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Olam Group
(SGX:VC2)
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Rating:55Neutral
Price Target:
S$1.50
▲(59.57% Upside)
Action:Reiterated
Date:08/19/26
The score is held back primarily by weaker financial performance (high leverage and historically volatile/weak cash generation) and only neutral-to-soft near-term technical momentum. These are partly offset by very low valuation (P/E 1.832) with a ~3.94% yield, and an earnings update highlighting meaningful deleveraging and improved liquidity despite ongoing operational headwinds.
Positive Factors
Deleveraging and Liquidity
Lower gearing and substantial committed liquidity improve resilience against commodity, currency and working-capital volatility. This gives Olam greater flexibility to fund continuing businesses, manage obligations and pursue disciplined capital allocation.
Negative Factors
Revenue and Profitability Contraction
Lower revenue and sharply reduced profit show that earnings remain exposed to commodity prices and segment conditions. Thin underlying margins leave limited room to absorb weaker pricing, costs or demand without affecting sustained profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Deleveraging and Liquidity
Lower gearing and substantial committed liquidity improve resilience against commodity, currency and working-capital volatility. This gives Olam greater flexibility to fund continuing businesses, manage obligations and pursue disciplined capital allocation.
Read all positive factors
Olam Group (VC2) vs. iShares MSCI Singapore ETF (EWS)
Market Cap
S$4.68B
Dividend Yield1.64%
Average Volume (3M)2.22M
Price to Earnings (P/E)1.8
Beta (1Y)0.73
Revenue Growth-39.78%
EPS Growth487.99%
CountrySG
Employees39,780
SectorConsumer Defensive
Sector Strength42
IndustryFood Distribution
Share Statistics
EPS (TTM)0.68
Shares Outstanding3,842,625,200
10 Day Avg. Volume2,375,310
30 Day Avg. Volume2,222,493
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)0.56
Price to Sales (P/S)0.12
P/FCF Ratio9.47
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
S$1.60Price Target Upside70.21% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.09
Revenue Forecast (FY)S$30.61B
Olam Group Business Overview & Revenue Model
Company Description
Singapore-headquartered Olam Group Limited, established in 1989, is a global agribusiness powerhouse involved in sourcing, processing, packaging, and distributing a wide spectrum of agricultural products. Its operations are organized into three pr...
How the Company Makes Money
Olam Group makes money primarily by buying agricultural raw materials in producing regions, adding value through processing and supply-chain services, and selling commodities and ingredients to customers globally (such as food and beverage manufac...
Olam Group Earnings Call Summary
Earnings Call Date:Aug 13, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Mar 04, 2027
Earnings Call Sentiment Positive
The call emphasized strong balance sheet improvements driven by completed divestments (approximately $1.75bn gain), materially lower gearing (0.93x), improved liquidity and a positive free cash flow swing, while acknowledging operational headwinds: revenue and reported profitability declines due to softer commodity prices, segmental pressures in OGH and ongoing volatility (climate/El Niño, regulatory and geopolitical risks). Management reiterated OFI’s strategic trajectory and midterm targets and signaled prudent, phased returns to shareholders. Overall, the positives from deleveraging, cash generation and a clearer, simpler group strategy outweigh the operational and market challenges discussed.Positive Updates
One-off Gains from Divestments
Recognized approximately $1.75 billion of one-off gains in H1 2026 (about $1.35 billion from Olam Agri Tranche 1 and ~ $400 million from Mindsprint sale to Wipro), boosting reported discontinued operations by ~$1.85 billion.
Negative Updates
Revenue Decline Reflecting Commodity Price Softening
Group revenues fell from SGD 15.3 billion (H1 2025) to SGD 12.5 billion (H1 2026), a decline of roughly 18% driven by softer cocoa and coffee prices.
Read all updates
Q2-2026 Updates
Positive
Negative
One-off Gains from Divestments
Recognized approximately $1.75 billion of one-off gains in H1 2026 (about $1.35 billion from Olam Agri Tranche 1 and ~ $400 million from Mindsprint sale to Wipro), boosting reported discontinued operations by ~$1.85 billion.
Read all positive updates
Company Guidance
The management’s guidance emphasized a continued focus on the “continuing businesses” (OFI and OGH) with mid‑term targets of low‑single to mid‑single digit volume growth and medium‑to‑high single‑digit EBIT growth; H1 featured a one‑off S$1.75bn gain (≈$1.35bn Olam Agri Tranche 1 + ~$400m Mindsprint), an interim dividend of $0.01 and a special dividend of $0.06, and materially stronger liquidity (cash S$2.3bn, ~S$6.7bn unutilised bank lines) and balance sheet metrics (net gearing ~0.93x, below 1x). Operationally H1 volumes were 2.0mt (‑10% vs 2.2mt), revenues S$12.5bn (vs S$15.3bn), reported PATMI S$55.6m and operational PATMI S$64.4m; reported EBIT fell 34.2% (adjusted for FX one‑offs ≈‑10%), OFI EBIT was down ~5% in SGD (~‑2% in USD) while OFI invested capital fell ~19% (global sourcing working capital down ~$1.7bn), supporting stronger cash flow (FCFE ~ $1.7bn) and improved EBIT→PBT conversion.Olam Group Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
38
Negative
Cash Flow
32
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 30.26B | 29.60B | 56.28B | 48.27B | 54.90B | 47.00B |
| Gross Profit | 2.66B | 6.02B | 4.96B | 4.26B | 54.99B | 3.98B |
| EBITDA | 1.45B | 4.86B | 4.96B | 2.50B | 2.35B | 1.95B |
| Net Income | 2.56B | 444.09M | 86.42M | 278.72M | 629.09M | 686.43M |
Balance Sheet | ||||||
| Total Assets | 34.75B | 38.94B | 45.23B | 33.35B | 31.95B | 32.06B |
| Cash, Cash Equivalents and Short-Term Investments | 2.95B | 2.18B | 3.33B | 3.58B | 4.81B | 4.32B |
| Total Debt | 15.21B | 16.01B | 23.09B | 16.39B | 16.27B | 16.71B |
| Total Liabilities | 23.97B | 32.38B | 37.91B | 25.68B | 23.87B | 25.28B |
| Stockholders Equity | 11.52B | 6.40B | 7.01B | 7.33B | 7.66B | 6.77B |
Cash Flow | ||||||
| Free Cash Flow | 2.48B | 381.88M | -5.98B | -1.03B | 153.20M | -2.96M |
| Operating Cash Flow | 3.21B | 1.07B | -5.32B | -334.60M | 964.60M | 690.50M |
| Investing Cash Flow | 217.98M | -708.05M | -618.80M | -580.19M | 984.76M | -1.72B |
| Financing Cash Flow | -4.27B | -227.40M | 5.37B | -214.37M | -1.34B | 2.36B |
Olam Group Technical Analysis
Negative
0.94
Price Trends
1.28
Negative
1.18
Positive
1.05
Positive
Market Momentum
>-0.01
Positive
41.91
Neutral
31.63
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:VC2, the sentiment is Negative. The current price of 0.94 is below the 20-day moving average (MA) of 1.34, below the 50-day MA of 1.28, and below the 200-day MA of 1.05, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 41.91 is Neutral, neither overbought nor oversold. The STOCH value of 31.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SG:VC2.
Olam Group Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | S$3.78B | 15.71 | 22.01% | 6.82% | 9.22% | 15.05% | |
74 Outperform | S$6.78B | 13.57 | 25.05% | 3.99% | 51.37% | 46.36% | |
68 Neutral | S$3.81B | 5.34 | 10.42% | 3.34% | 8.96% | -6.35% | |
68 Neutral | S$474.61M | 4.82 | 8.40% | 3.29% | 8.01% | 10.16% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
55 Neutral | S$4.68B | 1.79 | 28.53% | 5.26% | -39.78% | 487.99% | |
48 Neutral | S$22.72B | 12.57 | 6.63% | 3.64% | 6.32% | 16.58% |
* Consumer Defensive Sector Average
SG:VC2
Olam Group
1.22
0.20
19.61%
SG:EB5
First Resources (Singapore)
4.28
2.61
156.59%
SG:E5H
Golden Agri-Resources
0.31
0.04
16.41%
SG:F34
Wilmar International
3.66
0.87
31.32%
SG:P8Z
Bumitama Agri Ltd.
2.18
1.21
125.67%
SG:5JS
Indofood Agri Resources Ltd.
0.34
-0.01
-3.95%
Olam Group Corporate Events
Olam’s ofi unit secures US$1.05bn loan as demerger plans advance
Aug 19, 2026
Olam Group’s wholly owned subsidiary olam food ingredients has secured a US$1.05 billion multi-tranche facility, comprising two- and three-year revolving credit lines and a three-year term loan, with Olam Treasury Pte Ltd as borrower and 10 ...
Olam Group plans full redemption of S$604.5m perpetual securities
Jun 22, 2026
Olam Group Limited has stated its intention to redeem, repurchase and cancel all remaining outstanding S$604.5 million 5.375% subordinated perpetual securities, signalling a move to streamline its capital structure and potentially reduce ongoing c...
Olam Group Announces Change in Assistant Company Secretary
Jun 5, 2026
Olam Group has announced that Assistant Company Secretary Vivi Indra Sari will cease her role effective 5 June 2026, while Michelle Tanya Kwek will continue as Company Secretary, ensuring continuity in the firm’s corporate governance functio...
Olam Group Marks Leadership Shift as FY2025 Earnings Surge
May 25, 2026
Olam Group’s fifth annual general meeting in Singapore marked a major leadership transition, with long‑serving chairman Lim Ah Doo, co‑founder and group CEO Sunny George Verghese and group CFO N Muthukumar stepping down from thei...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.