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Bumitama Agri Ltd. (SG:P8Z)
:P8Z

Bumitama Agri Ltd. (P8Z) AI Stock Analysis

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SG

Bumitama Agri Ltd.

(Frankfurt:P8Z)

Rating:74Outperform
Price Target:
S$1.00
â–²(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. (P8Z) vs. iShares MSCI Singapore ETF (EWS)

Bumitama Agri Ltd. Business Overview & Revenue Model

Company DescriptionBumitama 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 MoneyBumitama 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
78
Positive
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
82
Very Positive
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
74
Positive
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
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
19.69T16.73T15.44T15.83T12.25T9.10T
Gross Profit
8.54T4.36T4.63T5.73T3.46T2.53T
EBIT
4.52T3.66T3.68T4.84T3.02T1.92T
EBITDA
3.35T4.74T4.83T5.47T3.74T2.75T
Net Income Common Stockholders
2.12T2.29T2.45T2.83T1.72T1.13T
Balance SheetCash, Cash Equivalents and Short-Term Investments
285.69B1.71T383.17B826.21B175.96B791.95B
Total Assets
16.65T20.97T19.23T19.90T17.69T18.23T
Total Debt
5.72T3.20T2.61T3.36T4.14T6.01T
Net Debt
5.44T1.49T2.23T2.53T3.97T5.22T
Total Liabilities
7.53T4.49T3.80T5.44T5.69T7.70T
Stockholders Equity
7.86T14.22T13.31T12.49T10.30T9.02T
Cash FlowFree Cash Flow
2.55T1.78T1.62T2.20T1.56T1.42T
Operating Cash Flow
4.56T3.26T3.28T3.51T2.65T2.45T
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 Price0.79
Price Trends
50DMA
0.76
Positive
100DMA
0.77
Positive
200DMA
0.75
Positive
Market Momentum
MACD
>-0.01
Negative
RSI
68.39
Neutral
STOCH
69.36
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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
SGP8Z
74
Outperform
S$1.30B6.7416.33%9.38%3.60%-10.76%
SGF34
71
Outperform
S$18.98B12.145.84%5.08%-0.24%-23.64%
SGU11
69
Neutral
$58.79B9.9113.43%4.79%5.68%5.92%
SGEB5
68
Neutral
$2.22B6.7218.32%6.90%5.27%69.50%
65
Neutral
S$2.40B37.263.22%8.85%8.76%-74.16%
65
Neutral
$8.88B15.054.75%203.76%3.54%-2.50%
SGZ74
59
Neutral
$64.37B16.0216.56%4.29%-2.10%-103.46%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SG:P8Z
Bumitama Agri Ltd.
0.79
0.17
27.63%
SG:U11
UOB
35.32
6.62
23.06%
SG:EB5
First Resources (Singapore)
1.43
0.13
9.92%
SG:A7RU
Keppel Infrastructure
0.40
-0.02
-4.36%
SG:F34
Wilmar International
3.05
0.13
4.31%
SG:Z74
Singtel
3.87
1.45
59.59%

Bumitama Agri Ltd. Corporate Events

Bumitama Agri Ltd. Holds Annual General Meeting, Discusses Performance and Outlook
May 22, 2025

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
Apr 22, 2025

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.