BSTGF Overview

Boustead Singapore's Earnings Performance: Boustead Singapore Limited reported decent earnings, but shareholders showed concern due to a weak accrual ratio, indicating that reported profits significantly exceeded free cash flow.

Accrual Ratio Insights: The company's accrual ratio of 0.25 suggests that its free cash flow of S$25 million fell short of its statutory profit of S$94 million, raising questions about the sustainability of its profitability.

Impact of Unusual Items: A notable boost of S$31 million from unusual items inflated Boustead's profits, which may not be repeatable in the future, leading to skepticism about the quality of its earnings.

Cautionary Signals: The analysis highlights two significant warning signs regarding Boustead Singapore, suggesting that investors should be cautious and consider various factors before making investment decisions.