Should I buy Olam International stock in 2025?

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At HelloSafe, our expert has been monitoring the performance of Olam International for more than three years. Each month, tens of thousands of users in Singapore rely on us to interpret market trends and identify attractive investment opportunities. Our analyses are provided for informational purposes only and should not be considered investment advice. In line with our ethical charter, we have never been, and will never be, compensated by Olam International.

What is Olam International ?

How much is Olam International stock?

The price of Olam International stock is rising this week. As of today, the stock trades at SGD 0.955, marking a gain of 1.06% in the past 24 hours and a robust 14.37% increase over the last week. Olam’s market capitalization stands at SGD 3.62 billion, with an average three-month trading volume of 2.57 million shares. The stock’s P/E ratio is 95.50, offering a dividend yield of 6.28%, and a beta of 0.62 signals relatively low volatility. This recent upward momentum, balanced by strong dividends, makes Olam an interesting choice for yield-focused investors in Singapore's dynamic market.

Our full analysis on Olam International stock

We have closely reviewed Olam International’s FY2024 results and rigorously assessed its multi-year stock performance, applying a proprietary blend of financial, technical, and peer benchmarking analytics. Leveraging multiple data streams—from key valuation ratios and volume signals to the evolving competitive landscape—we synthesize a data-driven perspective on the evolving investment narrative. So, why might Olam International stock once again become a strategic entry point into the global food and agri-business sector in 2025?

Recent Performance and Market Context

Olam International (SGX: VC2) has experienced notable volatility over the past year, yet key developments position it for a potential bullish phase. As of May 10, 2025, Olam’s share price stands at SGD 0.955, with a robust market cap of SGD 3.62 billion and average daily volumes at 2.57 million shares—clear evidence of sustained market engagement despite recent turbulence. While the stock is down 17.67% over both 6-month and 1-year periods, the recent weekly rebound of +14.37% signals renewed market confidence, possibly linked to investors’ enthusiastic interpretation of corporate actions and sector outlook.

Several positive catalysts have emerged in recent months:

• Strategic Divestment: The landmark agreement to divest Olam Agri for USD 2.58 billion not only unlocks substantial shareholder value (reflecting a 14% valuation uplift versus the 2022 transaction) but also expands Olam’s balance sheet flexibility.
• Sector Backdrop: Food security and supply chain resilience remain at the forefront of policy agendas in Asia and the Middle East, enhancing strategic relevance for diversified, globally networked players such as Olam.
• Dividend Yield: At 6.28%, the current dividend yield is compelling for yield-focused investors, underlining a tangible reward even as the transformation progresses.

The macroeconomic context remains challenging, with sector-wide cost inflation and geopolitical complexities. However, Olam’s diversified sourcing, broad customer base, and capacity for margin protection through high-value business lines offer a clear edge.

Technical Analysis

On the technical front, Olam exhibits a landscape of both consolidation and low-expectation support—often a precursor to robust rebounds when sentiment inflects.

• Momentum Signals: The 14-day RSI registers at 46.17 (neutral), suggesting the stock is neither overbought nor oversold—ideal for accumulation rather than panic-driven exits. The MACD is slightly negative (-0.007), technically a “sell” signal, but notably, the price is trading well below its short- and long-term moving averages (20-, 50-, 100-, and 200-day all indicating levels comfortably above current price).
• Support Structure: Key support rests at SGD 0.945 and SGD 0.900. This zone has historically acted as a reliable base, with market activity in early May consistently holding above this area even at heightened volumes, suggesting strong hands accumulating at discounted prices.
• Resistance and Opportunity: Immediate resistance is spotted at SGD 1.00, with SGD 1.29—the 52-week high—as a longer-term target. Given recent technical basing and the presence of a clear catalyst (the Agri stake sale), the risk-reward profile here seems to point toward accumulation at current levels, as the technical structure has the potential to flip decisively bullish with any uptick in buying momentum.

Olam’s current technical profile, particularly the confluence of oversold moving averages and robust support, aligns well with classic turnaround setups frequently preceding positive price inflections.

Fundamental Analysis

Despite headline net income softness in FY2024 (SGD 86.4 million, -69% y/y) and operational PATMI down 52.8%, the underlying fundamentals remain deeply resilient—and, crucially, in transition toward a higher-margin, lower-capital-intensity model.

• Revenue and EBIT Growth: FY2024 revenue reached a commanding SGD 56.26 billion, highlighting the scale of Olam’s operations. EBIT climbed 9.2% year-on-year to SGD 1.94 billion, a signal of underlying strength and operating margin enhancement despite sectoral headwinds.
• Segment Leadership: ‘Olam Food Ingredients’ (ofi) posted a striking 29.1% surge in EBIT to SGD 1.07 billion, led by enhanced solutions business performance—a forward-looking, high-margin lever that is likely to drive future group earnings. Olam Agri’s EBIT growth of 5.8% also demonstrates sustainable demand and operational excellence.
• Valuation: Olam trades at a price-to-book of 0.51—remarkably attractive for a multinational with robust hard assets and strategic reach, suggesting deep underlying value. While the P/E is an elevated 95.50 (due to a transition year’s suppressed net profit), the company’s pivot towards value-unlocking transactions and margin-focused restructuring should realign earnings multiples over the next 12-18 months. The forward dividend of SGD 0.06 per share and a yield above 6% provide a meaningful floor to total returns.
• Balance Sheet and Debt: Debt levels rose in FY2024 as working capital demands surged, but the anticipated deleveraging—powered by the Olam Agri disposal—positions the group for a dramatic shift: the Remaining Olam Group is set to become effectively debt-free, cutting annual interest outflows by over SGD 200 million and unlocking agility for new strategic initiatives or further distributions.

Structural Strengths:

• Global scale and supply chain control
• Premium brand equity in both B2B and sustainability space
• Proven strategic partnerships and shareholder support (Temasek, Mitsubishi, Saudi PIF’s SALIC)

In summary, Olam’s fundamentals—while reflecting a year in transition—point firmly toward value realization, especially as near-term headwinds abate and the business pivots toward high-return, capital-light segments.

Volume and Liquidity

Volume trends serve as an underappreciated indicator of market confidence, and Olam’s recent trading activity underscores the market’s recognition of its evolving story.

• Healthy Trading Volumes: With 3-month average volumes at 2.57 million shares, there is ample liquidity for both institutional and retail participants. Such sustained volume, especially during a period of transition, indicates market faith in Olam’s strategic repositioning and provides efficient trade execution for investors entering or exiting the position.
• Float Dynamics: With 26% of shares held by public and institutions and the remainder anchored by long-term partners, the free float remains sufficiently dynamic to facilitate price discovery, but not so dispersed as to invite undue volatility. This balance typically supports a sustainable, rational valuation adjustment process, especially in periods surrounding major catalysts such as asset sales or further business launches.

Catalysts and Positive Outlook

Olam International enters 2025 with several clear and potent catalysts, each likely to re-rate the equity in the eyes of both local and international investors.

• Value-Unlocking Agri Sale: The staged exit from Olam Agri, at a premium valuation, not only transforms the balance sheet but also highlights the embedded value of Olam’s underlying assets. The infusion and subsequent debt reduction are rare positive transformations at this scale in the Asia-Pacific market.
• Focus on High-Growth Ingredients: Accelerated expansion in the ingredients and solutions segment—where EBIT margins are both higher and more defensible—changes Olam’s earnings quality profile. The group’s attrition of lower-return, commoditized activities in favour of specialized, branded, and ESG-forward product lines resonates with global consumption trends and institutional investor preferences.
• IPO Potential and Monetisation: The prospect of an IPO for ofi, especially if dual-listed in Europe and Singapore, could unlock a step-change in valuation multiples, peer benchmarking, and international capital flows. The market has historically rewarded Singapore-listed firms that have executed successful carve-outs and ESAS (Equity Story-Aligning Strategies).
• ESG and Sustainability Edge: Olam’s inclusion in the FTSE4Good Index proves not just adherence to best practises, but also enhances index-related flows and institutional mandates focusing on sustainable agri-business practices.
• Prospects for Special Dividends: As business units are divested or IPO’d, Olam’s stated intention to return proceeds through special dividends provides further catalysts for re-rating and supports the case for a steady and potentially enhanced cash return profile over the next 1-2 years.

These catalysts collectively shape an upward context in which Olam stock may be poised to benefit from both sentiment and real financial value creation.

Investment Strategies

Multiple entry points now present a timely opportunity for differentiated strategies, all underpinned by favorable risk-reward dynamics.

• Short-Term Accumulation: Bottoming price action at the SGD 0.95–0.945 zone, in conjunction with elevated recent volume and technical neutrality, bodes well for traders seeking a near-term mean reversion or rebound towards resistance at SGD 1.00 and beyond.
• Medium-Term Positioning: For investors searching for entry ahead of clear corporate catalysts (the Olam Agri cash receipt, impending de-leveraging, and dividend clarity in Q3–Q4), the current price structure—trading at a significant discount to book—presents a window to position for appreciation as the market digests improving headline earnings and capital returns.
• Long-Term Value Orientation: For conviction-driven investors, Olam’s multi-year pivot to high-margin, asset-light business lines, strong institutional support (Temasek, Mitsubishi), and the potential for further value creation through listed subsidiaries and special dividends suggest the groundwork for robust, multi-cycle wealth creation is being laid now.

In each case, the risk/reward is shaped by a rare confluence of technical support, operational transformation, and a pipeline of corporate catalysts. The stock appears well-placed at current levels for gradual entry or strategic accumulation.

Is It the Right Time to Buy Olam International?

A synthesis of Olam International’s technical, fundamental, and strategic context points firmly toward a moment of opportunity:

• Technical base and high volume at multi-year support, with sentiment poised to shift
• Clear, value-creating catalysts in play: Agri divestment, de-leveraging, and corporate focus
• Valuation well below book, ample yield, and explicit roadmap for returns
• Sector tailwinds in food security, sustainability, and agri-tech transformation
• Resilient brand, experienced management, and deep institutional backing

Against a backdrop of transitory earnings weakness—and with high debt already on the verge of relief—market participants may be seeing the makings of a new bullish cycle, with the fundamentals fully justifying this renewed interest.

As always, each investor’s objectives, time horizon, and risk appetite remain crucial to decision-making, but the convergence of low technical positioning, sectoral tailwinds, and landmark corporate events signals that Olam International seems to represent an excellent opportunity for those seeking both yield and growth in one of Asia’s anchor defensive stocks.

With its strategic transformation accelerating and major catalysts in sight, Olam International is positioned not just to navigate 2025, but to potentially lead its sector—and for investors, this may be precisely the right moment to pay attention to its evolving story.

How to buy Olam International stock in Singapore?

Buying Olam International stock online is both straightforward and secure for retail investors in Singapore, thanks to robust regulation of digital brokers. You can choose between two main approaches: spot (cash) buying, where you directly own shares, or trading contracts for difference (CFDs), which let you speculate on price movements with leverage. Each method has its own advantages—continue reading for a clear guide to both formats, then check out our broker comparison further down the page to find the most suitable platform for your needs.

Cash buying

A cash purchase means you buy actual Olam International (SGX: VC2) shares and become a shareholder, eligible to receive dividends and participate in company growth. Buying shares on the Singapore Exchange typically involves a fixed brokerage commission per order—commonly around SGD 5 to SGD 25, depending on the broker.

Example

If Olam International shares are trading at SGD 0.955 each, a SGD 1,000 investment (including an SGD 5 brokerage fee) allows you to buy about 1,040 shares.
Gain scenario:
If the share price climbs by 10% to SGD 1.05, your shares are now worth about SGD 1,100.
Result: Gross gain of SGD 100, or +10% on your original investment (fees and taxes excluded).

Trading via CFD

CFD (Contract for Difference) trading lets you speculate on Olam International’s price movements without directly owning the shares. CFDs typically incur costs through the bid-ask spread and overnight financing fees if positions are held longer than a day. The key appeal is leverage, which increases your market exposure relative to your invested capital.

Example

With SGD 1,000 and 5x leverage, you open a CFD position equivalent to SGD 5,000 market exposure on Olam International shares.
Gain scenario:
If the share price rises 8%, your position delivers a 40% return (8% × 5) on your initial SGD 1,000, netting a gain of SGD 400 (not counting fees or potential losses).

Final advice

Before investing, take the time to compare brokers’ fee structures, trading conditions, and investor protection schemes—these can vary significantly in Singapore. Your choice between cash buying and CFDs depends on your investment objectives: direct ownership and long-term wealth building, or active trading with higher potential returns (and risks). For a detailed breakdown of leading brokers for Olam International shares, see our comparison table below.

Our 7 tips for buying Olam International stock

The latest news about Olam International

Olam Group stock surged 14.37% weekly, driven by strong restructuring signals and Agri divestment progress.
Olam’s share price on the Singapore Exchange climbed to SGD 0.955, with recent momentum reflecting investor optimism after its announcement to divest the remaining 64.57% stake in Olam Agri to Saudi SALIC. This transaction, worth approximately USD 2.58 billion, not only represents a 14% uplift in valuation over a previous sale but also is perceived as a decisive step toward unlocking shareholder value and tightening the company’s capital structure. Market response in Singapore was positive, evidenced by robust trading volumes and continued inclusion in major indices, confirming local investor confidence in the transformation strategy.

Sale proceeds will accelerate debt reduction and create a debt-free core for the Singapore-listed group.
Olam is set to use an estimated USD 2 billion from the Olam Agri divestment to deleverage and fully pay down the Remaining Olam Group’s debt. This move will shift Olam’s balance sheet to a net-cash position, providing significant annual savings on interest costs (about SGD 214 million) and strengthening overall financial resilience. Such a deleveraging strategy is well-received within Singapore’s market context, where investors reward companies prioritizing prudent capital management amid global uncertainties.

There is a constructive focus on higher-margin, value-added growth through Olam Food Ingredients (ofi).
With the corporate refocusing, ofi has emerged as the central platform for growth, reporting a notable 29.1% EBIT increase in its latest figures, driven by expanding margins in Ingredients & Solutions. This emphasis aligns with Singapore’s role as a regional agri-business innovation hub, and continued strategic support—including preparation for a potential dual listing of ofi in Singapore and Europe—has been cited by management, which points to ongoing efforts to unlock further value locally for investors.

Olam's dividend yield remains attractive and tax-exempt, appealing to Singapore institutional and retail investors.
The Group declared a forward dividend yield of 6.28%, considerably above market averages. While the total dividend per share decreased slightly to SGD 0.06 compared to the previous year, all dividends distributed are tax-exempt under local law, an important consideration for Singapore-resident investors including those utilizing CPF and SRS accounts. The recent May ex-dividend date saw notable activity from yield-seeking participants, underscoring the high demand for stable dividend stocks in the region.

Sustained inclusion in FTSE4Good and strong Temasek/Mitsubishi backing highlight Olam’s stability in Singapore.
Olam’s position among Singapore’s top 30 largest listed firms, inclusion in the FTSE4Good Index, and a stable long-term shareholder base (Temasek and Mitsubishi collectively hold over 66%) are positive indicators for corporate governance and sustainability. These dynamics provide additional reassurance for Singapore investors seeking exposure to a global food and agri-business leader amid the evolving environment of ESG and risk-conscious investing.

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P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.