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ST Engineering
(SGX:S63)
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Rating:71Outperform
Price Target:
S$12.50
â–²(16.71% Upside)
Action:Upgraded
Date:08/19/26
The score is driven primarily by strong technical uptrend signals and a constructive earnings call (strong guidance, cash generation, and order-book visibility). This is tempered by only moderate underlying financial statement strength due to leverage and prior-year net margin compression, and a notably expensive valuation (high P/E) with only a modest dividend yield.
Positive Factors
Multi-year order-book visibility
The $35.7bn backlog and $7.6bn of H1 wins provide multi-year revenue visibility across defence, aerospace and urban solutions. This supports capacity planning and recurring lifecycle work, although delivery still depends on execution.
Negative Factors
Elevated leverage
Leverage remains materially higher than a conservative balance sheet profile, increasing sensitivity to financing costs and execution setbacks. Although debt levels have improved since 2022–2023, borrowing still limits flexibility relative to lower-levered peers.
Read all positive and negative factors
Positive Factors
Negative Factors
Multi-year order-book visibility
The $35.7bn backlog and $7.6bn of H1 wins provide multi-year revenue visibility across defence, aerospace and urban solutions. This supports capacity planning and recurring lifecycle work, although delivery still depends on execution.
Read all positive factors
ST Engineering (S63) vs. iShares MSCI Singapore ETF (EWS)
Market Cap
S$32.97B
Dividend Yield2.25%
Average Volume (3M)4.27M
Price to Earnings (P/E)59.7
Beta (1Y)0.63
Revenue Growth11.42%
EPS Growth-25.59%
CountrySG
Employees27,000
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)N/A
Shares Outstanding3,122,495,000
10 Day Avg. Volume3,529,872
30 Day Avg. Volume4,274,169
Financial Highlights & Ratios
PEG Ratio-1.61
Price to Book (P/B)10.20
Price to Sales (P/S)2.13
P/FCF Ratio24.53
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
S$12.20Price Target Upside13.91% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
ST Engineering Business Overview & Revenue Model
Company Description
Singapore Technologies Engineering Ltd operates as a technology, defence, and engineering company worldwide. The company operates through Commercial Aerospace, Defence & Public Security, and Urban Solutions & Satcom segments. It provides cabin int...
How the Company Makes Money
ST Engineering makes money primarily by selling engineered products and delivering long-term services and support contracts across its business segments. A significant portion of revenue is generated from (i) project-based deliveries—where the com...
ST Engineering Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
55
Neutral
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 13.00B | 12.35B | 11.28B | 10.10B | 9.04B | 7.69B |
| Gross Profit | 2.31B | 2.31B | 2.13B | 1.93B | 1.70B | 1.50B |
| EBITDA | 1.74B | 1.74B | 1.65B | 1.54B | 1.29B | 1.14B |
| Net Income | 572.07M | 462.77M | 702.26M | 586.47M | 535.01M | 570.54M |
Balance Sheet | ||||||
| Total Assets | 16.59B | 16.03B | 16.22B | 15.38B | 14.96B | 10.67B |
| Cash, Cash Equivalents and Short-Term Investments | 293.55M | 576.44M | 430.64M | 353.34M | 601.75M | 815.92M |
| Total Debt | 4.73B | 4.83B | 5.82B | 6.11B | 6.53B | 2.12B |
| Total Liabilities | 13.72B | 13.11B | 13.27B | 12.63B | 12.31B | 8.01B |
| Stockholders Equity | 2.52B | 2.57B | 2.67B | 2.46B | 2.40B | 2.41B |
Cash Flow | ||||||
| Free Cash Flow | 1.18B | 1.07B | 1.17B | 562.64M | -89.83M | 676.20M |
| Operating Cash Flow | 1.77B | 1.58B | 1.72B | 1.18B | 673.10M | 1.10B |
| Investing Cash Flow | 103.35M | 117.89M | -414.33M | -200.76M | -4.57B | -453.48M |
| Financing Cash Flow | -2.02B | -1.62B | -1.22B | -1.23B | 3.70B | -567.05M |
ST Engineering Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | S$19.12B | 10.49 | 29.45% | 5.00% | 25.85% | 27.26% | |
71 Outperform | S$32.97B | 59.65 | 22.44% | 2.17% | 11.42% | -25.59% | |
68 Neutral | S$3.52B | 20.90 | 9.78% | 2.94% | 14.28% | 21.19% | |
65 Neutral | S$7.38B | 13.60 | 7.75% | 1.29% | 10.77% | 108.44% | |
65 Neutral | S$6.05B | 21.21 | 10.57% | 1.47% | 9.01% | 17.18% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | S$19.99B | 40.25 | 5.07% | 2.89% | 10.65% | -44.54% |
* Industrials Sector Average
SG:S63
ST Engineering
10.64
3.14
41.79%
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ST Engineering Corporate Events
ST Engineering Lifts Order Book to S$35.7b on Strong 2Q2026 Contract Wins
Aug 7, 2026
ST Engineering has reported S$2.9b in new contract wins for the second quarter of 2026, split evenly between its Commercial Aerospace and Defence Public Security segments, with the remaining S$0.5b from Urban Solutions Satcom. Including the reco...
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.