Olam Group (SG:VC2)
SGX:VC2
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Olam Group
(SGX:VC2)
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Rating:48Neutral
Price Target:
S$0.91
â–Ľ(-3.62% Downside)
Action:ReiteratedDate: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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
Olam Group (VC2) vs. iShares MSCI Singapore ETF (EWS)
Market Cap
S$3.29B
Dividend Yield5.26%
Average Volume (3M)2.22M
Price to Earnings (P/E)8.1
Beta (1Y)1.00
Revenue Growth-11.89%
EPS Growth50.41%
CountrySG
Employees39,560
SectorConsumer Defensive
Sector Strength42
IndustryFood Distribution
Share Statistics
EPS (TTM)0.03
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 TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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...
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, provis...
Olam Group Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 07, 2026
Earnings Call Sentiment Positive
The call communicated a materially improved financial and liquidity position: operational PATMI and free cash flow swung strongly positive, leverage and invested capital trends improved, the Olam Agri sale advanced with near‑completion of approvals, and the Remaining Group delivered a notable operational turnaround. These positive developments were balanced against continuing commodity price volatility, trade/tariff uncertainty, and weaker pockets of the portfolio (Origination & Merchandising, rice and freight), plus a deliberate decision to conserve cash (no final dividend). Overall the positive operational and balance sheet improvements and progress on strategic demerger/divestment milestones outweigh the challenges.Positive Updates
Operational PATMI Surge
Operational PATMI rose to $511 million, up 136% year-on-year (Muthu); reported PATMI was $444 million for FY2025, reflecting a strong recovery in profitability.
Negative Updates
Olam Agri EBIT Decline
Olam Agri operating profit declined by 9.2% year-on-year (driven by historically low commodity prices and low volatility), creating headwinds for that operating group despite industry-wide declines of 16–44% among peers.
Read all updates
Q4-2025 Updates
Positive
Negative
Operational PATMI Surge
Operational PATMI rose to $511 million, up 136% year-on-year (Muthu); reported PATMI was $444 million for FY2025, reflecting a strong recovery in profitability.
Read all positive updates
Company Guidance
Management guided that normalization of cocoa/coffee prices should materially reduce working capital and invested capital (total invested capital ~$25.5bn, ~61% in ofi, ~30% Olam Agri, ~9% Remaining), improving returns and cash: they reported operational PATMI of $511m (+136% y/y) and positive free cash flow to equity of ~$360m (a ~$6.3bn year‑on‑year swing). Key FY25 baselines are 58m tonnes combined volume (+17%), ~$67bn revenue (+19%), $2.2bn EBIT (+13%) and reported PATMI $444m; excluding Olam Agri volumes/revenue were 4.4m t and ~$30bn revenue with $1.26bn EBIT. Guidance highlights: ofi/Remaining to see further working‑capital and invested‑capital declines in H1 as higher‑priced inventory is released, supporting ofi’s target of low‑to‑mid single‑digit volume growth and high‑single‑digit EBIT growth (EBIT‑per‑tonne improvement driven by Ingredients & Solutions and private‑label), continued deleveraging (nominal gearing down to 1.87x excl. Agri; adjusted net‑debt/equity 0.55x excl. Agri, 0.58x incl. Agri), and use of proceeds (minimum ~$2.58bn expected from the Olam Agri sale) plus allocated capital ($2bn to degear RemainCo, $500m equity already injected into ofi) to make RemainCo debt‑free and distribute special dividends; liquidity headroom stands at ~$7.6bn of $15.5bn available (cash $2.2bn; marketable inventories $8.8bn; secured receivables $0.5bn; unutilized bank lines $4.0bn), and near‑term corporate milestones include closing remaining regulatory approvals for the Agri sale (20/21 approvals obtained) and completion of the ARISE ports stake disposal (~32.4% for $175m) by end‑April.Olam Group Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
38
Negative
Cash Flow
32
Negative
| 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 | 16.01B | 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
Neutral
0.94
Price Trends
0.89
Negative
0.92
Negative
0.96
Negative
Market Momentum
>-0.01
Negative
52.99
Neutral
74.24
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 0.94 is above the 20-day moving average (MA) of 0.86, above the 50-day MA of 0.89, and below the 200-day MA of 0.96, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 52.99 is Neutral, neither overbought nor oversold. The STOCH value of 74.24 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
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | S$3.29B | 10.52 | 13.70% | 6.82% | 15.89% | 21.52% | |
71 Outperform | S$4.48B | 7.00 | 20.19% | 5.19% | 24.70% | 62.15% | |
70 Outperform | S$579.30M | 5.12 | 8.01% | 2.67% | 13.03% | 35.10% | |
65 Neutral | S$24.47B | 10.43 | 4.29% | 4.55% | 3.92% | -25.13% | |
63 Neutral | S$3.93B | 7.02 | 9.59% | 2.87% | 16.86% | 252.80% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
48 Neutral | S$3.29B | 8.14 | 6.66% | 5.26% | -11.89% | 50.41% |
* Consumer Defensive Sector Average
SG:VC2
Olam Group
0.87
0.06
7.67%
SG:EB5
First Resources (Singapore)
2.86
1.46
104.14%
SG:E5H
Golden Agri-Resources
0.31
0.08
33.62%
SG:F34
Wilmar International
3.92
0.91
30.36%
SG:P8Z
Bumitama Agri Ltd.
1.90
1.20
172.99%
SG:5JS
Indofood Agri Resources Ltd.
0.42
0.11
36.07%
Olam Group Corporate Events
Olam Agri Secures US$100 Million FMO Loan to Boost Sustainable Rice Flows to Africa
Mar 2, 2026
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. Th...
Olam Group’s ofi Secures $1.12 Billion Loan Facility
Dec 10, 2025
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 mu...
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.