Short-Term Investments	281.35M	506.73M	516.60M	507.94M	327.05M	219.71M
Total Debt	1.10B	1.38B	1.75B	1.63B	1.39B	1.05B
Total Liabilities	1.36B	1.63B	1.98B	1.84B	1.63B	1.25B
Stockholders Equity	1.24B	1.25B	1.44B	1.46B	1.74B	1.77B
Cash Flow
Free Cash Flow	42.54M	-10.81M	-107.84M	-103.15M	-384.76M	20.65M
Operating Cash Flow	51.47M	2.34M	15.51M	39.81M	64.85M	40.09M
Investing Cash Flow	611.27M	481.15M	-56.18M	-18.07M	-350.08M	-144.15M
Financing Cash Flow	-817.80M	-442.71M	41.56M	175.82M	384.38M	-203.69M

Straits Trading Co. Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price1.44

Price Trends

50DMA1.51Negative

100DMA1.56Negative

200DMA1.60Negative

Market Momentum

MACD-0.02Negative

RSI42.74Neutral

STOCH53.33Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:S20, the sentiment is Negative. The current price of 1.44 is below the 20-day moving average (MA) of 1.45, below the 50-day MA of 1.51, and below the 200-day MA of 1.60, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 42.74 is Neutral, neither overbought nor oversold. The STOCH value of 53.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SG:S20.

Straits Trading Co. Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

SG:S20 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SG:P52	83Outperform	SGD 1.00B	16.64	20.72%	3.47%	26.32%	41.37%
SG:5TP	76Outperform	SGD 419.92M	6.15	59.31%	5.34%	54.47%	105.35%
Sector *	61Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
SG:A7RU	60Neutral	SGD 2.98B	54.44	5.87%	8.08%	4.37%	-51.87%
SG:S20	44Neutral	SGD 699.98M	-3.10	-17.63%	5.56%	30.40%	-297.36%

* Basic Materials Sector Average

Performance Comparison

SG:S20 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
SG:S20	Straits Trading Co. Ltd.	1.44	-0.12	-7.51%
SG:A7RU	Keppel Infrastructure Trust	0.49	0.05	12.39%
SG:5TP	CNMC Goldmine Holdings Limited	0.95	-0.09	-8.17%
SG:KUO	International Cement Group Ltd.	0.05	0.01	16.28%
SG:P52	Pan-United Corporation Ltd.	1.44	0.40	37.80%
SG:QNS	Southern Alliance Mining Ltd.	0.42	-0.04	-8.70%

Straits Trading Co. Ltd. Corporate Events

Straits Trading lifts 1H2026 performance on tin and property gains while tightening balance sheet

Aug 20, 2026

Straits Trading reported stronger first‑half 2026 results driven by its resources segment and improving real estate and hospitality operations, despite non‑cash losses tied to the loss of control over a joint venture and foreign currency effects. Rev...

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.

Date of analysis: Sep 06, 2026

Straits Trading Co. Ltd. AI Stock Analysis