Olam International
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Olam International Limited engages in sourcing, processing, packaging, and merchandising of agricultural products worldwide. The last earnings update was 63 days ago. More info.
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O32 Share Price and Events
7 Day Returns
1 Year Returns
O32 Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Olam International (O32) | 0% | 4.2% | 1.5% | -7.4% | 7% | -19.8% |
| SG Consumer Retailing | 1% | -0.7% | -3% | -15.6% | 5.9% | -26.3% |
| SG Market | -0.5% | 3.4% | 0.8% | 1.7% | 9.6% | -4.2% |
1 Year Return vs Industry and Market
- O32 outperformed the Consumer Retailing industry which returned -15.6% over the past year.
- O32 underperformed the Market in Singapore which returned 1.7% over the past year.
Value
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Olam International
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Olam International.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Extrapolated from most recent financials. | See below |
| Discount Rate (Cost of Equity) | See below | 9.3% |
| Perpetual Growth Rate | 10-Year SG Government Bond Rate | 2.3% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year SG Govt Bond Rate | 2.3% |
| Equity Risk Premium | S&P Global | 6% |
| Consumer Retailing Unlevered Beta | Simply Wall St/ S&P Global | 0.5 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.502 (1 + (1- 17%) (182.93%)) |
1.177 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.18 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.3% + (1.177 * 5.96%) |
9.32% |
Discounted Cash Flow Calculation for SGX:O32 using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Olam International is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (SGD, Millions) | Source |
Present Value Discounted (@ 9.32%) |
|
|---|---|---|---|
| 2020 | 2,744.55 | Est @ 91.92% | 2,510.57 |
| 2021 | 4,529.40 | Est @ 65.03% | 3,790.03 |
| 2022 | 6,622.60 | Est @ 46.21% | 5,069.10 |
| 2023 | 8,810.74 | Est @ 33.04% | 6,169.02 |
| 2024 | 10,909.39 | Est @ 23.82% | 6,987.23 |
| 2025 | 12,803.73 | Est @ 17.36% | 7,501.40 |
| 2026 | 14,448.49 | Est @ 12.85% | 7,743.35 |
| 2027 | 15,847.55 | Est @ 9.68% | 7,769.08 |
| 2028 | 17,031.21 | Est @ 7.47% | 7,637.54 |
| 2029 | 18,039.32 | Est @ 5.92% | 7,399.96 |
| Present value of next 10 years cash flows | SGD62,577.27 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2029
× (1 + g) ÷ (Discount Rate – g)
= SGD18,039.32 × (1 + 2.3%) ÷ (9.32% – 2.3%) |
SGD263,006.00 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= SGD263,006.00 ÷ (1 + 9.32%)10 |
SGD107,888.44 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= SGD62,577.27 + SGD107,888.44 |
SGD170,465.71 |
| Equity Value per Share (SGD) |
= Total value / Shares Outstanding
= SGD170,465.71 / 3,187.06 |
SGD53.49 |
| Calculation | Result | |
|---|---|---|
| Value per share (SGD) | From above. | SGD53.49 |
| Current discount | Discount to share price of
SGD1.99
= -1 x (SGD1.99 - SGD53.49) / SGD53.49 |
96.3% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
Current Discount
Current Discount Checks
- Olam International's share price is below the future cash flow value, and at a moderate discount (> 20%).
- Olam International's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Olam International's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Olam International's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2019-03-31) in SGD | SGD0.10 |
| SGX:O32 Share Price ** | SGX (2019-07-15) in SGD | SGD1.99 |
| Asia Consumer Retailing Industry PE Ratio | Median Figure of 45 Publicly-Listed Consumer Retailing Companies | 21.92x |
| Singapore Market PE Ratio | Median Figure of 326 Publicly-Listed Companies | 12.96x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Olam International.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = SGX:O32 Share Price ÷ EPS (both in SGD) = 1.99 ÷ 0.10 |
20.88x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Olam International is good value based on earnings compared to the Asia Consumer Retailing industry average.
- Olam International is overvalued based on earnings compared to the Singapore market.
Price based on expected Growth
Does
Olam International's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 20.88x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts |
Not available |
| Asia Consumer Retailing Industry PEG Ratio | Median Figure of 6 Publicly-Listed Consumer Retailing Companies | 3.64x |
| Singapore Market PEG Ratio | Median Figure of 119 Publicly-Listed Companies | 1.63x |
*Line of best fit is calculated by linear regression .
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Unable to calculate PEG ratio for Olam International, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on
Olam International's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2019-03-31) in SGD | SGD2.01 |
| SGX:O32 Share Price * | SGX (2019-07-15) in SGD | SGD1.99 |
| Singapore Consumer Retailing Industry PB Ratio | Median Figure of 7 Publicly-Listed Consumer Retailing Companies | 0.99x |
| Singapore Market PB Ratio | Median Figure of 430 Publicly-Listed Companies | 0.73x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = SGX:O32 Share Price ÷ Book Value per Share (both in SGD) = 1.99 ÷ 2.01 |
0.99x |
* Primary Listing of Olam International.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Olam International is good value based on assets compared to the SG Consumer Retailing industry average.
Value checks
We assess Olam International's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Consumer Retailing industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Consumer Retailing industry average (and greater than 0)? (1 check) Olam International has a total score of 4/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
Future Performance
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Olam International's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
- Olam International's earnings growth is expected to exceed the Singapore market average.
- Unable to compare Olam International's revenue growth to the Singapore market average as no estimate data is available.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| SGX:O32 Future Earnings per Share Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 0 Analysts | 14.5% |
| Asia Consumer Retailing Industry Earnings Growth Rate | Market Cap Weighted Average | 22.4% |
| Asia Consumer Retailing Industry Revenue Growth Rate | Market Cap Weighted Average | 10.8% |
| Singapore Market Earnings Growth Rate | Market Cap Weighted Average | 5.6% |
| Singapore Market Revenue Growth Rate | Market Cap Weighted Average | 4.7% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 0 Analyst Estimates (S&P Global) | See Below |
| Date (Data in SGD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-12-31 | ||||
| 2020-12-31 | ||||
| 2019-12-31 |
| Date (Data in SGD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2019-03-31 | 31,588 | 2,427 | 303 |
| 2018-12-31 | 30,532 | 1,483 | 292 |
| 2018-09-30 | 29,302 | 1,023 | 482 |
| 2018-06-30 | 27,721 | 1,237 | 484 |
| 2018-03-31 | 26,819 | 1,075 | 538 |
| 2017-12-31 | 26,330 | 1,658 | 524 |
| 2017-09-30 | 25,186 | 1,565 | 362 |
| 2017-06-30 | 23,213 | 493 | 362 |
| 2017-03-31 | 21,673 | 603 | 339 |
| 2016-12-31 | 20,634 | 620 | 318 |
| 2016-09-30 | 19,436 | 135 | -121 |
| 2016-06-30 | 19,168 | 64 | -112 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 0 Analyst Estimates (S&P Global) | See Below |
All data from Olam International Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in SGD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-12-31 | 0.16 | 0.16 | 0.16 | 1.00 |
| 2020-12-31 | 0.16 | 0.16 | 0.16 | 1.00 |
| 2019-12-31 | 0.15 | 0.15 | 0.15 | 1.00 |
| Date (Data in SGD Millions) | EPS * |
|---|---|
| 2019-03-31 | 0.10 |
| 2018-12-31 | 0.09 |
| 2018-09-30 | 0.15 |
| 2018-06-30 | 0.16 |
| 2018-03-31 | 0.18 |
| 2017-12-31 | 0.19 |
| 2017-09-30 | 0.13 |
| 2017-06-30 | 0.13 |
| 2017-03-31 | 0.12 |
| 2016-12-31 | 0.12 |
| 2016-09-30 | -0.04 |
| 2016-06-30 | -0.04 |
*GAAP earnings excluding extraordinary items.
Performance in 3 years
In the same way as past performance we look at the future estimated return
(profit) compared to the available
funds. We do this looking forward 3 years.
- Unable to establish if Olam International will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
Future performance checks
We assess Olam International's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Asia market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Asia market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Olam International has a total score of 2/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
Past Performance
How has Olam International performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Olam International's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
- Olam International's 1-year earnings growth is negative, it can't be compared to the 5-year average.
- Olam International's 1-year earnings growth is negative, it can't be compared to the Asia Consumer Retailing industry average.
Earnings and Revenue History
All data from Olam International Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in SGD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2019-03-31 | 31,587.60 | 303.42 | 14.43 | |
| 2018-12-31 | 30,532.25 | 292.39 | 14.43 | |
| 2018-09-30 | 29,301.54 | 482.45 | 20.18 | |
| 2018-06-30 | 27,721.14 | 484.05 | 20.18 | |
| 2018-03-31 | 26,818.50 | 537.96 | 20.18 | |
| 2017-12-31 | 26,329.67 | 524.11 | 20.18 | |
| 2017-09-30 | 25,185.86 | 361.51 | 13.28 | |
| 2017-06-30 | 23,213.10 | 362.40 | 13.28 | |
| 2017-03-31 | 21,672.87 | 339.04 | 13.28 | |
| 2016-12-31 | 20,634.30 | 317.74 | 13.28 | |
| 2016-09-30 | 19,436.07 | -121.28 | 6.39 | |
| 2016-06-30 | 19,167.51 | -111.99 | 6.39 | |
| 2016-03-31 | 19,000.36 | -131.13 | 6.39 | |
| 2015-12-31 | 18,558.78 | -208.27 | 6.39 | |
| 2015-09-30 | 18,539.72 | 275.77 | ||
| 2015-06-30 | 18,359.73 | 289.04 | ||
| 2015-03-31 | 19,249.42 | 208.14 | 9.54 | |
| 2014-12-31 | 19,768.11 | 573.01 | 9.54 | |
| 2014-09-30 | 19,403.40 | 589.15 | 9.54 | |
| 2014-06-30 | 19,477.80 | 590.49 | 9.54 | |
| 2014-03-31 | 20,189.99 | 614.14 | 17.98 | |
| 2013-12-31 | 20,055.13 | 326.52 | 17.98 | |
| 2013-09-30 | 20,435.15 | 345.76 | 17.98 | |
| 2013-06-30 | 20,801.80 | 343.32 | 17.98 | |
| 2013-03-31 | 19,452.81 | 408.89 | 178.55 | |
| 2012-12-31 | 18,947.73 | 399.07 | 253.15 | |
| 2012-09-30 | 18,553.54 | 373.44 | 339.29 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Olam International has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
- Olam International used its assets less efficiently than the Asia Consumer Retailing industry average last year based on Return on Assets.
- Olam International's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess Olam International's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Consumer Retailing industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Olam International has a total score of 0/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
Health
How is Olam International's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Olam International's finances.
The net worth of a company is the difference between its assets and liabilities.
- Olam International is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- Olam International's cash and other short term assets cover its long term commitments.
Balance sheet
Assets
Liabilities and shares
- High level of physical assets or inventory.
- Debt is covered by short term assets, assets are 1.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Olam International Company Filings, last reported 3 months ago.
| Date (Data in SGD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2019-03-31 | 6,567.01 | 10,905.80 | 2,424.00 |
| 2018-12-31 | 6,464.06 | 11,174.26 | 2,528.64 |
| 2018-09-30 | 6,492.45 | 11,711.61 | 2,598.99 |
| 2018-06-30 | 6,660.98 | 12,271.69 | 2,426.27 |
| 2018-03-31 | 6,688.11 | 11,765.77 | 1,863.49 |
| 2017-12-31 | 6,621.03 | 11,504.79 | 2,058.00 |
| 2017-09-30 | 5,859.92 | 12,129.48 | 1,709.47 |
| 2017-06-30 | 5,827.53 | 13,441.50 | 2,037.99 |
| 2017-03-31 | 5,736.44 | 13,990.34 | 2,643.70 |
| 2016-12-31 | 5,634.30 | 13,548.86 | 2,206.76 |
| 2016-09-30 | 5,462.87 | 12,445.30 | 2,223.10 |
| 2016-06-30 | 4,887.24 | 11,840.00 | 2,152.04 |
| 2016-03-31 | 5,281.80 | 11,870.98 | 1,600.48 |
| 2015-12-31 | 5,319.66 | 12,185.85 | 2,186.50 |
| 2015-09-30 | 5,452.34 | 9,125.05 | 1,275.97 |
| 2015-06-30 | 4,362.67 | 9,352.02 | 1,383.59 |
| 2015-03-31 | 4,386.23 | 9,225.14 | 1,272.58 |
| 2014-12-31 | 4,293.68 | 9,786.80 | 1,845.83 |
| 2014-09-30 | 4,289.85 | 9,276.90 | 1,277.12 |
| 2014-06-30 | 4,222.33 | 9,281.70 | 1,626.90 |
| 2014-03-31 | 4,134.60 | 9,448.51 | 1,022.63 |
| 2013-12-31 | 3,901.65 | 9,087.95 | 1,236.04 |
| 2013-09-30 | 3,907.49 | 8,502.92 | 1,190.84 |
| 2013-06-30 | 3,823.73 | 8,838.82 | 1,661.64 |
| 2013-03-31 | 3,692.04 | 9,305.50 | 1,327.66 |
| 2012-12-31 | 3,549.32 | 8,808.96 | 1,091.83 |
| 2012-09-30 | 3,419.43 | 8,367.02 | 1,380.24 |
- Olam International's level of debt (166.1%) compared to net worth is high (greater than 40%).
- The level of debt compared to net worth has been reduced over the past 5 years (229.8% vs 166.1% today).
- Debt is well covered by operating cash flow (22.3%, greater than 20% of total debt).
- Interest payments on debt are not well covered by earnings (EBIT is 1.7x annual interest expense, ideally 3x coverage).
Financial health checks
We assess Olam International's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Olam International has a total score of 4/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
Dividends
What is Olam International's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
SGD2,000 of
Olam International
shares you are expected to receive
SGD75
in your first year as a dividend.
Dividend Amount
- Olam International's pays a higher dividend yield than the bottom 25% of dividend payers in Singapore (2.62%).
- Olam International's dividend is below the markets top 25% of dividend payers in Singapore (5.54%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 0 Analyst Estimates (S&P Global) | See Below |
| Asia Consumer Retailing Industry Average Dividend Yield | Market Cap Weighted Average of 18 Stocks | 2.8% |
| Singapore Market Average Dividend Yield | Market Cap Weighted Average of 278 Stocks | 3.8% |
| Singapore Minimum Threshold Dividend Yield | 10th Percentile | 1.7% |
| Singapore Bottom 25% Dividend Yield | 25th Percentile | 2.6% |
| Singapore Top 25% Dividend Yield | 75th Percentile | 5.5% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in SGD) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2021-12-31 | 0.08 | 1.00 |
| 2020-12-31 | 0.08 | 1.00 |
| 2019-12-31 | 0.08 | 1.00 |
| Date (Data in SGD) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-02-28 | 0.075 | 3.881 |
| 2018-04-09 | 0.080 | 4.057 |
| 2017-04-10 | 0.060 | 2.860 |
| 2016-04-05 | 0.070 | 3.628 |
| 2015-08-13 | 0.025 | 1.387 |
| 2014-08-28 | 0.050 | 2.450 |
| 2013-08-29 | 0.040 | 2.200 |
| 2012-10-31 | 0.040 | 2.411 |
| 2012-07-06 | 0.050 | 2.566 |
| 2011-10-17 | 0.050 | 2.278 |
| 2011-08-29 | 0.050 | 2.093 |
| 2011-07-11 | 0.000 | 0.000 |
| 2011-05-12 | 0.000 | 0.000 |
| 2011-02-14 | 0.000 | 0.000 |
| 2010-10-14 | 0.050 | 1.586 |
| 2010-08-26 | 0.050 | 1.682 |
| 2010-05-13 | 0.040 | 1.571 |
| 2010-02-11 | 0.040 | 1.550 |
| 2009-12-31 | 0.040 | 1.586 |
| 2009-08-28 | 0.035 | 1.362 |
| 2008-10-17 | 0.025 | 1.668 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
- Dividends per share have increased over the past 10 years.
Income/ dividend checks
We assess Olam International's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 1.7%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Olam International afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Olam International has a total score of 3/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
Management
CEO
| COMPENSATION | SGD0 |
| AGE | 59 |
CEO Bio
Mr. Sunny George Verghese is a Co-Founder of Olam International Limited. Mr. Verghese serves as Group Chief Executive Officer of Olam International Limited. He served as Group Managing Director of Olam International Limited until April 4, 2016. He has been an Executive Director of Olam International Limited since 1996. He is responsible for setting the direction and providing the leadership to steer Olam International Ltd. through its expansion and growth plans. He is responsible for the strategic planning, business development and overall management for the Olam group of companies worldwide. He is responsible for formulating the financial, operational, legal and compliance policies for the Olam group. He serves as the Chief Executive Officer of Groupe Atlantique Telecom then Groupe Atlantique. In 1989, he was mandated to start Olam with a view to building an agricultural products business. From 1990 to 1995, he served as the General Manager of Chanrai International Ltd. in London. From 1986 to 1990, he served as a Project Manager in the Kewalram Chanrai Group in Nigeria, where he was given the mandate in 1989 to build an agricultural products export business for the Kewalram Chanrai Group, initially with a base in Nigeria. In 1990, he relocated to London to spearhead the expansion of Olam's activities. He was with the Kewalram Chanrai (KC) Group for over two decades. He worked for Unilever in India. He serves as the Chairman of the SGX listed infrastructure trust. He served as the Chairman of International Enterprise Singapore from 2008 to January 1, 2014. He serves as Chairman of JOil (S) Pte Ltd. He serves as the Co- chairman of the Trading and Logistics Working Group of the ERC. He served as an Independent Chairman and Director of CitySpring Infrastructure Management Pte Ltd from October 26, 2006 to July 16, 2010. He served as Deputy Chairman since April 2005.He serves as Director of Caraway Pte. Ltd. Mr. Verghese has been a Director of Olam Australia Pty Ltd. since 1996. He has been a Member of the IE Singapore board since 2002. He serves as a Director of Lamco Spa, Italy, Olam Americas Inc., USA, Olam Europe BV, Netherlands, Olam Europe Ltd., UK, Olam Exports (India) Ltd., India, Olam Insurance Ltd., Isle of Man, Olam Ivoire Sarl, Cote d'Ivoire, Olam Mocambique Limitada, Mozambique, Olam Nigeria Ltd., Nigeria, Olam Online Ltd., Olam South Africa (Pty) Ltd., South Africa, Olam Vietnam Ltd., Vietnam. He was Non-Executive Director at PureCircle Limited from October 2008 to March 18, 2014. Mr. Verghese serves as a Member of Action Community for Entrepreneurship (ACE). He serves as Member and Trustee of Singapore Management University Board. He served on the Board of Trustees of the National University of Singapore. He served as Trustee of SIFCA SARL. From 1990 to 1995, he served as a Director of Chanrai International Ltd. in London.He served as a Director of International Enterprise Singapore. He served as a Director at Olam Investments Australia Pty Ltd from September 13, 2007 to August 1, 2013. He served as a Director of Olam International Ltd. since July 11, 1996. He serves as Chairman of WBCSD (World Business Council for Sustainable Development). He chairs the Governing Council of the Human Capital Leadership Institute Pte Ltd. He was also a Commissioner of the Business & Sustainable Development Commission (BSDC). He has won several awards including Ernst & Young Entrepreneur of the Year for Singapore in 2008 and Best Chief Executive Officer of the Year 2011 at the Singapore Corporate Awards. He was the ‘Outstanding Chief Executive’ at the Singapore Business Awards in 2007. He was also awarded the Public Service Medal by the Government of the Republic of Singapore in 2010. He is a Certified Public Accountant. He graduated with a Bachelor’s of Science (Agriculture) degree in 1979 from the Banaras Hindu University (Varanasi), India and obtained a Post-Graduate Diploma in Business Management (Agriculture) from the Indian Institute of Management, Ahmedabad, India in 1982. Mr. Verghese also completed the Advanced Management Program (AMP) from the Graduate School of Business Management of Harvard University in 1994. He graduated as a Sloan Master in Leadership & Strategy from London Business School and a Masters in Management from Grenoble University.
CEO Compensation
- Insufficient data for Sunny to compare compensation growth.
- Sunny's remuneration is higher than average for companies of similar size in Singapore.
Management Team Tenure
Average tenure and age of the Olam International management team in years:
- The tenure for the Olam International management team is about average.
Management Team
Sunny Verghese
Co-Founder
59
Shekhar Anantharaman
Group COO & Executive Director
55
3.4 yrs
Suresh Sundararajan
President and Group Head of Strategic Investments & Shared Corporate Services
Muthu Muthukumar
President & Group CFO
47
5.8 yrs
Joydeep Bose
President & Global Head of Human Resources
56
Rajeev Kadam
President & Head of Internal Audit
58
Supramaniam Ramasamy
President & Global Head of Plantations
Vasanth Subramaniam
General Manager of Accounts
Aditya Renjen
Senior Vice President of Investor Relations
Jagdish Achleshwar Parihar
Chief Risk & Compliance Officer and MD
61
3.6 yrs
Board of Directors Tenure
Average tenure and age of the Olam International board of directors in years:
- The tenure for the Olam International board of directors is about average.
Board of Directors
Ah Doo Lim
Chairman
SGD323K
70
2.5 yrs
Sunny Verghese
Co-Founder
59
23 yrs
Shekhar Anantharaman
Group COO & Executive Director
55
21.3 yrs
Jean-Paul Pinard
Independent Non-Executive Director
SGD195K
69
10.8 yrs
Sanjiv Misra
Independent Non-Executive Director
SGD215K
59
5.7 yrs
Chee Keong Yap
Independent Non-Executive Director
SGD245K
59
3.6 yrs
Marie Teo
Independent Non-Executive Director
SGD217K
52
3.6 yrs
Nihal Vijaya Devadas Kaviratne
Independent Non-Executive Director
SGD156K
75
4.8 yrs
Yutaka Kyoya
Non-Executive Director
SGD169K
57
3.7 yrs
Kazuo Ito
Non-Executive Director
SGD18K
50
0.6 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price (SGD) | Value (SGD) | |
|---|---|---|---|---|---|---|---|---|---|---|
Management checks
We assess Olam International's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Olam International has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
News
Simply Wall St News
Do You Like Olam International Limited (SGX:O32) At This P/E Ratio?
See our latest analysis for Olam International How Do I Calculate A Price To Earnings Ratio? … The formula for P/E is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Olam International: P/E of 20.04 = SGD1.91 ÷ SGD0.095 (Based on the trailing twelve months to March 2019.) Is A High Price-to-Earnings Ratio Good? … Olam International shrunk earnings per share by 48% over the last year.
Simply Wall St - – Full articleHere’s why Olam International Limited’s (SGX:O32) Returns On Capital Matters So Much
Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Olam International: 0.066 = S$835m ÷ (S$24b - S$12b) (Based on the trailing twelve months to March 2019.) Therefore, Olam International has an ROCE of 6.6%. … Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE. … Olam International's middling level of current liabilities have the effect of boosting its ROCE a bit.
Simply Wall St - – Full articleHow Does Olam International Limited (SGX:O32) Fare As A Dividend Stock?
Dividend paying stocks like Olam International Limited (SGX:O32) tend to be popular with investors, and for good reason - some research suggests a significant amount of all stock market returns come from reinvested dividends. If you are hoping to live on your dividends, it's important to be more stringent with your investments than the average punter. Regular readers know we like to apply the same approach to each dividend stock, and we hope you'll find our analysis useful. A high yield and a long history of paying dividends is an appealing combination for Olam International. It would not be a surprise to discover that many investors buy it for the dividends. When buying stocks for their dividends, you should always run through the checks below, to see if the dividend looks sustainable. Click the interactive chart for our full dividend analysis SGX:O32 Historical Dividend Yield, May 10th 2019 Payout ratios Dividends are typically paid from company earnings. If a company pays more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Comparing dividend payments to a company's net profit after tax is a simple way of reality-checking whether a dividend is sustainable. Olam International paid out 82% of its profit as dividends, over the trailing twelve month period. It's paying out most of its earnings, which limits the amount that can be reinvested in the business. This may indicate limited need for further capital within the business, or highlight a commitment to paying a dividend. In addition to comparing dividends against profits, we should inspect whether the company generated enough cash to pay its dividend. Olam International paid out a conservative 43% of its free cash flow as dividends last year. Is Olam International's Balance Sheet Risky? As Olam International has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) net interest cover. … Olam International has been paying dividends for a long time, but for the purpose of this analysis, we only examine the past 10 years of payments. … Dividend Growth Potential With a relatively unstable dividend, it's even more important to see if earnings per share (EPS) are growing. Why take the risk of a dividend getting cut, unless there's a good chance of bigger dividends in future? Over the past five years, it looks as though Olam International's EPS have declined at around 7.6% a year. Declining earnings per share over a number of years is not a great sign for the dividend investor. Without some improvement, this does not bode well for the long term value of a company's dividend. We'd also point out that Olam International issued a meaningful number of new shares in the past year. Trying to grow the dividend when issuing new shares reminds us of the ancient Greek tale of Sisyphus - perpetually pushing a boulder uphill. Companies that consistently issue new shares are often suboptimal from a dividend perspective. Conclusion Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing.
Simply Wall St - – Full articleIs Olam International Limited (SGX:O32) A Great Dividend Stock?
Is Olam International Limited (SGX:O32) a good dividend stock? … Yet sometimes, investors buy a stock for its dividend and lose money because the share price falls by more than they earned in dividend payments. … SGX:O32 Historical Dividend Yield, April 15th 2019
Simply Wall St - – Full articleInvestors Who Bought Olam International (SGX:O32) Shares Three Years Ago Are Now Up 17%
For example, Olam International Limited (SGX:O32) shareholders have seen the share price rise 17% over three years, well in excess of the market return (8.9%, not including dividends). … By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … During three years of share price growth, Olam International moved from a loss to profitability.
Simply Wall St - – Full articleOlam International Limited (SGX:O32) Has A ROE Of 7.8%
With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Our data shows Olam International has a return on equity of 7.8% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity
Simply Wall St - – Full articleIs Olam International Limited's (SGX:O32) P/E Ratio Really That Good?
This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … We'll look at Olam International Limited's (SGX:O32) P/E ratio and reflect on what it tells us about the company's share price. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Simply Wall St - – Full articleDoes Olam International Limited (SGX:O32) Have A Place In Your Portfolio?
Dividends can be underrated but they form a large part of investment returns, playing an important role in compounding returns in the long run. … Historically, Olam International Limited (SGX:O32) has paid dividends to shareholders, and these days it yields 4.7%. … Let's take a look at Olam International in more detail.
Simply Wall St - – Full articleOlam International Limited (SGX:O32) Has A ROE Of 7.8%
While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … Olam International has a ROE of 7.8%, based on the last twelve months. … Return on Equity = Net Profit ÷ Shareholders' Equity
Simply Wall St - – Full articleIs Olam International Limited (SGX:O32) A Smart Pick For Income Investors?
In the past 10 years Olam International Limited (SGX:O32) has returned an average of 2.00% per year to investors in the form of dividend payouts. … Does Olam International tick all the boxes of a great dividend stock? … View our latest analysis for Olam International
Simply Wall St - – Full articleCompany Info
Description
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.
Details
| Name: | Olam International Limited |
| O32 | |
| Exchange: | SGX |
| Founded: | 1989 |
| SGD6,342,242,192 | |
| 3,187,056,378 | |
| Website: | http://olamgroup.com |
| Address: |
Olam International Limited No. 20-01 Marina One East Tower, 7 Straits View, Singapore, 018936, Singapore |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| SGX | O32 | Ordinary Shares | Singapore Exchange | SG | SGD | 11. Feb 2005 | |
| OTCPK | OLMI.F | Ordinary Shares | Pink Sheets LLC | US | USD | 11. Feb 2005 | |
| DB | O5I | Ordinary Shares | Deutsche Boerse AG | DE | EUR | 11. Feb 2005 | |
| OTCPK | OLMI.Y | ADR | Pink Sheets LLC | US | USD | 07. Nov 2008 |
Number of employees
Current staff
Industry
| Food Distributors | |
| Consumer Retailing |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/07/15 12:47 |
| End of day share price update: | 2019/07/15 00:00 |
| Last estimates confirmation: | 2019/05/09 |
| Last earnings filing: | 2019/05/13 |
| Last earnings reported: | 2019/03/31 |
| Last annual earnings reported: | 2018/12/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.
