OUE Ltd. (LJ3) AI Stock Analysis

• Market Cap: €741.01M
• Dividend Yield: 1.87%
• Average Volume (3M): 179.05K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.26
• Revenue Growth: 3.76%
• EPS Growth: -480.94%
• Country: SG
• Employees: 1,133
• Sector: Real Estate
• Sector Strength: 55
• Industry: Real Estate - Diversified
• EPS (TTM): -0.36
• Shares Outstanding: 775,799,440
• 10 Day Avg. Volume: 215,270
• 30 Day Avg. Volume: 179,053
• PEG Ratio: 0.03
• Price to Book (P/B): 0.25
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.14
• 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

• Rating: 58 Neutral
• Price Target: S$1.00 ▼(-10.71%Downside)

OUE Ltd.'s overall stock score is primarily influenced by its financial performance and technical analysis. The company shows strong operational efficiency but is hampered by profitability issues, reflected in a negative P/E ratio. Technical indicators suggest a short-term bullish trend, but the overbought condition poses a risk of a potential pullback. Valuation concerns further weigh down the score.

OUE Ltd. Business Overview & Revenue Model

Company Description

OUE Ltd. is a diversified real estate company based in Singapore, operating across various sectors including commercial, hospitality, retail, and residential properties. The company is known for its investment, development, and management of premium real estate assets in key locations across Asia and the United States. OUE Ltd.'s portfolio comprises high-quality office buildings, hotels, shopping malls, and residential developments, offering a comprehensive suite of property-related services.

How the Company Makes Money

OUE Ltd. generates revenue through multiple streams associated with its diverse portfolio. Primarily, the company earns income from leasing office spaces and retail areas to tenants, providing a stable and recurring cash flow. Additionally, OUE Ltd. derives revenue from its hospitality segment by operating hotels and serviced residences, capitalizing on both business and leisure travel markets. The company also engages in property development, where it earns profit from the sale of residential units and other developed properties. Furthermore, OUE Ltd. leverages strategic partnerships and joint ventures to enhance its investment capabilities and expand its asset base, contributing to its revenue growth. The company's performance is influenced by factors such as real estate market conditions, occupancy rates, and economic trends in its operational regions.

OUE Ltd. Financial Statement Overview

Summary

OUE Ltd. exhibits a mixed financial performance. Strong operational efficiencies are evident with a robust EBIT margin, but the company faces profitability challenges due to a significant net loss. The balance sheet reflects moderate leverage, but declining equity ratios may pose future risks. Cash flow generation is strong, albeit heavily reliant on operating activities.

Income Statement

OUE Ltd. shows a mixed performance in its income statement. The revenue growth from 2023 to 2024 is modest at 3.75%. Gross profit margin is strong at 100% for 2024, suggesting effective cost management. However, the net profit margin is negative due to a considerable net loss, indicating profitability challenges. EBIT margin is robust at 84.62%, highlighting operational efficiency, but the negative EBITDA margin in 2024 raises concerns about cash generation from operations.

Balance Sheet

The balance sheet of OUE Ltd. reflects moderate financial health. The debt-to-equity ratio is approximately 0.97, indicating a balanced leverage position. However, the declining equity ratio from 39.64% in 2023 to 36.47% in 2024 suggests a decrease in financial stability. Return on equity is negative due to the net loss, which is a significant drawback.

Cash Flow

OUE Ltd.'s cash flow statement is relatively strong, with a significant free cash flow increase in 2024 and a solid operating cash flow to net income ratio despite the net loss. The free cash flow to net income ratio is also positive, underscoring effective cash management. However, the reliance on operating activities for cash flow amidst net losses could be a potential risk.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	646.50M	623.10M	491.12M	300.81M	530.46M
Gross Profit	365.61M	360.42M	286.30M	156.30M	234.37M
EBITDA	103.98M	303.42M	416.31M	55.92M	-391.96M
Net Income	-285.10M	81.08M	189.86M	80.94M	-343.38M
Balance Sheet
Total Assets	8.87B	9.27B	9.49B	9.03B	9.62B
Cash, Cash Equivalents and Short-Term Investments	603.31M	186.53M	380.51M	599.95M	620.50M
Total Debt	3.15B	2.91B	3.01B	2.87B	3.50B
Total Liabilities	3.52B	3.39B	3.51B	3.31B	3.97B
Stockholders Equity	3.23B	3.67B	3.72B	3.85B	3.74B
Cash Flow
Free Cash Flow	236.02M	134.06M	141.84M	56.43M	168.06M
Operating Cash Flow	265.74M	183.87M	196.69M	130.84M	180.74M
Investing Cash Flow	298.46M	-105.73M	103.01M	714.13M	686.56M
Financing Cash Flow	-143.57M	-220.58M	-450.05M	-879.76M	-785.09M

OUE Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.12
• 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:LJ3, the sentiment is Positive. The current price of 1.12 is above the 20-day moving average (MA) of 1.03, above the 50-day MA of 0.99, and above the 200-day MA of 0.99, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 80.84 is Negative, neither overbought nor oversold. The STOCH value of 93.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:LJ3.

OUE Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TQ5	75 Outperform	$3.51B	13.36	2.80%	5.03%	19.82%	―
F17	75 Outperform	S$1.71B	14.42	2.74%	3.90%	-10.37%	-39.46%
CRPU	74 Outperform	S$809.81M	14.33	5.45%	9.01%	-3.56%	-10.89%
OYY	74 Outperform	S$814.00M	19.89	32.93%	8.18%	-6.58%	-14.40%
U06	70 Outperform	$3.28B	11.54	3.45%	2.53%	7.09%	4.97%
Sector *	66 Neutral	$1.95B	17.47	2.45%	5.17%	-1.17%	4.31%
LJ3	58 Neutral	€741.01M	―	-8.35%	1.87%	3.76%	-480.94%

OUE Ltd. Corporate Events

OUE and Tokyo Century Break Ground on Zero-Energy Hotel at Changi Airport

OUE Limited, in partnership with Tokyo Century Corporation, has commenced the groundbreaking of Hotel Indigo Changi Airport, a 255-room hotel expected to be fully operational by 2028. This development is set to become Singapore’s first zero-energy hotel, strategically located next to Terminal 2 of Changi Airport, enhancing the airport’s offerings with sustainable design and hospitality, and potentially strengthening OUE’s position in the hospitality sector.