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GuocoLand (SGX:F17) Stock Carries Rich P/E And Weak Interest Cover

Simply Wall St·08/29/2026 20:15:11
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GuocoLand shares closed at SGD2.17 after a weak month where the stock slipped around 4%. The fresh full year numbers now ask whether that caution is justified. The headline is not revenue or earnings per share. It is the squeeze between a richer valuation and a stretched balance sheet.

GuocoLand trades on a P/E of 25.4x while interest coverage is described as weak and recent results include a one off loss of SGD127.5m. The market is weighing that strain against an earnings profile that still supports a dividend and an optimistic fair value estimate.

Is GuocoLand a genuine deep value story or just an expensive stock wearing a cheap DCF label? Compare the rich P/E, the weak balance sheet and the huge fair value gap using the valuation analysis for GuocoLand

FY 2026 Earnings Summary

  • Revenue FY 2026: SGD1,433.963 million vs. FY 2025 TTM SGD1,916.402 million (decline based on trailing comparison)
  • Net Income (Excl. Extra Items) FY 2026: SGD95.199 million vs. FY 2025 TTM SGD93.88 million (modest increase)
  • Basic EPS FY 2026: SGD0.0736 per share vs. FY 2025 TTM SGD0.084342 per share (decline)
  • Net Profit Margin FY 2026: 6.6% vs. 4.9% in the prior year (improvement in profitability on a trailing basis)

Prefer clean charts instead of another wall of earnings tables and balance sheet notes? See GuocoLand's full financial picture, including how its valuation compares with the recent results, in the interactive company report for GuocoLand.

SGX:F17 Trailing 12-Month Revenue & Expenses Breakdown as at Aug 2026
SGX:F17 Trailing 12-Month Revenue & Expenses Breakdown as at Aug 2026

GuocoLand earnings that support a cautious bull case

For investors leaning positive on GuocoLand, the earnings mix gives you some support. Revenue for FY 2026 is lower on a trailing comparison, yet net income excluding extra items is slightly higher and the net margin has risen to 6.6% from 4.9%. That points to better profitability on each dollar of sales. The fact that underlying earnings are stable while margins improve, even with a weaker top line, gives some backing to a thesis that the core portfolio can still generate cash to underpin dividends.

GuocoLand risks that keep the bear case alive

The more cautious view on GuocoLand is not easily dismissed. Revenue is weaker on a trailing comparison, basic EPS has fallen, and the company recently booked a one off loss of S$127.5m. Interest coverage is described as weak, which matters for a property developer that relies on debt funding. Together with share price returns that have drifted lower over 1, 3 and 12 months, the latest figures align with concerns about balance sheet strain and the sensitivity of earnings to financing and project timing.

Compare whether GuocoLand's slimmer revenue, firmer margins and recent share price drift line up with analyst conviction. See the consensus price target analysis for GuocoLand to check how the latest targets stack up against the current SGD2.17 price.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.