Fraser & Neave (F99) AI Stock Analysis

• Market Cap: $2.16B
• Dividend Yield: 3.12%
• Average Volume (3M): 60.73K
• Price to Earnings (P/E): 15.3
• Beta (1Y): 0.48
• Revenue Growth: 7.43%
• EPS Growth: -6.37%
• Country: SG
• Employees: 7,300
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 0.04
• Shares Outstanding: 1,456,824,200
• 10 Day Avg. Volume: 88,670
• 30 Day Avg. Volume: 60,730
• PEG Ratio: 1.65
• Price to Book (P/B): 0.76
• Price to Sales (P/S): 1.00
• P/FCF Ratio: 21.18
• Enterprise Value/Market Cap: 1.62
• Enterprise Value/Revenue: 1.50
• Enterprise Value/Gross Profit: 4.90
• Enterprise Value/Ebitda: 12.61
• 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: 71 Outperform
• Price Target: S$1.50 ▲(1.35% Upside)

Fraser & Neave's stock score is driven by solid financial performance and positive technical indicators. The company's consistent revenue growth and improving profitability margins are significant strengths. The technical analysis supports a positive trend, with the stock trading above key moving averages. However, cash flow volatility and moderate valuation metrics suggest areas for improvement.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion and stability.

Profitability Margins

Improving profitability margins reflect better cost management and pricing power, enhancing the company's ability to generate sustainable profits.

Market Position

A strong market position in the food and beverage industry provides competitive advantages, enabling the company to leverage brand strength and customer loyalty.

Negative Factors

Cash Flow Volatility

Volatile cash flow can hinder financial planning and investment capacity, posing risks to operational stability and long-term growth initiatives.

Rising Debt Levels

Increasing leverage may strain financial resources and limit flexibility, potentially impacting the company's ability to invest in growth opportunities.

Operational Efficiency

Stable but unimproved operational efficiency indicates potential for cost optimization, which is crucial for enhancing profitability and competitiveness.

Fraser & Neave Business Overview & Revenue Model

Company Description

Fraser and Neave, Limited engages in the food and beverage, and publishing and printing businesses in Singapore, Malaysia, Thailand, Vietnam, and internationally. The company operates through Beverages, Dairies, Printing and Publishing, and Others segments. It produces and sells beverages, including 100PLUS isotonic drinks, F&N NUTRISOY soya milk, F&N SEASONS Asian drinks, F&N ICE MOUNTAIN drinking and sparkling water, as well as offers beer under CHANG brand. In addition, the company provides ice cream primarily under the F&N MAGNOLIA and F&N King's brand; and offers diary products under and FARMHOUSE brands. Fraser and Neave, Limited provides other dairy products comprising sweetened condensed milk, evaporated milk, pasteurized milk and tea, and juices under F&N, Gold Coin, Teapot, Carnation, Bear Brand, Ideal, Milkmaid, F&N Fruit Tree Fresh, and Sunkist brands. Further, it publishes education, and business information content under the Marshall Cavendish brand; provides digital and offset print services under Times Printers brand; distributes books and magazines under Pansing brand ; and retails English language books under the TIMES BOOKSTORES brand. Additionally, the company offers print solutions under Print Lab brand. Fraser and Neave, Limited was founded in 1883 and is headquartered in Singapore. The company is a subsidiary of TCC Assets Limited.

How the Company Makes Money

Fraser & Neave generates revenue primarily through the sale of its food and beverage products across various markets in Asia. The company has a multi-faceted revenue model that includes direct sales to consumers through retail channels, as well as bulk sales to restaurants, cafes, and distributors. Key revenue streams include its popular soft drink brands, dairy products, and packaged foods. Significant partnerships with retailers and distributors enhance its market reach, while strategic investments in product innovation and marketing campaigns contribute to revenue growth. Additionally, the company benefits from economies of scale due to its established supply chains and production facilities, allowing it to maintain competitive pricing and improve profit margins.

Fraser & Neave Financial Statement Overview

Summary

Fraser & Neave exhibits a solid financial performance with consistent revenue growth and improving profitability margins. The balance sheet reflects a stable financial position with manageable leverage. However, cash flow volatility presents a risk that needs careful management. Overall, the company is on a positive trajectory but should focus on enhancing operational efficiency and cash flow stability.

Income Statement

Fraser & Neave has demonstrated consistent revenue growth over the years, with a notable increase in gross profit margin from 29.68% in 2023 to 31.86% in 2024. The net profit margin has also improved slightly, indicating better cost management and profitability. However, the EBIT and EBITDA margins, while stable, suggest room for improvement in operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has increased slightly from 0.30 in 2020 to 0.42 in 2024, indicating a moderate rise in leverage. Return on equity has improved over the years, reflecting better utilization of shareholder funds. The equity ratio remains strong, suggesting a stable financial position.

Cash Flow

Operating cash flow has been positive and relatively stable, but free cash flow has shown volatility, with significant growth in recent years. The free cash flow to net income ratio indicates a moderate conversion of earnings into cash, but the fluctuations in free cash flow growth highlight potential risks in cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.32B	2.16B	2.10B	2.00B	1.88B	1.83B
Gross Profit	711.86M	688.75M	623.04M	573.84M	582.92M	595.87M
EBITDA	276.44M	395.67M	349.34M	313.46M	345.11M	198.88M
Net Income	146.10M	150.91M	133.22M	124.87M	140.44M	149.21M
Balance Sheet
Total Assets	0.00	5.20B	5.12B	4.98B	4.92B	4.77B
Cash, Cash Equivalents and Short-Term Investments	471.44M	529.64M	431.83M	274.59M	471.80M	285.48M
Total Debt	0.00	1.20B	1.17B	935.65M	975.02M	892.80M
Total Liabilities	-3.42B	1.82B	1.72B	1.48B	1.47B	1.38B
Stockholders Equity	3.42B	2.86B	2.95B	3.07B	3.02B	2.97B
Cash Flow
Free Cash Flow	0.00	102.44M	113.80M	-127.71M	147.94M	-65.66M
Operating Cash Flow	0.00	216.40M	261.74M	19.15M	247.40M	42.69M
Investing Cash Flow	0.00	-20.03M	-227.22M	-53.37M	-21.83M	-58.25M
Financing Cash Flow	0.00	-119.12M	132.42M	-153.72M	-33.82M	-118.44M

Fraser & Neave Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.48
• 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:F99, the sentiment is Positive. The current price of 1.48 is above the 20-day moving average (MA) of 1.47, above the 50-day MA of 1.48, and above the 200-day MA of 1.36, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 53.45 is Neutral, neither overbought nor oversold. The STOCH value of 63.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:F99.

Fraser & Neave Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5JS	74 Outperform	S$516.48M	5.37	8.46%	2.67%	13.03%	35.10%
F99	71 Outperform	$2.16B	15.26	4.88%	3.12%	7.43%	-6.37%
Q01	70 Outperform	S$514.87M	19.71	5.51%	5.59%	-0.51%	-25.57%
F03	66 Neutral	S$1.24B	33.14	9.42%	4.56%	13.97%	-49.60%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%