Singtel (SNGNF) AI Stock Analysis

• Market Cap: $50.00B
• Dividend Yield: 4.29%
• Average Volume (3M): 3.48K
• Price to Earnings (P/E): 16.1
• Beta (1Y): 0.57
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 22,700
• Sector: Communication Services
• Sector Strength: 88
• Industry: Telecommunications Services
• EPS (TTM): 0.03
• Shares Outstanding: 16,514,635,000
• 10 Day Avg. Volume: 950
• 30 Day Avg. Volume: 3,479
• PEG Ratio: 5.12
• Price to Book (P/B): 2.66
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 24.04
• 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: $3.34
• Price Target Upside: 14.38% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

Positive Factors

Asset Management

The mid-term asset recycling target has been raised from S$6bn to S$9bn, and proceeds from assets recycled continue to be distributed as a value realisation dividend.

Earnings Growth

The company's core EBIT is expected to grow at a strong pace, supported by cost savings and a recovery in mobile revenue.

Shareholder Value

A share buyback of S$2bn over three years is planned, adding value to shareholders.

Negative Factors

Currency and Competition Risks

A decline in the Australian dollar or irrational competition in Australia could pose challenges to the company's recovery efforts.

Earnings Performance

4Q25 underlying earnings came below the consensus due to lower-than-expected contribution from regional associates.

Singtel Business Overview & Revenue Model

Company Description

Singapore Telecommunications Limited, together with its subsidiaries, provides telecommunication services to consumers and small businesses in Singapore, Australia, the United States, Europe, and internationally. The company engages in the carriage business, including mobile, pay television, fixed broadband, voice, and content and digital services, as well as equipment sales; digital media and advertising services; integrated information and communications technology solutions, such as cloud computing, multi-access edge computing, software-defined network, and digital solutions; fund management services to enterprise customers. It also offers mobile phones, accessories, watches, watch straps, cables, adapters, multimedia hubs, cameras, gimbals, cases, chargers, drones, earphones, headphones, microphones, keyboards, laptops, screen protectors, speakers, tablets, trackers, and wearables, as well as mouse, connectivity, gaming, smart home, power solution, and storage solution products; postpaid and prepaid plans; and postpaid add-on, roaming, 5G, and AR/VR entertainment services. In addition, the company provides broadband plans and add-on, WiFi mesh, Wi-Fi 6, Microsoft 365 subscription, TV packages and guides, TV Go, video on demand, instalment plans, wellness, news stand, music, and telephony services; car, home content, domestic helper, and travel insurance; DVR set top boxes; lifestyle products; and Singtel Surf School that offers cyber fun, safety, and education services, as well as tech workshops. Further, it offers cloud, data center, and software-as-a service; Internet of Things; cyber security, IT, professional consulting, and managed services; voice unified communications, cloud conferencing, international calling, and SIP trunking services; managed network and managed unified communications services; satellite services; and Singtel Liquid-X, a suite of cloud centric services. The company was incorporated in 1992 and is headquartered in Singapore.

How the Company Makes Money

Singtel Financial Statement Overview

Summary

Singtel's financial performance shows a stable balance sheet with a strong equity position and conservative leverage, scoring well in this area. However, the income statement indicates declining revenue and profitability, and the company's income statement performance is a concern with a low net profit margin. The cash flow is robust, reflecting strong cash generation capabilities despite operational challenges.

Income Statement

Singtel's income statement shows a declining revenue trend over the past few years, with a revenue decrease from 2023 to 2024. Gross profit margin for 2024 is approximately 24%, which is moderate for the industry. The company faced challenges with negative EBIT in 2024, indicating operational difficulties. However, the EBITDA margin of 17.47% reflects some level of operational efficiency. The net profit margin decreased significantly to 5.63% in 2024, highlighting a drop in profitability.

Balance Sheet

Singtel's balance sheet reflects a stable equity base with stockholders' equity at approximately 54% of total assets, indicating a strong equity ratio. The debt-to-equity ratio of 0.48 suggests a conservative leverage position. However, the return on equity (ROE) has decreased to 3.19%, pointing to reduced profitability for equity holders. Overall, the balance sheet is stable with reasonable leverage.

Cash Flow

The cash flow analysis shows healthy operating cash flow, with free cash flow increasing by 10.87% from 2023 to 2024, reflecting improved cash generation capabilities. The operating cash flow to net income ratio of 5.93 indicates strong cash conversion. However, the free cash flow to net income ratio stands at 2.96, suggesting moderate efficiency in generating free cash flow relative to net income.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
14.09B	14.13B	14.62B	15.34B	15.64B	16.54B
	Gross Profit
3.55B	3.39B	2.83B	2.83B	2.91B	3.87B
	EBIT
-1.12B	-97.40M	916.70M	887.60M	898.20M	1.78B
	EBITDA
3.34B	2.47B	3.99B	4.24B	2.58B	3.33B
	Net Income Common Stockholders
-109.80M	795.00M	2.23B	1.95B	553.70M	1.07B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
461.80M	4.63B	1.67B	2.13B	754.70M	999.60M
	Total Assets
43.57B	46.20B	46.53B	49.13B	48.00B	48.95B
	Total Debt
9.94B	11.90B	11.91B	12.88B	12.86B	14.17B
	Net Debt
9.48B	7.29B	10.24B	10.75B	12.10B	13.17B
	Total Liabilities
18.56B	21.23B	21.53B	22.03B	21.49B	22.14B
	Stockholders Equity
24.97B	24.93B	24.99B	27.08B	26.49B	26.79B
Cash Flow		Free Cash Flow
2.68B	2.36B	2.12B	2.41B	2.80B	3.12B
	Operating Cash Flow
4.59B	4.72B	4.41B	4.90B	5.23B	5.51B
	Investing Cash Flow
-1.26B	247.30M	-2.35B	-676.10M	-2.68B	-3.08B
	Financing Cash Flow
-2.52B	-1.99B	-2.52B	-2.84B	-2.80B	-1.98B

Singtel Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SNGNF		$50.00B	16.05	16.56%	4.29%	―	―
Sector *	61 Neutral	$14.60B	5.95	-4.32%	3.69%	2.76%	-30.49%
NETLF		$2.63B	36.78	3.90%	5.95%	―	―
SRHBF		$1.52B	13.24	40.65%	5.27%	―	―
T41		S$44.00M	10.54	12.53%	1.29%	―	―