Australian Agricultural Company (AAC) AI Stock Analysis

• Market Cap: $906.78M
• Dividend Yield: N/A
• Average Volume (3M): 124.62K
• Price to Earnings (P/E): 26.6
• Beta (1Y): 0.25
• Revenue Growth: 15.11%
• EPS Growth: N/A
• Country: AU
• Employees: 423
• Sector: Consumer Defensive
• Sector Strength: 73
• Industry: Agricultural Farm Products
• EPS (TTM): 0.06
• Shares Outstanding: 602,766,700
• 10 Day Avg. Volume: 111,971
• 30 Day Avg. Volume: 124,617
• PEG Ratio: 0.20
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -85.98
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Australian Agricultural Company Limited's stock score is primarily impacted by its weak financial performance, highlighted by persistent losses and cash flow issues. The technical analysis shows neutral to bearish sentiment, and the valuation indicates possible overvaluation given current earnings. The lack of dividends further detracts from its attractiveness as an investment.

Australian Agricultural Company Business Overview & Revenue Model

Company Description

Australian Agricultural Company Limited (AAC) is one of Australia's largest integrated cattle and beef producers, primarily engaged in the production of beef cattle and the supply of beef products. The company operates across a diverse range of properties throughout Queensland and the Northern Territory, focusing on breeding, growing, feedlotting, and selling cattle. AAC's core products include beef cattle and beef products, which they supply to domestic and international markets.

How the Company Makes Money

AAC makes money through the breeding, growing, and selling of beef cattle, as well as the sale of beef products. The company's revenue model is primarily centered around its extensive land holdings, which are used for cattle grazing and feedlot operations to produce high-quality beef. AAC sells its beef products to various markets, including retail, foodservice, and export markets, contributing significantly to its revenue streams. Key factors contributing to its earnings include its large-scale production capacity, strategic location of its properties for optimal cattle breeding and growing conditions, and its focus on premium beef products that meet high standards for domestic and international consumers. Additionally, AAC has partnerships and relationships with distributors and retailers to ensure broad market access for its products.

Australian Agricultural Company Financial Statement Overview

Summary

The company faces significant challenges on the income statement with persistent losses and negative margins. The balance sheet shows a strong equity position but is hampered by poor returns on equity. Cash flow issues persist, with negative free cash flow and inefficient cash generation from operations.

Income Statement

The company exhibits weak profitability metrics with a negative gross profit margin and net profit margin in the most recent year. Revenue grew by 7.25% year-over-year, but this did not translate into positive operating results, indicating inefficiencies or high operational costs. EBIT and EBITDA margins are also negative, pointing to challenges in managing operational expenses relative to revenues.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 0.32, suggesting manageable leverage levels. However, the return on equity is negative due to the net loss, indicating poor returns for shareholders. The equity ratio stands at a healthy 64.15%, signifying a strong equity base relative to total assets, providing a cushion against liabilities.

Cash Flow

The free cash flow remains negative, although there has been some reduction in the deficit compared to the previous year. The operating cash flow to net income ratio is low, indicating limited cash generation from operations. The free cash flow to net income ratio is also negative, further highlighting cash flow challenges.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
364.62M	336.13M	313.42M	276.07M	265.52M	334.15M
	Gross Profit
-31.30M	-33.34M	-135.69M	-112.05M	-89.73M	-160.86M
	EBIT
-170.40M	-162.36M	-193.09M	-157.32M	-125.93M	-201.99M
	EBITDA
-217.80M	-87.86M	49.05M	-162.75M	-128.41M	-209.85M
	Net Income Common Stockholders
34.52M	-94.62M	4.61M	136.93M	45.47M	31.32M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
14.66M	8.96M	4.02M	9.27M	8.88M	18.13M
	Total Assets
1.38B	2.36B	2.42B	2.09B	1.62B	1.48B
	Total Debt
369.37M	478.48M	430.02M	402.38M	391.24M	413.16M
	Net Debt
354.71M	469.52M	426.00M	393.11M	382.36M	395.03M
	Total Liabilities
496.98M	847.57M	861.18M	731.53M	580.28M	564.33M
	Stockholders Equity
886.14M	1.52B	1.56B	1.36B	1.04B	913.39M
Cash Flow		Free Cash Flow
-11.01M	-22.52M	-2.45M	9.07M	9.00M	-2.55M
	Operating Cash Flow
11.05M	9.32M	16.03M	24.25M	18.42M	20.12M
	Investing Cash Flow
-21.76M	-29.93M	-16.02M	-13.61M	-6.35M	-22.07M
	Financing Cash Flow
10.76M	25.55M	-5.26M	-10.24M	-21.32M	12.51M

Australian Agricultural Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.52
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:AAC, the sentiment is Positive. The current price of 1.52 is above the 20-day moving average (MA) of 1.45, above the 50-day MA of 1.47, and above the 200-day MA of 1.41, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 58.18 is Neutral, neither overbought nor oversold. The STOCH value of 73.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:AAC.

Australian Agricultural Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ING	76 Outperform	€1.40B	15.68	38.76%	5.42%	1.77%	-15.93%
Sector *	64 Neutral	$8.75B	14.76	4.97%	174.27%	3.56%	3.44%
BGA	64 Neutral	€1.78B	51.87	3.35%	1.85%	4.28%	―
GNC	62 Neutral	$1.54B	25.24	3.92%	3.55%	-20.98%	-75.30%
SHV	59 Neutral	AU$724.75M	395.28	0.34%	―	64.18%	―
ELD	55 Neutral	€1.24B	23.11	5.24%	5.90%	-5.72%	-55.55%
AAC	51 Neutral	$906.78M	26.61	2.26%	―	15.11%	―

Australian Agricultural Company Corporate Events

Australian Agricultural Company Limited Announces Cessation of Performance Rights

Australian Agricultural Company Limited announced the cessation of 25,019 performance rights under its Long Term Incentive Plan due to unmet conditions. This development may impact the company’s incentive structures and could influence stakeholder perceptions regarding the company’s operational strategies.

Tattarang Increases Stake in Australian Agricultural Company

Tattarang Pty Ltd, as a trustee for the Peepingee Trust, along with Nicola Margaret Forrest and John Andrew Henry Forrest, has increased its substantial holdings in Australian Agricultural Company Limited. Their voting power rose from 21.37% to 22.38% with the purchase of 6,055,726 additional shares. This change indicates a strengthened influence by Tattarang within the company, possibly impacting decision-making processes and strategic directions.