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3 Things Investors Should Know About SIA Engineering Company Ltd

SIA Engineering Company Ltd (SGX: S59), or SIAEC for short, specialises in providing aircraft maintenance, repair, and overhaul (MRO) services. It counts over 80 international airlines around the world as its customers.

Here are three things about SIAEC that investors may want to know:

1. Consistent profitability over the past decade:

SIAEC’s revenue has climbed steadily – albeit slowly – over the past decade, from S$959 million in fiscal 2006 (fiscal year ended 31 March 2006) to S$1.11 billion in fiscal 2016. The firm has also been consistently profitable in that period, although the profit figure has declined from S$231 million to S$177 million. You can see the evolution of SIACE’s revenue and earnings in the chart below:

SIAEC's revenue and net income
Source: S&P Global Market Intelligence

2. A long history of paying a dividend

Given SIAEC’s consistent profitability, it may be no surprise to learn that the company has also been paying an annual dividend in each year since at least fiscal 2006.

SIAEC's dividend per share
Source: S&P Global Market Intelligence

In fact, the company’s dividend has climbed from S$0.10 per share in fiscal 2006 to S$0.14 in fiscal 2016. At SIAEC’s latest share price of S$3.75, it has a dividend yield of 3.7% thanks to its fiscal 2016 dividend.

3. Valuation

SIAEC is currently trading at a price-to-earnings (PE) ratio of 23.8. Despite the company’s shares having fallen by a quarter in price over the last three years, SIAEC’s PE ratio is still at the higher-end of where it has been in the same period. This is illustrated in the following chart:

SIAEC's price-to-earnings (PE) ratio from 23 May 2013 to 23 May 2016
Source: S&P Global Market Intelligence

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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 Lawrence Nga doesn’t own shares in any companies mentioned.