MENU

3 Things That Investors Should Know About Singapore Exchange Limited Now

Singapore Exchange Limited (SGX: S68) is the only stock exchange operator in town in Singapore.

Following a recent organisational restructuring, Singapore Exchange now has three main business segments: Equities & Fixed Income; Derivatives; and Market Data & Connectivity.

Here are three things investors should know about the company:

1. Latest earnings out

Last week, Singapore Exchange had released its latest quarterly results. For the quarter (the company’s fiscal third-quarter), Singapore Exchange reported  revenue and profit of $205.8 million and $89.2 million, respectively. These numbers are up 3.3% and 1.1% from the same period a year ago.

As a result, the bourse operator’s earnings per share for the quarter rose 1% from 8.2 cents in the prior year to 8.3 cents.

In addition, cash flow from operations came in at $125.4 million, a 22% increase from the same quarter last year.

All three of the company’s business segments had contributed to the overall growth.

2. Financial position

As of 31 March 2016, Singapore Exchange has $764.5 million in cash and equivalents and no debt. This is an improvement from end-March 2015 when there was S$714 million in cash and equivalents and zero debt.

Understanding the financial position of a company may be crucial. Generally speaking, a strong balance sheet gives a business a better chance of sustaining its operations for the long term.

3. History of paying dividends

Singapore Exchange was listed in late 2000 and has consistently paid an annual dividend for its last 15 completed fiscal years. Moreover, its dividend per share has grown from S$0.055 in fiscal 2001 (year ended 30 June 2001) to S$0.28 in fiscal 2015.

In the company’s latest earnings release, it had declared a dividend of S$0.05 per share for the reporting quarter, an increase of 20% from the S$0.04 per share dividend seen in the same period a year ago.

At the company’s latest share price of $7.70, its trailing dividend yield is 4.03%.

If you like what you've seen, you can get even more investing insights and analyses from The Motley Fool's weekly investing newsletter Take Stock Singapore. It's FREE, so do check it out here.

Also, like us on Facebook to follow our latest news and articles. The Motley Fool's purpose is to help the world invest, better.

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