Singapore Telecommunications Limited's (SGX:Z74) Stock Going Strong But Fundamentals Look Weak: What Implications Could This Have On The Stock?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 24 2025
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Source: Yahoo Finance
Stock Performance and ROE Analysis: Singapore Telecommunications' stock has risen 10% in the last three months, but its return on equity (ROE) of 3.1% is significantly lower than the industry average of 9.3%, indicating poor profitability relative to shareholder investments.
Earnings Growth and Future Projections: The company has experienced disappointing earnings growth of 4.7% over the past five years, attributed to a high payout ratio of 73%. However, analysts predict that future earnings may accelerate, with an expected rise in ROE to 12% despite an anticipated increase in the payout ratio to 96%.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
