Bumitama Agri Ltd. (P8Z) AI Stock Analysis

• Market Cap: S$1.30B
• Dividend Yield: 9.38%
• Average Volume (3M): 625.20K
• Price to Earnings (P/E): 6.7
• Beta (1Y): 0.31
• Revenue Growth: 3.60%
• EPS Growth: -10.76%
• Country: SG
• Employees: 3,839
• Sector: Consumer Defensive
• Sector Strength: 61
• Industry: Agricultural Farm Products
• EPS (TTM): 0.11
• Shares Outstanding: 1,757,531,900
• 10 Day Avg. Volume: 424,170
• 30 Day Avg. Volume: 625,200
• PEG Ratio: -1.52
• Price to Book (P/B): 1.16
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.72
• 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$1.31
• Price Target Upside: 65.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: S$1.00 ▲(26.58%Upside)

The overall stock score is positively influenced by Bumitama Agri Ltd.'s strong financial performance and attractive valuation metrics, with a compelling dividend yield and low P/E ratio. Technical indicators show some positive momentum, but caution is advised due to potential overbought conditions.

Positive Factors

Potential Growth

Bumitama Agri Ltd's cash accumulation could pave the way for inorganic growth or a higher dividend payout ratio.

Production Growth

Bumitama Agri Ltd's estates are expected to deliver steady production growth as its 14-year-old trees enter their prime age cycle, leading to maximum profitability.

Valuation Re-rating

Valuation re-rating is expected to resume with consistent earnings performance, narrowing the valuation gap with upstream peers due to strong output and stellar cost management.

Negative Factors

Earnings Estimates

If CPO price fails to sustain its strong momentum, Bumitama's earnings will miss estimates on the absence of sequential earnings recovery.

Market Conditions

Lower than expected palm oil price in 2024 and 2025 could result in BAL earnings missing the estimate if CPO price fails to sustain its strong momentum.

Palm Oil Prices

Lower than expected palm oil price in 2025 could result in Bumitama Agri Ltd's earnings missing estimates if the strong momentum is not sustained.

Bumitama Agri Ltd. Business Overview & Revenue Model

Company Description

Bumitama Agri Ltd. (P8Z) is a leading agribusiness company headquartered in Indonesia, primarily engaged in the cultivation and processing of palm oil and palm kernel. The company operates through its extensive network of plantations and mills scattered across the Indonesian archipelago, focusing on sustainable agricultural practices and efficient production processes. Bumitama Agri Ltd. is committed to delivering high-quality crude palm oil and palm kernel products to its global clientele, contributing significantly to the palm oil industry's supply chain.

How the Company Makes Money

Bumitama Agri Ltd. generates revenue primarily through the production and sale of crude palm oil (CPO) and palm kernel oil, which are derived from the oil palm plantations it owns and operates. The company processes harvested palm fruit bunches in its own mills to produce CPO and palm kernel oil, which are then sold to various international markets, including food manufacturers, biofuel producers, and other industrial sectors. Key revenue streams include the sale of these oils, as well as the potential sale of palm by-products. Bumitama Agri Ltd. benefits from its strategic location in Indonesia, which is one of the largest palm oil-producing countries globally, and also from partnerships with local and international distributors to ensure a steady market for its products. Furthermore, Bumitama Agri Ltd. focuses on sustainable and efficient production methods to optimize yield and reduce costs, enhancing its profitability.

Bumitama Agri Ltd. Financial Statement Overview

Summary

Bumitama Agri Ltd. exhibits strong financial health, with consistent revenue growth, solid profitability margins, and a robust balance sheet characterized by low leverage and high equity ratios. Cash flow generation is strong, with positive trends in free cash flow growth. However, slight declines in net profit margins warrant attention to maintain profitability. Overall, the company is well-positioned within the agricultural farm products industry.

Income Statement

Bumitama Agri Ltd. has demonstrated stable revenue growth, with a 8.34% increase from 2023 to 2024. The gross profit margin for 2024 stands at 26.03%, reflecting efficient cost management. However, the net profit margin decreased slightly to 13.66% from the previous year, potentially indicating rising expenses or lower operational efficiency. EBITDA margin remains strong at 28.34%, showcasing robust earnings before interest, taxes, depreciation, and amortization.

Balance Sheet

The balance sheet reflects a solid financial position with a debt-to-equity ratio of 0.22 in 2024, indicating low financial leverage and a strong equity base. Return on equity is healthy at 16.09%, showing effective utilization of equity capital. The equity ratio of 67.82% underscores a high proportion of equity financing, reducing insolvency risk.

Cash Flow

The cash flow statement reveals a 10.23% growth in free cash flow from 2023 to 2024, highlighting improved cash generation capabilities. The operating cash flow to net income ratio is 1.43, suggesting effective conversion of net income into cash. The free cash flow to net income ratio is 0.78, indicating that a significant portion of earnings is converted into free cash flow, though some room for improvement exists.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
19.69T	16.73T	15.44T	15.83T	12.25T	9.10T
	Gross Profit
8.54T	4.36T	4.63T	5.73T	3.46T	2.53T
	EBIT
4.52T	3.66T	3.68T	4.84T	3.02T	1.92T
	EBITDA
3.35T	4.74T	4.83T	5.47T	3.74T	2.75T
	Net Income Common Stockholders
2.12T	2.29T	2.45T	2.83T	1.72T	1.13T
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
285.69B	1.71T	383.17B	826.21B	175.96B	791.95B
	Total Assets
16.65T	20.97T	19.23T	19.90T	17.69T	18.23T
	Total Debt
5.72T	3.20T	2.61T	3.36T	4.14T	6.01T
	Net Debt
5.44T	1.49T	2.23T	2.53T	3.97T	5.22T
	Total Liabilities
7.53T	4.49T	3.80T	5.44T	5.69T	7.70T
	Stockholders Equity
7.86T	14.22T	13.31T	12.49T	10.30T	9.02T
Cash Flow		Free Cash Flow
2.55T	1.78T	1.62T	2.20T	1.56T	1.42T
	Operating Cash Flow
4.56T	3.26T	3.28T	3.51T	2.65T	2.45T
	Investing Cash Flow
-1.29T	-504.37B	-1.18T	-493.96B	-598.43B	-930.70B
	Financing Cash Flow
-2.68T	-1.43T	-2.54T	-2.38T	-2.67T	-1.25T

Bumitama Agri Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.79
• 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:P8Z, the sentiment is Positive. The current price of 0.79 is above the 20-day moving average (MA) of 0.75, above the 50-day MA of 0.76, and above the 200-day MA of 0.75, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 68.39 is Neutral, neither overbought nor oversold. The STOCH value of 69.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:P8Z.

Bumitama Agri Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
P8Z	74 Outperform	S$1.30B	6.74	16.33%	9.38%	3.60%	-10.76%
F34	71 Outperform	S$18.98B	12.14	5.84%	5.08%	-0.24%	-23.64%
U11	69 Neutral	$58.79B	9.91	13.43%	4.79%	5.68%	5.92%
EB5	68 Neutral	$2.22B	6.72	18.32%	6.90%	5.27%	69.50%
A7RU	65 Neutral	S$2.40B	37.26	3.22%	8.85%	8.76%	-74.16%
Sector *	65 Neutral	$8.88B	15.05	4.75%	203.76%	3.54%	-2.50%
Z74	59 Neutral	$64.37B	16.02	16.56%	4.29%	-2.10%	-103.46%

Bumitama Agri Ltd. Corporate Events

Bumitama Agri Ltd. Holds Annual General Meeting, Discusses Performance and Outlook

Bumitama Agri Ltd. held its Annual General Meeting on April 28, 2025, at Pan Pacific Singapore. The meeting, chaired by Mr. Lim Gunawan Hariyanto, included the presence of shareholders, directors, and management team members. The Chairman provided a brief overview of the company’s performance and industry outlook, emphasizing the company’s strategic direction and future prospects.

The most recent analyst rating on (SG:P8Z) stock is a Buy with a S$0.90 price target. To see the full list of analyst forecasts on Bumitama Agri Ltd. stock, see the SG:P8Z Stock Forecast page.

Bumitama Agri Ltd. Addresses Shareholder Concerns and Operational Strategies

Bumitama Agri Ltd. addressed shareholder inquiries ahead of its 2025 Annual General Meeting, focusing on competition and operational strategies. The company operates 17 CPO mills and has maintained a stable utilization rate despite weather disruptions. Bumitama has strengthened partnerships with third-party suppliers, increasing external fresh fruit bunch (FFB) contributions to 35% of total output in 2024. This strategy supports mill utilization and prepares for future replanting. Additionally, Bumitama is committed to enhancing operational practices and sustainability. Financially, the company experienced an increase in debt per total equity due to currency depreciation affecting its loan facilities, while higher cash balances from increased revenue impacted the net debt per total assets ratio.