Share repurchases can be a sensible thing to do when a company’s shares are undervalued, and the company does see any other need for the money. On that note, let’s look at three companies that have repurchased their shares thus far during the week, as of market open today.
ISOTeam Ltd (SGX: 5WF)
ISOTeam is involved in the building maintenance and estate upgrading industry in Singapore. It has four business segments – repairs and redecoration, addition and alteration, coating and painting, and others.
On 2 October 2018, the company bought back 100,000 shares at a price range of between S$0.24 and S$0.255 per share. It spent slightly below S$24,500 for the exercise.
Shares in ISOTeam fell substantially after the company announced a poor set of financial results for its fiscal year ended 30 June 2018 at the end of August. Even though revenue inched up by 1.1% year-on-year to S$83.8 million, net profit plunged 70.7% to S$1.9 million.
ISOTeam shares closed at S$0.25 on Thursday. This translates to a price-to-earnings (PE) ratio of 36 and a dividend yield of 0.7%.
Sembcorp Industries Limited (SGX: U96)
Sembcorp is a conglomerate with three primary business segments, namely, utilities, marine and urban development.
On 3 October, Sembcorp repurchased 200,000 shares at S$3.08148 apiece. It spent slightly above S$617,000 for the share buyback.
Yesterday, shares in Sembcorp closed at S$3.04 each. At that stock price, the company was going at 33 times trailing earnings and had a dividend yield of 1.3%.
Singapore Post Limited (SGX: S08)
Singapore Post has a history stretching back to 150 years. The company currently handles e-commerce logistics, as well as provides mail and logistics solutions in Singapore and around the world.
On 3 October, the postal outfit bought back 800,000 shares ranging from S$1.12 to S$1.13 apiece, translating to a total cost of around S$904,200.
Singapore Post shares ended Thursday at S$1.12 each. This gives a PE ratio of 25 and a dividend yield of 3.1%.
Worried about the overall state of the market? Do you know the 1 thing you should never do in the stock market? The Motley Fool Singapore’s new e-book lays out a plan to handle market crashes, details the greatest advantage you have as an investor, and looks at decades worth of market data to bring you the smartest insights on investing. You can download the full e-book FREE of charge—Simply click here now to claim your copy
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 owns shares in ISOTeam Ltd and Sembcorp Industries Limited.