Olam International
Market Cap
S$5.9b
Last Updated
2020/01/27 12:48 UTC
Data Sources
Company Financials
Executive Summary
Olam International Limited engages in sourcing, processing, packaging, and merchandising of agricultural products worldwide.
Rewards
Risk Analysis
Snowflake Analysis
Mediocre balance sheet second-rate dividend payer.
Similar Companies
Share Price & News
How has Olam International's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: O32 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-4.1%
O32
-4.2%
SG Consumer Retailing
-1.4%
SG Market
1 Year Return
0%
O32
-28.3%
SG Consumer Retailing
0.8%
SG Market
Return vs Industry: O32 exceeded the SG Consumer Retailing industry which returned -25.8% over the past year.
Return vs Market: O32 matched the SG Market which returned 0.7% over the past year.
Shareholder returns
| O32 | Industry | Market | |
|---|---|---|---|
| 7 Day | -4.1% | -4.2% | -1.4% |
| 30 Day | 2.8% | -2.4% | 0.3% |
| 90 Day | 2.8% | -1.2% | 1.8% |
| 1 Year | 3.9%0% | -26.0%-28.3% | 4.9%0.8% |
| 3 Year | 3.4%-7.0% | -15.9%-22.9% | 13.7%1.6% |
| 5 Year | 10.3%-5.6% | -14.1%-25.5% | 10.8%-7.7% |
Price Volatility Vs. Market
How volatile is Olam International's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall St
Key Things To Watch Out For If You Are After Olam International Limited's (SGX:O32) 4.1% Dividend1 month ago | Simply Wall St
Those Who Purchased Olam International (SGX:O32) Shares Five Years Ago Have A 14% Loss To Show For It1 month ago | Simply Wall St
Does Olam International (SGX:O32) Have A Healthy Balance Sheet?Valuation
Is Olam International undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: O32 (SGD1.88) is trading below our estimate of fair value (SGD7.42)
Significantly Below Fair Value: O32 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: O32 is poor value based on its PE Ratio (22.2x) compared to the Consumer Retailing industry average (20.4x).
PE vs Market: O32 is poor value based on its PE Ratio (22.2x) compared to the SG market (13.5x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate O32's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: O32 is overvalued based on its PB Ratio (1x) compared to the SG Consumer Retailing industry average (0.8x).
Next Steps
Future Growth
How is Olam International forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
13.3%
Forecasted Consumer Retailing industry annual growth in earnings
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: Insufficient data to determine if O32's forecast earnings growth is above the savings rate (1.8%).
Earnings vs Market: Insufficient data to determine if O32's earnings are forecast to grow faster than the SG market
High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: Insufficient data to determine if O32's revenue is forecast to grow faster than the SG market.
High Growth Revenue: Insufficient data to determine if O32's revenue is forecast to grow faster than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if O32's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has Olam International performed over the past 5 years?
8.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: O32 has high quality earnings.
Growing Profit Margin: O32's current net profit margins (0.8%) are lower than last year (1.6%).
Past Earnings Growth Analysis
Earnings Trend: O32's earnings have grown by 8% per year over the past 5 years.
Accelerating Growth: O32's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: O32 had negative earnings growth (-44%) over the past year, making it difficult to compare to the Consumer Retailing industry average (3.4%).
Return on Equity
High ROE: O32's Return on Equity (4.6%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Olam International's financial position?
Financial Position Analysis
Short Term Liabilities: O32's short term assets (SGD15.2B) exceed its short term liabilities (SGD12.0B).
Long Term Liabilities: O32's short term assets (SGD15.2B) exceed its long term liabilities (SGD6.1B).
Debt to Equity History and Analysis
Debt Level: O32's debt to equity ratio (176.1%) is considered high.
Reducing Debt: O32's debt to equity ratio has reduced from 216.4% to 176.1% over the past 5 years.
Debt Coverage: O32's debt is not well covered by operating cash flow (17.9%).
Interest Coverage: O32's interest payments on its debt are not well covered by EBIT (1.4x coverage).
Balance Sheet
Inventory Level: O32 has a high level of physical assets or inventory.
Debt Coverage by Assets: O32's debt is covered by short term assets (assets are 1.4x debt).
Next Steps
Dividend
What is Olam International's current dividend yield, its reliability and sustainability?
4.03%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: O32's dividend (3.99%) is higher than the bottom 25% of dividend payers in the SG market (2.5%).
High Dividend: O32's dividend (3.99%) is low compared to the top 25% of dividend payers in the SG market (5.41%).
Stability and Growth of Payments
Stable Dividend: O32's dividend payments have been volatile in the past 10 years.
Growing Dividend: O32's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: At its current payout ratio (88.4%), O32's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
Next Steps
Management
What is the CEO of Olam International's salary, the management and board of directors tenure and is there insider trading?
4.7yrs
Average board tenure
CEO
Sunny Verghese (59yo)
0yrs
Tenure
Mr. Sunny George Verghese is a Co-Founder of Olam International Limited. Mr. Verghese serves as Group Chief Executive Officer of Olam International Limited and also serves as Chief Executive Officer of Ola ...
Board Age and Tenure
4.7yrs
Average Tenure
59yo
Average Age
Experienced Board: O32's board of directors are considered experienced (4.7 years average tenure).
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
Sunny Verghese (59yo)
Co-Founder
Rajeev Kadam (58yo)
President & Head of Internal Audit
Shekhar Anantharaman (55yo)
CEO of Olam Food Ingredients & Executive Director
- Tenure: 21.8yrs
Joydeep Bose (56yo)
President & Global Head of Human Resources
Vasanth Subramaniam
General Manager of Accounts
Supramaniam Ramasamy
President & Global Head of Plantations
Suresh Sundararajan
President and Group Head of Strategic Investments & Shared Corporate Services
Muthu Muthukumar (47yo)
President & Group CFO
- Tenure: 6.3yrs
Martial Genthon
President and Global Head Manufacturing
Prakash Jhanwer
President and Regional Head of Southeast Asia & China
- Tenure: 1yrs
Board Members
Ah Doo Lim (70yo)
Independent Chairman
- Tenure: 3yrs
- Compensation: S$322.57k
Nihal Vijaya Devadas Kaviratne (75yo)
Independent Non-Executive Director
- Tenure: 5.3yrs
- Compensation: S$156.20k
Sunny Verghese (59yo)
Co-Founder
Shekhar Anantharaman (55yo)
CEO of Olam Food Ingredients & Executive Director
- Tenure: 21.8yrs
Chee Keong Yap (59yo)
Independent Non-Executive Director
- Tenure: 4.1yrs
- Compensation: S$245.00k
Jean-Paul Pinard (69yo)
Independent Non-Executive Director
- Tenure: 11.3yrs
- Compensation: S$195.30k
Sanjiv Misra (59yo)
Independent Non-Executive Director
- Tenure: 6.2yrs
- Compensation: S$214.90k
Yutaka Kyoya (57yo)
Non-Executive Director
- Tenure: 4.2yrs
- Compensation: S$169.30k
Marie Teo (52yo)
Independent Non-Executive Director
- Tenure: 4.1yrs
- Compensation: S$216.90k
Kazuo Ito (50yo)
Non-Executive Director
- Tenure: 1.1yrs
- Compensation: S$18.07k
Company Information
Olam International Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Olam International Limited
- Ticker: O32
- Exchange: SGX
- Founded: 1989
- Industry: Food Distributors
- Sector: Consumer Retailing
- Market Cap: S$5.927b
- Shares outstanding: 3.19b
- Website: https://olamgroup.com
Number of Employees
Location
- Olam International Limited
- No. 20-01 Marina One East Tower
- 7 Straits View
- Singapore
- 18936
- Singapore
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| O32 | SGX (Singapore Exchange) | Yes | Ordinary Shares | SG | SGD | Feb 2005 |
| OLMI.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Feb 2005 |
| O5I | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Feb 2005 |
| OLMI.Y | OTCPK (Pink Sheets LLC) | ADR | US | USD | Nov 2008 |
Biography
Olam International Limited engages in sourcing, processing, packaging, and merchandising of agricultural products worldwide. It operates in five segments: Edible Nuts and Spices; Confectionery and Beverage Ingredients; Food Staples and Packaged Foods; Industrial Raw Materials, Infrastructure and Logistics; and Commodity Financial Services (CFS). The Edible Nuts and Spices segment offers cashews, peanuts, almonds, hazelnuts, pistachios, walnuts, and sesame, as well as beans, including pulses, lentils, and peas; and spices, such as pepper, onion, garlic, capsicums, and tomato, as well as tropical spices, chilies, and specialty products. The Confectionery and Beverage Ingredients segment provides cocoa and coffee products. The Food Staples and Packaged Foods segments offers rice, sugar and sweeteners, grains and animal feed, edible oils, dairy products, and packaged foods. The Industrial Raw Materials, Infrastructure and Logistics segment offers cotton, wood products, rubber, fertilizers, and infrastructure and logistics services. The CFS segment provides Fund Management services. The company was founded in 1989 and is headquartered in Singapore.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/01/27 12:48 |
| End of Day Share Price | 2020/01/24 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.