What Investors Should Know About Bumitama Agri Ltd’s Growth, Dividend, and Valuation

In the course of recent years, palm oil maker Bumitama Agri Ltd (SGX: P8Z) has seen its stock value fall 17%. While that is not a decent give back, the organization is really one of the better securities exchange entertainers among the palm oil organizations recorded in Singapore.

In here, I need to take a gander at three parts of the organization's business that may premium financial specialists, in particular, its development, profit, and valuation.

1. Development

The table beneath shows how Bumitama Agri's income and benefit have changed from 2011 to 2015:


We can see that Bumitama Agri's income and net benefit were both growing up to 2014, preceding decreases were seen in 2015. Falling unrefined palm oil (CPO) costs had influenced its business.

2. Profit

At its present share cost of S$0.80, Bumitama Agri has a trailing profit yield of only 0.6%, which is altogether lower than the SPDR STI ETF's (SGX: ES3) yield of 3.1%.

To evaluate the support-ability of the organization's profit, we can take a gander at two money related proportions: the obligation to-shareholders' value proportion and the benefit pay-out proportion. Do remember that there are numerous different things to take a gander at past the two proportions.

The obligation to-shareholders' value proportion is a gage for the level of money related hazard an organization is going up against. Then, the benefit pay-out proportion is the rate of an organization's benefit that is paid out as a profit. As a rule, the lower the two proportions are, the better it could be.

In view of Bumitama Agri's most recent financials (starting 30 September 2016), it has an obligation to-shareholders' value proportion of 69%. With its trailing profit per share of S$0.056 and profit per share of S$0.005, the organization has a compensation out proportion of only 8.9%.

3. Valuation

Bumitama Agri has a cost to-profit (PE) proportion of 14.3 right at this point. One vital thing to note here is that the proportion is almost a three-year low, as appeared in the outline beneath:


The other thing worth remembering is that Bumitama Agri's present PE proportion is a bit higher than the SPDR STI ETF's PE proportion of 12.

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