Fact based stock research
Sembcorp Industries (SGX:U96)

SG1R50925390

How to read the free ranks

For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Sembcorp Industries stock research in summary

sembcorp.com

ANALYSIS: With an Obermatt Combined Rank of 11 (worse than 89% compared with investment alternatives), Sembcorp Industries (Multi-Utilities, Singapore) shares have lower financial characteristics compared with similar stocks. Shares of Sembcorp Industries are low in value (priced high) with a consolidated Value Rank of 45 (worse than 55% of alternatives), show below-average growth (Growth Rank of 13), and are riskily financed (Safety Rank of 13), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 11, is a sell recommendation based on Sembcorp Industries's financial characteristics. As the company Sembcorp Industries's key financial metrics all exhibit below-average performance, such as low value (Obermatt Value Rank of 45), low growth (Obermatt Growth Rank of 13), and risky financing practices (Obermatt Safety Rank of 13), it is a somewhat questionable stock investment, where the risk of paying too much for the shares is significant, unless the company has an exceptionally bright future. Such poor financial performance sometimes indicates that the company's business is all concentrated in some distant future. This is sometimes the case for high-tech or biotechnology companies. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and risky today. In such cases, the Obermatt Method has limited value as it is based on facts we can observe today. If the facts are all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that should only amount to a small fraction of a safe portfolio. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	45
Growth Rank	13
Safety Rank	13
Combined Rank	11

Country	Singapore
Industry	Multi-Utilities
Index	Water Tech, STI
Size class	X-Large

14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

Multiple opinions. One number.

Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.

Why popular stocks have low ratings

It’s easier said than done. When your stock drops, it’s easy to want to sell it and find a better performer. Think twice, or even three times, before trading. Those fees (especially the hidden ones) can eat up your gains.

Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Sembcorp Industries

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	47	61	39	45
GROWTH
GROWTH	79	27	47	13
SAFETY
SAFETY	14	19	11	13
SENTIMENT
SENTIMENT	n/a	66	88	^new
360° VIEW
360° VIEW	n/a	37	44	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Sembcorp Industries is in the corresponding investment strategy.
Upgrade to a Premium Account to access the latest ranks.

Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	47	61	39	45
GROWTH
GROWTH	79	27	47	13
SAFETY
SAFETY	14	19	11	13
COMBINED
COMBINED	14	25	25	11

Last update of combined financial performance: 14-Nov-2024. Stock analysis on combined financial performance: The higher the rank of Sembcorp Industries the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 45 (worse than 55% compared with alternatives), Sembcorp Industries shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with three out of four indicators below average for Sembcorp Industries. Only Price-to-Profit (also referred to as price-earnings, P/E) indicates good stock value with a rank of 60, which means that the stock price compared with what market professionals expect for future profits is lower than for 60% of comparable companies, indicating a good value concerning Sembcorp Industries's profit levels. But Price-to-Sales is 26 which means that the stock price compared with what market professionals expect for future profits is higher than for 74% of comparable companies, indicating a low value concerning Sembcorp Industries's profit levels. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 34 and for dividend yield, which is lower than for 52% of comparable companies, making the stock more expensive as regards to the company's expected dividend payouts. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 45, is a hold recommendation based on Sembcorp Industries's stock price compared with the company's operational size and dividend yields. Can we rely on only one good value indicator? Only if we know the company well. In this case, a high Price-to-Profit Rank, while Price-to-Sales and Price-to-Book are both below the market typical levels, means that the company can charge higher prices for its products and needs less capital to produce them. If this is sustainable, then Sembcorp Industries is a good investment because profits count most in enterprise valuations. The low dividend yield indicates that the company is confident it can do something with the generated cash that is more valuable than paying the profits out to the shareholders in the form of dividends. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	84	48	20	26
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	2	60	51	60
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	88	52	41	34
DIVIDEND YIELD
DIVIDEND YIELD	54	36	37	48
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	47	61	39	45

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Sembcorp Industries; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 13 (better than 13% compared with alternatives), Sembcorp Industries shows one of the most restricted growth dynamics in its industry. There is little momentum in this company. The Growth Rank is based on consolidating four value indicators, with all four metrics below average for Sembcorp Industries. Sales Growth has a rank of 6, which means that currently professionals expect the company to grow less than 94% of its competitors. The same is valid for Profit Growth, with a rank of 32, and Capital Growth with 32. In addition, Stock Returns have a below market rank of 49, which means that the stock returns have recently been below 51% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 13, is a sell recommendation for growth and momentum investors. These are all bad growth momentum indicators. These are negative signals for investors interested in growth companies. Value is likely good for this company, as investors may have left this stock in the cold. If that is the case, investors should look at the company's outlook, especially Sentiment performance, because it may be a turnaround situation that could entail above-average stock returns in the future. But it remains a risky bet, as no growth signals are in the green zone yet. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is low here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	87	1	1	6
PROFIT GROWTH
PROFIT GROWTH	85	25	28	32
CAPITAL GROWTH
CAPITAL GROWTH	n/a	59	95	32
STOCK RETURNS
STOCK RETURNS	60	71	85	49
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	79	27	47	13

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Sembcorp Industries.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 13 (better than 13% compared with alternatives), the company Sembcorp Industries has much riskier financing practices than comparable other companies, which means that their overall debt burden is significantly above the industry average. This doesn't mean that the business of Sembcorp Industries is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with all three metrics below average for Sembcorp Industries. Liquidity is at 24, meaning that the company generates less profit to service its debt than 76% of its competitors. This indicates that the company is on the riskier side when it comes to debt service. Even worse, Leverage is at a rank of 4, meaning the company has an above-average debt-to-equity ratio. It has more debt than 96% of its competitors. Finally, Refinancing is at a rank of 19 which means that the portion of the debt about to be refinanced is above average. It has more debt in the refinancing stage than 81% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 13 (worse than 87% compared with alternatives), Sembcorp Industries has a financing structure that is significantly riskier than that of its competitors. This combination is rather dangerous in most situations. Only very promising companies with bright future outlooks and stellar reputations can operate with such risky financing. Investors should look at Obermatt’s Value, Growth, and Sentiment Ranks to confirm a very positive outlook or be careful with investing in stocks of Sembcorp Industries because it may suffer significantly in case of future difficulties. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	6	4	6	4
REFINANCING
REFINANCING	47	45	11	19
LIQUIDITY
LIQUIDITY	25	27	18	24
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	14	19	11	13

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Sembcorp Industries and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	83	70	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	63	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	12	92	^new
MARKET PULSE
MARKET PULSE	n/a	62	58	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	66	88	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Sembcorp Industries.
Upgrade to a Premium Account to access the latest ranks.