First Resources (Singapore) (EB5) AI Stock Analysis

• Market Cap: $4.49B
• Dividend Yield: 5.19%
• Average Volume (3M): 2.53M
• Price to Earnings (P/E): 7.0
• Beta (1Y): 0.37
• 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: 0.92
• Enterprise Value/Revenue: 3.29
• Enterprise Value/Gross Profit: 7.62
• Enterprise Value/Ebitda: 8.35
• 1Y Price Target: $2.70
• Price Target Upside: -5.81% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 0.22
• Revenue Forecast (FY): $1.55B

• Rating: 71 Outperform
• Price Target: S$3.00 ▲(4.53% Upside)
• Action: Reiterated Date: 03/07/26
• Date: Action: Reiterated 03/07/26

The score is driven by attractive valuation (low P/E and solid dividend) and strong technical uptrend, tempered by financial-profile risks: higher 2025 leverage and inconsistent free cash flow despite strong profitability.

Positive Factors

High margins & strong profitability

Sustained high gross and operating margins in 2025 indicate a structurally efficient cost base and margin capture across upstream and processing operations. Durable profitability supports reinvestment, dividend capacity and resilience to cyclical revenue swings over the next 2–6 months.

Vertically integrated business model

Owning plantations and downstream mills/refineries gives lasting competitive advantages: better control of yields, processing margins and product mix. Vertical integration helps protect margins, secure supply to customers and capture value across the chain over medium-term horizons.

Demonstrated revenue recovery capability

A sharp revenue rebound shows operational flexibility and ability to scale volumes or realize stronger prices after downturns. This track record implies the business can re-accelerate revenue when market conditions improve, supporting medium-term earnings recovery.

Negative Factors

Rising leverage

A material increase in leverage reduces financial flexibility and raises refinancing/interest risk if commodity prices soften. Higher debt limits capacity for opportunistic investments or buybacks and amplifies downside in a 2–6 month stress scenario or prolonged commodity weakness.

Inconsistent and weak free cash flow

Volatile and generally low free cash flow versus earnings suggests persistent reinvestment needs or working-capital swings. This undermines durable shareholder returns, constrains deleveraging and increases dependence on external financing during weaker cash cycles over the medium term.

Commodity-driven earnings volatility

Exposure to palm oil commodity cycles leads to significant year-to-year swings in revenue and margins, complicating forecasting and capital allocation. Structural volatility raises capital planning risk and requires stronger balance-sheet buffers to sustain payouts during downturns.

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

Strong profitability and a sharp 2025 revenue rebound support the score, but durability is a concern: leverage rose materially in 2025 and free cash flow has been inconsistent and relatively low versus earnings.

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: 2.87
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 2.87 is above the 20-day moving average (MA) of 2.57, above the 50-day MA of 2.30, and above the 200-day MA of 1.89, indicating a bullish trend. The MACD of 0.18 indicates Negative momentum. The RSI at 71.42 is Negative, neither overbought nor oversold. The STOCH value of 87.77 is Negative, 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
P8Z	72 Outperform	S$2.88B	―	18.91%	6.82%	15.89%	21.52%
EB5	71 Outperform	$4.49B	7.00	20.19%	5.19%	24.70%	62.15%
F34	65 Neutral	S$23.72B	10.43	5.71%	4.55%	3.92%	-25.13%
E5H	63 Neutral	S$3.81B	7.02	8.32%	2.87%	16.86%	252.80%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
5VJ	38 Underperform	S$653.95M	-5.61	―	―	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.