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Australian Agricultural Company
(Sydney:AAC)
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Rating:54Neutral
Price Target:
AU$1.50
▲(11.94% Upside)
Action:Reiterated
Date:08/22/26
The score is held back primarily by inconsistent earnings quality and uneven cash generation (including recurring negative free cash flow and weak cash conversion), despite a relatively resilient balance sheet. Valuation is a modest positive due to the low P/E, while technical indicators are largely neutral. Earnings call commentary was constructive on operations and strategy, but tempered by external cost/trade risks and the role of non-cash livestock valuation gains in statutory profit.
Positive Factors
Revenue and Operating Profit Growth
Higher revenue and record operating profit indicate stronger sales execution, pricing and cost discipline. If sustained, these improvements can strengthen AACo’s earnings base and support investment across its integrated beef operations.
Negative Factors
Weak and Uneven Cash Generation
Recurring negative free cash flow indicates that reported earnings have not consistently converted into cash after investment. This may constrain reinvestment, debt reduction and shareholder returns, particularly when livestock or infrastructure needs rise.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and Operating Profit Growth
Higher revenue and record operating profit indicate stronger sales execution, pricing and cost discipline. If sustained, these improvements can strengthen AACo’s earnings base and support investment across its integrated beef operations.
Read all positive factors
Australian Agricultural Company (AAC) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$807.36M
Dividend YieldN/A
Average Volume (3M)170.22K
Price to Earnings (P/E)7.5
Beta (1Y)0.18
Revenue Growth8.81%
EPS GrowthN/A
CountryAU
Employees510
SectorConsumer Defensive
Sector Strength42
IndustryAgricultural Farm Products
Share Statistics
EPS (TTM)0.18
Shares Outstanding602,766,700
10 Day Avg. Volume140,417
30 Day Avg. Volume170,221
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.45
Price to Sales (P/S)1.91
P/FCF Ratio-53.24
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.01
Revenue Forecast (FY)AU$443.80M
Australian Agricultural Company Business Overview & Revenue Model
Company Description
Australian Agricultural Company Limited engages in the production of cattle and beef in Australia. The company is involved in production of beef, including breeding, backgrounding, and feedlotting; sales and marketing beef into global markets; and...
How the Company Makes Money
AACo makes money primarily through beef and cattle-related sales across different points of the supply chain. Key revenue streams include: (1) Sale of cattle: AACo generates revenue by selling live cattle (e.g., feeder/finished cattle) into domest...
Australian Agricultural Company Earnings Call Summary
Earnings Call Date:May 20, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Nov 18, 2026
Earnings Call Sentiment Positive
The call presented strong operational and financial momentum: record operating profit (+23%), revenue growth (+9%), improved prices (+8% Wagyu) and a growing herd (+6%) alongside strategic investments in genetics, finishing capacity and ESG projects. These positives were balanced by discrete but manageable challenges — a significant flood loss (~7,000 head), geopolitical-driven supply chain cost increases (freight ~+20%), tariff headwinds and a statutory profit partly driven by unrealized livestock valuation gains. Core free cash flow remains small ($0.8m) and carbon credit benefits are multi‑year. Overall, highlights substantially outweigh the lowlights, though management flagged several risks to monitor into FY'27.Positive Updates
Record Operating Profit
Operating profit of $71.6 million, up 23% versus prior year — the strongest full-year result since the metric was introduced in 2019; record result driven by sales execution and disciplined cost management.
Negative Updates
North Queensland Flood Losses
Estimated loss of approximately 7,000 head of cattle from the Gulf of Carpentaria flooding event; financial impact was material but partially mitigated by prior infrastructure investments.
Read all updates
Q4-2026 Updates
Positive
Negative
Record Operating Profit
Operating profit of $71.6 million, up 23% versus prior year — the strongest full-year result since the metric was introduced in 2019; record result driven by sales execution and disciplined cost management.
Read all positive updates
Company Guidance
AACo did not give explicit FY‑27 earnings guidance but set clear forward priorities — protect resilience, maintain cost discipline, execute Better Beef and target medium‑to‑long‑term value — while flagging key forward metrics and exposures: beef demand is expected to remain strong despite tariffs and geopolitical risk, freight costs are up ~20%, and ~60% of expected international sales are hedged over the next 24 months at ~A$0.65. Balance sheet flexibility is supported by a club debt facility and gearing at the low end of the Board’s 20–35% target; NTA is $1.8bn ($2.92/share). Operationally the herd is ~482,000 head (up 6%, net ~7,000 flood losses), Goonoo finishing capacity +10%, ~215 bores converted to solar, Glentana’s soil carbon project is registered for ACCUs (25‑year project; first credits in coming years), and there are no franking credits. Previous FY‑26 results referenced for context: revenue $422.1m (+9%), operating profit $71.6m (+23%), beef sales $314.4m, Wagyu beef price +8%, cattle prices +17%, and core free cash flow $0.8m (+$11.4m).Australian Agricultural Company Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
72
Positive
Cash Flow
38
Negative
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 422.07M | 387.90M | 336.13M | 313.42M | 276.07M |
| Gross Profit | -125.41M | 215.46M | -33.34M | -135.69M | -112.05M |
| EBITDA | -166.99M | 56.33M | -87.86M | 49.05M | 228.61M |
| Net Income | 107.28M | -1.05M | -94.62M | 4.61M | 136.93M |
Balance Sheet | |||||
| Total Assets | 2.81B | 2.43B | 2.36B | 2.42B | 2.09B |
| Cash, Cash Equivalents and Short-Term Investments | 9.18M | 12.14M | 8.96M | 4.02M | 9.27M |
| Total Debt | 516.84M | 497.18M | 478.48M | 430.02M | 402.38M |
| Total Liabilities | 1.04B | 885.27M | 847.57M | 861.18M | 731.53M |
| Stockholders Equity | 1.78B | 1.54B | 1.52B | 1.56B | 1.36B |
Cash Flow | |||||
| Free Cash Flow | -15.15M | 6.49M | -22.52M | -2.45M | 9.07M |
| Operating Cash Flow | 9.51M | 27.07M | 9.32M | 16.03M | 24.25M |
| Investing Cash Flow | -25.63M | -20.93M | -29.93M | -16.02M | -13.61M |
| Financing Cash Flow | 13.16M | -2.96M | 25.55M | -5.26M | -10.24M |
Australian Agricultural Company Technical Analysis
Negative
1.34
Price Trends
1.35
Negative
1.33
Positive
1.35
Negative
Market Momentum
>-0.01
Positive
47.76
Neutral
47.62
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:AAC, the sentiment is Negative. The current price of 1.34 is below the 20-day moving average (MA) of 1.35, below the 50-day MA of 1.35, and below the 200-day MA of 1.35, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 47.76 is Neutral, neither overbought nor oversold. The STOCH value of 47.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:AAC.
Australian Agricultural Company Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | AU$1.26B | 21.39 | 4.83% | 5.16% | 11.05% | -30.84% | |
68 Neutral | AU$1.29B | -98.73 | -0.99% | 6.97% | -1.68% | -119.86% | |
68 Neutral | AU$924.47M | 12.93 | 11.22% | 5.14% | -2.43% | -0.05% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
54 Neutral | AU$807.36M | 7.47 | 6.29% | ― | 8.81% | ― | |
53 Neutral | AU$742.35M | 22.07 | 13.65% | 7.63% | 2.38% | -61.47% | |
38 Underperform | AU$46.07M | -1.13 | -20.91% | ― | -33.47% | -2365.66% |
* Consumer Defensive Sector Average
AU:AAC
Australian Agricultural Company
1.36
-0.07
-4.91%
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Elders Limited
5.90
-1.11
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AU:GNC
Graincorp Limited Class A
6.06
-1.54
-20.25%
AU:ING
Inghams Group Ltd.
2.05
-0.53
-20.39%
AU:DBF
Duxton Farms Limited
0.43
-0.55
-56.43%
AU:SGLLV
Ricegrowers Ltd. Class B
13.59
-1.55
-10.24%
Australian Agricultural Company Corporate Events
AACo shareholders back remuneration, board changes and constitution update
Jul 22, 2026
Australian Agricultural Company Limited has reported the outcomes of its 2026 Annual General Meeting, confirming strong shareholder support across all resolutions put to the vote. The meeting, held on 22 July 2026, covered executive remuneration, ...
AACo Posts Record Operating Profit as Strategy Renewal Gains Momentum
Jul 21, 2026
Australian Agricultural Company’s chairman told shareholders at the 2026 Annual General Meeting that the company is in a strong position, supported by quality assets, experienced management and an engaged workforce across its Australian and ...
Australian Agricultural Company Reports Lapse of Long-Term Incentive Performance Rights
Jul 15, 2026
Australian Agricultural Company Limited, a major Australian cattle and beef producer listed on the ASX under the code AAC, employs long term incentive plans with performance rights to reward and retain key personnel. These equity-based instruments...
Australian Agricultural Company Releases 2026 Annual Report to Shareholders
Jun 18, 2026
Australian Agricultural Company Limited has released its Annual Report for the 12-month period ended 31 March 2026, which will be distributed in both printed and electronic formats depending on shareholder preferences. Printed copies will be maile...
AACo Releases 2026 AGM Notice Detailing Director Elections and Shareholder Participation
Jun 18, 2026
Australian Agricultural Company Limited has released its 2026 Notice of Annual General Meeting, including details of the business to be conducted at the AGM scheduled for 22 July 2026 in Australia. The documentation outlines resolutions for the el...
AACo Sets 2026 AGM Date and Director Nomination Deadline
Jun 1, 2026
Australian Agricultural Company Limited has scheduled its 2026 Annual General Meeting for 22 July 2026 at 10:00 a.m. Brisbane time, with full AGM details to be provided in a forthcoming Notice of Meeting to shareholders. The company has also set 1...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.