Look: 40 undervalued, high ROE stocks right now on the SGX
Singapore Airlines was the most traded stock of the bunch.
There were over 40 Singapore-listed companies with low price-to-earnings (P/E) ratios offering high returns, the majority of which are in the industrial and consumer sectors, according to an industry tracker.
Data from the SGX Stock Screener showed that 27 Mainboard-listed stocks and 14 firms on the Catalist Board that recorded price gains over the past year have posted a double-digit return on equity (ROE) while maintaining single-digit P/E ratios.
Of which, Singapore Airlines, with an ROE of 13.2% and a P/E ratio of 7.6x, was the most-traded stock, followed by Geo Energy Resources, Golden-Agri Resources, and Food Empire.
Rounding out the top 10 most traded stocks of the bunch are TJ DaRenTang, Valuetronics, Marco Polo Marine, Ley Choon, Bumitama Agri and Stamford Land.
It also found that more than half of the stocks with low P/E ratios and high ROE are trading at discounts compared to their respective book values.
“Two in three of the screened stocks also represent either the industrials sector or consumer sectors… From a dividend perspective, three in four of the stocks maintain indicative dividend yields averaging 5%,” the report read.
A company with a higher ROE indicates greater efficiency in converting equity into profit, while those with single-digit P/E ratios are generally considered cheap.