Risk factor
Very high price volatility
Profitability factor
Undervalued vs peers
About
PT Bakrie Sumatera Plantations Tbk, along with its subsidiaries, operates in Indonesia, focusing on the cultivation, processing, and distribution of agricultural and industrial goods. The company's business is structured across three main segments: Palm Oil and Derivatives, Natural Rubber, and Oleochemicals. The Palm Oil and Derivatives division oversees the development and maintenance of palm oil plantations, as well as the processing, marketing, and sale of palm oil. Its various palm oil by-products and palm kernel oil are essential ingredients across food sectors (e.g., cooking oil, margarine, ice cream) and non-food industries (e.g., soaps, detergents, animal feed, cosmetics, industrial lubricants, and biofuels). In the Natural Rubber segment, the company manages rubber cultivation and maintenance, then processes and sells natural rubber products, which find applications in footwear, gloves, contraceptives, and other manufacturing fields. The Oleochemical segment is dedicated to the production, marketing, and sale of oleochemicals, including fatty acids, distillates, fatty alcohols, glycerin, palm stearin, and olein, which serve as vital raw materials for numerous fast-moving consumer goods. Additionally, PT Bakrie Sumatera Plantations Tbk provides financial services, such as bond issuance, and offers industrial estate management. The company exports its products in addition to serving the domestic market. Established in Kisaran, Indonesia, in 1911 as United Sumatera Plantations, the company was renamed PT Bakrie Sumatera Plantations Tbk in 1991.
Company Valuation
Based on key historical and expected multiples, the stock is undervalued relative to its peers. Specifically, the stock is 'cheap' on P/E, overvalued on EV/EBITD.