OUE Ltd. (LJ3) AI Stock Analysis

• Market Cap: S$782.57M
• Dividend Yield: 1.69%
• Average Volume (3M): 172.93K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.18
• 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): -0.42
• Shares Outstanding: 775,799,440
• 10 Day Avg. Volume: 149,410
• 30 Day Avg. Volume: 172,930
• PEG Ratio: -1.16
• Price to Book (P/B): 0.31
• Price to Sales (P/S): 1.45
• P/FCF Ratio: 11.66
• 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: 47 Neutral
• Price Target: S$1.00 ▼(-15.97% Downside)
• Action: Reiterated Date: 03/02/26
• Date: Action: Reiterated 03/02/26

The score is primarily constrained by weak financial performance—consecutive net losses, very negative net margin, and rising leverage—despite still-positive (but weakening) free cash flow. Technicals add a modest headwind with below-average short/medium-term trend and slightly negative momentum, while valuation support is limited due to negative earnings, partly offset by a modest dividend yield.

Positive Factors

Positive Free Cash Flow

Despite reporting net losses, OUE generated positive free cash flow in 2024–2025. Persistent FCF provides a durable liquidity cushion to fund operations, maintain assets and service debt, giving management time and flexibility to execute restructuring or recovery plans.

Strong Operating/Gross Margins

High gross margins (~54% in 2025) and resilient operating margins show the core property and hospitality operations generate meaningful operating spread. This structural profitability in core activities supports long-term cash generation if below-the-line financing pressures are addressed.

Asset-backed, Recurring Revenue Model

OUE’s business is anchored in owned and managed real estate — rental leases and hotel revenues produce recurring cash inflows. This asset-backed, diversified model reduces revenue cyclicality versus pure developers and supports predictable income over the medium term.

Negative Factors

Rising Leverage

Leverage has increased materially, tightening balance sheet flexibility. Higher debt amplifies interest and refinancing exposure, constrains capital allocation for asset enhancements or acquisitions, and makes the company more vulnerable to cash-flow volatility if operational recovery lags.

Persistent Net Losses

The swing to consecutive net losses and a deeply negative net margin reflects significant below-the-line or financing pressures. Sustained losses erode equity, limit reinvestment and reduce strategic optionality, making recovery dependent on stabilizing non-operating costs or debt servicing burden.

Weakened Cash Generation Trend

Operating cash flow and free cash flow have weakened sharply year-over-year, thinning the company’s financial buffer. Reduced cash conversion increases reliance on external financing, heightens refinancing risk given higher leverage, and limits capacity to absorb further operational setbacks.

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 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

Results are pressured by profitability deterioration (net losses in 2024–2025 and ~-45% net margin in 2025) alongside rising leverage (debt-to-equity ~1.12 in 2025). A key offset is that free cash flow remained positive in 2024–2025, though operating cash flow and FCF weakened materially in 2025.

Income Statement

Revenue has been volatile, with sharp growth in 2022 followed by a modest decline in 2025, and profitability has deteriorated meaningfully: net losses in 2024 and 2025 after profits in 2021–2023. While gross profit remains solid (gross margin ~54% in 2025), earnings quality is weak given the swing to deeply negative net margin (~-45% in 2025). Operating profitability (EBIT/EBITDA margins) looks comparatively strong in 2025, but the persistence of net losses highlights elevated below-the-line charges and/or financing-related pressure.

Balance Sheet

Leverage is moderately high and trending worse, with debt-to-equity rising to ~1.12 in 2025 from ~0.79 in 2023, reducing balance sheet flexibility. Equity remains sizable relative to assets, but returns have turned negative (return on equity ~-9.6% in 2025), consistent with the recent net losses. Overall, the balance sheet is workable for the sector but increasingly constrained by higher leverage and weaker profitability.

Cash Flow

Cash generation is positive but weakening: operating cash flow fell to 107m in 2025 from 266m in 2024, and free cash flow dropped to ~77m with a steep contraction versus the prior year. Despite net losses, free cash flow remained positive in 2024–2025, which is a key support, but cash conversion has become thinner (operating cash flow covers only ~11% of net loss magnitude in 2025 versus ~61% in 2024). The trend suggests greater volatility in underlying cash earnings and less cushion if losses persist.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	624.75M	617.04M	646.50M	623.10M	491.12M	300.81M
Gross Profit	624.75M	334.06M	356.54M	369.31M	286.30M	156.30M
EBITDA	0.00	298.30M	103.98M	303.42M	416.31M	55.92M
Net Income	-153.47M	-277.48M	-285.10M	81.08M	189.86M	80.94M
Balance Sheet
Total Assets	8.89B	8.30B	8.87B	9.27B	9.49B	9.03B
Cash, Cash Equivalents and Short-Term Investments	527.49M	327.73M	603.31M	186.53M	380.51M	599.95M
Total Debt	3.27B	3.24B	3.15B	2.91B	3.01B	2.87B
Total Liabilities	3.65B	3.45B	3.52B	3.39B	3.51B	3.31B
Stockholders Equity	3.20B	2.90B	3.23B	3.67B	3.72B	3.85B
Cash Flow
Free Cash Flow	250.11M	76.98M	236.02M	134.06M	141.84M	56.43M
Operating Cash Flow	250.11M	107.36M	265.74M	183.87M	196.69M	130.84M
Investing Cash Flow	261.48M	-68.03M	298.46M	-77.88M	103.01M	714.13M
Financing Cash Flow	-160.68M	-317.93M	-143.57M	-350.32M	-450.05M	-879.76M

OUE Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.19
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 1.19 is above the 20-day moving average (MA) of 1.18, above the 50-day MA of 1.18, and above the 200-day MA of 1.15, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 36.57 is Neutral, neither overbought nor oversold. The STOCH value of 21.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SG:LJ3.

OUE Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OYY	73 Outperform	S$1.40B	19.87	52.77%	5.59%	26.47%	43.31%
U06	72 Outperform	S$5.03B	18.47	3.47%	1.42%	8.44%	41.63%
TQ5	67 Neutral	S$4.00B	17.41	2.37%	4.02%	-18.20%	40.87%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
CRPU	64 Neutral	S$863.24M	13.59	6.17%	8.87%	5.89%	1.81%
F17	63 Neutral	€2.83B	26.42	2.22%	3.20%	4.58%	-14.92%
LJ3	47 Neutral	S$782.57M	-3.04	-4.81%	1.69%	-1.32%	-211.26%