Singapore Airlines (SIA) – What really matters in a Stock

BIG COMPANIES ARE ON SALE?!?! VALUE$ SHOP 

As political instability sits into the mind of everyone, market prices (Singapore stocks) are fluctuating to hit rock bottom.

Singapore Airline has a few subsidiaries  – Cargo / Engineering / Silkair / Scoot / Tours & Travel | Founded since 1947 |

1)  IDENTIFICATION OF COMPANIES THAT ARE UNDERVALUED.

  • Price to book ratio : 0.872 (13.8% undervalued)
  • Price to earning ratio : 14.047

2)  LEARN ABOUT THEIR NUMBERS

  • Debt To Equity : 8.537 ( Very HIGH reliance on financing for growth – I was too sleepy last night)  The reliance on finance might be due to it’s capital intensive nature 
  • Growth Performance : -5.34
  • Current Ratio : 1.005 (Ability to liquidate in peace)
  • Cash flow per share : 2.11 ( You’re paying $9.77)
  • Average management ability ( Unstable dividend payout | 4 years constant growth in net income (Reducing cogs)| Still making loses under cashflow management)screen-shot-2016-11-13-at-11-24-19-pmscreen-shot-2016-11-13-at-11-24-16-pm

Technical Analysis

Market is making lower high and lower low (Bearish trend), while market is reaching 2001-2 area. Market might either find demand for buyers or sellers to short further down. (I might wait for confirmation before entering)

Would it be a buy ??? Hmm.. I would seriously consider this as everything looks decent (Average) but then again if the hesitation is there…. I guess I wouldn’t….

I guess the major hesitation comes from the unstable dividend payout and the cashflow management issues – 5 years of loss??? (Reinvesting activities must be high)

– As encouraged and reminded by a friend… I will try to impress IMPROVE (Obviously i was sleeping) my depth of analysis. in the stock

“+1 Knowledge point”

“+ 1 Future PI”

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2 thoughts on “Singapore Airlines (SIA) – What really matters in a Stock

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