Elevator Pitch
Singapore-listed conglomerate Sembcorp Industries (SCRPY) (SCRPF) [SCI:SP] currently trades at 8.8 times consensus forward FY2020 P/E, which represents a discount to the stock's historical average forward P/E of approximately 13 times. The stock is valued by the market at 0.59 times P/B versus its historical five-year midpoint P/B of approximately 0.8 times. Sembcorp Industries offers a consensus forward FY2020 dividend yield of approximately 2.8%.
Sembcorp Industries' undemanding valuations are justified on the basis that earnings growth for the core Energy business is decent but unexciting, while the loss-making Marine segment remains a drag.