CSE Global (544) AI Stock Analysis

• Market Cap: $295.33M
• Dividend Yield: 5.28%
• Average Volume (3M): 1.79M
• Price to Earnings (P/E): 10.8
• Beta (1Y): 0.84
• Revenue Growth: 18.77%
• EPS Growth: 7.38%
• Country: SG
• Employees: 1,503
• Sector: Technology
• Sector Strength: 46
• Industry: Information Technology Services
• EPS (TTM): 0.04
• Shares Outstanding: 706,834,600
• 10 Day Avg. Volume: 1,806,860
• 30 Day Avg. Volume: 1,792,200
• PEG Ratio: 1.46
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.34
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $0.60
• Price Target Upside: 40.60% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

CSE Global demonstrates strong financial performance with significant revenue growth and improved profitability, supported by a solid balance sheet. However, challenges in cash flow generation and bearish technical indicators pose risks. The stock's low P/E ratio and high dividend yield offer attractive valuation benefits, contributing positively to the overall score.

Positive Factors

Earnings

CSE's 2024 earnings of S$26m beat expectations by 18%, due to better-than-expected margins.

Revenue Growth

Continued revenue growth across all segments, with electrification revenue being the largest revenue contributor, growing 30% yoy.

Strategic Investments

CSE Global plans to reinvest proceeds from the sale of a US property into a larger facility, indicating plans to capitalize on future opportunities in the electrification sector.

Negative Factors

Dividend Reduction

Final dividend was 23% lower on management’s efforts to reinvest in long-term growth.

Order Wins

3Q24 order wins were 38% lower year-on-year, primarily due to fewer order wins in the electrification segment.

CSE Global Business Overview & Revenue Model

Company Description

CSE Global Limited is a leading global technology solutions provider that operates across multiple sectors, including automation, telecommunications, and environmental solutions. The company specializes in delivering high-quality engineering services, integrated solutions, and software applications to clients across industries such as oil and gas, infrastructure, and healthcare. With a robust presence in Asia-Pacific, the Americas, Europe, Middle East, and Africa, CSE Global leverages its expertise to address complex challenges and drive operational efficiencies for its customers.

How the Company Makes Money

CSE Global generates revenue primarily through its diverse portfolio of technological solutions and services. The company's key revenue streams include providing integrated automation solutions, telecommunications systems, and environmental engineering services. By offering end-to-end solutions that encompass design, engineering, implementation, and maintenance, CSE Global establishes long-term partnerships with its clients, ensuring recurring revenue through maintenance contracts and service agreements. Additionally, strategic partnerships and collaborations with leading technology firms enhance its offerings and market reach, contributing to its earnings. The company also benefits from its global presence, allowing it to tap into various regional markets and sectors, further bolstering its revenue streams.

CSE Global Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
861.17M	725.05M	557.70M	468.66M	502.79M
	Gross Profit
241.16M	199.86M	146.18M	135.88M	146.20M
	EBIT
54.21M	38.36M	8.14M	20.14M	36.80M
	EBITDA
72.39M	64.17M	34.05M	43.13M	58.46M
	Net Income Common Stockholders
26.34M	22.53M	4.77M	15.00M	28.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
57.40M	39.43M	24.15M	45.52M	49.39M
	Total Assets
632.63M	598.37M	493.66M	397.51M	401.87M
	Total Debt
154.64M	143.20M	128.09M	118.95M	116.02M
	Net Debt
97.24M	104.82M	103.94M	73.43M	66.63M
	Total Liabilities
376.60M	382.29M	281.36M	205.51M	210.23M
	Stockholders Equity
255.99M	216.15M	212.30M	192.04M	191.77M
Cash Flow		Free Cash Flow
12.31M	37.09M	-16.01M	19.08M	29.27M
	Operating Cash Flow
33.10M	55.90M	10.00K	29.38M	40.10M
	Investing Cash Flow
-33.28M	-24.39M	-45.72M	-15.50M	-9.64M
	Financing Cash Flow
19.31M	-16.84M	25.05M	-17.96M	-32.12M

CSE Global Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.43
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:544, the sentiment is Neutral. The current price of 0.43 is above the 20-day moving average (MA) of 0.43, below the 50-day MA of 0.45, and below the 200-day MA of 0.45, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 50.93 is Neutral, neither overbought nor oversold. The STOCH value of 96.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SG:544.

CSE Global Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
S63	83 Outperform	$22.94B	32.67	27.51%	2.09%	11.63%	19.71%
544	72 Outperform	$295.33M	10.77	11.20%	5.28%	18.77%	7.38%
Y92	71 Outperform	$12.57B	12.29	15.00%	5.27%	18.38%	-3.55%
BN4	70 Outperform	S$10.95B	12.11	7.90%	5.44%	-5.24%	-77.23%
U96	70 Outperform	$11.28B	11.08	20.60%	2.63%	-8.88%	8.31%
Sector *	59 Neutral	$9.97B	10.09	-6.54%	3.08%	7.41%	-11.60%
F34	57 Neutral	$19.35B	12.38	5.84%	5.23%	-0.24%	-23.64%

CSE Global Corporate Events

CSE Global Secures $15 Million in Orders for Data Center Communications

CSE Global Limited announced that its subsidiary, CSE Crosscom USA, Inc., has secured orders worth US$15 million to provide critical communications services to a major data center hyperscaler. The project involves engineering design, installation, and maintenance of advanced communications networks, including two-way radio systems and Distributed Antenna Systems, across multiple regions. This development highlights CSE Global’s ability to tailor solutions for different industries and underscores the growing demand for communications solutions in the data center sector, driven by the rise of AI. The contracts are not expected to significantly impact the company’s financial metrics for the current year.

CSE Global Introduces New Dividend Guidance Policy

CSE Global Limited has announced a new dividend guidance policy, aiming to distribute at least 50% of its consolidated net profit attributable to equity holders as dividends annually. This approach balances shareholder returns with reinvestment for growth, providing predictability and stability for income-focused investors while retaining flexibility for future investments and capital expenditures.

CSE Global Boosts Subsidiary Capital through Strategic Capitalization

CSE Global Limited announced significant capital increases in its subsidiaries, CSE Crosscom International, CSE Crosscom USA, and Industrias W de Mexico, through the capitalization of outstanding amounts owed to the parent company. These capitalizations significantly boost the financial standing of the subsidiaries, with CSE Crosscom International’s capital increasing to S$28,465,260, CSE Crosscom USA’s to USD20,993,028, and Industrias W de Mexico’s to USD11,160,905. The transactions are not expected to materially impact the company’s consolidated net tangible assets or earnings per share for the financial year ending December 31, 2024.

CSE Global Secures S$235.3 Million in 4Q2024 Orders

CSE Global Limited announced securing S$235.3 million in new orders for the fourth quarter of 2024, including a significant electrification contract worth S$90.7 million. Despite a drop in overall order intake due to the absence of major electrification projects compared to the previous year, individual segments such as Automation showed notable growth, highlighting a mixed performance with potential implications for future operational focus.

CSE Global Announces Change in Company Secretary

CSE Global Limited, a company incorporated in Singapore, has announced a change in its company secretary. Mr. Lai Kuan Loong, Victor will take over the role from Ms. Eunice Hooi Lai Fann, effective 14 February 2025. The Board of Directors expressed gratitude to Ms. Eunice Hooi Lai Fann for her service during her tenure.