Straco Corporation Limited (S85) AI Stock Analysis

• Market Cap: S$341.99M
• Dividend Yield: 3.8%
• Average Volume (3M): 32.39K
• Price to Earnings (P/E): 15.5
• Beta (1Y): 0.42
• Revenue Growth: -8.94%
• EPS Growth: -25.86%
• Country: SG
• Employees: 456
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): <0.01
• Shares Outstanding: 868,929,570
• 10 Day Avg. Volume: 41,460
• 30 Day Avg. Volume: 32,393
• PEG Ratio: 2.30
• Price to Book (P/B): 1.38
• Price to Sales (P/S): 4.62
• P/FCF Ratio: 11.21
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: S$0.50 ▲(25.00% Upside)

Straco Corporation Limited's strong financial performance, characterized by high profitability and efficient cash flow management, is the primary driver of its stock score. The technical analysis suggests a balanced momentum with caution due to potential overbought conditions. The valuation is reasonable, supported by a moderate P/E ratio and a solid dividend yield. These factors collectively position the stock as a stable investment within the leisure industry.

Straco Corporation Limited Business Overview & Revenue Model

Company Description

Straco Corporation Limited (S85) is a Singapore-based investment holding company primarily engaged in the tourism, entertainment, and leisure sectors. The company owns and operates various attractions, including aquariums, observation wheels, and other leisure facilities, predominantly in Asia. Straco's notable assets include the Underwater World Singapore and the Shanghai Ocean Aquarium, which offer unique experiences that draw both local and international visitors.

How the Company Makes Money

Straco Corporation Limited generates revenue primarily through ticket sales from its attractions, which are complemented by ancillary services such as retail and food and beverage sales within its facilities. The company benefits from high visitor footfall, particularly during peak tourist seasons. Additionally, Straco explores partnerships with local tourism boards and travel agencies to promote its attractions, further enhancing its earnings potential. Seasonal events and exhibitions also contribute to revenue, attracting diverse audiences and increasing overall attendance.

Straco Corporation Limited Financial Statement Overview

Summary

Straco Corporation Limited demonstrates strong financial health with high profitability and efficient cash flow management. Despite a slight decline in revenue growth, the company maintains robust margins and a stable balance sheet with low leverage. The financial statements indicate a well-managed company with solid operational efficiency and cash generation capabilities, positioning it well within the leisure industry.

Income Statement

Straco Corporation Limited shows strong profitability with a high gross profit margin of 88.78% and a solid net profit margin of 33.40% for 2024. However, there is a slight decline in revenue growth rate by 2.66%, indicating potential challenges in revenue generation. The EBIT and EBITDA margins remain robust at 46.29% and 57.41%, respectively, reflecting efficient operational management.

Balance Sheet

The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.16, suggesting low financial leverage. The return on equity is moderate at 9.95%, indicating decent profitability relative to shareholder equity. The equity ratio is strong, highlighting a stable financial structure with a significant portion of assets financed by equity.

Cash Flow

Cash flow analysis reveals a strong free cash flow growth rate of 57.4%, indicating improved cash generation capabilities. The operating cash flow to net income ratio is high at 2.63, suggesting efficient conversion of net income into cash. The free cash flow to net income ratio is also robust at 0.90, reflecting strong cash flow relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	78.27M	81.50M	82.14M	28.19M	41.91M	29.56M
Gross Profit	69.16M	72.36M	80.46M	27.42M	41.18M	28.98M
EBITDA	35.48M	46.79M	45.56M	-433.36K	29.08M	11.31M
Net Income	22.08M	27.22M	25.68M	-10.81M	11.57M	-975.52K
Balance Sheet
Total Assets	342.55M	360.91M	350.79M	338.89M	376.91M	382.21M
Cash, Cash Equivalents and Short-Term Investments	172.31M	188.17M	170.92M	151.68M	178.49M	178.67M
Total Debt	42.89M	44.30M	46.52M	48.97M	51.42M	66.79M
Total Liabilities	73.77M	75.72M	78.40M	79.58M	87.61M	101.21M
Stockholders Equity	256.90M	273.59M	262.85M	249.85M	278.98M	269.54M
Cash Flow
Free Cash Flow	29.70M	33.59M	33.05M	-5.54M	16.20M	-5.08M
Operating Cash Flow	34.99M	37.27M	37.13M	-2.99M	20.27M	496.41K
Investing Cash Flow	-559.41K	444.00K	730.00K	1.17M	326.86K	438.23K
Financing Cash Flow	-20.70M	-20.73M	-13.49M	-11.83M	-28.08M	-31.12M

Straco Corporation Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.40
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:S85, the sentiment is Neutral. The current price of 0.4 is above the 20-day moving average (MA) of 0.40, above the 50-day MA of 0.40, and below the 200-day MA of 0.41, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 52.76 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SG:S85.

Straco Corporation Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
B58	―	$572.02M	12.74	6.35%	2.06%	11.83%	21.60%
S85	―	S$341.99M	15.50	8.60%	3.80%	-8.94%	-25.86%
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
B28	―	S$393.49M	72.06	0.66%	0.82%	0.58%	-9.33%
M01	―	S$447.14M	―	-17.39%	―	-9.84%	-1642.61%
H18	―	S$517.60M	―	-1.41%	2.14%	-2.09%	-302.48%