Straco Corporation Limited (S85) AI Stock Analysis

Straco Corporation Limited

(SGX:S85)

Select Model

Rating:66Neutral

Price Target:SGD 0.36▲(24.91% Upside)

Action:reiterated

Date:08/18/26

The score is driven primarily by solid financial quality (low leverage, strong recent margins, and generally good cash conversion) and a supportive valuation profile (reasonable P/E with a ~4.55% dividend yield). These positives are offset by weak technical momentum (price below key moving averages with negative MACD) and fundamental soft spots including declining revenue and slowing free-cash-flow momentum.

Positive Factors

Conservative balance sheet with low leverageLow leverage and a substantial equity base reduce financial risk and preserve flexibility for maintaining attractions, funding operations, and managing tourism-related demand fluctuations over the next several quarters.

Negative Factors

Declining revenue trendA weakening top line indicates softer visitor volumes, pricing, or attraction mix. If the decline persists, fixed operating costs could limit profit growth and reduce the benefits of the company’s otherwise healthy margins.

Straco Corporation Limited (S85) vs. iShares MSCI Singapore ETF (EWS)

Market Cap: SGD 243.81M
Dividend Yield: 5.26%
Average Volume (3M): 35.99K
Price to Earnings (P/E): 15.7
Beta (1Y): 0.45
Revenue Growth: -13.02%
EPS Growth: -29.46%
Country: Singapore
Employees: 450
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Leisure

Straco Corporation Limited Business Overview & Revenue Model

Company Description

Straco Corporation Limited, together with its subsidiaries, develops and operates tourism-related businesses in Singapore and China. The company operates in two segments, Aquariums and Giant Observation Wheel (GOW). The Aquariums segment operates aqu...

How the Company Makes Money

Straco makes money mainly by operating and monetizing visitor attractions. The core revenue stream is ticketing/admissions income from visitors to its attractions (including walk-in visitors and group sales via tour operators and travel agencies). Ad...

Straco Corporation Limited Financial Statement Overview

Summary

Overall fundamentals are solid, supported by low leverage (debt-to-equity ~0.15–0.20), healthy recent net margins (~24%), and operating cash flow exceeding net income in recent periods. The score is tempered by weakening top-line trends (2026 TTM revenue growth -3.4%), softer free cash flow momentum (2026 TTM FCF down ~20.6% and below net income), and historical volatility shown by the 2022 loss and cash burn.

Income Statement

66Positive

Balance Sheet

78Positive

Cash Flow

70Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	69.47M	74.38M	81.50M	82.14M	28.19M	41.91M
Gross Profit	60.79M	40.67M	72.36M	80.46M	27.42M	41.18M
EBITDA	30.56M	33.79M	46.79M	45.56M	-433.36K	28.95M
Net Income	15.54M	17.96M	27.22M	25.68M	-10.81M	11.57M
Balance Sheet
Total Assets	350.37M	356.12M	360.91M	350.79M	338.89M	376.91M
Cash, Cash Equivalents and Short-Term Investments	179.33M	187.14M	188.17M	170.92M	151.68M	178.49M
Total Debt	39.34M	39.82M	44.30M	46.52M	48.97M	51.42M
Total Liabilities	70.91M	71.16M	75.72M	78.40M	79.58M	87.61M
Stockholders Equity	267.18M	272.94M	273.59M	262.85M	249.85M	278.98M
Cash Flow
Free Cash Flow	13.03M	23.99M	33.59M	33.05M	-5.54M	16.20M
Operating Cash Flow	21.68M	31.49M	37.27M	37.13M	-2.99M	20.27M
Investing Cash Flow	-4.93M	-7.37M	444.00K	730.00K	1.17M	326.86K
Financing Cash Flow	-18.91M	-23.65M	-20.73M	-13.49M	-11.83M	-28.08M

Straco Corporation Limited Technical Analysis

Technical Analysis SentimentNegative

Last Price0.28

Price Trends

50DMA0.30Negative

100DMA0.32Negative

200DMA0.34Negative

Market Momentum

MACD-0.00Negative

RSI38.89Neutral

STOCH50.00Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:S85, the sentiment is Negative. The current price of 0.28 is below the 20-day moving average (MA) of 0.29, below the 50-day MA of 0.30, and below the 200-day MA of 0.34, indicating a bearish trend. The MACD of -0.00 indicates Negative momentum. The RSI at 38.89 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SG:S85.

Straco Corporation Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

SG:S85 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SG:S85	66Neutral	SGD 243.67M	15.66	5.76%	5.26%	-13.02%	-29.46%
SG:OU8	65Neutral	SGD 1.05B	15.59	5.59%	6.00%	26.02%	-77.59%
SG:G13	62Neutral	SGD 7.24B	23.25	3.82%	6.67%	2.20%	-31.75%
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SG:B58	60Neutral	SGD 303.35M	6.48	6.02%	3.86%	24.46%	4.83%

* Consumer Cyclical Sector Average

Performance Comparison

SG:S85 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
SG:S85	Straco Corporation Limited	0.28	-0.10	-25.78%
SG:B58	Banyan Tree Holdings	0.35	-0.27	-43.18%
SG:G13	Genting Singapore	0.60	-0.09	-12.66%
SG:AVX	HL Global Enterprises Limited	0.28	-0.05	-16.67%
SG:OU8	Centurion Corporation Limited	1.25	-0.01	-1.19%
SG:URR	Sim Leisure Group Ltd.	0.43	-0.07	-13.13%

Straco Corporation Limited Corporate Events

Straco’s Q1 Profit Slides on Singapore Flyer Suspension but Cash Position Remains Strong

May 21, 2026

Straco Corporation reported a sharp decline in first-quarter 2026 performance, with revenue falling 20% year on year to S$12.18 million and profit after tax dropping 66.6% to S$0.83 million. The weakness was driven mainly by lower visitor arrivals, p...

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: Aug 18, 2026

Straco Corporation Limited AI Stock Analysis