OUE Ltd. (LJ3) AI Stock Analysis

• Market Cap: S$692.54M
• Dividend Yield: 2%
• Average Volume (3M): 110.18K
• 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: 66
• Industry: Real Estate - Diversified
• EPS (TTM): -0.36
• Shares Outstanding: 775,799,440
• 10 Day Avg. Volume: 208,140
• 30 Day Avg. Volume: 110,180
• PEG Ratio: 0.04
• Price to Book (P/B): 0.29
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.61
• 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: 57 Neutral
• Price Target: S$1.00 ▲(0.00%Upside)

OUE Ltd.'s overall stock score reflects its mixed financial performance and modest technical indicators. While operational efficiencies and strong cash flow management are strengths, significant profitability challenges and declining equity ratios pose risks. The technical analysis indicates a lack of strong momentum, and valuation metrics highlight profitability concerns despite a high dividend yield. Investors should be cautious, considering potential strategic adjustments needed for future stability.

OUE Ltd. Business Overview & Revenue Model

Company Description

OUE Limited, an investment holding company, develops, owns, and operates various real estate properties in Singapore, the People's Republic of China, the United States, Indonesia, and internationally. The company operates through Investment Properties, Hospitality, Development Properties, Healthcare, and Consumer segments. It develops and manages assets across the commercial, hospitality, retail, residential, and healthcare sectors. The company also engages in the rental of investment properties; development and sale of residential and other properties; operation of hotels; provision of hotel management services; management of real estate investment trusts; and operation of food and beverage outlets. In addition, it develops medical real estate, healthcare-related assets, and integrated mixed-use developments; provides healthcare services; and management of healthcare investment trusts. Further, the company is involved in the restaurant and investment trading operations; and the operation and management of healthcare facilities, including hospitals, clinics, and nursing homes. The company was formerly known as Overseas Union Enterprise Limited and changed its name to OUE Limited in August 2013. The company was incorporated in 1964 and is headquartered in Singapore. OUE Limited is a subsidiary of OUE Realty Pte. Ltd.

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. Operational efficiencies are evident, but the company faces profitability challenges due to a significant net loss. The balance sheet shows moderate leverage, with declining equity ratios posing future risks. Cash flow generation is strong, but heavily reliant on operating activities. Strategic adjustments may be needed to enhance profitability and financial stability.

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
	EBIT
239.72M	261.85M	379.69M	307.05M	-206.75M
	EBITDA
103.98M	303.42M	416.31M	55.92M	-391.96M
	Net Income Common Stockholders
-285.10M	81.08M	189.86M	80.94M	-343.38M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
603.31M	186.53M	380.51M	599.95M	620.50M
	Total Assets
8.87B	9.27B	9.49B	9.03B	9.62B
	Total Debt
3.15B	2.91B	3.01B	2.87B	3.50B
	Net Debt
2.55B	2.73B	2.68B	2.35B	2.94B
	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: 1.00
• 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:LJ3, the sentiment is Positive. The current price of 1 is above the 20-day moving average (MA) of 0.98, above the 50-day MA of 0.95, and above the 200-day MA of 0.99, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 62.10 is Neutral, neither overbought nor oversold. The STOCH value of 46.67 is Neutral, 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
A17U	76 Outperform	$11.97B	15.13	7.61%	5.83%	-1.52%	313.98%
C38U	73 Outperform	$15.59B	15.66	6.32%	5.11%	1.54%	4.48%
K71U	67 Neutral	$3.40B	33.78	2.02%	6.40%	4.19%	-42.41%
C52	66 Neutral	$3.08B	14.61	8.14%	9.91%	15.36%	16.55%
Sector *	61 Neutral	$2.84B	10.78	0.41%	6.09%	6.01%	-21.16%
M44U	59 Neutral	$5.73B	30.96	2.74%	5.43%	-0.97%	-40.20%
LJ3	57 Neutral	S$692.54M	―	-8.35%	2.00%	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.