3 Quick Numbers For Investors To Understand Wilmar International Limited’s Business Better

Wilmar International Limited (SGX: F34) is one of the largest companies in Singapore’s stock market.

At its current share price of S$3.34, it has a market capitalisation of over S$21 billion. Its heft gives it a place as one of the 30 constituents of the Straits Times Index (SGX: ^STI).

As a brief background, Wilmar is an agriculture-focused company and it has three main business segments: Tropical Oils; Oilseeds and Grains; and Sugar. Wilmar has a wide geographical reach as well with its distribution network that extends to over 50 countries including China, India, and Indonesia.

The company is also the world’s largest processor and merchandiser of palm and lauric oils, the largest oilseeds crusher in China, and among the top 10 raw sugar producers globally.

Here are three quick numbers for investors to have a better understanding of how Wilmar’s business has been performing over the past five years.

1. The growth in book value

Wilmar international had a book value of US$1.85 per share in 2010. That has grown steadily over the past five years at an annual rate of 5.3% to end 2015 at US$2.39.

2. The change in dividends

Wilmar has been paying an annual dividend without fail since its listing in 2006. Over the past five years, its dividend has increased from S$0.055 per share in 2010 to S$0.08 per share in 2015. That is a 45% jump in dividends over a five year period.

3. The change in earnings per share

While the last two metrics show Wilmar’s business to be growing, investors may be surprised to know that over the five year period from 2010 to 2015, the agriculture giant’s earnings per share (EPS) has actually dropped. Wilmar reported EPS of US$0.207 and US$0.166 in 2010 and 2015, respectively.

To sum up, while Wilmar has successfully grown its book value and raised its dividends over its last five fiscal years, its profit has actually declined. The company’s future change in earnings may be something to note for investors.

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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 Esjay owns shares in Wilmar International.