Olam Group (VC2) AI Stock Analysis

• Market Cap: S$3.31B
• Dividend Yield: 5.26%
• Average Volume (3M): 2.22M
• Price to Earnings (P/E): 7.8
• Beta (1Y): 0.90
• Revenue Growth: -11.89%
• EPS Growth: 50.41%
• Country: SG
• Employees: 39,560
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Distribution
• EPS (TTM): 0.03
• Shares Outstanding: 3,842,625,200
• 10 Day Avg. Volume: 2,375,310
• 30 Day Avg. Volume: 2,222,493
• PEG Ratio: 0.02
• Price to Book (P/B): 0.56
• Price to Sales (P/S): 0.12
• P/FCF Ratio: 9.47
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: S$0.91 ▼(-3.62% Downside)
• Action: Reiterated Date: 03/02/26
• Date: Action: Reiterated 03/02/26

The score is held back primarily by weak financial quality—especially elevated leverage and historically inconsistent operating/free cash flow—along with a technically weak price trend below major moving averages. These negatives are partially offset by inexpensive valuation (low P/E, moderate yield) and a more constructive earnings-call outlook centered on improving cash generation, working-capital normalization, and deleveraging tied to the pending Olam Agri sale.

Positive Factors

Improved cash generation

FCFE swinging to roughly $360m after multiyear deficits signals improved cash conversion and operational discipline. Sustained positive FCF increases capacity for debt reduction and targeted reinvestment, reducing refinancing risk and supporting durable deleveraging over the medium term.

Strong liquidity buffer

A sizeable liquidity pool (cash, marketable inventories and undrawn lines) provides a structural shock absorber for working-capital intensive commodity cycles. This reduces the need for distress asset sales, supports operations during price swings, and preserves strategic optionality.

Olam Agri sale progress

Near‑completion of the Olam Agri divestment is a structural portfolio simplification delivering meaningful proceeds earmarked for deleveraging and capital allocation. Successful closure materially improves balance-sheet flexibility and lets management concentrate on higher‑margin, strategic Ingredients & Solutions activities.

Negative Factors

Elevated leverage

Debt-to-equity around mid-2x in a low-margin, cyclical agri business limits financial flexibility. High leverage raises refinancing and covenant risks, constrains capital spending and M&A optionality, and could erode resilience if margins or commodity prices deteriorate again.

Inconsistent cash conversion

Repeated negative OCF and volatile free cash flow weaken the company's ability to self-fund investments and deleveraging. Persistent cash variability forces reliance on asset disposals, timing of inventory liquidation, or external funding—all structural constraints on long-term balance-sheet repair and investment.

Commodity & trade exposure

Material exposure to volatile commodity prices and trade/tariff uncertainty produces structural earnings and working-capital variability. Even with stronger liquidity, this cyclicality limits predictability of margins and cash flows, complicating multi-quarter planning and steady profitability improvement.

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 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

Overall fundamentals are pressured by high leverage and volatile, often negative, cash generation. Income profitability is positive but thin and uneven, with sharp revenue volatility; balance sheet risk is elevated (high debt-to-equity); and cash flow has been the weakest area despite a rebound in 2025.

Income Statement

Profitability is positive but thin and volatile: 2025 revenue fell sharply (-33.6%) while net margin improved to ~1.5% (from ~0.15% in 2024). Operating profitability is modest (2025 operating margin ~3.1%, EBITDA margin ~5.0%) and the last several years show uneven earnings power. A data anomaly in 2022 (gross profit exceeding revenue) reduces confidence in trend quality, but overall the income profile looks low-margin and cyclical.

Balance Sheet

Leverage remains elevated for the period: debt-to-equity is consistently high (about 2.1x–3.3x, 2.64x in 2025), which limits flexibility in a low-margin business. Returns on equity are modest overall (6.9% in 2025, depressed in 2024), suggesting profitability has not consistently been strong enough to offset the balance-sheet risk. Assets and equity are sizeable, but the capital structure skews toward debt.

Cash Flow

Cash generation is inconsistent with multiple years of negative operating cash flow (notably 2024 at -5.3B and 2023 slightly negative), followed by a rebound in 2025 (+1.07B). Free cash flow has been volatile and often negative (2024 -6.0B; 2023 -1.0B), and 2025 free cash flow covered only ~36% of net income, indicating weaker cash conversion. The improvement in 2025 is a positive sign, but the multi-year variability remains a key concern.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	29.60B	56.28B	48.27B	54.90B	47.00B
Gross Profit	2.48B	4.96B	4.26B	54.99B	3.98B
EBITDA	1.49B	4.96B	2.50B	2.35B	1.95B
Net Income	444.09M	86.42M	278.72M	629.09M	686.43M
Balance Sheet
Total Assets	38.94B	45.23B	33.35B	31.95B	32.06B
Cash, Cash Equivalents and Short-Term Investments	2.18B	3.33B	3.58B	4.81B	4.32B
Total Debt	16.89B	23.09B	16.39B	16.27B	16.71B
Total Liabilities	32.38B	37.91B	25.68B	23.87B	25.28B
Stockholders Equity	6.40B	7.01B	7.33B	7.66B	6.77B
Cash Flow
Free Cash Flow	381.88M	-5.98B	-1.03B	153.20M	-2.96M
Operating Cash Flow	1.07B	-5.32B	-334.60M	964.60M	690.50M
Investing Cash Flow	-708.05M	-618.80M	-580.19M	984.76M	-1.72B
Financing Cash Flow	-227.40M	5.37B	-214.37M	-1.34B	2.36B

Olam Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.94
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 0.94 is below the 20-day moving average (MA) of 0.94, above the 50-day MA of 0.94, and below the 200-day MA of 0.97, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 35.42 is Neutral, neither overbought nor oversold. The STOCH value of 28.17 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
P8Z	72 Outperform	€2.27B	10.29	20.72%	6.82%	15.89%	21.52%
5JS	68 Neutral	S$509.51M	5.19	8.46%	2.67%	13.03%	35.10%
F34	65 Neutral	$22.10B	11.92	5.86%	4.55%	3.92%	-25.13%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
E5H	62 Neutral	S$3.62B	7.00	8.32%	2.87%	16.86%	252.80%
VC2	48 Neutral	S$3.31B	7.76	3.56%	5.26%	-11.89%	50.41%

Olam Group Corporate Events

Olam Agri Secures US$100 Million FMO Loan to Boost Sustainable Rice Flows to Africa

Olam Agri, the food, feed and fibre arm of Olam Group, has secured a seven-year US$100 million financing facility from Dutch development bank FMO, initially guaranteed by Olam Group and to be assumed by Olam Agri following its planned demerger. The funding will be used to support flows of rice from India, Thailand and Vietnam to African countries that rely on rice as a staple, reinforcing food security, supply chain resilience and Olam Agri’s positioning as a sustainability-focused player in global rice markets.

FMO highlighted Olam Agri’s wide reach, engagement with smallholder farmers and advanced digital systems as structural advantages in driving sector-wide sustainability progress. Olam Agri’s sustainability leadership and the long-tenor facility are expected to deepen its partnership with FMO and enhance its capacity to build more reliable, transparent and equitable food systems across Asian and African markets.

The most recent analyst rating on (SG:VC2) stock is a Hold with a S$1.00 price target. To see the full list of analyst forecasts on Olam Group stock, see the SG:VC2 Stock Forecast page.

Olam Group’s ofi Secures $1.12 Billion Loan Facility

Olam Group’s subsidiary, olam food ingredients (ofi), has secured a US$1,120 million dual currency loan facility to refinance existing loans and support general corporate purposes. This financial move, involving 12 banks and structured in multiple tranches, positions ofi for growth and stability ahead of its planned IPO and demerger, potentially strengthening its market presence.

The most recent analyst rating on (SG:VC2) stock is a Hold with a S$1.00 price target. To see the full list of analyst forecasts on Olam Group stock, see the SG:VC2 Stock Forecast page.