Yahoo Finance All You Need To Know About Singapore Press Holdings Limited’s (SGX:T39) Financial Health
Small-caps and large-caps are wildly popular among investors, however, mid-cap stocks, such as Singapore Press Holdings Limited (SGX:T39), with a market capitalization of S$4.41B, rarely draw their attention from the investing community. However, history shows that overlooked mid-cap companies have performed better on a risk-adjusted manner than the smaller and larger segment of the market. Let’s take a look at T39’s debt concentration and assess their financial liquidity to get an idea of their ability to fund strategic acquisitions and grow through cyclical pressures. Don’t forget that this is a general and concentrated examination of Amazon’s financial health, so you should conduct further analysis into T39 here. See our latest analysis for Singapore Press Holdings
Does T39 generate an acceptable amount of cash through operations?
T39’s debt levels surged from S$1.31B to S$1.51B over the last 12 months , which is made up of current and long term debt. With this rise in debt, T39 currently has S$676.02M remaining in cash and short-term investments for investing into the business. On top of this, T39 has generated cash from operations of S$254.77M in the last twelve months, resulting in an operating cash to total debt ratio of 16.88%, indicating that T39’s operating cash is not sufficient to cover its debt. This ratio can also be interpreted as a measure of efficiency as an alternative to return on assets. In T39’s case, it is able to generate 0.17x cash from its debt capital.
Can T39 pay its short-term liabilities?
Looking at T39’s most recent S$1.26B liabilities, it seems that the business has not maintained a sufficient level of current assets to meet its obligations, with the current ratio last standing at 0.82x, which is below the prudent industry ratio of 3x.
Is T39’s debt level acceptable?
With a debt-to-equity ratio of 38.34%, T39’s debt level may be seen as prudent. T39 is not taking on too much debt commitment, which may be constraining for future growth.
Next Steps:
T39’s cash flow coverage indicates it could improve its operating efficiency in order to meet demand for debt repayments should unforeseen events arise. In addition to this, its low liquidity raises concerns over whether current asset management practices are properly implemented for the mid-cap. I admit this is a fairly basic analysis for T39’s financial health. Other important fundamentals need to be considered alongside. I recommend you continue to research Singapore Press Holdings to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for T39’s future growth? Take a look at our free research report of analyst consensus for T39’s outlook.
Valuation: What is T39 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 T39 is currently mispriced by the market.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
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.
