We Think Singapore Technologies Engineering (SGX:S63) Can Stay On Top Of Its Debt
We Think Singapore Technologies Engineering (SGX:S63) Can Stay On Top Of Its Debt
Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility of prices, but whether you will suffer a permanent loss of capital.' When we think about how risky a company is, we always like to look at its use of debt, since debt overload can lead to ruin. As with many other companies Singapore Technologies Engineering Ltd (SGX:S63) makes use of debt. But should shareholders be worried about its use of debt?
传奇基金经理李露(由查理·芒格支持)曾经说过:“最大的投资风险不是价格的波动,而是你是否会遭受永久的资本损失。”当我们思考一家公司的风险有多大时,我们总是喜欢考虑其债务的用途,因为债务过载可能导致破产。与许多其他公司一样,新加坡科技工程有限公司(新加坡证券交易所股票代码:S63)也使用债务。但是,股东是否应该担心其债务的使用?
When Is Debt A Problem?
债务何时会成为问题?
Debt and other liabilities become risky for a business when it cannot easily fulfill those obligations, either with free cash flow or by raising capital at an attractive price. In the worst case scenario, a company can go bankrupt if it cannot pay its creditors. However, a more frequent (but still costly) occurrence is where a company must issue shares at bargain-basement prices, permanently diluting shareholders, just to shore up its balance sheet. Of course, debt can be an important tool in businesses, particularly capital heavy businesses. The first thing to do when considering how much debt a business uses is to look at its cash and debt together.
当企业无法轻易履行这些义务时,无论是通过自由现金流还是以诱人的价格筹集资金,债务和其他负债就会面临风险。在最坏的情况下,如果公司无法向债权人付款,它可能会破产。但是,更频繁(但仍然代价高昂)的情况是,公司必须以低廉的价格发行股票,永久稀释股东,以支撑其资产负债表。当然,债务可能是企业的重要工具,尤其是资本密集型企业。在考虑企业使用多少债务时,要做的第一件事是将其现金和债务放在一起考虑。
What Is Singapore Technologies Engineering's Debt?
新加坡科技工程的债务是多少?
As you can see below, Singapore Technologies Engineering had S$6.14b of debt, at June 2024, which is about the same as the year before. You can click the chart for greater detail. However, it also had S$429.9m in cash, and so its net debt is S$5.71b.
如下所示,截至2024年6月,新加坡科技工程公司有61.4亿新元的债务,与前一年大致相同。您可以单击图表以获取更多详细信息。但是,它也有4.299亿新元的现金,因此其净负债为57.1亿新元。
![big](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240815/0-6c7441030007980aca7582e8d9785315-0-3ddd4ff3894e336dcfcad0602c0cb497.png/big)
How Healthy Is Singapore Technologies Engineering's Balance Sheet?
新加坡科技工程的资产负债表有多健康?
We can see from the most recent balance sheet that Singapore Technologies Engineering had liabilities of S$8.22b falling due within a year, and liabilities of S$4.80b due beyond that. On the other hand, it had cash of S$429.9m and S$3.86b worth of receivables due within a year. So its liabilities outweigh the sum of its cash and (near-term) receivables by S$8.73b.
我们可以从最新的资产负债表中看出,新加坡技术工程公司在一年内到期的负债为82.2亿新元,在此之后到期的负债为48.0亿新元。另一方面,它有4.299亿新元的现金和价值38.6亿新元的应收账款将在一年内到期。因此,其负债超过其现金和(短期)应收账款总额87.3亿新元。
This is a mountain of leverage even relative to its gargantuan market capitalization of S$13.6b. This suggests shareholders would be heavily diluted if the company needed to shore up its balance sheet in a hurry.
即使与其136亿新元的庞大市值相比,这也是一座巨大的杠杆作用。这表明,如果公司需要迅速支撑资产负债表,股东将被严重稀释。
In order to size up a company's debt relative to its earnings, we calculate its net debt divided by its earnings before interest, tax, depreciation, and amortization (EBITDA) and its earnings before interest and tax (EBIT) divided by its interest expense (its interest cover). The advantage of this approach is that we take into account both the absolute quantum of debt (with net debt to EBITDA) and the actual interest expenses associated with that debt (with its interest cover ratio).
为了扩大公司相对于收益的负债规模,我们计算其净负债除以利息、税项、折旧和摊销前的收益(EBITDA),将其利息和税前收益(EBIT)除以利息支出(利息保障)。这种方法的优势在于,我们既考虑了债务的绝对数量(包括净负债与息税折旧摊销前利润),也考虑了与该债务相关的实际利息支出(及其利息覆盖率)。
Singapore Technologies Engineering's debt is 4.4 times its EBITDA, and its EBIT cover its interest expense 4.1 times over. This suggests that while the debt levels are significant, we'd stop short of calling them problematic. On the other hand, Singapore Technologies Engineering grew its EBIT by 25% in the last year. If it can maintain that kind of improvement, its debt load will begin to melt away like glaciers in a warming world. When analysing debt levels, the balance sheet is the obvious place to start. But ultimately the future profitability of the business will decide if Singapore Technologies Engineering can strengthen its balance sheet over time. So if you want to see what the professionals think, you might find this free report on analyst profit forecasts to be interesting.
新加坡科技工程公司的债务是其息税折旧摊销前利润的4.4倍,其息税前利润支付利息支出的4.1倍。这表明,尽管债务水平很高,但我们不会称其为有问题。另一方面,新加坡科技工程公司去年的息税前利润增长了25%。如果它能够保持这种改善,那么在变暖的世界中,其债务负担将像冰川一样开始消失。在分析债务水平时,资产负债表是显而易见的起点。但最终,该业务的未来盈利能力将决定新加坡科技工程公司能否随着时间的推移加强其资产负债表。因此,如果你想看看专业人士的想法,你可能会发现这份关于分析师利润预测的免费报告很有趣。
Finally, a business needs free cash flow to pay off debt; accounting profits just don't cut it. So we always check how much of that EBIT is translated into free cash flow. Over the most recent three years, Singapore Technologies Engineering recorded free cash flow worth 56% of its EBIT, which is around normal, given free cash flow excludes interest and tax. This cold hard cash means it can reduce its debt when it wants to.
最后,企业需要自由现金流来偿还债务;会计利润根本无法减少债务。因此,我们总是检查该息税前利润中有多少转化为自由现金流。在最近三年中,新加坡技术工程公司记录的自由现金流占其息税前利润的56%,鉴于自由现金流不包括利息和税收,这几乎是正常的。这种冷硬现金意味着它可以在需要时减少债务。
Our View
我们的观点
On our analysis Singapore Technologies Engineering's EBIT growth rate should signal that it won't have too much trouble with its debt. But the other factors we noted above weren't so encouraging. For example, its net debt to EBITDA makes us a little nervous about its debt. When we consider all the factors mentioned above, we do feel a bit cautious about Singapore Technologies Engineering's use of debt. While debt does have its upside in higher potential returns, we think shareholders should definitely consider how debt levels might make the stock more risky. When analysing debt levels, the balance sheet is the obvious place to start. But ultimately, every company can contain risks that exist outside of the balance sheet. For example Singapore Technologies Engineering has 2 warning signs (and 1 which shouldn't be ignored) we think you should know about.
根据我们的分析,新加坡技术工程公司的息税前利润增长率应该表明其债务不会遇到太多问题。但是我们上面提到的其他因素并不那么令人鼓舞。例如,其净负债占息税折旧摊销前利润的比例使我们对其债务有些紧张。当我们考虑上述所有因素时,我们确实对新加坡科技工程公司使用债务感到有些谨慎。尽管债务在更高的潜在回报方面确实有其上行空间,但我们认为股东们一定应该考虑债务水平如何使股票更具风险。在分析债务水平时,资产负债表是显而易见的起点。但归根结底,每家公司都可以控制资产负债表之外存在的风险。例如,新加坡科技工程公司有 2 个警告标志(以及 1 个不容忽视的),我们认为你应该知道。
Of course, if you're the type of investor who prefers buying stocks without the burden of debt, then don't hesitate to discover our exclusive list of net cash growth stocks, today.
当然,如果你是那种喜欢在没有债务负担的情况下购买股票的投资者,那么请立即查看我们的独家净现金增长股票清单。
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Simply Wall St的这篇文章本质上是笼统的。我们仅使用公正的方法根据历史数据和分析师的预测提供评论,我们的文章无意作为财务建议。它不构成买入或卖出任何股票的建议,也没有考虑到您的目标或财务状况。我们的目标是为您提供由基本数据驱动的长期重点分析。请注意,我们的分析可能不考虑最新的价格敏感型公司公告或定性材料。简而言之,华尔街没有持有任何上述股票的头寸。