| Snowflake Score | |
|---|---|
| Valuation | 4/6 |
| Future Growth | 0/6 |
| Past Performance | 4/6 |
| Financial Health | 4/6 |
| Dividends | 3/6 |
VC2 Stock Overview
Olam Group Limited engages in the sourcing, processing, packaging, and merchandising of agricultural products worldwide.
Rewards
Risk Analysis
Olam Group Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | S$1.52 |
| 52 Week High | S$1.93 |
| 52 Week Low | S$1.25 |
| Beta | 0.87 |
| 1 Month Change | -6.75% |
| 3 Month Change | -12.64% |
| 1 Year Change | 2.70% |
| 3 Year Change | -23.23% |
| 5 Year Change | -20.83% |
| Change since IPO | 80.95% |
Recent News & Updates
Is Olam Group (SGX:VC2) Using Too Much Debt?
Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...
Shareholder Returns
| VC2 | SG Consumer Retailing | SG Market | |
|---|---|---|---|
| 7D | -0.7% | -2.3% | -1.4% |
| 1Y | 2.7% | -15.6% | -5.6% |
Return vs Industry: VC2 exceeded the SG Consumer Retailing industry which returned -15.6% over the past year.
Return vs Market: VC2 exceeded the SG Market which returned -5.6% over the past year.
Price Volatility
| VC2 volatility | |
|---|---|
| VC2 Average Weekly Movement | 3.8% |
| Consumer Retailing Industry Average Movement | 4.7% |
| Market Average Movement | 4.8% |
| 10% most volatile stocks in SG Market | 11.2% |
| 10% least volatile stocks in SG Market | 2.2% |
Stable Share Price: VC2 is not significantly more volatile than the rest of SG stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: VC2's weekly volatility (4%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1989 | 43,100 | Sunny George Verghese | https://www.olamgroup.com |
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.
Olam Group Fundamentals Summary
| VC2 fundamental statistics | |
|---|---|
| Market Cap | S$5.80b |
| Earnings (TTM) | S$628.84m |
| Revenue (TTM) | S$47.07b |
9.3x
P/E Ratio0.1x
P/S RatioIs VC2 overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| VC2 income statement (TTM) | |
|---|---|
| Revenue | S$47.07b |
| Cost of Revenue | S$43.07b |
| Gross Profit | S$4.00b |
| Other Expenses | S$3.37b |
| Earnings | S$628.84m |
Last Reported Earnings
Dec 31, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 0.16 |
| Gross Margin | 8.50% |
| Net Profit Margin | 1.34% |
| Debt/Equity Ratio | 232.9% |
How did VC2 perform over the long term?
See historical performance and comparisonDividends
5.9%
Current Dividend Yield46%
Payout RatioValuation
Is VC2 undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
4/6Valuation Score 4/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio
Key Valuation Metric
Which metric is best to use when looking at relative valuation for VC2?
Other financial metrics that can be useful for relative valuation.
| What is VC2's n/a Ratio? | |
|---|---|
| n/a Ratio | 0x |
| n/a | n/a |
| Market Cap | S$5.80b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 0.4x |
| Enterprise Value/EBITDA | 9.9x |
| PEG Ratio | n/a |
Price to Earnings Ratio vs Peers
How does VC2's PE Ratio compare to its peers?
| VC2 PE Ratio vs Peers |
|---|
| Company | PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 98.9x | ||
D01 DFI Retail Group Holdings | 38.4x | 33.7% | US$4.0b |
OV8 Sheng Siong Group | 17.2x | 1.3% | S$2.4b |
5EV Hosen Group | 6.7x | n/a | S$16.2m |
GHITHA Ghitha Holding P.J.S.C | 360.2x | n/a | د.إ20.8b |
VC2 Olam Group | 9.3x | n/a | S$5.8b |
Price-To-Earnings vs Peers: VC2 is good value based on its Price-To-Earnings Ratio (9.3x) compared to the peer average (96.3x).
Price to Earnings Ratio vs Industry
How does VC2's PE Ratio compare vs other companies in the Asian Consumer Retailing Industry?
Price-To-Earnings vs Industry: VC2 is good value based on its Price-To-Earnings Ratio (9.3x) compared to the SG Consumer Retailing industry average (27x)
Price to Earnings Ratio vs Fair Ratio
What is VC2's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 9.3x |
| Fair PE Ratio | n/a |
Price-To-Earnings vs Fair Ratio: Insufficient data to calculate VC2's Price-To-Earnings Fair Ratio for valuation analysis.
Share Price vs Fair Value
What is the Fair Price of VC2 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: VC2 (SGD1.52) is trading below our estimate of fair value (SGD1.94)
Significantly Below Fair Value: VC2 is trading below fair value by more than 20%.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate VC2's PEG Ratio to determine if it is good value.
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Future Growth
How is Olam Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
Future Growth Score
0/6Future Growth Score 0/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
18.3%
Forecasted Consumer Retailing industry annual growth in earnings
In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Olam Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.
This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.
Discover growth companies
- Examine whether Olam Group is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
- Olam Group competitive advantages and company strategy can generally be found in its financial reports archived here.
Past Performance
How has Olam Group performed over the past 5 years?
Past Performance Score
4/6Past Performance Score 4/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
-2.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: VC2 has high quality earnings.
Growing Profit Margin: VC2's current net profit margins (1.3%) are higher than last year (0.5%).
Past Earnings Growth Analysis
Earnings Trend: VC2's earnings have declined by 2.9% per year over the past 5 years.
Accelerating Growth: VC2's earnings growth over the past year (232.3%) exceeds its 5-year average (-2.9% per year).
Earnings vs Industry: VC2 earnings growth over the past year (232.3%) exceeded the Consumer Retailing industry 4.7%.
Return on Equity
High ROE: VC2's Return on Equity (8.9%) is considered low.
Discover strong past performing companies
Financial Health
How is Olam Group's financial position?
Financial Health Score
4/6Financial Health Score 4/6
Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage
Financial Position Analysis
Short Term Liabilities: VC2's short term assets (SGD21.4B) exceed its short term liabilities (SGD15.0B).
Long Term Liabilities: VC2's short term assets (SGD21.4B) exceed its long term liabilities (SGD10.3B).
Debt to Equity History and Analysis
Debt Level: VC2's net debt to equity ratio (160.7%) is considered high.
Reducing Debt: VC2's debt to equity ratio has reduced from 240.5% to 232.9% over the past 5 years.
Debt Coverage: VC2's debt is not well covered by operating cash flow (4.4%).
Interest Coverage: VC2's interest payments on its debt are well covered by EBIT (3x coverage).
Balance Sheet
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Dividend
What is Olam Group current dividend yield, its reliability and sustainability?
Dividend Score
3/6Dividend Score 3/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage
5.92%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: VC2's dividend (5.92%) is higher than the bottom 25% of dividend payers in the SG market (2.24%).
High Dividend: VC2's dividend (5.92%) is low compared to the top 25% of dividend payers in the SG market (6.17%).
Stability and Growth of Payments
Stable Dividend: VC2's dividend payments have been volatile in the past 10 years.
Growing Dividend: VC2's dividend payments have increased over the past 10 years.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonably low payout ratio (46.5%), VC2's dividend payments are well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: VC2 is paying a dividend but the company has no free cash flows.
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Management
How experienced are the management team and are they aligned to shareholders interests?
6.5yrs
Average management tenure
CEO
Sunny George Verghese (62 yo)
no data
Tenure
Mr. Sunny George Verghese is a Co-Founder of Olam Group Limited (aka Olam International Limited). He serves as Non-Executive Director of Olam Food Ingredients Spain S.L. since March 2022. Mr. Verghese serv...
Leadership Team
Experienced Management: VC2's management team is seasoned and experienced (6.5 years average tenure).
Board Members
Experienced Board: VC2's board of directors are considered experienced (5.7 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: VC2 insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 19.7%.
Top Shareholders
Company Information
Olam Group Limited's employee growth, exchange listings and data sources
Key Information
- Name: Olam Group Limited
- Ticker: VC2
- Exchange: SGX
- Founded: 1989
- Industry: Food Distributors
- Sector: Consumer Retailing
- Implied Market Cap: S$5.802b
- Shares outstanding: 3.84b
- Website: https://www.olamgroup.com
Number of Employees
Location
- Olam Group Limited
- No. 20-01 Marina One East Tower
- 7 Straits View
- Singapore
- 18936
- Singapore
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/07/06 00:00 |
| End of Day Share Price | 2022/07/06 00:00 |
| Earnings | 2021/12/31 |
| Annual Earnings | 2021/12/31 |
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.