How I Analyse a Singapore-Listed Company (My Step-by-Step Framework)
How I Analyse a Singapore-Listed Company — A Step-by-Step Framework That Actually Works
A clear, repeatable process to analyse SGX companies objectively — from business model to cash flow, balance sheet, management and valuation.
Published: 15 November 2025 | Category: Investor Education / Company Analysis Framework
Over the years, I have analysed hundreds of Singapore-listed companies — REITs, banks, consumer firms, industrials, logistics players and engineers. While every company is different, the framework I use is always the same.
This framework helps me cut through noise, ignore distractions, and focus on what actually drives long-term outcomes:
- Cash flow reality
- Balance sheet strength
- Business model quality
- Management behaviour
- Valuation versus fundamentals
In this guide, I will walk you through my complete, repeatable, step-by-step process for analysing any SGX-listed company — whether you are new to investing or already experienced.
Key Takeaways (If You Only Have 30 Seconds)
- Always understand the business model before looking at numbers.
- Revenue growth matters, but how growth is achieved matters more.
- Margins reveal competitive strength — they rarely lie.
- Balance sheets expose risk long before headlines do.
- Cash flow determines dividend sustainability and survivability.
- Management quality shows up in actions, not promises.
- Valuation only makes sense after business quality is understood.
Step 1: Understand the Business Model (In One Paragraph)
Before touching the financials, I force myself to answer one simple question: Do I actually understand what this company does and how it makes money?
- What does the company sell?
- Who are the customers?
- Why do customers choose it?
- How stable is demand?
If I cannot explain the business clearly in one short paragraph, I stop and do not proceed.
If you cannot explain what a shop sells and why people buy from it, you probably should not own part of that shop.
Step 2: Identify Revenue Drivers (Volume, Price, Mix)
Revenue shows the direction of the business. I break it down into four drivers:
- Volume — selling more units
- Price — ability to raise prices
- Product or segment mix — shifting to higher or lower margins
- Market expansion — new geographies
This tells me whether growth is sustainable — or simply forced.
Step 3: Analyse Profitability (Margins Tell the Truth)
Margins show whether a company operates from strength or weakness.
- Gross margin — pricing power and cost control
- Operating margin — core business efficiency
- Net margin — bottom-line resilience
If revenue grows but margins deteriorate, something is wrong.
- Margins rarely lie.
- Stable margins often signal a competitive advantage.
Step 4: Read the Balance Sheet (Strength vs Fragility)
The balance sheet is where risk hides.
- Cash versus debt
- Short-term versus long-term borrowings
- Receivables and inventory quality
- Goodwill and unexplained assets
Strong balance sheets survive crises. Weak ones do not.
Step 5: Cash Flow Analysis (The Most Important Step)
Cash flow tells you whether profit is real.
- Operating cash flow
- Free cash flow
- Debt repayment capacity
- Dividend sustainability
Profit is what the report card says. Cash flow is the money actually in your wallet.
Step 6: Evaluate Management Quality (Actions > Words)
I judge management by behaviour:
- Conservative accounting
- Sensible capital allocation
- Transparent communication
- Meeting promises over time
Poor management can destroy even a good business.
Step 7: Check Dividend Sustainability (Cash, Not Yield)
Yield alone is meaningless. Dividends must be backed by recurring free cash flow.
- Payout ratio
- Free cash flow coverage
- Debt levels
- Dividend history
Step 8: Identify Key Risks
Every company has risks. Good investors identify them early.
- Business risks
- Financial risks
- Operational risks
Step 9: Valuation (Only After Understanding the Business)
Valuation comes last — not first.
The goal is simple: buy good companies at sensible prices.
Step 10: Form a Clear Investment View
I summarise every analysis into:
- What I like
- What concerns me
- What must improve
- What I will monitor
FAQ
Is this framework suitable for REITs?
Yes — with greater focus on gearing, refinancing and cash flow.
Is cash flow more important than profit?
Over time, yes — cash flow reveals risk earlier.
Do I need all 10 steps every time?
Eventually, they become instinctive.
Should beginners use this?
Absolutely — it prevents early, expensive mistakes.
Does this work outside Singapore?
Yes — the principles are universal.
HenryT is a Fellow Chartered Accountant (FCA) based in Singapore and the writer behind The Accounting Investor. He combines professional accounting training, corporate finance experience and personal dividend investing to help everyday investors read financial statements with confidence.
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Disclaimer
This article is for education and general information only. It does not constitute investment, legal, tax or any other form of professional advice, and it is not a recommendation to buy, sell or hold any securities mentioned.
My sole intent is to help readers learn how to read financial statements and think more clearly about businesses. Please do your own research or consult a licensed financial adviser before making any investment decisions. I may or may not hold positions in the securities discussed at the time of writing and am under no obligation to update this article.
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