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Ridley Corporation Limited (RIC) AI Stock Analysis
Ridley Corporation Limited
(ASX:RIC)
The score is held back primarily by weaker financial quality (margin compression, lower earnings, and a materially more leveraged balance sheet) and a high P/E valuation. These are partially offset by constructive FY27 guidance and a technically strong uptrend with positive momentum.
Ridley Corporation Limited (RIC) vs. iShares MSCI Australia ETF (EWA)
- Market Cap
- AUD 704.72M
- Dividend Yield
- 3.78%
- Average Volume (3M)
- 779.41K
- Price to Earnings (P/E)
- 36.7
- Beta (1Y)
- 1.00
- Revenue Growth
- 119.88%
- EPS Growth
- -45.11%
- Country
- Australia
- Employees
- 613
- Sector
- Consumer Defensive
- Sector Strength
- 62
- Industry
- Packaged Foods
Ridley Corporation Limited Business Overview & Revenue Model
Company Description
Ridley Corporation Limited, an Australian enterprise, specializes in offering extensive animal nutrition solutions. Its operations are divided into two main segments: Packaged Feeds and Ingredients, and Bulk Stockfeeds. The company provides a diverse...
How the Company Makes Money
RIC primarily makes money by selling manufactured animal feed and animal nutrition products to agricultural customers. Its revenue model is largely volume-driven: it procures feed ingredients (commodities and additives), processes them into formulate...
Ridley Corporation Limited Earnings Call Summary
The call emphasized strong, acquisition-driven earnings growth and solid cash generation (61.8% EBITDA growth, EPS +18%, fertilizer EBITDA contribution), successful integration steps and several operational wins (volume growth in Bulk, private-label gains in Packaged Feeds). Offsetting negatives include an $11.4M decline in Packaged & Ingredients EBITDA due to operational issues, a $28.7M NovaqPro impairment, one-off acquisition/integration costs and a move from net cash to $296M net debt with higher finance costs. Management presented a constructive FY'27 outlook with expected earnings growth across segments, ongoing integration synergies and a maintained dividend policy, indicating confidence in delivering accretion from the acquisition despite near-term headwinds.
Q4-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Guidance: Ridley expects group earnings growth in FY27 in each segment — driven by a full‑year contribution from Fertilisers, volume growth and higher capacity utilisation in Bulk Stockfeeds, and operational recovery plus a better commodity outlook in Packaged & Ingredients — and will continue its capital allocation framework targeting a dividend payout ratio of 50–70% of NPAT. Key metrics and assumptions: FY26 EBITDA was $157.8m (Fertilisers 9‑month EBITDA $72.2m; Bulk $50.3m; Packaged & Ingredients $51.6m), underlying EPS $0.163 (up 18%), operating cash flow $122m (including $40m one‑offs), headline leverage 0.85x at 30 June (net debt $296m versus prior net cash $64m) with $444m liquidity headroom and a target leverage range of 1–2x, capex $67m (growth capex $23m), maintenance/ESG capex reset to 80–100% of depreciation, expected normalized tax rate ~26–30%, integration/IT program $30m ( $13.3m spent in FY26) delivering ~$7m IT synergies over two years plus ~$8m headcount savings in FY27 and $5–10m procurement savings by FY28; FY26 included an ISI net charge of $4.8m after tax and a NovaqPro non‑cash write‑off of $28.7m after tax.
Ridley Corporation Limited Financial Statement Overview
Summary
Despite a large FY2026 revenue step-up, profitability deteriorated (net margin ~1.0% vs ~3.3% prior year) and earnings declined. Balance sheet risk rose materially with sharply higher debt and weaker ROE (~5.5%). Cash flow remains positive (OCF ~A$122m; FCF ~A$54m) but FCF fell year over year and conversion quality softened.
Income Statement
56NeutralBalance Sheet
35NegativeCash Flow
40Negative| Breakdown | TTM | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.86B | 2.86B | 1.30B | 1.26B | 1.26B | 1.05B |
| Gross Profit | 216.88M | 216.04M | 121.20M | 115.94M | 111.36M | 99.56M |
| EBITDA | 149.68M | 149.68M | 92.99M | 90.37M | 88.90M | 89.08M |
| Net Income | 27.57M | 27.57M | 43.32M | 39.85M | 41.83M | 42.43M |
Balance Sheet | ||||||
| Total Assets | 1.98B | 1.98B | 734.55M | 664.38M | 617.70M | 607.37M |
| Cash, Cash Equivalents and Short-Term Investments | 251.57M | 251.57M | 84.67M | 34.20M | 43.02M | 27.08M |
| Total Debt | 761.12M | 761.12M | 94.17M | 98.29M | 81.17M | 61.79M |
| Total Liabilities | 1.49B | 1.49B | 276.44M | 341.26M | 302.31M | 291.34M |
| Stockholders Equity | 498.72M | 498.72M | 458.12M | 323.12M | 315.39M | 316.03M |
Cash Flow | ||||||
| Free Cash Flow | 53.72M | 53.72M | 34.00M | 74.19M | 43.75M | 22.79M |
| Operating Cash Flow | 122.41M | 122.41M | 68.26M | 105.06M | 78.52M | 46.59M |
| Investing Cash Flow | -412.19M | -412.19M | -28.57M | -86.17M | -34.77M | 36.36M |
| Financing Cash Flow | 456.68M | 456.68M | 10.78M | -27.71M | -28.37M | -95.78M |
Ridley Corporation Limited Peers Comparison
Overall Rating
AU:CLV77Outperform
AU:SHV70.2Outperform
AU:BGA56Neutral- AU:RIC54Neutral
AU:NOU49Neutral
AU:AHF45Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| AU:CLV | 77Outperform | AUD 167.00M | 15.97 | 13.83% | 2.42% | 13.26% | 49.05% |
| AU:SHV | 70Outperform | AUD 576.18M | 19.31 | 5.52% | 0.85% | -5.67% | -9.70% |
| Sector * | 62Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% |
| AU:BGA | 56Neutral | AUD 1.92B | 35.76 | 5.46% | 2.31% | 6.66% | ― |
| AU:RIC | 54Neutral | AUD 1.00B | 36.71 | 5.30% | 3.78% | 119.88% | -45.11% |
| AU:NOU | 49Neutral | AUD 33.25M | -0.51 | 13.40% | ― | 8.82% | 55.22% |
| AU:AHF | 45Neutral | AUD 12.97M | -4.21 | -12.90% | ― | 0.46% | 46.48% |
* Consumer Defensive Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| AU:RIC | Ridley Corporation Limited | 2.68 | -0.15 | -5.37% | |
| AU:SHV | Select Harvests Limited | 4.10 | 0.31 | 8.29% | |
| AU:NOU | Noumi Limited | 0.12 | -0.02 | -14.29% | |
| AU:AHF | Australian Dairy Nutritionals Group | 0.02 | -0.02 | -54.29% | |
| AU:BGA | Bega Cheese Limited | 6.29 | 1.05 | 20.06% | |
| AU:CLV | Clover Corporation Limited | 1.00 | 0.34 | 50.60% |
Ridley Corporation Limited Corporate Events
Ridley boosts earnings base with fertiliser acquisition and broader agri portfolio
Ridley Corporation has reported its FY26 results highlighting a strategic step-change, anchored by the acquisition of Incitec Pivot Fertilisers and the creation of a more diversified, resilient portfolio. The company emphasized that each of its opera...
Ridley Corporation Declares Interim Dividend for June 2026 Half-Year
Ridley Corporation Limited has declared a fully franked interim dividend of AUD 0.0535 per ordinary share for the six‑month period ended 30 June 2026, reinforcing its commitment to returning capital to shareholders. The dividend will trade ex&#...
Ridley grows revenue on fertiliser acquisition but profit hit by impairments
Ridley reported a sharp 119.9% jump in revenue to $2.86 billion for the year to 30 June 2026, largely driven by the first nine months’ contribution from its newly acquired fertilisers distribution business, and lifted EBITDA after significant i...
Ridley Corporation Cancels 150,985 Performance Rights in Capital Adjustment
Ridley Corporation has reported the cessation of 150,985 performance rights from its issued capital, following a cancellation agreed between the company and the holder. The change, effective 3 July 2026, slightly reduces the pool of outstanding equit...
Ridley Sets Date for Release of FY26 Results and Investor Briefing
Ridley Corporation has scheduled the release of its full-year FY26 financial results for 20 August 2026, prior to the market open. The announcement signals an upcoming detailed update on the company’s performance for the year ended 30 June 2026...
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.
Date of analysis: Aug 21, 2026