Bumitama Agri Ltd. (P8Z) AI Stock Analysis

• Market Cap: S$2.71B
• Dividend Yield: 6.82%
• Average Volume (3M): 2.28M
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.21
• 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): 0.07
• Shares Outstanding: 1,757,531,900
• 10 Day Avg. Volume: 3,270,860
• 30 Day Avg. Volume: 2,281,083
• PEG Ratio: 0.37
• Price to Book (P/B): 2.02
• Price to Sales (P/S): 1.48
• P/FCF Ratio: 9.31
• 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$1.62
• Price Target Upside: 3.62% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 1,684.45
• Revenue Forecast (FY): S$21.36T

• Rating: 72 Outperform
• Price Target: S$1.50 ▼(-3.85% Downside)
• Action: Upgraded Date: 03/01/26
• Date: Action: Upgraded 03/01/26

The score is driven primarily by solid financial fundamentals (profitability and a de-risked balance sheet) and attractive valuation (low P/E and high dividend yield). These strengths are partially offset by weak technicals, with the stock trading below major moving averages and showing subdued momentum.

Positive Factors

Conservative, improving leverage

A materially lower debt-to-equity ratio indicates a de-risked balance sheet that boosts resilience across palm-oil cycles. Improved leverage preserves borrowing capacity for mill/plantation investment, supports dividend distributions and reduces refinancing risk over the medium term.

Sustained revenue scale expansion

Strong multi-year revenue growth and scale enhance operating leverage and market position. Larger planted area and mill throughput improve fixed-cost absorption and negotiating power with buyers, supporting more durable margins and incremental investment capacity over time.

Robust cash generation

Solid operating and free cash flow with double-digit FCF growth provides funding for maintenance capex, expansion of mills or plantations, and reliable debt servicing. Persistent cash generation strengthens financial flexibility through commodity price swings.

Negative Factors

Cyclical margin and revenue sensitivity

Profitability shows meaningful sensitivity to CPO price and demand cycles. Such margin volatility can produce large swings in earnings and cash flow, complicating long-term capital allocation, dividend policy and investment timing for the plantation and milling business.

Uneven cash conversion

Variable free-cash-flow conversion implies a significant portion of earnings is absorbed by working capital or capex in some years. This inconsistency can restrict liquidity and reduce the predictability of funding for growth, dividends or debt reduction during weaker commodity periods.

Absolute debt remains sizable and rising

Even with low leverage ratios, a growing absolute debt load increases interest and refinancing exposure. In adverse market or cash-conversion scenarios, higher nominal debt could constrain strategic flexibility and increase funding costs, pressuring medium-term financial stability.

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. makes money primarily by selling palm oil products produced from its plantations and milling operations. Its main revenue stream comes from harvesting fresh fruit bunches (FFB) from its oil palm plantations and processing them at its mills into crude palm oil (CPO) and palm kernel (PK), which are then sold as commodities to customers such as refiners, traders, and other downstream processors. Revenue is therefore driven by (1) sales volumes of CPO and PK, which depend on planted area, tree age/yields, and milling throughput, and (2) prevailing market prices for CPO and PK, which can be volatile and influenced by global vegetable oil supply-demand dynamics. Additional revenue can arise from processing FFB sourced from third-party growers at its mills and selling the resulting CPO/PK, but the specific contribution of third-party sourcing/processing is null. The company’s earnings are also affected by operational factors such as plantation productivity, milling efficiency and extraction rates, logistics/transport to buyers, and cost inputs (e.g., labor, fertilizer, and fuel), as well as regulatory and sustainability requirements in the markets it serves; specific partnership details are null.

Bumitama Agri Ltd. Financial Statement Overview

Summary

Strong multi-year revenue expansion and healthy profitability, supported by an improving, conservatively leveraged balance sheet (debt-to-equity ~0.23) and strong ROE (~19%). Offsets include noticeable margin/revenue cyclicality and uneven cash conversion (FCF ~68% of net income in 2025).

Income Statement

Revenue has expanded strongly over the period (from ~9.1T in 2020 to ~20.6T in 2025), with 2025 showing solid year-over-year growth (~9%). Profitability is healthy, with 2025 gross margin ~27.7% and net margin ~14.0%, and operating profitability remaining robust. The main weakness is volatility: margins were materially higher in 2022–2023 and have since compressed, and revenue growth was negative in 2023 before re-accelerating—suggesting earnings sensitivity to industry pricing/cycles.

Balance Sheet

Leverage looks conservative and improving versus earlier years: debt-to-equity is ~0.23 in 2025 (down meaningfully from ~0.67 in 2020), while equity has grown steadily. Returns on shareholder capital are strong (return on equity ~19% in 2025), indicating good profitability without heavy balance-sheet risk. A minor watch item is that total debt is still sizable in absolute terms and has risen modestly since 2023, though it remains well-supported by the equity base.

Cash Flow

Cash generation is solid, with operating cash flow rising to ~4.84T and free cash flow to ~3.27T in 2025, alongside strong free-cash-flow growth (~18.5%). Cash conversion is decent but not consistently strong: free cash flow is ~68% of net income in 2025 and has typically been ~49–63% in prior years, indicating that a meaningful portion of earnings is absorbed by working capital and/or investment needs. Debt servicing capacity from operating cash flow appears adequate in 2025, though coverage has fluctuated year to year.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	18.87T	20.59T	16.73T	15.44T	15.83T	12.25T
Gross Profit	5.31T	5.71T	4.36T	4.63T	5.73T	3.46T
EBITDA	5.34T	5.82T	4.74T	4.83T	5.47T	3.74T
Net Income	2.70T	2.89T	2.29T	2.45T	2.83T	1.72T
Balance Sheet
Total Assets	21.54T	22.92T	20.97T	19.23T	19.90T	17.69T
Cash, Cash Equivalents and Short-Term Investments	1.79T	2.51T	1.71T	383.17B	826.21B	175.96B
Total Debt	3.29T	3.46T	3.20T	2.61T	3.36T	4.14T
Total Liabilities	4.97T	5.51T	4.49T	3.80T	5.44T	5.69T
Stockholders Equity	14.31T	15.06T	14.22T	13.31T	12.49T	10.30T
Cash Flow
Free Cash Flow	2.76T	3.27T	1.78T	1.62T	2.20T	1.56T
Operating Cash Flow	4.25T	4.84T	3.26T	3.28T	3.51T	2.65T
Investing Cash Flow	-1.06T	-1.47T	-504.37B	-1.18T	-493.96B	-598.43B
Financing Cash Flow	-2.42T	-2.55T	-1.43T	-2.54T	-2.38T	-2.67T

Bumitama Agri Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.56
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 1.56 is above the 20-day moving average (MA) of 1.44, above the 50-day MA of 1.40, and above the 200-day MA of 1.15, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 66.48 is Neutral, neither overbought nor oversold. The STOCH value of 91.82 is Negative, 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	72 Outperform	S$2.71B	10.52	20.72%	6.82%	15.89%	21.52%
P34	72 Outperform	S$550.04M	11.33	9.80%	3.56%	-4.54%	-35.71%
EB5	71 Outperform	S$4.19B	7.00	21.70%	5.19%	24.70%	62.15%
5JS	68 Neutral	S$530.44M	5.12	8.01%	2.67%	13.03%	35.10%
E5H	63 Neutral	S$3.81B	7.02	8.32%	2.87%	16.86%	252.80%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
MV4	59 Neutral	S$450.20M	6.21	7.17%	2.72%	47.72%	16.14%