Olam Group (VC2) AI Stock Analysis

• Market Cap: $3.50B
• Dividend Yield: 6.27%
• Average Volume (3M): 1.99M
• Price to Earnings (P/E): 64.7
• Beta (1Y): 0.88
• Revenue Growth: 16.34%
• EPS Growth: -83.55%
• Country: SG
• Employees: 39,560
• Sector: Consumer Defensive
• Sector Strength: 61
• Industry: Food Distribution
• EPS (TTM): <0.01
• Shares Outstanding: 3,842,625,200
• 10 Day Avg. Volume: 2,558,610
• 30 Day Avg. Volume: 1,990,660
• PEG Ratio: -0.57
• Price to Book (P/B): 0.51
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.61
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 60 Neutral
• Price Target: S$1.00 ▲(8.70%Upside)

The overall score reflects strong revenue growth and operational efficiency but is tempered by high leverage and cash flow constraints. The technical indicators suggest caution, and the valuation appears stretched with a high P/E ratio. The earnings call provided a positive outlook with strong segment performance, yet concerns remain about finance costs and cash flow.

Olam Group Business Overview & Revenue Model

Company Description

Olam Group (VC2) is a leading global agribusiness company engaged in the sourcing, processing, and distribution of agricultural products and food ingredients. With operations spanning various sectors such as edible nuts, spices, dairy, grains, and more, Olam is dedicated to meeting the growing global demand for food and agricultural resources. The company focuses on sustainable practices to enhance food security and improve the livelihood of communities across its supply chain.

How the Company Makes Money

Olam Group makes money through its diverse revenue streams, primarily driven by the sourcing, processing, and distribution of agricultural commodities and ingredients. The company operates an integrated supply chain, capturing value at multiple stages, from farm to fork. Key revenue streams include the sale of processed goods, logistics services, and value-added solutions in sectors such as edible nuts, cocoa, coffee, grains, and dairy. Olam's extensive global reach and strategic partnerships with farmers, suppliers, and customers enhance its ability to secure and deliver high-quality products efficiently. The company's focus on sustainable practices and innovation in agriculture also contributes to its financial performance and market competitiveness.

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
	EBIT
4.96B	2.16B	1.57B	1.25B	665.64M
	EBITDA
4.96B	2.50B	2.35B	1.95B	1.26B
	Net Income Common Stockholders
86.42M	278.72M	629.09M	686.43M	189.26M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.33B	3.58B	4.81B	4.32B	3.12B
	Total Assets
45.23B	33.35B	31.95B	32.06B	26.70B
	Total Debt
23.09B	16.29B	16.15B	16.71B	14.16B
	Net Debt
19.77B	13.04B	11.80B	13.42B	11.92B
	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: Neutral
• Last Price: 0.92
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Neutral. The current price of 0.92 is above the 20-day moving average (MA) of 0.92, above the 50-day MA of 0.91, and below the 200-day MA of 1.05, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 52.13 is Neutral, neither overbought nor oversold. The STOCH value of 79.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SG:VC2.

Olam Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
P8Z	74 Outperform	€1.30B	6.74	16.33%	9.38%	3.60%	-10.76%
UD2	73 Outperform	S$1.26B	8.11	14.25%	3.37%	3.73%	―
F34	71 Outperform	$18.98B	12.14	5.84%	5.08%	-0.24%	-23.64%
5JS	70 Outperform	S$439.71M	4.66	7.94%	3.17%	-4.59%	74.87%
E5H	67 Neutral	$3.17B	6.51	7.27%	3.37%	11.22%	84.13%
Sector *	65 Neutral	$8.88B	15.05	4.75%	203.76%	3.54%	-2.50%
VC2	60 Neutral	$3.50B	64.69	1.32%	6.27%	16.34%	-83.55%

Olam Group Corporate Events

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.

Olam Group Announces Board and Committee Reshuffle

Olam Group Limited, a company incorporated in Singapore, has announced changes to its Board and Board Committees effective from May 1, 2025. The changes include the appointment of Mr. Dinesh Khanna as an Alternate Director to Mr. Nagi Hamiyeh, and Mr. Yasuaki Matsuo as a Non-Executive Director, replacing Mr. Yuji Tsushima. Mr. Matsuo will also join the Sustainability and Risk Committees. These adjustments reflect the company’s ongoing efforts to strengthen its governance structure and enhance its strategic oversight capabilities.

Olam Group’s ofi Secures $350 Million Loan to Enhance Financial Flexibility

Olam Group’s subsidiary, olam food ingredients (ofi), has secured a US$350 million term loan facility with a two-year tenor, initially guaranteed by Olam Group Limited. The loan, involving DBS and ICBC as lead arrangers, will be used for refinancing existing loans and general corporate purposes, with the guarantee transferring to ofi Group Limited following its planned IPO and demerger. This financial move is expected to support ofi’s operational flexibility and strategic positioning in the global food and beverage ingredients market.

Olam Group Announces Board and Committee Restructuring

Olam Group Limited, a company incorporated in Singapore, has announced significant changes to its Board and Board Committees effective April 25, 2025. These changes include the stepping down of Ms. Marie Elaine Teo as an Independent and Non-Executive Director, the separation of the Audit and Risk Committee into two distinct committees, and the appointment of Mr. Tran Phuoc (Lucas) as the new Chairman of the Audit Committee. These adjustments are poised to impact the company’s governance structure, potentially enhancing its strategic execution and risk management capabilities.

Olam Group Advances Re-organization with Strategic Divestments and Investments

Olam Group has announced the next steps in its re-organization plan, following the proposed sale of its remaining stake in Olam Agri to SALIC. The plan includes right-sizing the Remaining Olam Group’s capital structure by allocating $2 billion to eliminate debt, investing $500 million into ofi for strategic growth, and divesting all remaining assets to distribute proceeds to shareholders. The re-organization aims to focus on value creation for ofi, with funding sourced from the sale of Olam Agri and asset divestments.

Olam Group’s 2024 Annual Report Highlights Growth and Strategic Milestones

Olam Group Limited has released its 2024 Annual Report, showcasing significant financial growth and strategic achievements, including EBIT growth, increased sales volumes, and improved cash flow. A notable milestone in their Re-organisation Plan is the proposed sale of a 44.58% interest in Olam Agri to SALIC for approximately US$1.78 billion, paving the way for further strategic options, including a potential IPO for ofi. The company continues to prioritize sustainability, with efforts to comply with the EU Deforestation Regulation and initiatives to enhance farmer incomes, alongside improving climate-related disclosures and ratings.