Indofood Agri Resources Ltd. (5JS) AI Stock Analysis

• Market Cap: S$523.46M
• Dividend Yield: 2.67%
• Average Volume (3M): 64.16K
• Price to Earnings (P/E): 5.2
• Beta (1Y): 0.14
• Revenue Growth: 13.03%
• EPS Growth: 35.10%
• Country: SG
• Employees: 39,652
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 0.05
• Shares Outstanding: 1,447,782,800
• 10 Day Avg. Volume: 72,530
• 30 Day Avg. Volume: 64,156
• PEG Ratio: 0.30
• Price to Book (P/B): 0.43
• Price to Sales (P/S): 0.31
• P/FCF Ratio: 3.65
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 934
• Revenue Forecast (FY): S$18.90T

• Rating: 68 Neutral
• Price Target: S$0.41 ▲(10.54% Upside)
• Action: Downgraded Date: 03/01/26
• Date: Action: Downgraded 03/01/26

The score is primarily supported by attractive valuation (low P/E with a dividend) and improving financial performance (strong 2025 growth and better leverage). These positives are tempered by inconsistent cash-flow conversion and only neutral-to-soft technical momentum.

Positive Factors

Revenue & profitability recovery

Revenue re-accelerated strongly in 2025 (+18.7% YoY) while net margin rose to about 6%, reflecting recovering demand and improved operating leverage. This suggests the business can generate sustainably higher earnings if commodity and yield conditions remain supportive, strengthening cash generation over the medium term.

Improving leverage profile

Leverage has trended down materially over several years, lowering debt-to-equity to ~0.60 in 2025. That deleveraging increases financial flexibility, reduces refinancing risk and interest burden, and provides capacity to fund steady capex or dividend policy, improving resilience to commodity cycles over the coming months.

Integrated palm oil value chain

A vertically integrated model—owning plantations plus milling, refining and downstream processing—lets the company capture more value, control raw material supply and optimize extraction/processing margins. This structural advantage supports steadier volumes, product mix optionality and longer-term margin insulation versus pure upstream players.

Negative Factors

Volatile cash conversion

Free cash flow is uneven and only about half of net income in 2025, with a sharp FCF drop in 2024. Persistent working-capital swings and lumpy capex make cash generation unpredictable, which can constrain debt reduction, reinvestment or dividend reliability during adverse commodity or seasonal cycles.

Moderate returns on capital

ROE of roughly 8.4% is positive but modest, indicating the company generates middling returns on its equity base. Over time this can limit internal funding for growth and reduce excess returns versus alternative uses of capital, pressuring long-term shareholder value creation absent material efficiency gains.

Commodity-driven margin sensitivity

Profitability has shown notable year-to-year margin swings tied to input costs and CPO pricing. Structural exposure to commodity prices, yields and extraction rates makes earnings and margins cyclical and harder to forecast, raising the risk of earnings volatility over the next several months.

Indofood Agri Resources Ltd. Business Overview & Revenue Model

Company Description

Indofood Agri Resources Ltd., together with its subsidiaries, operates as a vertically integrated agribusiness company in Singapore, Indonesia, China, Nigeria, Timor Leste, Germany, the Philippines, Myanmar, and internationally. It engages in the research and development; oil palm seed breeding; oil palm cultivation and milling; crude palm oil production and refining; rubber, sugar cane, cocoa, and tea cultivation; and industrial timber plantation activities. The company operates in two segments, Plantations, and Edible Oils and Fats. The Plantations segment is involved in the development and maintenance of oil palm, rubber, and sugar cane plantations; and other business activities relating to processing, marketing, and selling palm oil, rubber, and sugar cane. The Edible Oils and Fats segment produces, markets, and sells edible oil, margarine, shortening, and other related products, as well as its derivative products. It offers cooking oil under the Bimoli, Bimoli Spesial, Delima, Amanda, and Happy brands; and margarine and shortening products under the Amanda, Palmia, Royal Palmia, Simas, Malinda, and Delima brands. As of December 31, 2021, the company had a planted area of approximately 300,749 hectares, including 250,615 hectares of oil palm; 16,228 hectares of rubber; 14,411 hectares of sugar cane; and 19,495 hectares of other crops. It also owns and operates bulking facilities; provides transportation, investment, management, and technical services; and operates in the macronutrients mix fertilizers and prefabrication industries. The company was incorporated in 2001 and is headquartered in Singapore. Indofood Agri Resources Ltd. is a subsidiary of Indofood Singapore Holdings Pte. Ltd.

How the Company Makes Money

Indofood Agri Resources generates revenue through several key streams, primarily from its palm oil segment, which includes the cultivation of oil palm and the processing of crude palm oil and palm kernel oil. The company also earns income from its rubber plantations and the sale of rubber products. Additionally, Indofood Agri Resources benefits from its food processing operations, which produce various consumer food products. Strategic partnerships with local and international distributors further bolster its market reach and sales. Factors such as global commodity prices, demand for sustainable palm oil, and efficient supply chain management significantly contribute to the company's earnings.

Indofood Agri Resources Ltd. Financial Statement Overview

Summary

Profitability and growth improved materially (net margin ~6% in 2025; revenue +18.7% YoY), and leverage has trended down (debt-to-equity ~0.60 in 2025). Offsetting this, returns are mid-tier (ROE ~8.4%) and cash-flow conversion has been uneven with notable free-cash-flow volatility.

Income Statement

Profitability has improved meaningfully over time, with net margin rising from near-breakeven in 2020 to ~6.0% in 2025, and operating profitability remaining solid (2025 EBIT margin ~19%). Revenue growth re-accelerated strongly in 2025 (+18.7% YoY) after a softer 2022–2024 period. Offsetting this, margins have been somewhat volatile year-to-year (e.g., 2024 to 2025 gross and EBITDA margins stepped down), suggesting input-cost and pricing sensitivity typical of packaged foods/agri-linked businesses.

Balance Sheet

Leverage looks manageable and improving, with debt-to-equity declining from ~1.01 (2020) to ~0.60 (2025), alongside steady equity growth. Returns are positive but not especially high (2025 return on equity ~8.4%), indicating decent profitability but not a standout capital return profile. Overall balance sheet risk appears moderate: debt is meaningful, but the trajectory has been favorable versus earlier years.

Cash Flow

Cash generation is positive, with free cash flow improving in 2025 (up ~11.1% YoY) and free cash flow at roughly half of net income in 2025. However, conversion has been uneven across years, including a sharp drop in free cash flow in 2024 and a relatively low share of operating cash flow relative to revenue (around the high-teens percent in 2025). This points to working-capital and/or capital-spend volatility that can create lumpiness in cash returns despite improving earnings.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	18.31T	21.73T	15.97T	16.00T	17.80T	19.66T
Gross Profit	5.76T	5.56T	4.76T	3.28T	4.56T	5.07T
EBITDA	5.90T	5.77T	5.00T	3.64T	4.26T	4.32T
Net Income	1.16T	1.31T	1.12T	614.24B	769.98B	759.13B
Balance Sheet
Total Assets	40.62T	43.38T	39.13T	37.12T	38.27T	37.65T
Cash, Cash Equivalents and Short-Term Investments	7.32T	8.60T	5.95T	5.23T	4.42T	3.76T
Total Debt	8.41T	9.45T	7.87T	7.93T	9.31T	10.38T
Total Liabilities	14.26T	14.85T	13.27T	13.20T	15.11T	16.28T
Stockholders Equity	14.63T	15.64T	14.30T	13.54T	12.90T	11.56T
Cash Flow
Free Cash Flow	1.66T	1.84T	667.13B	2.54T	2.14T	2.43T
Operating Cash Flow	3.22T	3.49T	2.23T	3.80T	3.59T	3.72T
Investing Cash Flow	-1.80T	-1.26T	-1.44T	-1.25T	-1.43T	-1.33T
Financing Cash Flow	322.66B	406.13B	-147.66B	-1.72T	-1.63T	-1.09T

Indofood Agri Resources Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.37
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:5JS, the sentiment is Neutral. The current price of 0.37 is below the 20-day moving average (MA) of 0.39, below the 50-day MA of 0.38, and above the 200-day MA of 0.36, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 48.04 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SG:5JS.

Indofood Agri Resources Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
P8Z	72 Outperform	S$2.29B	10.29	20.72%	6.82%	15.89%	21.52%
BNE	69 Neutral	S$73.19M	2.61	54.02%	―	41.78%	―
5JS	68 Neutral	S$523.46M	5.19	8.46%	2.67%	13.03%	35.10%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
E5H	62 Neutral	S$3.62B	7.00	8.32%	2.87%	16.86%	252.80%
MV4	62 Neutral	S$472.71M	6.75	7.17%	2.72%	47.72%	16.14%