Golden Agri-Resources (GARPY) AI Stock Analysis

• Market Cap: $2.74B
• Dividend Yield: 2.82%
• Average Volume (3M): 0.00
• Price to Earnings (P/E): 6.5
• Beta (1Y): 0.16
• Revenue Growth: 19.13%
• EPS Growth: 260.19%
• Country: US
• Employees: 100,100
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Agricultural Farm Products
• EPS (TTM): 1.27
• Shares Outstanding: 128,375,490
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: 0.09
• Price to Book (P/B): 0.52
• Price to Sales (P/S): 0.24
• P/FCF Ratio: -6.43
• Enterprise Value/Market Cap: 1.86
• Enterprise Value/Revenue: 0.43
• Enterprise Value/Gross Profit: 2.55
• Enterprise Value/Ebitda: 4.37
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 61 Neutral
• Price Target: $22.50 ▲(4.55% Upside)

Golden Agri-Resources' overall score is driven by its strong valuation metrics, with a low P/E ratio and a reasonable dividend yield. However, financial performance is hampered by challenges in net profitability and cash flow generation. Technical indicators suggest weak market momentum, which could impact short-term performance.

Golden Agri-Resources Business Overview & Revenue Model

Company Description

Golden Agri-Resources Ltd, an investment holding company, operates as an integrated palm oil plantation company in Europe, China, India, Pakistan, the Middle east, and the United States. 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, soybean oil, and soybean meal; oleo chemicals; palm oil based bio-diesel and other renewable resources based energy; and refined products, including cooking oil, margarine, shortening, butter oil substitute, and fats. It also produces processed food products, such as instant noodles, as well as snack products and beverages. The company manages oil palm estates with a total area of 536,013 hectares in Indonesia. In addition, it offers treasury management, building management, business and management consultancy, telecommunication and multimedia, commercial and industrial real estate management, digital analytics; aerial manuring, construction, training, ship management, chartering, and technology product services. Further, the company provides IT consultancy, IT application design, development, and maintenance services; facilities for data center resources and other IT outsourced activities; and port loading, storage, packaging, and transportation service. Additionally, it engages in importing, marketing, and distributing palm oil products; cultivation of ornamental plants; wholesale trade; property investment activities; production and distribution of bottled ionised mineral water and fatty alcohol, acid, derivatives, and other chemical; shipping and logistics; vessels operation; office administration and dormant services; refinery operation; and sale of food and beverage products. The company was incorporated in 1996 and is based in Singapore.

How the Company Makes Money

Golden Agri-Resources generates revenue primarily through the sale of crude palm oil (CPO) and palm kernel oil (PKO), which are sold to global markets. The company operates extensive palm oil plantations, which provide a steady supply of raw materials for its processing facilities. In addition to direct product sales, GARPY benefits from value-added activities such as refining and processing palm oil into consumer-ready products. Key revenue streams also include the sale of by-products from palm oil extraction, such as palm kernel cake. The company has established significant partnerships with various businesses in the food and biofuel sectors, further enhancing its market reach. Factors contributing to its earnings include the global demand for palm oil, favorable pricing conditions, and the ongoing investment in sustainable practices that appeal to environmentally conscious consumers.

Golden Agri-Resources Financial Statement Overview

Summary

Golden Agri-Resources shows strong revenue growth and improved gross margins, indicating effective cost management. However, challenges in net profitability and cash flow generation, with a significant decline in Free Cash Flow, could hinder future growth. The balance sheet is stable with moderate leverage, but improvements in equity returns and cash flow management are needed.

Income Statement

Golden Agri-Resources has demonstrated solid revenue growth with a 11.8% increase from 2023 to 2024. The Gross Profit Margin has improved to 18.8%, indicating enhanced operational efficiency. However, the Net Profit Margin remains modest at 3.3%, highlighting potential challenges in cost management or pricing strategies. Both EBIT and EBITDA margins show stability, suggesting operational resilience.

Balance Sheet

The company's Debt-to-Equity ratio stands at 0.73, indicating a balanced leverage position. Return on Equity is relatively low at 7.1%, suggesting limited profitability from equity investments. The Equity Ratio of 47.7% reflects a stable capital structure, although there is room for improvement in asset efficiency.

Cash Flow

The cash flow statement reveals a concerning trend with a significant decline in Free Cash Flow, moving from a positive $238 million in 2023 to a negative $410 million in 2024. The Operating Cash Flow to Net Income ratio has dropped to -0.22, indicating challenges in cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.92B	10.91B	9.76B	11.44B	10.18B	7.08B
Gross Profit	2.00B	2.05B	1.83B	3.03B	2.35B	1.15B
EBITDA	1.17B	1.15B	952.70M	1.74B	1.22B	644.69M
Net Income	422.81M	364.55M	197.60M	782.10M	476.18M	31.75M
Balance Sheet
Total Assets	10.67B	10.69B	9.72B	9.90B	9.61B	9.13B
Cash, Cash Equivalents and Short-Term Investments	1.05B	999.83M	1.14B	1.15B	666.02M	1.10B
Total Debt	3.37B	3.71B	3.06B	2.98B	3.00B	3.15B
Total Liabilities	5.16B	5.32B	4.54B	4.65B	4.72B	4.69B
Stockholders Equity	5.22B	5.10B	4.93B	5.00B	4.68B	4.25B
Cash Flow
Free Cash Flow	449.73M	-410.47M	238.22M	885.48M	357.68M	543.11M
Operating Cash Flow	632.13M	-80.91M	554.54M	1.09B	564.79M	743.86M
Investing Cash Flow	-167.70M	-626.21M	-604.61M	-705.86M	-196.19M	-320.61M
Financing Cash Flow	-468.41M	680.07M	-175.97M	-292.87M	-282.66M	-231.20M

Golden Agri-Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21.52
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GARPY, the sentiment is Positive. The current price of 21.52 is below the 20-day moving average (MA) of 21.88, below the 50-day MA of 22.32, and above the 200-day MA of 19.75, indicating a neutral trend. The MACD of -0.34 indicates Positive momentum. The RSI at 44.69 is Neutral, neither overbought nor oversold. The STOCH value of 83.88 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GARPY.

Golden Agri-Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BG	―	$18.81B	9.39	13.20%	2.92%	-8.87%	13.21%
ADM	―	$28.87B	26.45	4.93%	3.38%	-6.70%	-54.38%
FDP	―	$1.72B	21.93	3.95%	3.35%	1.11%	414.23%
SFD	―	$8.71B	10.06	―	3.38%	―	―
Sector *	―	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
GARPY	―	$2.74B	6.46	8.33%	2.82%	19.13%	260.19%
AGRO	―	$787.95M	22.05	2.63%	4.34%	19.45%	-82.38%