SGX:E5H

Stock Analysis Report

Executive Summary

Golden Agri-Resources Ltd, an investment holding company, operates as an integrated palm oil plantation company in China, Indonesia, India, Rest of Asia, Europe, and internationally.


Snowflake Analysis

Good value with reasonable growth potential.


Similar Companies

Share Price & News

How has Golden Agri-Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: E5H has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

E5H

-0.02%

SG Food

-0.7%

SG Market


1 Year Return

-24.6%

E5H

10.0%

SG Food

-3.7%

SG Market

Return vs Industry: E5H underperformed the SG Food industry which returned 10% over the past year.

Return vs Market: E5H underperformed the SG Market which returned -3.7% over the past year.


Shareholder returns

E5HIndustryMarket
7 Day0%-0.02%-0.7%
30 Day-4.4%-0.9%-2.1%
90 Day-2.3%-1.1%-1.5%
1 Year-23.0%-24.6%13.1%10.0%0.2%-3.7%
3 Year-42.9%-46.3%-3.0%-10.3%8.6%-2.9%
5 Year-42.7%-46.9%3.5%-8.2%9.0%-9.4%

Price Volatility Vs. Market

How volatile is Golden Agri-Resources's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Golden Agri-Resources 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: E5H (SGD0.22) is trading below our estimate of fair value (SGD0.63)

Significantly Below Fair Value: E5H is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: E5H is poor value based on its PE Ratio (58.1x) compared to the Food industry average (14.7x).

PE vs Market: E5H is poor value based on its PE Ratio (58.1x) compared to the SG market (13.5x).


Price to Earnings Growth Ratio

PEG Ratio: E5H is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: E5H is good value based on its PB Ratio (0.5x) compared to the SG Food industry average (0.8x).


Next Steps

Future Growth

How is Golden Agri-Resources forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

89.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: E5H's forecast earnings growth (89.8% per year) is above the savings rate (1.8%).

Earnings vs Market: E5H's earnings (89.8% per year) are forecast to grow faster than the SG market (5.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: E5H's revenue (8.9% per year) is forecast to grow faster than the SG market (5.4% per year).

High Growth Revenue: E5H's revenue (8.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: E5H's Return on Equity is forecast to be low in 3 years time (2.4%).


Next Steps

Past Performance

How has Golden Agri-Resources performed over the past 5 years?

-21.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: E5H has a large one-off gain of $149.0M impacting its September 30 2019 financial results.

Growing Profit Margin: E5H became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: E5H's earnings have declined by -21% per year over the past 5 years.

Accelerating Growth: E5H has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: E5H has become profitable in the last year, making it difficult to compare its past year earnings growth to the Food industry (3.6%).


Return on Equity

High ROE: E5H's Return on Equity (1.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Golden Agri-Resources's financial position?


Financial Position Analysis

Short Term Liabilities: E5H's short term assets ($2.7B) exceed its short term liabilities ($2.6B).

Long Term Liabilities: E5H's short term assets ($2.7B) exceed its long term liabilities ($1.6B).


Debt to Equity History and Analysis

Debt Level: E5H's debt to equity ratio (72.8%) is considered high.

Reducing Debt: E5H's debt to equity ratio has increased from 32.6% to 72.8% over the past 5 years.

Debt Coverage: E5H's debt is not well covered by operating cash flow (14%).

Interest Coverage: E5H's interest payments on its debt are not well covered by EBIT (0.6x coverage).


Balance Sheet

Inventory Level: E5H has a high level of physical assets or inventory.

Debt Coverage by Assets: E5H's debt is not covered by short term assets (assets are 0.9x debt).


Next Steps

Dividend

What is Golden Agri-Resources's current dividend yield, its reliability and sustainability?

2.69%

Current Dividend Yield


Dividend Yield vs Market

company2.7%marketbottom25%2.6%markettop25%5.7%industryaverage2.9%forecastin3Years1.4%

Current dividend yield vs market & industry

Notable Dividend: E5H's dividend (2.69%) is higher than the bottom 25% of dividend payers in the SG market (2.56%).

High Dividend: E5H's dividend (2.69%) is low compared to the top 25% of dividend payers in the SG market (5.66%).


Stability and Growth of Payments

Stable Dividend: E5H's dividend payments have been volatile in the past 10 years.

Growing Dividend: E5H's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (160.8%), E5H's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of E5H's dividend in 3 years as they are not forecast to pay a notable one for the SG market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

14.1yrs

Average management tenure


CEO

Franky Widjaja (61yo)

24.1yrs

Tenure

0

Mr. Franky Oesman Widjaja has been the Chief Executive Officer and Executive Director of Golden Agri-resources Ltd since 1996. Mr. Widjaja serves as the Head of the Agri-Business and Consumer Food Products ...


Leadership Team

NamePositionTenureCompensationOwnership
Franky Widjaja
Chairman & CEO24.1yrsno datano data
Muktar Widjaja
President & Executive Director21.1yrsno datano data
Rafael Concepcion
CFO & Executive Director17.5yrsno datano data
Khoo Yeow
Chief Information Officer0yrsno datano data
Richard Fung
Director of Investor Relations0yrsno datano data
Pedy Harianto
Head of Controllership & Compliance0yrsno datano data
Anita Neville
Vice President of Corporate Communications & Sustainability Relations0yrsno datano data
Harjanto Tanuwidjaja
Chief Human Resources Officer0yrsno datano data
Hemant Bhatt
Head of Downstream & Commercial0yrsno datano data
Paul Hickman
Head of Global Vegetable Oils & Oilseeds8.1yrsno datano data

14.1yrs

Average Tenure

56yo

Average Age

Experienced Management: E5H's management team is seasoned and experienced (14.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Franky Widjaja
Chairman & CEO24.1yrsno datano data
Muktar Widjaja
President & Executive Director21.1yrsno datano data
Rafael Concepcion
CFO & Executive Director17.5yrsno datano data
Syn Pau Lew
Non-Executive Lead Independent Director2.8yrsno data0.024% $645.1k
Meng-Kee Foo
Non-Executive Independent Director2.8yrsno datano data
Kaneyalall Hawabhay
Independent Non-Executive Director16.8yrsno datano data
Christian Gautier de Charnacé
Non-Executive Independent Director1.3yrsno data0.0028% $75.6k
Khemraj Sharma Sewraz
Independent Non-Executive Director0.3yrsno datano data

9.8yrs

Average Tenure

65yo

Average Age

Experienced Board: E5H's board of directors are considered experienced (9.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: E5H insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Golden Agri-Resources Ltd's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Golden Agri-Resources Ltd
  • Ticker: E5H
  • Exchange: SGX
  • Founded: 1996
  • Industry: Agricultural Products
  • Sector: Food, Beverage & Tobacco
  • Market Cap: S$2.738b
  • Shares outstanding: 12.73b
  • Website: https://www.goldenagri.com.sg

Number of Employees


Location

  • Golden Agri-Resources Ltd
  • No. 06-00 Golden agri Plaza
  • 108 Pasir Panjang Road
  • Singapore
  • 118535
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GARP.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 1999
E5HSGX (Singapore Exchange)YesOrdinary SharesSGSGDJul 1999
4G3ADB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 1999
GARP.YOTCPK (Pink Sheets LLC)ADRUSUSDNov 2008

Biography

Golden Agri-Resources Ltd, an investment holding company, operates as an integrated palm oil plantation company in China, Indonesia, India, Rest of Asia, Europe, and internationally. It operates in two segments, Plantation and Palm Oil Mills; and Palm, Laurics and Others. The company offers bulk products, such as crude palm oil, palm kernel, palm kernel oil, palm kernel meal, olein, stearin, cocoa butter substitute, soybean oil, and soybean meal; oleo chemicals; palm oil based bio-diesel and other renewable resources based bio-fuels; and refined products, including cooking oil, margarine, shortening, butter oil substitute, and fats for end-customers, restaurants, hotels, cafés, and industrial markets. It also produces other food products, such as instant noodles, as well as snack products and beverages. The company manages approximately 170 oil palm estates with a total area of 498,395 hectares in Indonesia. In addition, it offers treasury management, building management, business and management consultancy, telecommunication and multimedia, commercial and industrial real estate management, aerial manuring, construction, training, ship management, chartering, and technology product services. Further, the company provides IT consultancy, as well as IT application design, development, and maintenance services; facilities for data center resources and other IT outsourced activities; and port loading, storage, packaging, and transportation services. Additionally, it engages in building and operation of wind power farms; importing, marketing, and distributing palm oil products; power generation of renewable energy; cultivation of ornamental plants; wholesale trade; property investment activities; production and distribution of bottled ionised mineral water shipping and logistics; vessels operation; and sale of food and beverage products. The company was founded in 1996 and is based in Singapore. Golden Agri-Resources Ltd is a subsidiary of Flambo International Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 12:50
End of Day Share Price2020/02/21 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.