3 Good & 3 Red Flags: Seatrium Margin Stuck At 7.4% | 🦖EP1560

3 Good & 3 Red Flags: Seatrium Margin Stuck At 7.4% | 🦖EP1560

The market sees a 1.24% dividend from Seatrium, but the math sees your CPF and SRS taking equity risk for less than a T‑Bill. Margins are stuck at 7.4%, gearing sits at 0.4x, and yet you are being paid below my 3.2% Forensic Floor while management keeps the cash to fund a “One Seatrium” turnaround. My stance is simple: the order book looks like growth, but the payout profile still screams yield trap.

In a 5,000‑point STI world, the question is no longer “Is this a turnaround?” but “Is my risk actually being paid?” With the Singapore 6‑month T‑Bill hovering around 1.37%, a 1.24% equity yield that fails my 3.2% Forensic Floor and 4.7% income hurdle is mathematically unacceptable for retirees. If I am taking engineering, execution, and integration risk, I want a clear spread over government paper, not a coupon that forces me to sell shares just to hit S$4,700 a year on a S$100,000 position.

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📩 Substack: https://investingiguana.com/p/seatrium-3-good-and-3-red-flags-at