Olam Group (VC2) AI Stock Analysis

• Market Cap: $3.61B
• Dividend Yield: 5.32%
• Average Volume (3M): 2.22M
• Price to Earnings (P/E): 10.4
• Beta (1Y): 0.97
• Revenue Growth: -11.89%
• EPS Growth: 50.41%
• Country: SG
• Employees: 39,560
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Distribution
• EPS (TTM): 0.09
• Shares Outstanding: 3,842,625,200
• 10 Day Avg. Volume: 2,375,310
• 30 Day Avg. Volume: 2,222,493
• PEG Ratio: -0.82
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 0.08
• P/FCF Ratio: -0.77
• Enterprise Value/Market Cap: 5.28
• Enterprise Value/Revenue: 0.43
• Enterprise Value/Gross Profit: 4.67
• Enterprise Value/Ebitda: 4.28
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: S$1.00 ▲(6.38% Upside)

The overall stock score is primarily influenced by financial performance challenges, including declining revenues and cash flow issues. Technical analysis provides a neutral to slightly positive outlook, while the valuation suggests potential undervaluation. The absence of earnings call and corporate events data limits additional insights.

Positive Factors

Strategic Reorganization

The closure of Jiva Ag is part of a strategic reorganization to conserve cash and reduce debt, aligning with the goal to become debt-free and self-sustaining, which could enhance long-term financial stability.

Governance Enhancement

The appointment of a new Assistant Company Secretary is expected to enhance governance and operational efficiency, reinforcing Olam's commitment to strong corporate governance practices, which is crucial for long-term sustainability.

Debt Refinancing

ofi's $2.1 billion loan facility to refinance existing loans supports financial stability and aligns with strategic plans for an IPO and demerger, potentially strengthening market positioning.

Negative Factors

Revenue Decline

A declining revenue trend with a negative growth rate of -11.57% indicates challenges in maintaining market share and competitiveness, impacting long-term growth potential.

High Leverage

High leverage with a debt-to-equity ratio of 2.34 poses risks to financial stability, potentially limiting flexibility in capital investments and strategic initiatives.

Cash Flow Issues

Negative cash flows indicate inefficiencies in cash generation, which can strain operations and limit the ability to invest in growth opportunities, affecting long-term viability.

Olam Group Business Overview & Revenue Model

Company Description

Olam Group (VC2) is a global leader in agri-business operating across the entire supply chain from farm to fork. The company is involved in sourcing, processing, and trading a wide range of agricultural products, including cocoa, coffee, cashews, and grains. With a presence in over 70 countries, Olam focuses on sustainable practices and innovation to enhance food security, improve livelihoods, and support rural communities. Its core offerings also include supply chain management solutions and financial services to farmers and agribusiness partners.

How the Company Makes Money

Olam Group generates revenue primarily through the sale of agricultural commodities and value-added products. The company's revenue model is diversified, encompassing several key streams: trading and processing of raw agricultural products, provision of supply chain management services, and sales of branded consumer products. Additionally, Olam earns income from financial services offered to farmers and agribusinesses, including credit and risk management solutions. Strategic partnerships with local producers, retailers, and governments further enhance its market reach and profitability, while its commitment to sustainability helps attract investment and consumer loyalty.

Olam Group Financial Statement Overview

Summary

Olam Group faces challenges across its financial statements. The income statement shows declining revenues and modest profitability. The balance sheet is stable but highly leveraged, which could pose risks. Cash flow issues are evident, with negative operating and free cash flows. The company needs to address revenue growth and manage leverage to improve its financial health.

Income Statement

The income statement shows a mixed performance. The company has a declining revenue trend with a negative growth rate of -11.57% in the TTM period. Gross profit margin is relatively low at 9.14%, and net profit margin is also modest at 0.81%. However, the EBIT and EBITDA margins are slightly better, indicating some operational efficiency. Overall, the profitability is under pressure due to declining revenues.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio of 2.34, indicating significant leverage, which could pose a risk if not managed properly. Return on equity is moderate at 5.20%, suggesting average returns for shareholders. The equity ratio is not explicitly calculated, but the high leverage suggests a lower proportion of equity in the capital structure. Overall, the balance sheet shows stability but with potential risks due to high leverage.

Cash Flow

The cash flow statement reveals challenges, with negative operating cash flow and free cash flow in the TTM period. The free cash flow growth rate is significantly negative at -58.74%, indicating cash flow issues. The operating cash flow to net income ratio is negative, reflecting cash flow inefficiencies. Free cash flow to net income ratio is positive, suggesting some ability to cover net income, but overall cash flow health is weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	44.61B	56.28B	48.27B	54.90B	47.00B	35.82B
Gross Profit	4.08B	4.96B	4.26B	54.99B	3.98B	3.10B
EBITDA	4.46B	4.96B	2.50B	2.35B	1.95B	1.30B
Net Income	362.15M	86.42M	278.72M	629.09M	686.43M	245.70M
Balance Sheet
Total Assets	38.61B	45.23B	33.35B	31.95B	32.06B	26.70B
Cash, Cash Equivalents and Short-Term Investments	1.57B	3.33B	3.58B	4.81B	4.32B	3.12B
Total Debt	16.19B	23.09B	16.39B	16.27B	16.71B	14.16B
Total Liabilities	31.48B	37.91B	25.68B	23.87B	25.28B	20.67B
Stockholders Equity	6.93B	7.01B	7.33B	7.66B	6.77B	5.96B
Cash Flow
Free Cash Flow	-1.55B	-5.98B	-1.03B	153.20M	-2.96M	-757.46M
Operating Cash Flow	-875.02M	-5.32B	-334.60M	964.60M	690.50M	-78.50M
Investing Cash Flow	-630.61M	-618.80M	-580.19M	984.76M	-1.72B	-513.70M
Financing Cash Flow	1.29B	5.37B	-214.37M	-1.34B	2.36B	610.71M

Olam Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.94
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

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 0.94, below the 50-day MA of 0.97, and below the 200-day MA of 0.96, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 42.20 is Neutral, neither overbought nor oversold. The STOCH value of 17.78 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SG:VC2.

Olam Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5JS	74 Outperform	S$516.48M	5.37	8.46%	2.70%	13.03%	35.10%
F34	69 Neutral	$20.23B	12.88	5.86%	4.61%	3.92%	-25.13%
P8Z	67 Neutral	€2.46B	11.08	20.72%	6.77%	15.89%	21.52%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
E5H	62 Neutral	$3.49B	6.24	8.32%	2.87%	16.86%	252.80%
VC2	52 Neutral	$3.61B	10.43	3.56%	5.32%	-11.89%	50.41%

Olam Group Corporate Events

Olam Group Announces Board Restructuring

Olam Group Limited has announced changes to its Board of Directors, effective from November 24, 2025. Mr. Nagi Hamiyeh has resigned as a Non-Executive Director and member of the Board Executive Committee, with Mr. Dinesh Khanna stepping in as his replacement. These changes are expected to impact the company’s governance structure, potentially influencing its strategic direction and stakeholder relationships.

Olam Group Appoints New Assistant Company Secretary

Olam Group has announced the appointment of Ms. Vivi Indra Sari as the Assistant Company Secretary, effective from 1 October 2025. This strategic appointment is expected to enhance the company’s governance and operational efficiency, reinforcing its commitment to strong corporate governance practices.