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Singapore Exchange Ltd (SPXCY)
OTHER OTC:SPXCY
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Singapore Exchange
(OTC:SPXCY)
78Outperform
Singapore Exchange (SPXCY) vs. S&P 500 (SPY)
Market Cap
$11.42B
Dividend Yield2.26%
Average Volume (3M)24.96K
Price to Earnings (P/E)23.2
Beta (1Y)0.28
Revenue Growth9.31%
EPS Growth16.03%
CountryUS
Employees1,140
SectorFinancial
Sector Strength84
IndustryFinancial - Data & Stock Exchanges
Share Statistics
EPS (TTM)0.48
Shares Outstanding535,821,200
10 Day Avg. Volume9,961
30 Day Avg. Volume24,964
Financial Highlights & Ratios
PEG Ratio0.56
Price to Book (P/B)0.99
Price to Sales (P/S)0.00
P/FCF Ratio1.73
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering0
Singapore Exchange Business Overview & Revenue Model
Company DescriptionSingapore Exchange Limited (SGX) is a leading Asian exchange that offers a comprehensive range of services and products across multiple asset classes, including equities, fixed income, derivatives, and commodities. It operates as a multi-asset exchange that provides listing, trading, clearing, settlement, depository, and data services. SGX is pivotal in connecting global investors to Asian opportunities and is recognized for its robust infrastructure and regulatory framework.
How the Company Makes MoneySingapore Exchange (SGX) generates revenue through several key streams. Firstly, it earns listing fees from companies that list their securities on the exchange, which include initial listing fees and annual listing fees. Secondly, SGX collects trading fees from the buying and selling of securities, derivatives, and commodities on its platform. Clearing and settlement services also contribute to SGX's revenue, as the exchange charges fees for the clearing and settlement of trades. Additionally, SGX derives income from market data sales, providing valuable financial information and analytics to investors and financial institutions. Furthermore, SGX has strategic partnerships and collaborations with other global exchanges, which enhance its product offerings and market reach, thereby contributing to its earnings. The exchange's diverse revenue model is supported by its strong market position and regulatory environment, making it a critical financial hub in Asia.
Singapore Exchange Financial Statement Overview
Summary
Singapore Exchange presents a robust financial profile with strong revenue growth, high profitability margins, and efficient cash flow management. The company's balanced capital structure and prudent leverage enhance financial stability, positioning it well within the capital markets industry. While the financials are solid, continued focus on reducing liabilities and enhancing cash flow conversion can further strengthen its financial standing.Income Statement
Singapore Exchange has demonstrated a solid revenue growth trend over the past few years, with a revenue growth rate of 3.12% from 2023 to 2024. The company maintains strong profitability, evidenced by a high gross profit margin of 86.57% and a net profit margin of 48.54% for 2024. Both EBIT and EBITDA margins are robust at 49.23% and 66.19%, respectively. Consistent revenue growth and high profitability margins are indicative of strong performance in the capital markets industry.85
Very Positive
Balance Sheet
The balance sheet of Singapore Exchange shows a healthy financial position with a moderate debt-to-equity ratio of 0.37, indicating lower leverage. The return on equity (ROE) stands at 30.51%, reflecting efficient use of equity to generate profit. The equity ratio is solid at 49.17%, suggesting a balanced capital structure. The company's strong equity base and prudent leverage highlight financial stability, although there is room for improvement in reducing liabilities further.78
Positive
Cash Flow
Singapore Exchange exhibits strong cash flow generation with a free cash flow growth rate of 40.50% from 2023 to 2024. The operating cash flow to net income ratio is 1.03, showing efficient conversion of income into cash. The free cash flow to net income ratio is 0.92, indicating substantial free cash flow relative to profits. These metrics underscore the company's ability to generate and manage cash effectively, supporting its operations and strategic initiatives.82
Very Positive
| Breakdown | ||||
| Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.23B | 1.19B | 1.10B | 1.06B | 1.05B | Gross Profit |
| 1.07B | 1.03B | 948.48M | 918.62M | 909.10M | EBIT |
| 606.38M | 590.25M | 539.28M | 523.88M | 567.21M | EBITDA |
| 815.18M | 621.53M | 569.84M | 553.53M | 663.70M | Net Income Common Stockholders |
| 597.91M | 570.89M | 451.40M | 445.41M | 471.81M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.13B | 1.07B | 1.09B | 1.10B | 955.51M | Total Assets |
| 3.98B | 3.78B | 3.85B | 3.02B | 2.68B | Total Debt |
| 728.01M | 727.22M | 788.87M | 539.18M | 393.10M | Net Debt |
| -270.10M | -305.96M | -208.88M | -520.85M | -514.28M | Total Liabilities |
| 2.02B | 2.08B | 2.30B | 1.63B | 1.43B | Stockholders Equity |
| 1.96B | 1.70B | 1.54B | 1.38B | 1.24B |
| Cash Flow | Free Cash Flow | |||
| 551.23M | 392.39M | 539.38M | 507.65M | 603.08M | Operating Cash Flow |
| 615.80M | 446.70M | 583.53M | 552.94M | 637.71M | Investing Cash Flow |
| -137.90M | 12.34M | -549.72M | -197.96M | -329.95M | Financing Cash Flow |
| -459.69M | -432.89M | -108.70M | -209.92M | -69.63M |
Singapore Exchange Technical Analysis
Neutral
21.33
Price Trends
20.30
Positive
19.45
Positive
18.19
Positive
Market Momentum
0.37
Positive
52.35
Neutral
4.93
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SPXCY, the sentiment is Neutral. The current price of 21.33 is below the 20-day moving average (MA) of 21.71, above the 50-day MA of 20.30, and above the 200-day MA of 18.19, indicating a neutral trend. The MACD of 0.37 indicates Positive momentum. The RSI at 52.35 is Neutral, neither overbought nor oversold. The STOCH value of 4.93 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SPXCY.
Singapore Exchange Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $99.56B | 27.78 | 13.40% | 3.80% | 11.72% | 13.31% | |
79 Outperform | $101.10B | 36.50 | 10.27% | 1.04% | 13.25% | 10.82% | |
78 Outperform | $11.42B | 23.23 | 35.32% | 2.26% | 9.31% | 16.03% | |
78 Outperform | $23.14B | 28.97 | 18.93% | 1.10% | 15.76% | 1.97% | |
77 Outperform | $47.02B | 37.14 | 11.43% | 1.17% | 25.89% | 16.37% | |
71 Outperform | $44.27B | 39.35 | -117.99% | 1.15% | 11.67% | -0.89% | |
64 Neutral | $12.82B | 9.83 | 7.68% | 17000.34% | 12.38% | -5.56% |
* Financial Sector Average
Performance Comparison
SPXCY
Singapore Exchange
21.33
7.98
59.78%
CBOE
Cboe Global Markets
220.95
40.45
22.41%
CME
CME Group
276.29
74.37
36.83%
ICE
Intercontinental Exchange
176.25
40.91
30.23%
MSCI
MSCI
572.22
65.96
13.03%
NDAQ
Nasdaq
81.90
20.30
32.95%
Singapore Exchange Earnings Call Summary
Earnings Call Date:Feb 06, 2025
(Q2-2025)
| % Change Since: 14.62%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
The earnings call reflects strong overall financial performance with significant revenue growth across segments, increased dividends, and strategic expansion in derivatives and FX markets. However, increased staff costs, declining interest coverage, and impairment charges present some challenges.Q2-2025 Updates
Positive Updates
Record-Breaking Financial Performance
SGX Group reported record-high net revenue of S$646 million, a 15.6% increase, and adjusted NPAT of S$320 million, up 27.3% year-on-year. Both adjusted operating profit margin and adjusted NPAT margin showed strong improvement by 6.1% and 4.5% respectively.
Strong Growth in Cash Equities
The cash equities business saw a significant net revenue increase of S$35 million or 22%, with the securities daily average value rising 31% to S$1.26 billion.
Derivatives Market Expansion
Total net revenue from derivatives grew by S$35 million or 14%, driven by a 20% increase in overall derivative daily average volume. The T+1 session contributed significantly, accounting for 20% of the overall derivatives volume.
OTC FX Business Growth
The OTC FX business saw net revenue grow by S$14 million or 36%, with the average daily volume increasing to $136 billion. Its EBITDA contribution to the group increased to 5% from 3% the previous year.
FX Franchise Achievements
The FX franchise achieved a record average daily volume of over US$154 billion, with listed FX futures daily average volumes rising 40% year-on-year.
Dividend Increase
The Board declared a quarterly dividend of $0.09 per share, bringing the total dividends for the first half of FY 2025 to $0.18 per share, a 6% increase.
Negative Updates
Increased Staff Costs
Staff costs increased by $9 million or 6% due to higher variable bonuses in line with higher profits.
Interest Coverage Ratio Decline
The interest coverage ratio decreased to 56 times from 113 times due to higher interest expenses related to refinancing.
Impairment and Adjustments
A $2 million impairment was taken due to the lower-than-expected performance of an associated company, and there were further adjustments of $5 million from the amortization of purchased intangible assets.
Company Guidance
During the SGX Group's First Half FY 2025 Results Briefing, new CFO Daniel Koh reported a robust financial performance with group net revenue increasing by 15.6% to S$646 million. The adjusted group net profit after tax (NPAT) rose by 27.3% to S$320 million, with improvements in adjusted operating profit margin and NPAT margin by 6.1% and 4.5%, respectively. This growth was driven by significant contributions from the cash equities segment, which saw a 22% increase in net revenue, and derivatives, where net revenue grew by 14% due to a 20% increase in derivative daily average volume. The OTC FX business experienced a 36% rise in net revenue, with its EBITDA contribution growing from 3% to 5%. Despite these revenue gains, group expenses remained comparable to the previous year, with staff costs increasing by 6% and other expenses decreasing by $4 million. The company expects full-year expenses to be at the lower end of the 2% to 4% increase guidance and anticipates capital expenditure to be at the lower end of the $70 million to $75 million range. Additionally, an interim quarterly dividend of $0.09 per share was declared, representing an almost 6% increase in total dividends for the first half of FY 2025.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.