Kencana Agri Limited (BNE) AI Stock Analysis

• Market Cap: S$81.80M
• Dividend Yield: N/A
• Average Volume (3M): 85.64K
• Price to Earnings (P/E): 2.9
• Beta (1Y): 0.28
• Revenue Growth: 41.78%
• EPS Growth: N/A
• Country: SG
• Employees: N/A
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Agricultural Farm Products
• EPS (TTM): 0.04
• Shares Outstanding: 287,011,170
• 10 Day Avg. Volume: 53,940
• 30 Day Avg. Volume: 85,636
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.41
• Price to Sales (P/S): 0.11
• P/FCF Ratio: 1.18
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: S$0.50 ▲(42.86% Upside)

Kencana Agri Limited's stock is supported by strong financial performance and an attractive valuation, indicating potential for growth. Technical indicators show moderate strength, with no significant overbought signals. The absence of earnings call and corporate events data does not impact the overall score.

Positive Factors

Revenue Growth

The company's consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Cash Flow Generation

Robust free cash flow growth enhances the company's ability to reinvest in operations, reduce debt, and pursue strategic opportunities, ensuring financial stability.

Leverage Reduction

Reduced leverage improves financial stability and lowers risk, providing the company with greater flexibility to navigate economic fluctuations.

Negative Factors

Historical Revenue Volatility

Past revenue volatility may indicate challenges in maintaining consistent growth, potentially affecting long-term financial predictability and investor confidence.

Equity Financing Limitations

Limited equity financing could restrict the company's ability to raise capital for growth initiatives, impacting its competitive positioning and expansion plans.

Cash Flow Fluctuations

Inconsistent cash flow growth can challenge the company's ability to fund operations and investments, potentially affecting long-term financial health and strategic execution.

Kencana Agri Limited Business Overview & Revenue Model

Company Description

Kencana Agri Limited (BNE) is a leading agribusiness company primarily engaged in the cultivation and processing of palm oil. Operating in the agricultural sector, Kencana Agri focuses on sustainable practices and the production of high-quality palm oil products. The company is involved in various stages of the supply chain, including the cultivation of oil palm plantations, extraction of crude palm oil, and refining processes, ensuring a comprehensive approach to palm oil production.

How the Company Makes Money

Kencana Agri Limited generates revenue primarily through the sale of crude palm oil (CPO) and refined palm oil products. The company has established a robust supply chain that allows it to produce and distribute its products efficiently. Key revenue streams include direct sales to food manufacturers, cosmetic companies, and biofuel producers. Additionally, Kencana Agri benefits from long-term contracts and partnerships with major distributors and retailers, which provide stable income sources. The company's commitment to sustainable practices also opens up opportunities in the growing market for certified sustainable palm oil, further enhancing its revenue potential.

Kencana Agri Limited Financial Statement Overview

Summary

Kencana Agri Limited demonstrates solid financial performance with strong revenue and profit growth, improved leverage, and robust cash flow generation. However, the company faces challenges in maintaining equity levels and operational efficiency.

Income Statement

Kencana Agri Limited shows strong revenue growth with an 8.12% increase in TTM, supported by a healthy gross profit margin of 31.58%. The net profit margin improved to 11.35%, indicating enhanced profitability. However, the EBIT margin slightly decreased from the previous year, suggesting some operational challenges.

Balance Sheet

The company has significantly reduced its debt-to-equity ratio to 0.039, reflecting improved financial stability. Return on equity is robust at 52.53%, indicating efficient use of equity. However, the equity ratio remains low, suggesting potential vulnerability to financial fluctuations.

Cash Flow

Free cash flow growth is strong at 39.48%, and the operating cash flow to net income ratio is healthy at 0.67. The free cash flow to net income ratio of 0.76 indicates good cash generation relative to profits. However, the company needs to maintain this momentum to ensure long-term sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	245.44M	153.73M	136.37M	152.54M	128.45M	137.74M
Gross Profit	77.51M	43.34M	26.42M	43.59M	41.16M	48.96M
EBITDA	81.54M	53.81M	30.45M	35.49M	58.30M	55.25M
Net Income	27.87M	11.94M	-283.00K	2.62M	16.80M	5.31M
Balance Sheet
Total Assets	290.32M	288.31M	293.26M	299.56M	334.22M	441.71M
Cash, Cash Equivalents and Short-Term Investments	14.91M	9.39M	3.89M	2.87M	3.38M	18.30M
Total Debt	1.99M	192.36M	188.50M	195.47M	231.31M	329.21M
Total Liabilities	239.69M	247.39M	262.68M	269.02M	303.46M	423.63M
Stockholders Equity	50.63M	40.92M	30.58M	30.53M	30.77M	18.08M
Cash Flow
Free Cash Flow	49.48M	14.26M	22.28M	44.04M	34.04M	23.89M
Operating Cash Flow	64.85M	28.79M	40.33M	54.36M	39.69M	26.46M
Investing Cash Flow	-16.87M	-14.16M	-12.45M	-9.45M	-2.60M	-1.90M
Financing Cash Flow	-34.17M	-8.47M	-27.22M	-44.84M	-37.80M	-35.35M

Kencana Agri Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.35
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:BNE, the sentiment is Positive. The current price of 0.35 is above the 20-day moving average (MA) of 0.29, above the 50-day MA of 0.29, and above the 200-day MA of 0.16, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 51.46 is Neutral, neither overbought nor oversold. The STOCH value of 65.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:BNE.

Kencana Agri Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5JS	74 Outperform	S$530.44M	5.52	8.46%	2.63%	13.03%	35.10%
BNE	70 Outperform	S$81.80M	2.92	54.02%	―	41.78%	―
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%