SGX:P8Z

Stock Analysis Report

Executive Summary

Bumitama Agri Ltd., an investment holding company, produces and trades in crude palm oil (CPO), palm kernel (PK), and related products for refineries in Indonesia.

Rewards

Trading at 42.2% below its fair value

Earnings are forecast to grow 26.23% per year

Risk Analysis

Debt is not well covered by operating cash flow

Unstable dividend track record

Highly volatile share price over past 3 months

Profit margins (8.3%) are lower than last year (15.2%)



Snowflake Analysis

Reasonable growth potential and fair value.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: P8Z's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.3%

P8Z

-3.5%

SG Food

-1.2%

SG Market


1 Year Return

3.5%

P8Z

12.4%

SG Food

1.0%

SG Market

Return vs Industry: P8Z underperformed the SG Food industry which returned 19.6% over the past year.

Return vs Market: P8Z exceeded the SG Market which returned 2.1% over the past year.


Shareholder returns

P8ZIndustryMarket
7 Day-1.3%-3.5%-1.2%
30 Day-2.0%0.05%0.6%
90 Day33.3%9.8%1.9%
1 Year7.2%3.5%15.5%12.4%5.1%1.0%
3 Year2.9%-7.5%-5.3%-12.5%14.1%2.0%
5 Year-16.3%-26.4%1.8%-9.7%10.8%-7.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Bumitama Agri undervalued compared to its fair value and its price relative to the market?

44.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: P8Z (SGD0.77) is trading below our estimate of fair value (SGD1.33)

Significantly Below Fair Value: P8Z is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: P8Z is poor value based on its PE Ratio (21.7x) compared to the Food industry average (17.2x).

PE vs Market: P8Z is poor value based on its PE Ratio (21.7x) compared to the SG market (13.5x).


Price to Earnings Growth Ratio

PEG Ratio: P8Z is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: P8Z is overvalued based on its PB Ratio (1.8x) compared to the SG Food industry average (0.9x).


Next Steps

Future Growth

How is Bumitama Agri forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

27.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: P8Z's forecast earnings growth (26.2% per year) is above the savings rate (1.8%).

Earnings vs Market: P8Z's earnings (26.2% 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: P8Z's revenue (7.9% per year) is forecast to grow faster than the SG market (5.6% per year).

High Growth Revenue: P8Z's revenue (7.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: P8Z's Return on Equity is forecast to be low in 3 years time (11.8%).


Next Steps

Past Performance

How has Bumitama Agri performed over the past 5 years?

0.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: P8Z has high quality earnings.

Growing Profit Margin: P8Z's current net profit margins (8.3%) are lower than last year (15.2%).


Past Earnings Growth Analysis

Earnings Trend: P8Z's earnings have grown by 0.4% per year over the past 5 years.

Accelerating Growth: P8Z's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: P8Z had negative earnings growth (-49.6%) over the past year, making it difficult to compare to the Food industry average (-19.9%).


Return on Equity

High ROE: P8Z's Return on Equity (8.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Bumitama Agri's financial position?


Financial Position Analysis

Short Term Liabilities: P8Z's short term assets (IDR2,434.9B) exceed its short term liabilities (IDR2,017.2B).

Long Term Liabilities: P8Z's short term assets (IDR2,434.9B) do not cover its long term liabilities (IDR6,166.1B).


Debt to Equity History and Analysis

Debt Level: P8Z's debt to equity ratio (75.1%) is considered high.

Reducing Debt: P8Z's debt to equity ratio has reduced from 98.8% to 75.1% over the past 5 years.

Debt Coverage: P8Z's debt is not well covered by operating cash flow (16.9%).

Interest Coverage: P8Z's interest payments on its debt are well covered by EBIT (18.5x coverage).


Balance Sheet

Inventory Level: P8Z has a high level of physical assets or inventory.

Debt Coverage by Assets: P8Z's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

What is Bumitama Agri's current dividend yield, its reliability and sustainability?

3.72%

Current Dividend Yield


Dividend Yield vs Market

company3.7%marketbottom25%2.5%markettop25%5.5%industryaverage2.5%forecastin3Years3.6%

Current dividend yield vs market & industry

Notable Dividend: P8Z's dividend (3.57%) is higher than the bottom 25% of dividend payers in the SG market (2.5%).

High Dividend: P8Z's dividend (3.57%) is low compared to the top 25% of dividend payers in the SG market (5.41%).


Stability and Growth of Payments

Stable Dividend: P8Z has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: P8Z's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (68.7%), P8Z's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: P8Z's dividends in 3 years are forecast to be well covered by earnings (40.9% payout ratio).


Next Steps

Management

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

7.0yrs

Average management tenure


CEO

Gunawan Lim (59yo)

0yrs

Tenure

0

Mr. Gunawan Hariyanto Lim serves as an Executive Chairman and Chief Executive Officer of Bumitama Agri Ltd. Mr. Lim served as the President Director of PT. Tirta Mahakam Resources Tbk. Mr. Lim has been Dir ...


Management Age and Tenure

7.0yrs

Average Tenure

54.5yo

Average Age

Experienced Management: P8Z's management team is seasoned and experienced (7 years average tenure).


Board Age and Tenure

2.6yrs

Average Tenure

59yo

Average Age

Experienced Board: P8Z's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyS$1,455,00017 Dec 19
Wellpoint Pacific Holdings Ltd
EntityCompany
Shares2,000,000
Max PriceS$0.73
BuyS$232,96009 Sep 19
Wellpoint Pacific Holdings Ltd
EntityCompany
Shares400,000
Max PriceS$0.58

Ownership Breakdown

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


Management Team

  • Tanuwijaya Johannes (50yo)

    Chief Strategy Officer

    • Tenure: 7yrs
  • Gunawan Lim (59yo)

    Executive Chairman & CEO

    • Sie Eddy (48yo)

      Chief Financial Officer

      • Tenure: 7yrs
    • - Roebianto (61yo)

      Chief Operating Officer

      • Wai Chiang

        Joint Company Secretary

        • Tenure: 4.3yrs
      • Christina Lim

        Executive Director

        • Tenure: 2.6yrs

      Board Members

      • Yeow Lee (53yo)

        Non-Executive Director

        • Tenure: 7.8yrs
      • Gunawan Lim (59yo)

        Executive Chairman & CEO

        • Hung Lim (69yo)

          Independent Non-Executive Director

          • Tenure: 1.6yrs
        • George Lee

          Lead Independent Director

          • Christina Lim

            Executive Director

            • Tenure: 2.6yrs
          • Lawrence Lua

            Independent Director

            Company Information

            Bumitama Agri Ltd.'s company bio, employee growth, exchange listings and data sources


            Key Information

            • Name: Bumitama Agri Ltd.
            • Ticker: P8Z
            • Exchange: SGX
            • Founded: 1996
            • Industry: Agricultural Products
            • Sector: Food, Beverage & Tobacco
            • Market Cap: S$1.286b
            • Shares outstanding: 1.74b
            • Website: https://www.bumitama-agri.com

            Location

            • Bumitama Agri Ltd.
            • Jl. Melawai Raya
            • No. 10, Kebayoran Baru
            • South Jakarta
            • Jakarta Raya
            • 12160
            • Indonesia

            Listings

            TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
            P8ZSGX (Singapore Exchange)YesOrdinary sharesSGSGDApr 2012
            2BUDB (Deutsche Boerse AG)YesOrdinary sharesDEEURApr 2012

            Biography

            Bumitama Agri Ltd., an investment holding company, produces and trades in crude palm oil (CPO), palm kernel (PK), and related products for refineries in Indonesia. It is involved in cultivating oil palm trees; and harvesting and processing fresh palm fruit bunches (FFB) into CPO and PK. The company also provides wholesale distribution; and business and management consultancy services, as well as operates oil palm plantations and palm oil mills. It manages a total land area of approximately 234,000 hectares in Central Kalimantan, West Kalimantan, and Riau provinces. The company was founded in 1996 and is based in South Jakarta, Indonesia. Bumitama Agri Ltd. is a subsidiary of Wellpoint Pacific Holdings Ltd. 


            Company Analysis and Financial Data Status

            All financial data provided by Standard & Poor's Capital IQ.
            DataLast Updated (UTC time)
            Company Analysis2020/01/24 13:03
            End of Day Share Price2020/01/24 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.