3 Blue-Chip Firms Valued Higher than the German Football Champions

football world cup

Germany seems to be firing well in all fronts in the footballing world. Not only can they be the newly minted world champions come Monday morning (it’s the World Cup Finals in the wee hours of Monday morning with Germany duking it out against Argentina!), the top football club in terms of brand value comes from the country too.

Bayern Munich, the club that topped the German football league last season, was ranked by Brand Finance as the top footballing club in the world this year with a brand value of US$896 million.

Bayern Munich may have a huge brand equity but there actually are a number of local blue-chip companies that have a brand value higher than the Bundesliga champions. Let’s take a look at three of those blue chips with brand values of more than US$1 billion as judged by Brand Finance.

1. Keppel Corporation (SGX: BN4)

Keppel Corporation, one of the largest conglomerates in Singapore, has a brand value of US$2.06 billion. The firm has a global footprint in more than 30 countries and its key business segments are in Offshore & Marine, Infrastructure, and Property.

In 2010, Keppel won a major contract, worth around S$118 million, to build an offshore wind farm in the German Exclusive Economic Zone in the North Sea. Keppel Verolme BV (part of Keppel Corporation) and consortium partner AREVA Energietechnik GmbH, secured the contract from Wetfeet Offshore Windenergy GmbH to build a Mobile Offshore Application Barge. The contract win also secured Keppel’s entry into the offshore wind energy business.

Currently, the conglomerate is going at S$10.86 per share. This translates to a historical PE ratio of 11 and a dividend yield of 3.7%.

2. Singapore Telecommunications (SGX: Z74)

SingTel, the largest telecommunications provider in our shores, has a global presence in 19 countries across the Asia Pacific, Middle East, USA and Europe, including Germany. According to Brand Finance’s number crunching, SingTel’s brand value is currently at US$1.90 billion.

For the financial year ended 31 March 2014, the telco operator’s operating revenue declined 7% to S$16.85 billion but net profit grew 4% to S$3.65 billion. Ms Chua Sock Koong, SingTel’s Chief Executive Officer, commented on the company’s performance:

“Our performance held up strongly against industry challenges and currency volatility. During the year, we strengthened our market position and the efficiency of our core business. Our digital initiatives delivered to expectations, giving us the confidence to expand further into this area.”

Singtel is changing hands at S$3.87 at the time of writing and is valued at 17 times its historical earnings.

3. Fraser and Neave (SGX: F99)

F&N has a portfolio of popular beverage brands in Singapore such as F&N Seasons, 100PLUS, and F&N Fruit Tree. It also had a portfolio of beer brands such as Tiger Beer, Heineken, and Anchor before most of its brewery business was sold.

You may know the above about F&N. However, did you know that beer from Anchor was first brewed using technology and brew masters that both hailed from Germany? Now that most of F&N’s beer business is sadly no longer with the company (the company still has a stake in Myanmar Brewery though), there’s only the food & beverage and publishing businesses left.

The F&B arm of F&N consists of some of the beverage brands mentioned earlier and other dairy product brands such as F&N Magnolia, F&N Daisy, and Farmhouse. The brand value of F&N stands at US$1.52 billion currently, dropping from US$2.07 billion last year.

The firm last traded at S$3 per share.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.