3 Things Investors Should Know About Singapore Technologies Engineering Ltd

Singapore Technologies Engineering Ltd (SGX: S63) is an engineering conglomerate with four major business segments, namely, Aerospace, Electronics, Land Systems, and Marine.

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

1. Profit picture over the past decade

Over the last 10 years from 2005 to 2015, ST Engineering had managed to nearly double its revenue from S$3.34 billion to S$6.34 billion. In that timeframe, the company was not only consistently profitable, its bottom-line had also expanded from S$396 million to S$529 million.

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

It would appear that ST Engineering’s diverse business activities had helped the company weather through various challenges over the past decade.

2. Dividend history

ST Engineering’s also a company with a long history of paying an annual dividend. In 1997, it paid an annual dividend of 1.80 cents, which had grown to 15.0 cents in 2015.

ST Engineering's dividend per share
Source: ST Engineering’s website

At its current share price of S$3.12, ST Engineering has a dividend yield of 4.8% thanks to its 2015 dividend.

3. Valuation

ST Engineering currently has a price-to-earnings ratio of 19.9. That’s higher than the P/E of 11 that the SPDR STI ETF (SGX: ES3) has; the SPDR STI ETF is an exchange-traded fund that tracks the fundamentals of Singapore’s market barometer, the Straits Times Index (SGX: ^STI).

ST Engineering's price-to-earnings (PE) ratio from 24 May 2011 to 24 May 2016
Source: S&P Global Market Intelligence

But as you can see in the chart above, ST Engineering’s current P/E ratio is somewhere in the middle of where the valuation has been over the past five years.

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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.