Far East Orchard Ltd. (O10) AI Stock Analysis

• Market Cap: S$613.67M
• Dividend Yield: 3.17%
• Average Volume (3M): 133.74K
• Price to Earnings (P/E): 10.1
• Beta (1Y): 0.32
• Revenue Growth: -2.21%
• EPS Growth: -20.80%
• Country: SG
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 0.04
• Shares Outstanding: 490,939,300
• 10 Day Avg. Volume: 133,560
• 30 Day Avg. Volume: 133,740
• PEG Ratio: -0.60
• Price to Book (P/B): 0.37
• Price to Sales (P/S): 2.65
• P/FCF Ratio: 12.45
• 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: 71 Outperform
• Price Target: S$1.50 ▲(20.97% Upside)

Far East Orchard Ltd. scores well due to its strong financial performance, particularly in profitability and cash flow generation. The valuation is attractive with a low P/E ratio and a solid dividend yield. However, the technical analysis indicates a lack of strong momentum, which slightly tempers the overall score.

Positive Factors

Cash Flow Generation

Improved cash generation enhances financial flexibility, allowing for reinvestment in growth opportunities and debt management.

Strategic Expansion

Expanding in the UK student accommodation sector strengthens market position and diversifies revenue streams, supporting long-term growth.

Leadership Strengthening

New leadership in lodging platform aims to drive growth and expand international presence, ensuring sustainable long-term development.

Negative Factors

Revenue Growth Decline

Declining revenue growth indicates challenges in expanding sales, which could impact future profitability and market competitiveness.

Low Return on Equity

Low ROE suggests inefficiency in generating returns from equity, potentially limiting attractiveness to investors and affecting capital raising.

EBIT Margin Decrease

Decreasing EBIT margin reflects potential operational inefficiencies, which could pressure profitability if not addressed.

Far East Orchard Ltd. Business Overview & Revenue Model

Company Description

Far East Orchard Limited, an investment holding company, engages in the hotel operations and property investment activities in Singapore, Australia, New Zealand, the United Kingdom, and internationally. The company primarily develops residential, commercial, hospitality, and purpose-built student accommodation properties. It also owns and operates hospitality assets, including hotels. In addition, the company's investment portfolio includes offices at Tanglin Shopping Centre, as well as medical suites at Novena Medical Center and Novena Specialist Center. Further, it manages and leases properties. The company was formerly known as Orchard Parade Holdings Limited and changed its name to Far East Orchard Limited in July 2012. The company was incorporated in 1967 and is headquartered in Singapore. Far East Orchard Limited is a subsidiary of Far East Organization Pte. Ltd.

How the Company Makes Money

Far East Orchard Ltd. generates revenue through multiple key streams including property development sales, rental income from commercial properties, and management fees from its hospitality operations. The company earns significant income from leasing its residential and commercial properties, while also benefiting from hotel management contracts and franchise agreements with established hotel brands. Additionally, strategic partnerships with other real estate and hospitality entities enhance its market reach and operational efficiencies, contributing to overall earnings. The company's focus on sustainable development and innovative real estate solutions also positions it favorably in a competitive market, enabling it to leverage emerging trends in the property and hospitality sectors.

Far East Orchard Ltd. Financial Statement Overview

Summary

Far East Orchard Ltd. exhibits strong profitability and cash flow generation, with a healthy net profit margin and growing free cash flow. However, the decline in revenue growth and modest return on equity highlight areas for improvement. The company's balanced leverage and stable equity position provide a solid foundation for future growth.

Income Statement

Far East Orchard Ltd. shows a strong net profit margin of 32.45% in the TTM, indicating effective cost management and profitability. However, the revenue growth rate has declined by 1.58% in the TTM, suggesting challenges in expanding sales. The gross profit margin remains healthy at 50.58%, but the EBIT margin has decreased to 19.21%, reflecting potential operational inefficiencies.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.52, indicating a balanced approach to leveraging. The return on equity is relatively low at 4.36%, suggesting limited efficiency in generating returns from equity. The equity ratio stands at 51.70%, reflecting a stable financial structure with a significant portion of assets financed by equity.

Cash Flow

The operating cash flow to net income ratio is 0.18, indicating a solid conversion of net income into cash. Free cash flow has grown by 11.5% in the TTM, demonstrating improved cash generation capabilities. The free cash flow to net income ratio of 0.85 suggests strong cash flow relative to net income, supporting financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	185.89M	191.87M	183.62M	140.97M	106.83M	112.22M
Gross Profit	94.03M	98.27M	91.09M	73.11M	46.65M	44.46M
EBITDA	46.00M	105.13M	115.21M	42.00M	81.32M	42.71M
Net Income	60.33M	58.97M	65.95M	21.92M	28.13M	1.54M
Balance Sheet
Total Assets	2.67B	2.64B	2.62B	2.54B	2.63B	2.62B
Cash, Cash Equivalents and Short-Term Investments	172.85M	200.89M	225.63M	233.19M	255.19M	278.38M
Total Debt	713.42M	691.68M	698.88M	701.88M	801.60M	831.07M
Total Liabilities	1.28B	1.25B	1.25B	1.23B	1.33B	1.36B
Stockholders Equity	1.38B	1.39B	1.36B	1.29B	1.28B	1.24B
Cash Flow
Free Cash Flow	49.68M	40.79M	56.21M	36.18M	6.57M	17.68M
Operating Cash Flow	58.32M	46.72M	60.38M	37.27M	16.59M	19.32M
Investing Cash Flow	-13.39M	-10.44M	-4.93M	629.00K	-12.04M	-76.31M
Financing Cash Flow	-67.82M	-63.89M	-60.74M	-47.48M	-24.91M	71.65M

Far East Orchard Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.24
• 50DMA: Positive
• 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:O10, the sentiment is Positive. The current price of 1.24 is below the 20-day moving average (MA) of 1.24, above the 50-day MA of 1.23, and above the 200-day MA of 1.15, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 53.73 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:O10.

Far East Orchard Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
O10	71 Outperform	S$613.67M	10.13	4.51%	3.17%	-2.21%	-20.80%
AW9U	69 Neutral	S$580.52M	14.95	6.63%	8.26%	-11.43%	-39.27%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
H30	62 Neutral	S$674.75M	20.60	1.11%	1.20%	1.94%	-69.89%
5JK	58 Neutral	S$263.51M	24.03	1.53%	0.46%	21.91%	82.03%
LJ3	53 Neutral	S$803.34M	-5.72	-4.81%	1.69%	-1.32%	-211.26%
5UX	41 Neutral	S$364.92M	-61.43	-0.76%	―	8.71%	93.81%

Far East Orchard Ltd. Corporate Events

Far East Orchard Reports S$37.2 Million Profit in 9M FY2025 Amidst Hospitality Challenges

Far East Orchard Limited reported a profit after tax of S$37.2 million for the first nine months of FY2025, significantly boosted by one-off gains totaling S$24.9 million from acquisitions. Despite these gains, the company’s operating profit declined due to weaker performance in its hospitality segment, impacted by refurbishment works and a cyber incident. The student accommodation segment, however, remained stable and contributed positively to the results, partially offsetting the lower operating profit.

The most recent analyst rating on (SG:O10) stock is a Buy with a S$1.50 price target. To see the full list of analyst forecasts on Far East Orchard Ltd. stock, see the SG:O10 Stock Forecast page.