3 Things That Investors Should Know About Wilmar International Limited Now

Wilmar International Limited (SGX: F34) is one of the largest agriculture companies listed in Singapore and it is also one of the 30 companies that make up the Straits Times Index (SGX: STI).

Wilmar’s business activities include oil palm cultivation, oilseed crushing, edible oils refining, and sugar milling and refining. The company also produces specialty fats, oleochemicals, biodiesel, and fertiliser and has an interest in flour and rice milling as well.

Here are three things about Wilmar that investors may want to know:

1. Latest quarterly results

Wilmar announced its latest first-quarter results (for the three months ended 31 March 2016) last week. It was a mixed bag – revenue shrank by 4.3% year-on-year to US$9.0 billion, but profit was up by 3.2% to US$239.4 million.

The company also warned that “operating conditions in the second quarter are expected to be challenging.”

2. Dividend history

Wilmar was listed nearly 10 years ago in July 2006. From that year to 2015, the palm oil producer has never failed to pay an annual dividend in each year. That said, the firm’s dividends have not been able to grow much, increasing from just S$0.073 per share in 2007 to S$0.08 in 2015.

At Wilmar’s current share price of S$3.28, its 2015 dividend gives it a dividend yield of 2.5%.

3. Valuation

Wilmar is currently trading at a P/E ratio of 14.6. You can see the company’s P/E ratio history over the last five years in the chart below:

Wilmar's price-to-earnings (PE) ratio from 17 May 2011 to 17 May 2016
Source: S&P Global Market Intelligence

As you can tell, Wilmar’s current P/E ratio appears to be in the middle-band of what the valuation measure has been since 17 May 2011.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned.