Bumitama Agri Ltd. (P8Z) AI Stock Analysis

• Market Cap: €2.45B
• Dividend Yield: 6.82%
• Average Volume (3M): 2.28M
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.22
• 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: €1.62
• Price Target Upside: 14.66% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 1,684.45
• Revenue Forecast (FY): €21.36T

• Rating: 72 Outperform
• Price Target: S$1.50 ▲(6.38% Upside)
• 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 leverage

A materially lower debt-to-equity (~0.23 in 2025) and strong ROE (~19%) point to a de-risked capital structure. This improves financial flexibility, reduces refinancing and solvency risk across cycles, and supports sustainable reinvestment or dividend policy over the next several months.

Sustained revenue scale

Multi-year revenue expansion to ~20.6T reflects scalable plantation and milling operations. Consistent scale supports bargaining power with buyers, better fixed-cost absorption, and a durable earnings base that underpins medium-term cash generation and operational resilience.

Solid cash generation

Robust operating cash flow and growing free cash flow provide funding for maintenance capex, dividends and debt servicing without forcing asset sales. Strong cash conversion capacity enhances long-term financial flexibility and supports steady capital allocation through commodity cycles.

Negative Factors

Commodity-driven margin cyclicality

Profitability shows pronounced sensitivity to palm oil price swings, with margins swinging materially year to year. As a commodity producer, the company faces persistent revenue and margin volatility that can quickly erode earnings and cash flow during lower-price periods.

Inconsistent cash conversion

FCF has fluctuated as a share of net income, indicating working capital demands and investment cycles absorb earnings intermittently. This uneven conversion constrains the consistency of dividends, rapid deleveraging or opportunistic M&A when cycles require cash discipline.

Absolute debt level is notable

Although leverage ratios are conservative, the absolute stock of debt has grown modestly. In a prolonged downturn this could pressure cash flow and limit ability to invest or return capital without additional funding, reducing strategic flexibility.

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

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: 1.41
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 1.41 is below the 20-day moving average (MA) of 1.43, above the 50-day MA of 1.37, and above the 200-day MA of 1.13, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 51.77 is Neutral, neither overbought nor oversold. The STOCH value of 25.76 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	72 Outperform	€2.45B	10.52	20.72%	6.82%	15.89%	21.52%
P34	72 Outperform	S$601.99M	11.33	10.03%	3.56%	-4.54%	-35.71%
EB5	71 Outperform	$4.29B	7.00	21.70%	5.19%	24.70%	62.15%
5JS	68 Neutral	S$523.46M	5.12	8.46%	2.67%	13.03%	35.10%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
E5H	62 Neutral	S$3.68B	3.89	8.32%	2.87%	16.86%	252.80%
MV4	59 Neutral	S$420.19M	6.21	7.17%	2.72%	47.72%	16.14%