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How Do Analysts See Singapore Post Limited (SGX:S08) Performing Over The Next Year?

Since Singapore Post Limited (SGX:S08) released its earnings in March 2018, it seems that analyst forecasts are fairly optimistic, with earnings expected to grow by 17.43% in the upcoming year against the past 5-year average growth rate of -6.59%. With net income at current levels of S$111.53m, we should see this rise to S$130.97m in 2019. Below is a brief commentary around Singapore Post’s earnings outlook going forward, which may give you a sense of market sentiment for the company. For those keen to understand more about other aspects of the company, you can research its fundamentals here. Check out our latest analysis for Singapore Post

Can we expect Singapore Post to keep growing?

The 11 analysts covering S08 view its longer term outlook with a positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. To get an idea of the overall earnings growth trend for S08, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line.

SGX:S08 Future Profit June 21st 18
SGX:S08 Future Profit June 21st 18

This results in an annual growth rate of 12.74% based on the most recent earnings level of S$111.53m to the final forecast of S$163.90m by 2021. This leads to an EPS of SGD0.072 in the final year of projections relative to the current EPS of SGD0.049. The bottom-line growth seems to be caused by cost-cutting initiatives, since top-line is predicted to rise at a slower pace than earnings. Margins is currently sitting at 7.32%, which is expected to expand to 8.73% by 2021.

Next Steps:

Future outlook is only one aspect when you’re building an investment case for a stock. For Singapore Post, I’ve put together three relevant factors you should look at:

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  1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.

  2. Valuation: What is Singapore Post worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether Singapore Post is currently mispriced by the market.

  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Singapore Post? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!


To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.