What would the world be without engineers? Modern societies have been built with architects and engineers working hand in hand to design gleaming, towering skyscrapers and efficient subways. Engineering companies are responsible for advancing society by constructing buildings, highways, roads, and other essential infrastructure. Investors may assume engineering companies are engaged in businesses that are technical and difficult to understand. To some extent, they’re right. However, I assess such companies by looking at both their track records and meaningful contributions to the sectors in which they are strong, as well as looking at their historical financials and margins in order to make my investment decision. Here are three engineering companies investors should consider for th

There are many financial metrics that matter when investors assess companies for potential investment. Some of these include revenue and profit growth, margins, free cash flow, and dividend yield. I can safely say one of the more important metrics is free cash flow (FCF), as cold, hard cash is the lifeblood of a business. Having more cash is almost always a good thing as it allows companies to have more flexibility in how they operate, and it can also serve as a buffer when tough times arrive. The emphasis on consistent FCF allows investors to sleep well at night and offers companies many options for how to deploy that cash to generate better returns for their investors. Here are four things to like about companies that generate strong FCF. 1. Increasing dividends Companies with a strong

IHH Healthcare Berhad (SGX: Q0F) is a leading integrated healthcare provider and one of the largest healthcare groups in the world. The group operates over 15,000 beds across 80 hospitals in 11 countries such as Turkey, Singapore, Malaysia, India, and Brunei, and it provides the full spectrum of healthcare services from clinics to hospitals to quaternary care as well as ancillary services. IHH is a giant in the healthcare industry and is also dual-listed on both the Singapore Exchange and Bursa Malaysia. I decided to take a look at how the group derives its revenue and profit by region, as this was an easy way to understand the group’s massive operations. Note that the group recently acquired Amanjaya Specialist Centre and Fortis Healthcare in India, which helped to boost overall re

Boustead Projects Limited (SGX: AVM), or BPL, is a leading real estate solutions provider, with engineering expertise in design and build projects for multinational companies. To date, the group has constructed and developed more than three million square metres of real estate in Singapore, China, Malaysia, and Vietnam. BPL is a 53%-owned subsidiary of Boustead Singapore Limited (SGX: F9D) or BSL. BPL was spun off from BSL back in 2014 as a separately-listed entity in order to pursue its own growth plans. Over the years, BPL has evolved and transformed itself into a leader in industry 4.0 standards and has equipped itself with the latest technologies for sustainable development and construction. Its recently-completed industrial building ALICE @ Mediapolis is a testament to its abilities,

Investors should remember that investing is not always smooth-sailing and that businesses will face constant ups and downs even as they enjoy multi-year growth. As companies report their results on a quarterly basis, there is even more “lumpiness” in revenue and profits due to the timing of recognition of various parcels of work or contracts. The important thing is not to fixate solely on the profit figure, but to also cast a critical eye on the cash flow generation capability of the company. As profits may fluctuate depending on revenue recognition principles, cash flow is generally a better method to assess if a business is doing well. After all, cash represents the lifeblood of the business, and consistent free cash flow (FCF) generation is the hallmark of a great business

Boustead Singapore Limited (SGX: F9D), or BSL, is an engineering conglomerate that has four main divisions: Energy-Related Engineering, Real Estate Solutions, Geo-Spatial Technology, and Healthcare Technology. The group was founded in 1828 and is one of the oldest companies listed here. BSL reported a surprisingly good set of earnings recently for its Q1 2020 (the group has a 31 March year-end). The oil and gas business under Energy-Related Engineering finally turned around after suffering from tough challenges over the last few years with the collapse of oil prices. With so many levers within the business, investors may be hard-pressed to understand what the group is planning and what growth drivers can be expected. Here, I’ve broken down BSL’s prospects into several easily-d

Here are a few interesting highlights from Boustead Projects Limited's (SGX: AVM) AGM last Friday.