Olam Group (VC2) AI Stock Analysis

• Market Cap: S$4.01B
• Dividend Yield: 6.46%
• Average Volume (3M): 2.15M
• Price to Earnings (P/E): 18.5
• Beta (1Y): 1.03
• Revenue Growth: -11.89%
• EPS Growth: -6.08%
• Country: SG
• Employees: 39,560
• Sector: Consumer Defensive
• Sector Strength: 60
• Industry: Food Distribution
• EPS (TTM): 0.06
• Shares Outstanding: 3,842,625,200
• 10 Day Avg. Volume: 1,619,720
• 30 Day Avg. Volume: 2,149,136
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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$1.00
• Price Target Upside: -5.45% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 62 Neutral
• Price Target: S$1.00 ▼(-5.66% Downside)

Olam Group's strong revenue growth and operational efficiency are offset by high leverage and liquidity concerns. While the company shows resilience in challenging market conditions, the stock appears overbought and overvalued, suggesting caution. The attractive dividend yield and strategic segment growth offer some positives, but financial and valuation metrics weigh heavily on the score.

Olam Group Business Overview & Revenue Model

Company Description

Olam Group Limited engages in the sourcing, processing, packaging, and merchandising of agricultural products worldwide. It operates through Olam Food Ingredients, Olam Global Agri, and Olam International Limited segments. The company offers cocoa powder, liquor, and butter, as well as specialty fats, such as vegetable fats, cocoa butter equivalent fats, cocoa butter improver fats, cocoa butter substitutes, and confectionery and custom fats under the under the deZaan, Unicao, Joanes, Macao, Huysman, Britannia, and BT Cocoa brands; coffee; whole, skimmed, and butter milk powders; butter, anhydrous milk fat, and butter blends; cheese; milk and whey protein concentrates, permeates, and lactose; nuts, including almonds, cashews, hazelnuts, peanuts, sesame, and quinoa and chia seeds; and spices, comprising of chillies, onion and garlic, and pepper. It also provides cotton; palm, soybean, and sunflower oils; animal feeds and proteins; flours for breads, baguettes, pasta noodles, biscuits, semolina, and confectionery; fish feeds; rubber; rice; and timber products. In addition, the company offers biscuits under the Perk, King Cracker, Pure Bliss, and Chic Choc brands; tomato mix under the Tasty Tom, De Rica, and Festin brand names; Tasty Tom Jollof Mix; drinking yoghurt under the FreshYo brand; lollipops under the OK Pop brand name; and noodles under the Cherie Noodles, Cherie Supa Chicken, and Tasty Tom brands. Further, the company engages in the poultry breeding farm and day-old-chick hatchery business; and provision of commodity financial, risk management, and infrastructure and logistics services, as well as sourcing solutions for agricultural raw materials and food ingredients. Olam Group Limited was founded in 1989 and is headquartered in Singapore.

How the Company Makes Money

Olam Group makes money through its diversified portfolio of agricultural products and services. The company generates revenue by sourcing raw agricultural commodities directly from farmers and processing them into value-added products for sale in international markets. Key revenue streams include the sale of processed goods, trading of agricultural commodities, and providing supply chain solutions and risk management services. The company's earnings are bolstered by strategic partnerships with farmers, governments, and other stakeholders, enabling efficient supply chain operations and access to critical markets. Additionally, Olam invests in sustainable practices and technology to enhance productivity and reduce operational costs, further driving profitability.

Olam Group Financial Statement Overview

Summary

Olam Group demonstrates strong revenue growth and operational efficiency, but profitability at the net level is under pressure. The balance sheet shows high leverage, which could be risky, while cash flow constraints indicate potential liquidity issues. Overall, the company needs to manage its debt levels and improve cash flow generation to ensure sustainable growth.

Income Statement

Olam Group's revenue has shown a strong growth trend, with a significant increase from the previous year. The gross profit margin is robust, indicating effective cost management. However, the net profit margin has declined, suggesting increased operational costs or other expenses. The EBIT and EBITDA margins have improved, reflecting enhanced operational efficiency.

Balance Sheet

The company has a high debt-to-equity ratio, indicating a leveraged position that could pose risks in volatile markets. However, the return on equity is positive, showing that the company is generating returns for its shareholders. The equity ratio is moderate, reflecting a balanced approach between debt and equity financing.

Cash Flow

Olam Group faces challenges in cash flow, with negative free cash flow indicating more capital outflows than inflows. The operating cash flow to net income ratio is concerning, suggesting cash generation issues. However, the company managed to finance its activities adequately, as seen in its financing cash flow.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	56.28B	48.27B	54.90B	47.00B	35.82B
Gross Profit	4.96B	4.26B	54.99B	3.98B	3.10B
EBITDA	4.96B	2.50B	2.35B	1.95B	1.26B
Net Income	86.42M	278.72M	629.09M	686.43M	189.26M
Balance Sheet
Total Assets	45.23B	33.35B	31.95B	32.06B	26.70B
Cash, Cash Equivalents and Short-Term Investments	3.33B	3.58B	4.81B	4.32B	3.12B
Total Debt	23.09B	16.29B	16.15B	16.71B	14.16B
Total Liabilities	37.91B	25.68B	23.87B	25.28B	20.67B
Stockholders Equity	7.01B	7.33B	7.66B	6.77B	5.96B
Cash Flow
Free Cash Flow	-5.98B	-1.03B	153.20M	-2.96M	-757.46M
Operating Cash Flow	-5.32B	-334.60M	964.60M	690.50M	-78.50M
Investing Cash Flow	-618.80M	-580.19M	984.76M	-1.72B	-513.70M
Financing Cash Flow	5.37B	-214.37M	-1.34B	2.36B	610.71M

Olam Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.06
• 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:VC2, the sentiment is Positive. The current price of 1.06 is above the 20-day moving average (MA) of 1.06, above the 50-day MA of 1.00, and above the 200-day MA of 1.03, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 53.96 is Neutral, neither overbought nor oversold. The STOCH value of 29.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:VC2.

Olam Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5JS	72 Outperform	S$509.51M	5.30	8.46%	2.74%	13.03%	35.10%
E5H	72 Outperform	$3.36B	6.01	8.32%	3.03%	16.86%	252.80%
P8Z	69 Neutral	€1.70B	7.64	20.72%	6.95%	15.89%	21.52%
Sector *	63 Neutral	$20.73B	14.39	-8.06%	3.14%	2.73%	-10.04%
VC2	62 Neutral	S$4.01B	18.53	3.31%	6.46%	-11.89%	-6.08%
F34	62 Neutral	S$18.23B	11.61	5.86%	5.63%	3.92%	-25.13%

Olam Group Corporate Events

Olam Group’s Strategic Discussions at Extraordinary General Meeting

Olam Group Limited held an Extraordinary General Meeting on July 4, 2025, at Marina Bay Sands Convention Centre in Singapore. The meeting was attended by the board of directors, management, shareholders, and representatives from the company’s auditors and legal advisors. The gathering was significant for discussing strategic decisions impacting Olam’s operational and financial trajectory, reflecting the company’s ongoing efforts to strengthen its market position and stakeholder engagement.

Olam Group Transfers Treasury Shares for Director Remuneration

Olam Group Limited has announced the transfer of 50,800 treasury shares to a Director as part of the Non-Executive Directors’ remuneration for the financial year ending December 31, 2024. This move slightly reduces the company’s treasury shares from 64,230,700 to 64,179,900, reflecting a minor change in the percentage of treasury shares against the total number of ordinary shares outstanding, which is part of their strategic financial management.

Olam Group Allocates Treasury Shares for Director Remuneration

Olam Group Limited has announced the transfer of 320,100 treasury shares to its Non-Executive Directors as part of their remuneration for the financial year ending December 31, 2024. This move, valued at S$304,223.04, reflects the company’s strategy to manage its equity and incentivize its leadership, slightly reducing its treasury shares from 61,550,800 to 61,230,700, which impacts the percentage of treasury shares against the total number of ordinary shares outstanding.

Olam Agri Secures $1.85 Billion Financing to Bolster Operations

Olam Agri, part of Olam Group, has secured a US$1,850 million dual tranche financing facility to support its operations. This facility, comprising a conventional and an Islamic tranche, will be used for general corporate purposes and reflects Olam Agri’s strategic financial planning as it prepares for its demerger. The financing underscores Olam Agri’s robust market positioning and commitment to sustainable growth in the global agri-business sector.

Olam Group Restructures Board Committees with New EXCO Formation

Olam Group Limited, a company incorporated in Singapore, has announced changes to its board committees with the formation of a new Board Executive Committee (EXCO). This development leads to the dissolution of the Board Strategy and Execution Committee. The reorganization of the board committees is aimed at enhancing the company’s governance structure, potentially impacting its strategic decision-making processes and stakeholder engagement.

Olam Group Holds Fourth Annual General Meeting

Olam Group Limited held its Fourth Annual General Meeting on April 25, 2025, at the Marina Bay Sands Convention Centre in Singapore. The meeting was attended by the company’s Board of Directors, management, shareholders, and representatives from its auditors and legal counsels. The AGM provided a platform for discussing the company’s strategic direction and operational performance, reflecting Olam’s commitment to transparency and stakeholder engagement.