COSCO Shipping International (Singapore) Co., Ltd. – Value Analysis (SINGAPORE:F83) : December 21, 2017

Capitalcube gives COSCO Shipping International (Singapore) Co., Ltd. a score of 25.

Our analysis is based on comparing COSCO Shipping International (Singapore) Co., Ltd. with the following peers – Sembcorp Industries Ltd., Sembcorp Marine Ltd, Jaya Holdings Limited, Keppel Corporation Limited and Yangzijiang Shipbuilding (Holdings) Ltd. (U96-SG, S51-SG, BJE-SG, BN4-SG and BS6-SG).

Investment Outlook

COSCO Shipping International (Singapore) Co., Ltd. has a fundamental score of 25 and has a relative valuation of UNDERVALUED.

Fundamental Score

Access our research and ratings on COSCO Shipping International (Singapore) Co., Ltd.

Company Overview

  • With respect to peers, relative outperformance over the last year is in contrast to the more recent underperformance.
  • It currently trades at a Price/Book ratio of (5.36).
  • F83-SG‘s earnings and EBITDA are both negative which suggest that P/E or Price/EBITDA are not meaningful to make this analysis between operating advantage (ROE) and growth expectations (as suggested by P/E or P/EBITDA).
  • F83-SG‘s relatively low net margins and poor asset turns suggest a problematic operating strategy.
  • Changes in annual earnings (relative to peers) are better than the change in its revenues (relative to peers), implying the company is focused more on earnings.
  • F83-SG‘s return on assets currently and over the past five years has trailed the peer median and suggests the company might be operationally challenged relative to its peers.
  • The company’s relatively low gross and pre-tax margins suggest a non-differentiated product portfolio and not much control on operating costs relative to peers.
  • F83-SG‘s earnings and EBITDA are both negative which suggest that P/E or Price/EBITDA are not meaningful for an analysis between historical growth (using annualized three-year revenue growth) and investor growth expectations (as suggested by P/E or Price/EBITDA) .
  • The company’s capital investment program and to-date returns suggest that the company is likely making big bets on the future.
  • F83-SG currently does not have any debt.

Access our research and ratings on COSCO Shipping International (Singapore) Co., Ltd.

Leverage & Liquidity

F83-SG currently does not have any debt.

  • We consider the company to have a Quick & Able profile as it currently does not have any debt. In comparison, the median level of debt as percent of enterprise value for its peer group is currently 54.87%.
  • Of the 5 chosen peers for the company, only 4 of the stocks have an outstanding debt balance. Companies with no debt include BJE-SG.

Access the detailed analysis for COSCO Shipping International (Singapore) Co., Ltd.

Key Liquidity Items

Company Debt/Enterprise Value (%) Current Ratio Interest Coverage (x) Cash Flow To Total Debt (%)
Sembcorp Industries Ltd. 71.78 1.29 1.29 8.48
Sembcorp Marine Ltd 62.99 1.31 0.42 6.31
Jaya Holdings Limited 0 3.9 No interest exp 999
Keppel Corporation Limited 46.75 1.82 3.72 8.6
Yangzijiang Shipbuilding (Holdings) Ltd. 92.34 2.45 11.31 65.83
COSCO Shipping International (Singapore) Co., Ltd. 0 1.01 -2.9 -3.64
Peer Median 54.87 1.57 2.5 8.54
Best In Class 46.75 3.9 No interest exp 999

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Company Profile

COSCO Shipping International (Singapore) Co., Ltd. is an investment holding company, which engages in shipping and other logistics services. It operates through the following segments: Shipping; and Ship Repair, Ship Building and Marine Engineering activities. The Shipping segment deals with the transport of cargo such as iron ore, coal, steel, cement, and fertilizer. The Ship Repair, Ship Building, and Marine Engineering activities segment provides an array of capabilities in ship building, ship repair and conversion and offshore marine engineering. The company was founded on October 25, 1961 and is headquartered in Singapore.

Disclaimer

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