SIA Engineering was one of the first few shares i bought when i got excited about dividends play.
Of course, I was the novice then and i still then now. Reading my review about the share must me want to laugh as there was absolutely no reference to fundamentals. Instead, the purchase was done because i believed it was a dividend yield share and faith in the airline and travel industry.
Still, with the slide in price from 4.88 to its current price of 3.87, I had better review this share again.
Let's start with the numbers:
1. P/E ratio = 22.82
2. PB = 3.29
3. ROA = 3.22%
4. ROE = 13.53%
5. revenue growth = -11.30%
6. earning yoy = -36.5%
7. cash = 465.46M
8. cash per share = 0.42
9. debt = 33.22 M
10. current ratio = 3.01
11. operating cash flow = 96M
12. free cash flow = 47M
13. dividends = 268M
Well, honestly, I am a bit worried about the fundamentals. The revenue growth is a negative 11%, and the earnings yoy is down -36%! What's happening? out of their three business lines, it seems like the problem is with Airframe maintenance. It has been dragged down so much because the phrasing out of older planes and replacing them with the new ones have resulted in less engine checks being done. That's a huge blow to SIA Engineering.
What does SIA Engineering have going for it then? A really good cash flow. If we check out the net cash flow, it is at 47M, however, the sinker is that they have been overpaying for dividends in 2015. 268M was paid out for dividends, so dividends i more than the free cash flow, and is also more than the operating cash flow. So will the dividends go down? I guess so, since the slide has already begun. It has decreased from 0.24 to 0.145 this year already.
With that, what is the dividend yield now? Taking current prices, dividend yield is 3.74. That's not worth it to put in more monies unless I am confident about the company's future prospects.
So what is the company's future prospect? The joint venture it has with Boeing and Investment Moat has done a very good review here.
Well, I will hold my shares and look to purchasing it when the price is right since i think there is still room to grow for this industry. What is the right price then? If i want at least a 4.5% yield, then this would have to be $3.20.
Well, so much for early mistakes. We pay the price for learning.
Of course, I was the novice then and i still then now. Reading my review about the share must me want to laugh as there was absolutely no reference to fundamentals. Instead, the purchase was done because i believed it was a dividend yield share and faith in the airline and travel industry.
Still, with the slide in price from 4.88 to its current price of 3.87, I had better review this share again.
Let's start with the numbers:
1. P/E ratio = 22.82
2. PB = 3.29
3. ROA = 3.22%
4. ROE = 13.53%
5. revenue growth = -11.30%
6. earning yoy = -36.5%
7. cash = 465.46M
8. cash per share = 0.42
9. debt = 33.22 M
10. current ratio = 3.01
11. operating cash flow = 96M
12. free cash flow = 47M
13. dividends = 268M
Well, honestly, I am a bit worried about the fundamentals. The revenue growth is a negative 11%, and the earnings yoy is down -36%! What's happening? out of their three business lines, it seems like the problem is with Airframe maintenance. It has been dragged down so much because the phrasing out of older planes and replacing them with the new ones have resulted in less engine checks being done. That's a huge blow to SIA Engineering.
What does SIA Engineering have going for it then? A really good cash flow. If we check out the net cash flow, it is at 47M, however, the sinker is that they have been overpaying for dividends in 2015. 268M was paid out for dividends, so dividends i more than the free cash flow, and is also more than the operating cash flow. So will the dividends go down? I guess so, since the slide has already begun. It has decreased from 0.24 to 0.145 this year already.
With that, what is the dividend yield now? Taking current prices, dividend yield is 3.74. That's not worth it to put in more monies unless I am confident about the company's future prospects.
So what is the company's future prospect? The joint venture it has with Boeing and Investment Moat has done a very good review here.
Well, I will hold my shares and look to purchasing it when the price is right since i think there is still room to grow for this industry. What is the right price then? If i want at least a 4.5% yield, then this would have to be $3.20.
Well, so much for early mistakes. We pay the price for learning.
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