Far East Orchard Ltd. (O10) AI Stock Analysis

• Market Cap: €520.40M
• Dividend Yield: 3.92%
• Average Volume (3M): 83.67K
• Price to Earnings (P/E): 8.8
• Beta (1Y): 0.14
• Revenue Growth: 4.49%
• EPS Growth: -10.72%
• Country: SG
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 55
• Industry: Real Estate - Services
• EPS (TTM): 0.12
• Shares Outstanding: 490,939,300
• 10 Day Avg. Volume: 88,190
• 30 Day Avg. Volume: 83,666
• PEG Ratio: -0.99
• Price to Book (P/B): 0.40
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.15
• 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: 67 Neutral
• Price Target: ―

Far East Orchard Ltd. is in solid financial health, with strong revenue growth and robust margins, although profitability and cash flow challenges persist. The technical indicators suggest a neutral trend, and the stock appears undervalued with an attractive dividend yield, making it appealing for value investors.

Far East Orchard Ltd. Business Overview & Revenue Model

Company Description

Far East Orchard Ltd. (O10) is a Singapore-based company engaged primarily in real estate development and hospitality management. The company operates in various sectors including property development, hotel ownership and management, and property investment. Its core services include developing residential, commercial, and hospitality projects, as well as managing a portfolio of strategically located hotels and serviced residences in Singapore and other key international markets.

How the Company Makes Money

Far East Orchard Ltd. generates revenue through multiple streams. The primary revenue sources include the sale of developed properties, which encompasses residential and commercial real estate projects. Additionally, the company earns income from its hospitality operations, which involve owning and managing hotels and serviced residences under various brand names. This includes room bookings, food and beverage sales, and other hospitality services. The company also benefits from rental income through its investment portfolio of commercial and industrial properties. Moreover, Far East Orchard engages in strategic partnerships and joint ventures, which help enhance its market presence and contribute to its revenue. These partnerships often involve collaborations with other real estate developers or hospitality brands to leverage mutual strengths and expand their service offerings.

Far East Orchard Ltd. Financial Statement Overview

Summary

Far East Orchard Ltd. shows solid financial health with consistent revenue growth and strong margins. However, challenges such as declining net income margins and reduced operating cash flow impact its financial performance. The balance sheet remains stable with moderate leverage, but addressing profitability and cash flow issues is crucial for improvement.

Income Statement

Far East Orchard Ltd. has shown a consistent revenue growth with a 4.5% increase in revenue from 2023 to 2024. The gross profit margin remains robust at 51.2% for 2024, indicating efficient cost management. However, the net profit margin decreased from 35.9% in 2023 to 30.7% in 2024, which suggests increased costs or reduced pricing power. The EBIT margin slightly declined to 19.8%, while the EBITDA margin is healthy at 54.8%, reflecting strong earnings before interest, taxes, depreciation, and amortization.

Balance Sheet

The company's balance sheet shows a stable equity base with a debt-to-equity ratio of 0.50, indicating moderate leverage. The equity ratio is 52.5%, reflecting a strong equity position relative to total assets. The return on equity (ROE) decreased to 4.3% in 2024 from 4.9% in 2023, pointing to declining efficiency in generating profits from shareholders' equity.

Cash Flow

Far East Orchard Ltd. has experienced a decrease in operating cash flow from 60.4 million in 2023 to 46.7 million in 2024, impacting its ability to generate cash from operations. The free cash flow decreased by 27.4% year over year, but the free cash flow to net income ratio remains positive at 0.69, indicating that the company generates adequate free cash flow relative to its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	190.09M	191.87M	183.62M	140.97M	106.83M	112.22M
Gross Profit	92.34M	98.27M	91.09M	73.11M	46.65M	44.46M
EBITDA	48.04M	105.13M	115.21M	63.12M	64.22M	41.88M
Net Income	75.97M	58.97M	65.95M	21.92M	28.13M	1.54M
Balance Sheet
Total Assets	2.64B	2.64B	2.62B	2.54B	2.63B	2.62B
Cash, Cash Equivalents and Short-Term Investments	202.31M	200.89M	225.63M	233.19M	255.19M	247.15M
Total Debt	707.57M	691.68M	698.88M	701.88M	801.60M	831.07M
Total Liabilities	1.27B	1.25B	1.25B	1.23B	1.33B	1.36B
Stockholders Equity	1.36B	1.39B	1.36B	1.29B	1.28B	1.24B
Cash Flow
Free Cash Flow	41.77M	40.79M	56.21M	36.18M	6.57M	17.68M
Operating Cash Flow	46.38M	46.72M	60.38M	37.27M	16.59M	19.32M
Investing Cash Flow	-15.82M	-30.03M	-4.93M	629.00K	-12.04M	-76.31M
Financing Cash Flow	-58.30M	-37.19M	-60.74M	-47.48M	-24.91M	71.65M

Far East Orchard Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 1.06 is above the 20-day moving average (MA) of 1.01, above the 50-day MA of 1.00, and above the 200-day MA of 0.98, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 59.53 is Neutral, neither overbought nor oversold. The STOCH value of 88.89 is Negative, 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
AW9U	72 Outperform	$567.79M	16.07	5.74%	8.59%	-7.43%	-43.62%
AW9U	72 Outperform	$567.79M	16.07	5.74%	8.59%	-7.43%	-43.62%
O10	67 Neutral	€520.40M	8.78	4.28%	3.92%	4.49%	-10.72%
Sector *	66 Neutral	$1.96B	17.42	2.45%	5.23%	-1.17%	4.31%
H30	60 Neutral	S$633.35M	20.68	1.03%	1.71%	-5.00%	-73.03%
H30	60 Neutral	S$633.35M	20.68	1.03%	1.71%	-5.00%	-73.03%
LJ3	56 Neutral	€734.09M	―	-8.35%	1.89%	3.76%	-480.94%
LJ3	56 Neutral	€734.09M	―	-8.35%	1.89%	3.76%	-480.94%
5JK	48 Neutral	S$242.34M	36.79	0.92%	1.89%	12.04%	18.64%
5JK	48 Neutral	S$242.34M	36.79	0.92%	1.89%	12.04%	18.64%
5UX	47 Neutral	€382.09M	―	-10.73%	―	-34.68%	-10.10%
5UX	47 Neutral	€382.09M	―	-10.73%	―	-34.68%	-10.10%

Far East Orchard Ltd. Corporate Events

Far East Orchard Secures £96 Million for Student Accommodation Fund

Far East Orchard Limited has successfully closed its first private student accommodation development fund, securing £96.0 million in committed capital. This move aligns with the company’s strategy to adopt an asset-light model and enhance its recurring fee-based income. The fund, which targets purpose-built student accommodation in key UK university cities, has already allocated over 35% of its capital to projects in Glasgow and Manchester. This development underscores Far East Orchard’s commitment to expanding its lodging platform and delivering long-term value to stakeholders through strategic investments and partnerships.

Far East Orchard’s Associated Company Wins Appeal in Misrepresentation Case

Far East Orchard Limited announced that its associated company, FEOpus, has successfully appealed against a court decision related to alleged misrepresentations in the sale of units at SBF Center, a commercial development completed in 2016. The court’s ruling, which overturned the Assistant Registrar’s decision, is significant as it sets a legal precedent that will affect all other claimants involved in similar cases, potentially impacting the financial liabilities of FEOpus and the company’s market positioning.

Far East Orchard Ltd. Ends Joint Venture in China

Far East Orchard Ltd. announced the termination of its joint venture agreement with Real Hospitality Group Asia Co., Limited, which was initially aimed at establishing a hospitality management business in China. The decision to terminate was due to the inability to find suitable opportunities post-COVID-19 recovery in the tourism sector. The company stated that this termination will not materially impact its financial performance for the year ending December 2025, and it remains committed to seeking strategic opportunities in other regions.

Far East Orchard Limited’s 57th AGM Highlights Strategic Focus

Far East Orchard Limited held its 57th Annual General Meeting, where the Group CEO, Mr. Alan Tang, presented the company’s financial performance for the year ending December 2024. The meeting highlighted the company’s strategic focus on hospitality and property development amidst geopolitical and economic challenges, with voting conducted by poll.

Far East Orchard Achieves S$17.1 Million Profit in Q1 FY2025

Far East Orchard Limited reported a profit after tax of S$17.1 million for the first quarter of FY2025, significantly boosted by a one-off gain from increasing its stake in Woods Square. Despite a decline in revenue due to refurbishment at an Australian property, the company saw strong contributions from its UK student accommodation segment and property development business, reflecting its strategic focus on scaling its lodging platform.