Bega Cheese Limited (BGA) AI Stock Analysis

• Market Cap: €1.65B
• Dividend Yield: 2.22%
• Average Volume (3M): 717.18K
• Price to Earnings (P/E): 46.7
• Beta (1Y): 1.08
• Revenue Growth: 0.49%
• EPS Growth: -127.84%
• Country: AU
• Employees: 3,900
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 0.05
• Shares Outstanding: 305,184,500
• 10 Day Avg. Volume: 361,926
• 30 Day Avg. Volume: 717,176
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €6.21
• Price Target Upside: 14.99% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 56 Neutral
• Price Target: AU$6.00 ▲(11.11% Upside)

Bega Cheese Limited's overall stock score is primarily influenced by its financial performance challenges, including negative revenue growth and profitability issues. The technical analysis provides a more positive outlook with bullish indicators, but the valuation remains a concern due to the negative P/E ratio. The absence of earnings call insights and corporate events means these factors do not influence the score.

Bega Cheese Limited Business Overview & Revenue Model

Company Description

Bega Cheese Limited receives, processes, manufactures, and distributes dairy and other food-related products in Australia. The company operates in two segments, Branded and Bulk. The Branded segment manufactures value added consumer products for owned and externally owned brands. The Bulk segment manufactures bulk dairy ingredients, nutritional, and bio nutrient products. It offers natural, processed, and kids snacking cheese; butter and cream cheese products under the Farmer's Table brand name; dips, mayonnaise, and dressings under the ZoOSh brand name; and spreads under the Simply Nuts, B honey, Bega peanut butter, and VEGEMITE brands. The company also develops and supplies bio nutrient ingredients for the health and nutrition markets. In addition, it operates as a contract packer of natural cheddar and processed cheddar cheese products for corporations; and is involved in contract packaging for private proprietary brands, supermarket house brands, and QSR raw material inputs, as well as products for other dairy companies into their brands. The company also exports its products to approximately 40 countries across the Middle East, Southeast Asia, North Asia, Central and South America, and the Pacific Islands. Bega Cheese Limited was founded in 1899 and is headquartered in Bega, Australia.

How the Company Makes Money

Bega Cheese Limited generates revenue through several key streams. The primary source of income is the sale of dairy products, including a wide range of cheeses, butter, and milk powders, catering to both retail and commercial customers. The company also earns money from its branded food products, which include well-known names like Vegemite and Peanut Butter. In addition to these product sales, Bega Cheese benefits from strategic partnerships and supply agreements with major retailers and food service companies, ensuring consistent demand and distribution of its products. The company's international operations and export business further contribute to its earnings, allowing it to capitalize on global demand for Australian dairy products.

Bega Cheese Limited Financial Statement Overview

Summary

Bega Cheese Limited is facing challenges in revenue growth and profitability, as reflected in its income statement with a negative growth rate and net profit margin. The balance sheet shows moderate leverage but highlights the need for improved returns on equity. Cash flow management is stable, with positive free cash flow growth, but there is room for improvement in converting income into cash.

Income Statement

Bega Cheese Limited has experienced a decline in revenue growth with a negative growth rate of -71.6% in the latest period. The gross profit margin remains moderate at 20.88%, but the company is facing challenges with profitability as indicated by a negative net profit margin of -0.24%. The EBIT margin is also negative, reflecting operational difficulties. Overall, the income statement shows a need for improvement in revenue and profitability.

Balance Sheet

The balance sheet of Bega Cheese Limited shows a moderate debt-to-equity ratio of 0.45, indicating a balanced approach to leverage. However, the return on equity is negative at -0.87%, suggesting inefficiencies in generating returns for shareholders. The equity ratio is stable, but the company needs to focus on improving profitability to enhance shareholder value.

Cash Flow

The cash flow statement indicates a positive free cash flow growth rate of 9.46%, which is a positive sign. The operating cash flow to net income ratio is 0.27, showing some ability to generate cash from operations. However, the free cash flow to net income ratio is 0.43, indicating room for improvement in converting income into free cash flow. Overall, cash flow management appears stable but could benefit from enhanced operational efficiency.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.54B	3.55B	3.52B	3.38B	3.01B	2.07B
Gross Profit	730.20M	741.30M	698.50M	656.40M	689.40M	465.20M
EBITDA	122.60M	107.90M	164.00M	-130.00M	148.10M	181.20M
Net Income	-8.50M	-8.50M	30.50M	-229.90M	24.20M	72.20M
Balance Sheet
Total Assets	2.04B	2.04B	2.14B	2.15B	2.36B	2.51B
Cash, Cash Equivalents and Short-Term Investments	120.90M	120.90M	65.60M	66.40M	44.90M	87.20M
Total Debt	439.60M	439.60M	418.90M	467.10M	422.80M	496.50M
Total Liabilities	1.06B	1.06B	1.12B	1.15B	1.10B	1.24B
Stockholders Equity	980.20M	980.20M	1.01B	1.00B	1.26B	1.27B
Cash Flow
Free Cash Flow	76.80M	70.60M	59.70M	-59.90M	86.40M	79.20M
Operating Cash Flow	165.00M	165.00M	134.30M	8.20M	158.20M	111.40M
Investing Cash Flow	-76.30M	-76.30M	-52.30M	99.90M	-63.80M	-546.70M
Financing Cash Flow	-33.40M	-33.40M	-82.80M	-86.60M	-136.70M	499.60M

Bega Cheese Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 5.40
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:BGA, the sentiment is Neutral. The current price of 5.4 is below the 20-day moving average (MA) of 5.63, above the 50-day MA of 5.35, and above the 200-day MA of 5.39, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 42.77 is Neutral, neither overbought nor oversold. The STOCH value of 10.77 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:BGA.

Bega Cheese Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BGA	56 Neutral	€1.65B	46.70	-0.68%	2.22%	0.49%	-127.84%
NUC	48 Neutral	19.45M	-4.79	0.00%	―	102.21%	69.47%
AHF	46 Neutral	31.22M	-5.83	0.00%	―	13.92%	36.28%
BUB	44 Neutral	134.12M	24.19	0.00%	―	28.66%	0.00%
NOU	40 Underperform	40.18M	-0.27	0.00%	―	1.03%	-52.56%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Bega Cheese Limited Corporate Events

Bega Cheese to Close Peanut Processing Business Amid Financial Struggles

Bega Cheese Limited has announced the phased shutdown of its peanut processing business, Peanut Company of Australia Pty Ltd (PCA), following a strategic review. Despite efforts to invest in PCA and support local growers, sustained financial losses and industry challenges, such as increased competition from imports and high input costs, have led to this decision. The closure will cease PCA’s annual operating losses of $5-10 million, although one-off shutdown costs are expected. Bega Group plans to support affected employees and growers during this transition, while maintaining its operations in other parts of Queensland.

The most recent analyst rating on (AU:BGA) stock is a Buy with a A$5.90 price target. To see the full list of analyst forecasts on Bega Cheese Limited stock, see the AU:BGA Stock Forecast page.

Bega Cheese Limited to Present FY2025 Results

Bega Cheese Limited has announced its FY2025 full year results, which will be presented by key executives during a conference call scheduled for August 21, 2025. This announcement is significant for stakeholders as it provides insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and future operations.

The most recent analyst rating on (AU:BGA) stock is a Hold with a A$4.91 price target. To see the full list of analyst forecasts on Bega Cheese Limited stock, see the AU:BGA Stock Forecast page.

Bega Cheese Seeks ACCC Clearance for Fonterra Oceania Acquisition

Bega Cheese Limited has announced its intention to seek informal merger clearance from the Australian Competition and Consumer Commission for the potential acquisition of Fonterra Oceania. This acquisition is expected to improve efficiencies and outcomes for the Australian dairy industry, benefiting farmers, customers, and consumers.

The most recent analyst rating on (AU:BGA) stock is a Hold with a A$4.91 price target. To see the full list of analyst forecasts on Bega Cheese Limited stock, see the AU:BGA Stock Forecast page.

Bega Cheese Faces Legal Appeal from Fonterra

Bega Cheese Limited is currently involved in legal proceedings with Fonterra Brands (Australia) Pty Ltd and Bonland Cheese Trading Pty Ltd, collectively referred to as the Fonterra Companies. The Supreme Court of New South Wales dismissed the Fonterra Companies’ case, which sought declarations regarding the impact of a proposed transaction on their Trade Mark Licence Agreements with Bega. Fonterra has now sought leave to appeal this decision, while Bega remains committed to defending its rights.

The most recent analyst rating on (AU:BGA) stock is a Hold with a A$4.91 price target. To see the full list of analyst forecasts on Bega Cheese Limited stock, see the AU:BGA Stock Forecast page.

Bega Cheese Consolidates Operations to Boost Efficiency

Bega Cheese Limited has announced the consolidation of its Strathmerton operations into its Ridge Street site in Bega, aiming to complete the transition by mid-2026. This strategic move is expected to yield $30 million in annual cost savings and requires a $50 million capital investment at Ridge Street. The consolidation will result in a non-cash impairment and one-off cash costs related to redundancies. The project is anticipated to improve earnings per share by 2 cents and create approximately 100 jobs in the Bega Valley, while supporting the affected Strathmerton employees through the transition.