Lunar New Year is in a couple of days, here is to wishing everyone a Happy New Year!
Anyway, I am going to take a look at a bigger blue-chip firm this week: SIA Engineering Company. Once again, as I am not initiating a position on this counter, I will leave the conclusions portion out.
SIA Engineering Company Ltd (SIAE.SI) in a nutshell:
Offers support services for airlines.
(No, SIA is not their only client)
1) Positive and Consistent Free Cash Flow
2) Low valuations relative to 5 year average
5 year average Price-Earnings (PE) and Price-Book (PB) ratios are 18.19 and 3.55 respectively. At the time of writing, SIA Engineering has been trending at around 12 and 2.6 for PE and PB respectively.
3) Corporate Governance
2/3 of the board are independent and SIA Engineering comes in at a very respectable 28 …