Far East Orchard Ltd. (O10) AI Stock Analysis

• Market Cap: €638.22M
• Dividend Yield: 3.08%
• Average Volume (3M): 219.27K
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.30
• 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: 214,580
• 30 Day Avg. Volume: 219,270
• 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: €1.50
• Price Target Upside: 18.80% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 66 Neutral
• Price Target: S$1.50 ▲(19.05% Upside)

The overall stock score for Far East Orchard Ltd. is driven by a strong valuation due to its low P/E ratio and attractive dividend yield. However, technical analysis suggests caution due to potential overbought conditions. Financial performance is solid but shows areas for improvement in cash generation.

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 several key streams. In the real estate sector, the company earns income from the sale of developed properties, which includes residential, commercial, and industrial units. Additionally, it benefits from property leasing activities, where it rents out commercial spaces and other real estate holdings. In the hospitality sector, revenue is derived from the management and operation of hotels and serviced residences. This includes room bookings, food and beverage sales, and other ancillary services provided to guests. The company's strategic partnerships with international hospitality brands and its focus on expanding its hospitality footprint in key markets also contribute significantly to its earnings.

Far East Orchard Ltd. Financial Statement Overview

Summary

Far East Orchard Ltd. demonstrates solid financial health with consistent revenue growth and strong margins, despite challenges in net income and cash flow. The balance sheet remains stable with moderate leverage, but the company needs to improve operational cash generation.

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: Neutral
• Last Price: 1.26
• 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 Neutral. The current price of 1.26 is below the 20-day moving average (MA) of 1.28, above the 50-day MA of 1.23, and above the 200-day MA of 1.05, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 49.57 is Neutral, neither overbought nor oversold. The STOCH value of 35.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	73 Outperform	S$600.51M	15.49	5.81%	8.04%	-11.43%	-39.27%
LJ3	69 Neutral	S$810.27M	-5.72	-8.81%	1.71%	-1.32%	-211.26%
O10	66 Neutral	€638.22M	10.53	4.51%	3.08%	-2.21%	-20.80%
5JK	61 Neutral	S$265.87M	24.25	0.92%	0.44%	21.91%	82.03%
H30	59 Neutral	S$654.05M	19.85	1.03%	1.27%	1.94%	-69.89%
5UX	50 Neutral	S$455.08M	-75.71	―	―	8.71%	93.81%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Far East Orchard Ltd. Corporate Events

Far East Orchard Strengthens Leadership in Lodging Platform

Far East Orchard Limited has announced significant senior management appointments to bolster its Lodging Platform, which includes Hospitality and PBSA. Mr. Yang Zejian will lead the PBSA business as Managing Director, focusing on growth in the UK and other markets, while Mr. Mark Rohner is set to become the Deputy Managing Director of Far East Hospitality, with plans to expand its international presence. These appointments are part of the company’s strategic succession planning aimed at ensuring sustainable long-term growth.

The most recent analyst rating on (SG:O10) stock is a Hold 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.

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.