SPH (SGX: T39), also known as Singapore Press Holdings, was formed in 1984 by merging 3 newspaper companies. Today, they play an important role in combating against fake news by being a reliable source of information. Besides commonly known as a newspaper company, SPH is also involved in variety of businesses such as radio, events, supplementary classes, elderly care etc.

With a market cap of almost 3 billion, this blue chip has seen its share price fall as low as $1.73 while yielding at 6%. So, is SPH a bargain or trap? Time for some research…

Net income and free cash flow data from MorningStar

From the chart, it appears that net income has declined from approximately 500 million to less than half the amount over the course of 10 years! After seeing this kinda earnings trend, usually I will close my browser and move onto another stock. Instead, let’s maybe try to