First Resources (Singapore) (EB5) AI Stock Analysis

• Market Cap: S$3.71B
• Dividend Yield: 5.19%
• Average Volume (3M): 2.53M
• Price to Earnings (P/E): 7.9
• Beta (1Y): 0.52
• Revenue Growth: 24.70%
• EPS Growth: 62.15%
• Country: SG
• Employees: 8,066
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Agricultural Farm Products
• EPS (TTM): 0.17
• Shares Outstanding: 1,584,073,000
• 10 Day Avg. Volume: 2,576,520
• 30 Day Avg. Volume: 2,534,186
• PEG Ratio: 0.16
• Price to Book (P/B): 1.64
• Price to Sales (P/S): 1.49
• P/FCF Ratio: 50.84
• 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: S$2.40
• Price Target Upside: 1.38% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 0.21
• Revenue Forecast (FY): S$1.40B

• Rating: 75 Outperform
• Price Target: S$2.50 ▲(5.49% Upside)
• Action: Reiterated Date: 03/01/26
• Date: Action: Reiterated 03/01/26

The score is driven primarily by attractive valuation (low P/E and solid dividend) and supportive technical strength (price above major moving averages with positive MACD). Offsetting these positives, financial performance is moderated by higher 2025 leverage and inconsistent free cash flow despite strong profitability.

Positive Factors

Robust Profit Margins

Sustained improvement in gross, net, EBIT and EBITDA margins indicates durable operating efficiency and scale in palm oil processing. Higher margins support reinvestment capacity and cushion profitability through commodity cycles, underpinning long-term cash generation and shareholder returns.

Prudent Balance Sheet

A low leverage profile combined with strong return on equity gives the company financial flexibility to fund capital expenditure, absorb cyclical downturns, and pursue strategic investments without heavy reliance on external financing. The modest debt rise is manageable but should be tracked.

Improving Cash Generation

Notable free cash flow growth and strong operating cash flow conversion demonstrate improving ability to convert profits into real liquidity. This enhances capacity to sustain dividends, fund maintenance and expansion capex, and reduce dependence on new debt for core operations.

Negative Factors

Slowing Revenue Growth

A recent slowdown in revenue growth weakens the growth runway for a commodity producer that relies on volume and price strength. If sustained, slower top-line expansion can limit operating leverage benefits, capex recovery and long-term EPS momentum absent margin or productivity gains.

Free Cash Flow Efficiency

Although free cash flow has improved, low FCF-to-net-income efficiency signals that reported profits do not fully translate into distributable cash. This may constrain organic reinvestment, debt reduction or shareholder payouts over the medium term without further cash conversion improvements.

Commodity & Geographic Concentration

Heavy reliance on palm oil products and operations concentrated in Indonesia/Malaysia exposes the company to structural commodity cyclicality, weather and regulatory risks. These factors can amplify earnings volatility and impose long-term pressures from sustainability regulations and supply-side shocks.

First Resources (Singapore) Business Overview & Revenue Model

Company Description

First Resources Limited, an investment holding company, engages in the palm oil production activities in Singapore, Indonesia, Europe, China, and internationally. The company operates in two segments, Plantations and Palm Oil Mills, and Refinery and Processing. It is involved in cultivating and maintaining oil palms; harvesting and milling fresh fruit bunches into crude palm oil (CPO) and palm kernel (PK) products; and processing CPO and PK into value palm based products, such as biodiesel, palm kernel oil, and palm kernel expeller, as well as refined, bleached, and deodorized (RBD) olein, and RBD stearin. In addition, the company engages in the rubber plantation activities. It manages 212,208 hectares of oil palm plantations; and 6,321 hectares of rubber plantations. The company was founded in 1992 and is based in Singapore. First Resources Limited is a subsidiary of Eight Capital Inc.

How the Company Makes Money

First Resources generates revenue primarily through the sale of palm oil and its derivatives. The company's revenue model is based on the cultivation of oil palm plantations, which are processed into crude palm oil and other products. Key revenue streams include direct sales to food manufacturers, cosmetic companies, and the biofuel sector. Additionally, First Resources benefits from strategic partnerships with local and international distributors that enhance its market reach. The company also invests in sustainable practices that can attract premium pricing for certified sustainable palm oil, further contributing to its earnings.

First Resources (Singapore) Financial Statement Overview

Summary

Income statement strength (Score 82) is offset by rising balance-sheet risk (leverage increased materially in 2025; Balance Sheet Score 58) and inconsistent/free-cash-flow conversion (Cash Flow Score 46). Overall: strong profitability, but durability through down-cycles is a key risk due to higher debt and volatile FCF.

Income Statement

Profitability is strong, with 2025 margins still healthy (gross margin ~42%, operating margin ~31%, net margin ~21%). Revenue rebounded sharply in 2025 (up ~34%) after a softer 2023, showing the business can re-accelerate. The main weakness is volatility across years—revenue and profitability swing meaningfully (notably the 2023 downturn and some margin compression versus the 2022 peak), which is typical of commodity-exposed agricultural earnings.

Balance Sheet

The balance sheet was conservative through 2024 (debt-to-equity ~0.20), but leverage stepped up materially in 2025 (debt-to-equity ~0.62) as total debt rose sharply. Equity remains sizable and returns on equity improved (to ~23% in 2025), but the higher debt load increases financial risk and reduces flexibility if the cycle turns.

Cash Flow

Cash generation is mixed. Operating cash flow in 2025 was slightly below net income (about 0.96x), and free cash flow was low relative to earnings (~17% of net income). Free cash flow also swung from very strong in 2021–2022 to negative in 2023 and only modestly positive in 2024–2025, suggesting higher reinvestment needs and/or working-capital volatility that can pressure shareholder returns in weaker periods.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.26B	1.69B	1.04B	980.59M	1.23B	1.03B
Gross Profit	541.86M	706.48M	445.70M	361.90M	629.32M	461.57M
EBITDA	494.42M	631.77M	428.44M	278.50M	494.23M	330.04M
Net Income	291.08M	359.41M	245.79M	145.40M	325.20M	161.11M
Balance Sheet
Total Assets	2.75B	2.89B	1.95B	1.77B	1.83B	1.87B
Cash, Cash Equivalents and Short-Term Investments	157.63M	292.05M	105.53M	110.97M	433.79M	381.46M
Total Debt	916.93M	953.93M	270.13M	237.73M	295.72M	406.74M
Total Liabilities	1.17B	1.22B	464.30M	373.06M	433.81M	602.50M
Stockholders Equity	1.43B	1.54B	1.38B	1.30B	1.31B	1.20B
Cash Flow
Free Cash Flow	-22.59M	49.50M	57.87M	-35.96M	247.78M	240.73M
Operating Cash Flow	212.66M	290.91M	311.24M	315.37M	326.16M	292.19M
Investing Cash Flow	-545.78M	-663.72M	-244.49M	-351.92M	-51.98M	-1.33M
Financing Cash Flow	386.83M	562.49M	-70.16M	-286.73M	-217.46M	-100.15M

First Resources (Singapore) Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.37
• 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:EB5, the sentiment is Positive. The current price of 2.37 is above the 20-day moving average (MA) of 2.21, above the 50-day MA of 2.13, and above the 200-day MA of 1.79, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 65.01 is Neutral, neither overbought nor oversold. The STOCH value of 57.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:EB5.

First Resources (Singapore) Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EB5	75 Outperform	S$3.71B	7.94	21.70%	5.19%	24.70%	62.15%
P8Z	72 Outperform	S$2.29B	10.29	20.72%	6.82%	15.89%	21.52%
F34	65 Neutral	S$21.97B	11.92	5.86%	4.55%	3.92%	-25.13%
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%
5VJ	38 Underperform	S$653.95M	-8.65	―	―	23.21%	-3.27%

First Resources (Singapore) Corporate Events

First Resources’ Compliance with RSPO Standards Reaffirmed

First Resources Limited has received a decision from the RSPO Appeals Panel, which reaffirms the company’s compliance with sustainability standards, dismissing allegations and appeals against it. While a three-month suspension of membership was upheld due to procedural disclosure issues, it does not affect the company’s environmental practices. The decision assures stakeholders of First Resources’ commitment to RSPO requirements and sustainable practices.

The most recent analyst rating on (SG:EB5) stock is a Buy with a S$2.00 price target. To see the full list of analyst forecasts on First Resources (Singapore) stock, see the SG:EB5 Stock Forecast page.