Great Eastern Holdings Limited (G07) AI Stock Analysis

• Market Cap: S$7.76B
• Dividend Yield: 3.1%
• Average Volume (3M): 26.09K
• Price to Earnings (P/E): 14.6
• Beta (1Y): 0.05
• Revenue Growth: -0.39%
• EPS Growth: 8.38%
• Country: SG
• Employees: 5,250
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Life
• EPS (TTM): N/A
• Shares Outstanding: 503,030,120
• 10 Day Avg. Volume: 26,770
• 30 Day Avg. Volume: 26,086
• PEG Ratio: -0.34
• Price to Book (P/B): 1.41
• Price to Sales (P/S): 1.72
• P/FCF Ratio: -4.69
• 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: 74 Outperform
• Price Target: S$17.00 ▲(14.79% Upside)

Great Eastern Holdings Limited shows strong financial stability and profitability, supported by efficient operations and low leverage. The technical indicators suggest a positive trend, enhancing the stock's appeal. However, challenges in revenue growth and negative cash flows, along with a reasonable valuation, moderate the overall score.

Positive Factors

Financial Stability

Low leverage enhances financial stability, providing the company with flexibility to invest in growth opportunities and withstand economic downturns.

Dividend Policy

A steady and increasing dividend policy indicates strong cash generation and management's confidence in future earnings, appealing to income-focused investors.

Profitability

High return on equity demonstrates efficient management and profitability, which can lead to sustained shareholder value creation over time.

Negative Factors

Revenue Decline

Declining revenue indicates potential market share loss or reduced demand, which could impact long-term growth prospects if not addressed.

Negative Cash Flows

Negative cash flows can strain liquidity and limit the company's ability to invest in growth, potentially affecting its financial health and operational capabilities.

Strategic Uncertainty

The potential exit offer introduces strategic uncertainty, which could impact the company's direction and stakeholder interests, affecting long-term stability.

Great Eastern Holdings Limited Business Overview & Revenue Model

Company Description

Great Eastern Holdings Limited (G07) is a leading life insurance and financial services company headquartered in Singapore. Established in 1908, the company operates primarily in the insurance and investment sectors, providing a range of products including life insurance, health insurance, and general insurance. Great Eastern serves both individual and corporate clients, with a strong presence in Southeast Asia, leveraging its extensive network of agents and digital platforms to deliver tailored financial solutions.

How the Company Makes Money

Great Eastern Holdings generates revenue primarily through the sale of insurance products, which include life, health, and general insurance policies. The company earns premiums from policyholders, forming a significant portion of its income. Additionally, Great Eastern generates investment income through its portfolio of financial assets, including equities, bonds, and real estate investments. The company also benefits from fees and commissions earned from various financial services and products, such as unit trusts and investment-linked policies. Partnerships with banks and financial institutions enhance its distribution capabilities, allowing for greater market penetration and customer reach. Overall, the combination of premium income, investment returns, and service fees constitutes the core of Great Eastern's revenue model.

Great Eastern Holdings Limited Financial Statement Overview

Summary

Great Eastern Holdings Limited demonstrates strong profitability and financial stability with efficient operations and low leverage. However, declining revenue and negative cash flows pose challenges that need addressing to ensure long-term sustainability.

Income Statement

Great Eastern Holdings Limited shows a stable gross profit margin of 100%, indicating strong cost management. However, the net profit margin is moderate at 14.02%, and revenue has declined by 3.9% in the latest year, suggesting challenges in revenue growth. EBIT and EBITDA margins are healthy, reflecting efficient operations.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.06, indicating low leverage and financial stability. Return on equity is strong at 11.46%, showcasing effective use of equity to generate profits. The equity ratio is solid, suggesting a well-capitalized balance sheet.

Cash Flow

The cash flow statement reveals negative operating and free cash flows, which is concerning. The free cash flow to net income ratio is slightly above 1, indicating that free cash flow covers net income, but the significant decline in free cash flow growth rate suggests potential liquidity issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.85B	7.10B	5.72B	6.21B	19.96B	21.47B
Gross Profit	4.58B	7.10B	3.33B	6.21B	19.96B	21.47B
EBITDA	2.40B	1.61B	1.16B	898.00M	2.73B	835.10M
Net Income	1.00B	995.30M	774.60M	610.00M	1.11B	960.60M
Balance Sheet
Total Assets	117.25B	113.91B	109.03B	107.92B	110.39B	106.93B
Cash, Cash Equivalents and Short-Term Investments	17.98B	18.32B	6.30B	9.61B	9.12B	9.65B
Total Debt	521.60M	521.70M	51.50M	62.60M	74.40M	487.20M
Total Liabilities	107.25B	105.12B	101.04B	98.39B	100.25B	97.45B
Stockholders Equity	9.91B	8.69B	7.89B	9.43B	10.03B	9.36B
Cash Flow
Free Cash Flow	1.21B	-2.61B	-1.12B	6.64B	4.17B	4.24B
Operating Cash Flow	1.27B	-2.49B	-1.02B	6.71B	4.27B	4.34B
Investing Cash Flow	-3.96B	520.90M	-1.83B	-5.89B	-4.08B	-603.30M
Financing Cash Flow	208.00M	62.20M	-448.80M	-330.80M	-724.80M	-306.20M

Great Eastern Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.81
• 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:G07, the sentiment is Positive. The current price of 14.81 is below the 20-day moving average (MA) of 15.30, below the 50-day MA of 15.21, and above the 200-day MA of 13.75, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 74.67 is Negative, neither overbought nor oversold. The STOCH value of 87.36 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:G07.

Great Eastern Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HPAD	80 Outperform	S$220.76B	8.21	14.73%	4.51%	7.65%	16.83%
D05	78 Outperform	$163.34B	14.51	17.10%	5.06%	2.67%	6.32%
G07	74 Outperform	S$7.76B	14.58	11.35%	3.10%	-0.39%	8.38%
O39	71 Outperform	S$88.98B	12.10	12.87%	4.71%	0.69%	-0.06%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
U11	65 Neutral	$59.55B	10.08	12.80%	6.49%	-0.76%	4.96%