UOL Group (U14) AI Stock Analysis

• Market Cap: $6.79B
• Dividend Yield: 2.14%
• Average Volume (3M): 1.96M
• Price to Earnings (P/E): 15.7
• Beta (1Y): 0.67
• Revenue Growth: 18.74%
• EPS Growth: -38.36%
• Country: SG
• Employees: 1,900
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): 0.14
• Shares Outstanding: 845,497,250
• 10 Day Avg. Volume: 1,270,530
• 30 Day Avg. Volume: 1,956,003
• PEG Ratio: -0.24
• Price to Book (P/B): 0.38
• Price to Sales (P/S): 1.56
• P/FCF Ratio: 6.57
• Enterprise Value/Market Cap: 2.08
• Enterprise Value/Revenue: 4.61
• Enterprise Value/Gross Profit: 11.77
• Enterprise Value/Ebitda: 15.97
• 1Y Price Target: $9.76
• Price Target Upside: 12.40% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: S$9.00 ▲(3.69% Upside)

UOL Group's stock is supported by strong technical indicators and a reasonable valuation. However, financial performance is hindered by declining margins and a significant drop in free cash flow growth, which are critical issues that need to be addressed.

Positive Factors

Revenue Growth

Consistent revenue growth indicates the company's ability to expand its market presence and enhance product adoption, supporting long-term business sustainability.

Balanced Financial Structure

A moderate debt-to-equity ratio reflects prudent financial management, allowing the company to maintain financial flexibility and stability.

Diverse Revenue Streams

Diverse revenue streams reduce dependency on a single market, enhancing resilience against industry-specific downturns and supporting long-term growth.

Negative Factors

Declining Margins

Decreasing profit margins can impact profitability, suggesting potential challenges in cost management or pricing power, which may affect future earnings.

Low Return on Equity

A low ROE indicates inefficiencies in generating returns from shareholders' equity, potentially limiting the company's attractiveness to investors.

Decline in Free Cash Flow

A significant decline in free cash flow growth can constrain the company's ability to invest in growth opportunities and meet financial obligations.

UOL Group Business Overview & Revenue Model

Company Description

UOL Group Limited primarily engages in property development and investment, and hotel businesses. Its property development projects include residential units, commercial offices, shopping malls, and hotels and serviced suites. The company also owns and/or manages approximately 30 hotels, resorts, and services suites under the Pan Pacific, PARKROYAL COLLECTION, and PARKROYAL brands in Asia, Oceania, and North America with approximately 10,000 rooms in its portfolio. In addition, it is involved in the rental and management of serviced suites; leasing of commercial properties and serviced suites; operation of restaurants; and management and operation of health and beauty retreats and facilities. Further, the company engages in the retail of computer hardware and software, as well as provision of systems integration and networking infrastructure services; property trading business; management and licensing of trademarks; and business development activity. Additionally, it provides treasury, retail management consultancy, project and property management, property management agency, and trustee services; technical, accounting, administrative, and marketing and related services to hotels and serviced suites; and information technology-related products and services, as well as invests in quoted and unquoted financial assets. It has operations in Singapore, Australia, Vietnam, Malaysia, the People's Republic of China, Myanmar, the United Kingdom, and internationally. The company was formerly known as United Overseas Land Limited and changed its name to UOL Group Limited in 2006. UOL Group Limited was incorporated in 1963 and is based in Singapore.

How the Company Makes Money

UOL Group generates revenue through multiple key streams, including digital media advertising, subscription services, and e-commerce transactions. The company monetizes its online platforms by offering advertising space to businesses seeking to reach its large user base. Additionally, UOL Group's web hosting and domain registration services provide a steady income from businesses and individuals looking to establish an online presence. The firm also earns revenue from its real estate ventures, including rental income from commercial properties and profits from hotel operations. Strategic partnerships with technology providers and advertisers help enhance its offerings and drive growth, while the company's diverse portfolio allows it to leverage various market opportunities.

UOL Group Financial Statement Overview

Summary

UOL Group shows strong revenue growth and stable profitability, with a balanced financial structure. However, declining margins and a significant drop in free cash flow growth are concerning issues that need addressing.

Income Statement

UOL Group's income statement shows a solid revenue growth rate of 8.01% in 2024, indicating a positive trajectory. The gross profit margin of 39.88% and net profit margin of 12.82% reflect stable profitability, although the net profit margin has decreased from the previous year. The EBIT margin of 29.20% and EBITDA margin of 29.20% suggest efficient operations, albeit lower than the previous year. Overall, the company demonstrates strong revenue growth and stable profitability, but the decline in margins is a concern.

Balance Sheet

The balance sheet of UOL Group shows a moderate debt-to-equity ratio of 0.45, indicating a balanced approach to leveraging. The return on equity (ROE) is relatively low at 3.11%, suggesting limited profitability from shareholders' equity. The equity ratio stands at 50.51%, reflecting a stable financial structure. While the company maintains a healthy balance between debt and equity, the low ROE indicates potential inefficiencies in generating returns.

Cash Flow

UOL Group's cash flow statement reveals a significant decline in free cash flow growth, down by 675.12% in 2024, which is a major concern. The operating cash flow to net income ratio is 0.67, indicating moderate cash generation relative to net income. The free cash flow to net income ratio of 0.82 suggests that a substantial portion of net income is converted into free cash flow. Despite the strong conversion, the negative growth in free cash flow is a critical issue that needs addressing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.07B	2.79B	2.68B	3.20B	2.50B	1.98B
Gross Profit	1.20B	1.11B	1.06B	1.07B	807.58M	727.59M
EBITDA	886.50M	816.18M	1.31B	1.13B	765.20M	319.56M
Net Income	433.34M	358.19M	707.71M	491.87M	307.41M	13.14M
Balance Sheet
Total Assets	22.82B	22.84B	22.20B	21.94B	21.27B	20.37B
Cash, Cash Equivalents and Short-Term Investments	1.28B	1.51B	1.39B	1.47B	1.57B	990.26M
Total Debt	5.35B	5.21B	5.13B	5.43B	5.28B	5.13B
Total Liabilities	6.48B	6.44B	6.40B	6.65B	6.66B	6.27B
Stockholders Equity	11.48B	11.53B	11.04B	10.64B	10.17B	9.79B
Cash Flow
Free Cash Flow	1.17B	663.27M	285.10M	-102.90M	521.70M	374.04M
Operating Cash Flow	1.16B	811.26M	808.80M	141.71M	751.26M	579.59M
Investing Cash Flow	-603.79M	-351.29M	-211.65M	-88.98M	-99.34M	-147.46M
Financing Cash Flow	-759.09M	-347.36M	-708.44M	-3.79M	-160.46M	-175.07M

UOL Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.68
• 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:U14, the sentiment is Positive. The current price of 8.68 is above the 20-day moving average (MA) of 8.43, above the 50-day MA of 8.16, and above the 200-day MA of 6.71, indicating a neutral trend. The MACD of 0.11 indicates Positive momentum. The RSI at 52.46 is Neutral, neither overbought nor oversold. The STOCH value of 8.20 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:U14.

UOL Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
A26	74 Outperform	―	―	―	―	11.38%	-10.78%
TQ5	71 Outperform	$4.08B	15.52	2.37%	4.33%	-18.13%	40.87%
U14	70 Outperform	$6.79B	15.66	3.80%	2.14%	18.74%	-38.36%
F17	67 Neutral	€2.24B	23.96	2.22%	3.47%	4.58%	-14.92%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
F1E	63 Neutral	S$495.01M	-35.64	-2.34%	2.07%	-39.12%	-326.51%
C09	62 Neutral	$6.42B	32.48	2.25%	1.37%	-10.52%	-39.75%