OUE Ltd. (LJ3) AI Stock Analysis

• Market Cap: €879.52M
• Dividend Yield: 1.65%
• Average Volume (3M): 172.93K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.19
• Revenue Growth: -1.32%
• EPS Growth: -211.26%
• Country: SG
• Employees: 1,133
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Diversified
• EPS (TTM): 0.05
• Shares Outstanding: 775,799,440
• 10 Day Avg. Volume: 149,410
• 30 Day Avg. Volume: 172,930
• PEG Ratio: <0.01
• Price to Book (P/B): 0.25
• Price to Sales (P/S): 1.26
• P/FCF Ratio: 3.46
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: S$1.50 ▲(23.97% Upside)

OUE Ltd.'s overall stock score is primarily influenced by financial performance challenges, including declining revenue and profitability, and negative net profit margins. Technical analysis shows bullish momentum, but overbought conditions suggest caution. Valuation is weak due to a negative P/E ratio, reflecting profitability issues. The absence of earnings call data and corporate events leaves these areas unaddressed.

Positive Factors

Cash Flow Management

Strong cash flow management indicates the company's ability to sustain operations and invest in growth, despite profitability challenges.

Gross Profit Margin

A healthy gross profit margin suggests efficient cost management in core operations, providing a buffer against revenue volatility.

Balanced Capital Structure

A balanced capital structure with moderate leverage supports financial stability and flexibility for future investments and growth.

Negative Factors

Declining Revenue Growth

Significant revenue decline indicates challenges in market demand or competitive positioning, affecting long-term growth prospects.

Negative Net Profit Margin

A negative net profit margin reflects profitability issues, potentially impacting reinvestment capabilities and shareholder returns.

Operational Inefficiencies

Decreasing EBIT and EBITDA margins suggest operational inefficiencies, which could hinder the company's ability to improve profitability.

OUE Ltd. Business Overview & Revenue Model

Company Description

OUE Ltd. (LJ3) is a Singapore-based diversified real estate and hospitality company. The firm operates primarily in the sectors of property development, property investment, and hospitality, with a portfolio that includes commercial, retail, and residential properties. OUE Ltd. is known for its flagship developments such as OUE Downtown, OUE Bayfront, and the iconic Mandarin Orchard Singapore, showcasing its commitment to excellence in real estate management and development.

How the Company Makes Money

OUE Ltd. generates revenue through several key streams, primarily from the leasing and sale of its diverse property portfolio. The company earns rental income from its commercial and retail properties, which are occupied by various tenants ranging from multinational corporations to retail brands. Additionally, OUE Ltd. profits from the sale of residential units in its development projects. The hospitality segment contributes to earnings through room bookings, dining services, and event hosting at its hotels. Strategic partnerships with other real estate developers and investors enhance its market positioning and open up new avenues for revenue, while ongoing asset management and property enhancement initiatives aim to maximize the value and income generated from its properties.

OUE Ltd. Financial Statement Overview

Summary

OUE Ltd. faces challenges with declining revenue and profitability, as evidenced by negative net profit margins and reduced EBIT and EBITDA margins. The balance sheet shows moderate leverage but negative returns on equity, highlighting inefficiencies. Cash flow remains a relative strength, with adequate cash generation despite declining free cash flow growth. Overall, the company needs to address profitability and operational efficiency to improve its financial health.

Income Statement

OUE Ltd. has experienced declining revenue growth with a significant drop of 19.1% in the latest year. The gross profit margin remains healthy at 55.1%, but the net profit margin has turned negative at -44.1%, indicating profitability challenges. The EBIT and EBITDA margins have also decreased, reflecting operational inefficiencies.

Balance Sheet

The company's debt-to-equity ratio is relatively stable at 0.97, suggesting moderate leverage. However, the return on equity is negative at -8.8%, indicating poor returns for shareholders. The equity ratio stands at 36.5%, showing a balanced capital structure but with room for improvement in asset utilization.

Cash Flow

OUE Ltd. has shown resilience in cash flow management with a free cash flow to net income ratio of 0.89, despite a decline in free cash flow growth by 8.1%. The operating cash flow to net income ratio is 0.61, indicating adequate cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	624.75M	646.50M	623.10M	491.12M	300.81M	530.46M
Gross Profit	624.75M	356.54M	369.31M	286.30M	156.30M	234.37M
EBITDA	0.00	103.98M	303.42M	416.31M	55.92M	-391.96M
Net Income	-153.47M	-285.10M	81.08M	189.86M	80.94M	-343.38M
Balance Sheet
Total Assets	8.89B	8.87B	9.27B	9.49B	9.03B	9.62B
Cash, Cash Equivalents and Short-Term Investments	527.49M	603.31M	186.53M	380.51M	599.95M	620.50M
Total Debt	3.27B	3.15B	2.91B	3.01B	2.87B	3.50B
Total Liabilities	3.65B	3.52B	3.39B	3.51B	3.31B	3.97B
Stockholders Equity	3.20B	3.23B	3.67B	3.72B	3.85B	3.74B
Cash Flow
Free Cash Flow	250.11M	236.02M	134.06M	141.84M	56.43M	168.06M
Operating Cash Flow	250.11M	265.74M	183.87M	196.69M	130.84M	180.74M
Investing Cash Flow	261.48M	298.46M	-77.88M	103.01M	714.13M	686.56M
Financing Cash Flow	-160.68M	-143.57M	-350.32M	-450.05M	-879.76M	-785.09M

OUE Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.21
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Neutral. The current price of 1.21 is below the 20-day moving average (MA) of 1.24, below the 50-day MA of 1.22, and above the 200-day MA of 1.07, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 37.98 is Neutral, neither overbought nor oversold. The STOCH value of 25.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SG:LJ3.

OUE Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRPU	73 Outperform	S$863.24M	13.56	6.17%	8.80%	5.89%	1.81%
TQ5	71 Outperform	$4.08B	15.52	2.37%	4.33%	-18.13%	40.87%
U06	70 Outperform	$4.41B	15.11	3.47%	1.48%	8.44%	41.63%
F17	67 Neutral	€2.24B	23.96	2.22%	3.47%	4.58%	-14.92%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
OYY	60 Neutral	S$1.71B	26.64	52.77%	5.38%	26.47%	43.31%
LJ3	53 Neutral	€879.52M	-6.21	-4.81%	1.65%	-1.32%	-211.26%