Delfi (P34) AI Stock Analysis

• Market Cap: S$504.20M
• Dividend Yield: 3.45%
• Average Volume (3M): 583.77K
• Price to Earnings (P/E): 14.3
• Beta (1Y): 0.77
• Revenue Growth: -4.54%
• EPS Growth: -35.71%
• Country: SG
• Employees: 6,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Confectioners
• EPS (TTM): N/A
• Shares Outstanding: 611,157,000
• 10 Day Avg. Volume: 838,560
• 30 Day Avg. Volume: 583,770
• PEG Ratio: -0.39
• Price to Book (P/B): 1.32
• Price to Sales (P/S): 0.69
• P/FCF Ratio: 14.76
• 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: S$0.80
• Price Target Upside: 0.51% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.05
• Revenue Forecast (FY): S$663.19M

• Rating: 68 Neutral
• Price Target: S$1.00 ▲(25.00% Upside)

Delfi's overall stock score is driven by its stable financial performance and attractive valuation. The company's low leverage and strong cash flow metrics are significant strengths. However, the recent decline in revenue growth and mixed technical indicators present some risks. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Cash Generation Ability

Strong cash generation supports operational flexibility and potential reinvestment opportunities, enhancing long-term business sustainability.

Balance Sheet Health

A strong balance sheet with low leverage reduces financial risk, providing stability and the ability to weather economic fluctuations.

Operational Efficiency

Efficient operations as indicated by healthy margins suggest the company can maintain profitability even amidst revenue challenges.

Negative Factors

Revenue Decline

A decline in revenue growth can signal challenges in market demand or competitive pressures, potentially impacting future profitability.

Earnings Decline

Significant decline in earnings per share suggests profitability challenges, which could affect investor confidence and future growth prospects.

Revenue Growth Concerns

Persistent revenue decline may indicate underlying issues in market strategy or product competitiveness, impacting long-term growth.

Delfi Business Overview & Revenue Model

Company Description

Delfi (P34) is a leading player in the fast-moving consumer goods sector, specializing in the production and distribution of confectionery products, snacks, and other food items. The company operates primarily in Southeast Asia and Eastern Europe, leveraging its extensive distribution network and strong brand portfolio to meet consumer demands. Delfi focuses on delivering high-quality products that cater to local tastes, with a range of offerings that include chocolate, biscuits, and other snack foods.

How the Company Makes Money

Delfi generates revenue through multiple streams, primarily by selling its confectionery and snack products to retailers and distributors across its operational regions. The company benefits from economies of scale in production, which allows it to maintain competitive pricing while ensuring quality. Key revenue streams include direct sales to supermarkets, convenience stores, and online platforms, as well as export sales to international markets. Additionally, Delfi engages in strategic partnerships with other brands and distributors, enhancing its market presence and expanding its product offerings. Seasonal promotions and innovative marketing campaigns further contribute to sales growth, while brand loyalty and recognition in key markets bolster repeat purchases.

Delfi Financial Statement Overview

Summary

Delfi demonstrates a stable financial position with strong profitability and cash flow metrics, despite recent revenue declines. The company maintains low leverage and effective equity utilization, which supports its financial health. While revenue growth is a concern, operational efficiency and cash generation remain strengths.

Income Statement

Delfi's income statement shows mixed performance. The TTM (Trailing-Twelve-Months) data indicates a decline in revenue growth at -12.5%, which is concerning. However, the company maintains a reasonable gross profit margin of 26.73% and a net profit margin of 5.30%. The EBIT and EBITDA margins are also healthy at 7.26% and 9.12%, respectively, suggesting operational efficiency. Despite the revenue decline, profitability metrics remain stable.

Balance Sheet

The balance sheet reflects a strong financial position with a low debt-to-equity ratio of 0.074, indicating low leverage. The return on equity (ROE) is solid at 9.93%, demonstrating effective use of equity to generate profits. The equity ratio stands at 60.67%, highlighting a robust equity base relative to total assets. Overall, Delfi's balance sheet suggests financial stability and low risk.

Cash Flow

Cash flow analysis reveals a significant improvement in free cash flow growth at 45.69% in the TTM period. The operating cash flow to net income ratio is 0.45, indicating a moderate conversion of income into cash. The free cash flow to net income ratio is high at 0.89, suggesting strong cash generation relative to net income. Despite previous fluctuations, current cash flow metrics are positive.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	501.40M	502.65M	538.15M	477.49M	405.13M	385.12M
Gross Profit	134.05M	137.82M	153.24M	145.51M	119.71M	110.11M
EBITDA	45.71M	63.05M	77.58M	75.46M	58.70M	44.57M
Net Income	26.57M	33.95M	46.26M	43.90M	29.27M	17.48M
Balance Sheet
Total Assets	445.88M	428.23M	420.94M	395.09M	363.90M	382.49M
Cash, Cash Equivalents and Short-Term Investments	81.64M	43.78M	59.38M	77.14M	86.24M	65.52M
Total Debt	19.97M	30.66M	40.97M	21.18M	11.45M	50.76M
Total Liabilities	175.28M	163.64M	154.72M	148.89M	124.59M	156.74M
Stockholders Equity	270.59M	264.58M	266.22M	246.19M	239.30M	225.63M
Cash Flow
Free Cash Flow	64.32M	23.64M	1.49M	3.80M	73.81M	37.48M
Operating Cash Flow	72.56M	52.57M	25.23M	7.74M	77.19M	42.41M
Investing Cash Flow	-8.56M	-28.79M	-23.97M	-3.61M	-196.00K	-4.84M
Financing Cash Flow	-33.99M	-34.93M	-22.66M	-13.12M	-54.74M	-28.21M

Delfi Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:P34, the sentiment is Positive. The current price of 0.8 is below the 20-day moving average (MA) of 0.82, below the 50-day MA of 0.81, and above the 200-day MA of 0.76, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 51.71 is Neutral, neither overbought nor oversold. The STOCH value of 64.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:P34.

Delfi Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5JS	74 Outperform	S$530.44M	5.52	8.46%	2.70%	13.03%	35.10%
Q01	70 Outperform	S$514.87M	19.71	5.51%	5.62%	-0.51%	-25.57%
P34	68 Neutral	S$504.20M	14.32	10.03%	3.45%	-4.54%	-35.71%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
MV4	62 Neutral	€450.20M	5.87	7.17%	2.68%	47.72%	16.14%