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.

Rewards

Trading at 65% below its fair value

Earnings are forecast to grow 77.84% per year

Became profitable this year

Risk Analysis

Interest payments are not well covered by earnings

Large one-off items impacting financial results



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

4.7%

E5H

0.7%

SG Food

-0.2%

SG Market


1 Year Return

-11.8%

E5H

17.6%

SG Food

3.3%

SG Market

Return vs Industry: E5H underperformed the SG Food industry which returned 17.6% over the past year.

Return vs Market: E5H underperformed the SG Market which returned 3.3% over the past year.


Shareholder returns

E5HIndustryMarket
7 Day4.7%0.7%-0.2%
30 Day-2.2%5.6%-1.9%
90 Day-18.2%5.0%-0.2%
1 Year-9.9%-11.8%20.8%17.6%7.5%3.3%
3 Year-44.4%-47.7%-1.3%-8.7%15.6%3.2%
5 Year-42.4%-47.1%6.9%-5.2%14.6%-4.7%

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 (SGD0.23) is trading below our estimate of fair value (SGD0.64)

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 (62.5x) compared to the Food industry average (16.9x).

PE vs Market: E5H is poor value based on its PE Ratio (62.5x) compared to the SG market (13.2x).


Price to Earnings Growth Ratio

PEG Ratio: E5H is good value based on its PEG Ratio (0.8x)


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 (0.9x).


Next Steps

Future Growth

How is Golden Agri-Resources forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

77.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: E5H's forecast earnings growth (77.8% per year) is above the savings rate (1.8%).

Earnings vs Market: E5H's earnings (77.8% per year) are forecast to grow faster than the SG market (6.6% per year).

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

Revenue vs Market: E5H's revenue (8.8% per year) is forecast to grow faster than the SG market (5.5% per year).

High Growth Revenue: E5H's revenue (8.8% 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 (-19.9%).


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?

2.52%

Current Dividend Yield


Dividend Yield vs Market

company2.5%marketbottom25%2.5%markettop25%5.5%industryaverage2.5%forecastin3Years1.2%

Current dividend yield vs market & industry

Notable Dividend: E5H's dividend (2.52%) isn’t notable compared to the bottom 25% of dividend payers in the SG market (2.53%).

High Dividend: E5H's dividend (2.52%) is low compared to the top 25% of dividend payers in the SG market (5.46%).


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

What is the CEO of Golden Agri-Resources's salary, the management and board of directors tenure and is there insider trading?

13.9yrs

Average management tenure


CEO

Franky Widjaja (61yo)

23.9yrs

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 ...


Management Age and Tenure

13.9yrs

Average Tenure

56yo

Average Age

Experienced Management: E5H's management team is seasoned and experienced (13.9 years average tenure).


Board Age and Tenure

9.6yrs

Average Tenure

65yo

Average Age

Experienced Board: E5H's board of directors are considered experienced (9.6 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$430,00002 Dec 19
Syn Pau Lew
EntityIndividual
Role
Lead Director
Non-Executive Lead Independent Director
Shares2,000,000
Max PriceUS$0.21

Ownership Breakdown

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


Management Team

  • Rafael Concepcion (52yo)

    CFO & Executive Director

    • Tenure: 17.3yrs
  • Franky Widjaja (61yo)

    Chairman & CEO

    • Tenure: 23.9yrs
  • Muktar Widjaja (65yo)

    President & Executive Director

    • Tenure: 20.9yrs
  • Hemant Bhatt (56yo)

    Head of Downstream & Commercial

    • Tenure: 0yrs
  • Paul Hickman (53yo)

    Head of Global Vegetable Oils & Oilseeds

    • Tenure: 7.9yrs
  • Harjanto Tanuwidjaja

    Chief Human Resources Officer

    • Tenure: 0yrs
  • Khoo Yeow

    Chief Information Officer

    • Tenure: 0yrs
  • Pedy Harianto

    Head of Controllership & Compliance

    • Tenure: 0yrs
  • Anita Neville

    Vice President of Corporate Communications & Sustainability Relations

    • Tenure: 0yrs
  • Richard Fung

    Director of Investor Relations

    • Tenure: 0yrs

Board Members

  • Syn Pau Lew (65yo)

    Non-Executive Lead Independent Director

    • Tenure: 2.6yrs
  • Meng-Kee Foo (69yo)

    Non-Executive Independent Director

    • Tenure: 2.7yrs
  • Rafael Concepcion (52yo)

    CFO & Executive Director

    • Tenure: 17.3yrs
  • Franky Widjaja (61yo)

    Chairman & CEO

    • Tenure: 23.9yrs
  • Muktar Widjaja (65yo)

    President & Executive Director

    • Tenure: 20.9yrs
  • Kaneyalall Hawabhay (71yo)

    Independent Non-Executive Director

    • Tenure: 16.6yrs
  • Henri Gautier de Charnacé (70yo)

    Non-Executive Independent Director

    • Tenure: 1.1yrs
  • Khemraj Sharma Sewraz

    Independent Non-Executive Director

    • Tenure: 0.08yrs

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$2.929b
  • 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 seg ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 12:39
End of Day Share Price2019/12/11 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.