Bumitama Agri Ltd. (P8Z) AI Stock Analysis

• Market Cap: €2.46B
• Dividend Yield: 6.39%
• Average Volume (3M): 2.28M
• Price to Earnings (P/E): 11.1
• Beta (1Y): 0.39
• Revenue Growth: 15.89%
• EPS Growth: 21.52%
• Country: SG
• Employees: 3,839
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Agricultural Farm Products
• EPS (TTM): 0.06
• Shares Outstanding: 1,757,531,900
• 10 Day Avg. Volume: 3,270,860
• 30 Day Avg. Volume: 2,281,083
• PEG Ratio: -1.18
• Price to Book (P/B): 1.26
• Price to Sales (P/S): 1.07
• P/FCF Ratio: 10.02
• 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: €1.40
• Price Target Upside: -3.30% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 80 Outperform
• Price Target: S$2.00 ▲(37.93% Upside)

Bumitama Agri Ltd. scores well due to its strong financial performance, characterized by consistent revenue growth and robust profitability. The technical analysis supports a bullish outlook, although caution is advised due to the RSI nearing overbought levels. The valuation is attractive with a low P/E ratio and high dividend yield, making it a compelling investment in the agricultural sector.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business model, supporting long-term financial stability.

Cash Generation

Strong cash generation enhances financial flexibility, enabling strategic investments and operational resilience over time.

Balance Sheet Health

A solid balance sheet with low leverage supports long-term financial health, reducing risk and enhancing investment capacity.

Negative Factors

Debt Levels

Increasing debt levels could strain future cash flows and limit financial flexibility, posing a risk to long-term stability.

Gross Margin Pressure

Declining gross margins may indicate rising costs or pricing pressures, potentially impacting profitability if not managed effectively.

Free Cash Flow Volatility

Volatility in free cash flow can affect the company's ability to fund operations and investments consistently, posing a risk to financial planning.

Bumitama Agri Ltd. Business Overview & Revenue Model

Company Description

Bumitama Agri Ltd., an investment holding company, engages in the production and trade of crude palm oil (CPO), palm kernel (PK), and related products for refineries in Indonesia. It is involved in the cultivation of oil palm plantations and operation of palm oil mills. The company also engages in harvesting and processing fresh palm fruit bunches (FFB) into CPO and PK; and business and management consultancy services. As of December 31, 2021, it managed a total land area of approximately 187,917 hectares in Central Kalimantan, West Kalimantan, and Riau provinces. The company was founded in 1996 and is based in South Jakarta, Indonesia. Bumitama Agri Ltd. is a subsidiary of Wellpoint Pacific Holdings Ltd.

How the Company Makes Money

Bumitama Agri Ltd. generates revenue primarily through the cultivation, harvesting, and selling of palm oil and its derivatives, including crude palm oil (CPO) and palm kernel oil (PKO). The company's revenue model is heavily reliant on the agricultural production cycle, where it sells its palm oil products to domestic and international markets. Key revenue streams include direct sales to refineries, food manufacturers, and other industrial consumers. Additionally, Bumitama Agri benefits from strategic partnerships with various stakeholders in the supply chain, including distributors and retailers, which help enhance its market reach and secure consistent demand for its products. The company's commitment to sustainable agriculture and adherence to certification standards (such as RSPO) also positions it favorably in the market, potentially attracting premium pricing for its sustainably produced palm oil.

Bumitama Agri Ltd. Financial Statement Overview

Summary

Bumitama Agri Ltd. demonstrates strong financial health with consistent revenue growth, robust profitability, and a stable balance sheet. The company effectively manages its cash flows, supporting its operational and strategic initiatives. While the financial leverage is low, the increase in debt levels should be monitored to ensure continued financial stability.

Income Statement

Bumitama Agri Ltd. shows strong financial performance with a consistent increase in revenue, evidenced by a 6.02% growth in the TTM period. The company maintains healthy profitability margins, with a gross profit margin of 28.12% and a net profit margin of 14.29% in the TTM. The EBIT and EBITDA margins are robust at 23.30% and 28.27%, respectively, indicating efficient operational management. However, the slight decline in gross profit margin from previous years suggests potential cost pressures.

Balance Sheet

The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.23 in the TTM, indicating prudent financial leverage. The return on equity is strong at 18.91%, showcasing effective use of shareholder funds. The equity ratio stands at 66.44%, suggesting a solid capital structure. Despite these strengths, the gradual increase in total debt over the years warrants monitoring.

Cash Flow

Cash flow analysis reveals a positive trajectory with a 19.48% growth in free cash flow in the TTM, highlighting improved cash generation capabilities. The operating cash flow to net income ratio is high at 3.21, indicating strong cash conversion. The free cash flow to net income ratio of 0.65 suggests efficient cash utilization. However, fluctuations in free cash flow growth in previous years suggest potential volatility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.87T	16.73T	15.44T	15.83T	12.25T	9.10T
Gross Profit	5.31T	4.36T	4.63T	5.73T	3.46T	2.53T
EBITDA	5.34T	4.74T	4.83T	5.47T	3.74T	2.75T
Net Income	2.70T	2.29T	2.45T	2.83T	1.72T	1.13T
Balance Sheet
Total Assets	21.54T	20.97T	19.23T	19.90T	17.69T	18.23T
Cash, Cash Equivalents and Short-Term Investments	1.79T	1.71T	383.17B	826.21B	175.96B	791.95B
Total Debt	3.29T	3.20T	2.61T	3.36T	4.14T	6.01T
Total Liabilities	4.97T	4.49T	3.80T	5.44T	5.69T	7.70T
Stockholders Equity	14.31T	14.22T	13.31T	12.49T	10.30T	9.02T
Cash Flow
Free Cash Flow	2.76T	1.78T	1.62T	2.20T	1.56T	1.42T
Operating Cash Flow	4.25T	3.26T	3.28T	3.51T	2.65T	2.45T
Investing Cash Flow	-1.06T	-504.37B	-1.18T	-493.96B	-598.43B	-930.70B
Financing Cash Flow	-2.42T	-1.43T	-2.54T	-2.38T	-2.67T	-1.25T

Bumitama Agri Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:P8Z, the sentiment is Neutral. The current price of 1.45 is below the 20-day moving average (MA) of 1.47, above the 50-day MA of 1.35, and above the 200-day MA of 0.95, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 47.57 is Neutral, neither overbought nor oversold. The STOCH value of 17.41 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	80 Outperform	€2.46B	11.08	20.72%	6.39%	15.89%	21.52%
EB5	75 Outperform	$3.33B	8.56	21.70%	5.22%	24.70%	62.15%
5JS	74 Outperform	S$530.44M	5.52	8.46%	2.63%	13.03%	35.10%
P34	68 Neutral	S$513.37M	14.58	10.03%	3.45%	-4.54%	-35.71%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
E5H	62 Neutral	$3.49B	6.24	8.32%	2.87%	16.86%	252.80%
MV4	62 Neutral	€450.20M	5.87	7.17%	2.68%	47.72%	16.14%