Singapore Post Limited is a postal and logistics services company. Its business is currently organised into three major segments: Mail, Logistics, and Retail & eCommerce.
Here are three things about the company investors may want to know:
1. Latest results
Singapore Post had released its fourth-quarter and full-year results just last week. For the fiscal year ended 31 March 2016 (fiscal 2016), the company’s revenue had jumped by 25% to S$1.15 billion while the profit attributable to shareholders had grown by 58% to S$249 million.
Singapore Post’s top-line had benefitted from new acquisitions and organic growth in its Logistics and Retail & eCommerce segments. The even faster profit growth meanwhile, had come on the back of one-off divestment gains. If that were stripped away, the company’s underlying net profit in fiscal 2016 would have been 4.1% lower than in the previous year.
It’s worth noting too that Singapore Post’s cash flow performance had deteriorated from fiscal 2015, with both operating cash flow and free cash flow falling.
2. Dividend history
Singapore Post has had a long history of paying an annual dividend, which goes back all the way to fiscal 2003, the year it got listed. In fiscal 2003, Singapore Post paid a dividend of S$0.042 per share and has been paying an annual dividend ever since.
The company’s dividend in fiscal 2016 is S$0.07 per share, which gives it a yield of 4.6% at its current share price of S$1.535.
Source: Singapore Post
3. Valuation
Singapore Post is currently trading at a price-to-earnings ratio of 14. For perspective, the company’s valuation had reached a peak of 31 in the last five years. In addition, the PE of 14 is also near the lower end of Singapore Post’s valuation range over the last five years.