Select Harvests (SHV) AI Stock Analysis

• Market Cap: AU$640.91M
• Dividend Yield: N/A
• Average Volume (3M): 298.60K
• Price to Earnings (P/E): 19.4
• Beta (1Y): 1.07
• Revenue Growth: 75.76%
• EPS Growth: N/A
• Country: AU
• Employees: 471
• Sector: Consumer Defensive
• Sector Strength: 63
• Industry: Packaged Foods
• EPS (TTM): 0.20
• Shares Outstanding: 142,107,640
• 10 Day Avg. Volume: 355,137
• 30 Day Avg. Volume: 298,601
• PEG Ratio: 4.15
• Price to Book (P/B): 1.38
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.08K
• 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: AU$5.45
• Price Target Upside: 20.86% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 52 Neutral
• Price Target: AU$4.50 ▼(-0.22%Downside)

Select Harvests is undergoing a financial recovery, positively impacting its score. However, high leverage and limited free cash flow present constraints. Technical indicators suggest bearish pressure, and a high P/E ratio with no dividend yield points to overvaluation. These factors collectively result in a moderate score.

Select Harvests Business Overview & Revenue Model

Company Description

Select Harvests Limited (SHV) is one of Australia's largest almond producers and a leading agribusiness involved in the production, processing, and marketing of almonds. The company operates in two main segments: the Almond Division, which encompasses the growing, processing, and sale of almonds, and the Food Division, which focuses on the processing, packaging, and distribution of a range of nut-based and health food products. With a vertically integrated business model, Select Harvests manages extensive almond orchards and processing facilities, ensuring quality control across its operations.

How the Company Makes Money

Select Harvests generates revenue primarily through the cultivation and sale of almonds. The company owns and operates significant almond orchards, allowing it to produce almonds at scale. Revenue streams include the sale of raw almonds, value-added almond products, and other nut-based food items. The company capitalizes on both domestic and international markets, exporting a substantial portion of its almond produce to key markets such as Asia, Europe, and the United States. Additionally, the Food Division contributes to revenue through the sale of packaged food products under various brands. Strategic partnerships and contracts with distributors and retailers further enhance Select Harvests' market reach and sales potential.

Select Harvests Financial Statement Overview

Summary

Select Harvests shows signs of recovery with revenue and profitability improvements. However, the balance sheet remains leveraged, posing potential risks in volatile markets. Positive operating cash flow is a favorable sign, yet free cash flow remains tight, limiting strategic flexibility.

Income Statement

Select Harvests has shown a positive turnaround in its income statement with revenues increasing from the previous year by 64%. The gross profit margin improved significantly from a negative value to 9.76%, and the net profit margin also turned positive to 0.45%. Despite improvements, the company still faces challenges with its EBIT margin at 0.13%, indicating some operational inefficiencies.

Balance Sheet

The balance sheet reflects a stable equity position, with an equity ratio of 47.59%. However, the debt-to-equity ratio is relatively high at 0.83, indicating a significant level of leverage. The return on equity has improved but remains modest at 0.31%.

Cash Flow

Operating cash flow has recovered to a positive $21.35 million, from a negative position in the prior year. This positive cash flow supports a slightly positive free cash flow, though it remains low relative to net income, indicating limited cash reserves for expansion or debt reduction.

Breakdown
Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
336.84M	205.44M	198.97M	228.26M	247.88M
	Gross Profit
32.88M	-101.50M	23.68M	44.84M	61.91M
	EBIT
15.17M	-119.30M	12.04M	32.61M	38.73M
	EBITDA
30.55M	-135.28M	24.33M	53.72M	63.01M
	Net Income Common Stockholders
1.50M	-114.73M	4.76M	25.29M	25.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.87M	1.13M	1.14M	2.00M	1.45M
	Total Assets
1.01B	913.25M	1.00B	1.00B	824.89M
	Total Debt
400.52M	420.98M	377.78M	353.22M	323.76M
	Net Debt
397.65M	419.84M	376.65M	351.22M	322.31M
	Total Liabilities
529.31M	501.73M	481.41M	476.85M	419.88M
	Stockholders Equity
480.76M	411.52M	520.28M	526.96M	405.01M
Cash Flow		Free Cash Flow
1.34M	-31.23M	-5.95M	-127.34M	-12.95M
	Operating Cash Flow
21.35M	-8.25M	26.30M	38.19M	13.15M
	Investing Cash Flow
-18.39M	-26.15M	-35.57M	-169.72M	-35.26M
	Financing Cash Flow
5.09M	30.74M	10.27M	133.25M	9.38M

Select Harvests Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.51
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SHV, the sentiment is Negative. The current price of 4.51 is below the 20-day moving average (MA) of 4.69, below the 50-day MA of 4.92, and above the 200-day MA of 4.40, indicating a neutral trend. The MACD of -0.12 indicates Positive momentum. The RSI at 39.57 is Neutral, neither overbought nor oversold. The STOCH value of 40.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:SHV.

Select Harvests Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RIC	73 Outperform	$1.00B	21.07	12.66%	3.97%	1.90%	-4.00%
BGA	65 Neutral	€1.71B	50.00	3.35%	1.93%	4.28%	―
Sector *	65 Neutral	$8.89B	15.01	4.75%	203.76%	3.54%	-2.49%
CBO	63 Neutral	AU$846.27M	39.61	7.32%	1.63%	13.04%	103.19%
SHV	52 Neutral	AU$640.91M	19.44	7.05%	―	75.76%	―

Select Harvests Corporate Events

Select Harvests Reports Strong Earnings Amid Favorable Market Conditions

Select Harvests reported a strong financial performance for the first half of FY2025, with a net profit after tax of $28.7 million, a significant improvement from the previous year’s loss. The company attributes this success to favorable market conditions, particularly strong almond prices driven by demand from China and India. Despite a reduction in the forecasted almond crop size, Select Harvests continues to focus on strategic growth, including expanding processing capacity and optimizing farm productivity. The company’s efforts in safety and operational efficiency have also shown positive trends, positioning it well for future benefits to shareholders.

The most recent analyst rating on (AU:SHV) stock is a Buy with a A$4.40 price target. To see the full list of analyst forecasts on Select Harvests stock, see the AU:SHV Stock Forecast page.

Select Harvests Reports Robust Half-Year Financial Growth

Select Harvests Limited reported a significant increase in its half-year financial results for the period ending March 31, 2025. The company achieved a 54.1% rise in revenues and a remarkable 1280.2% increase in net profit after tax, reaching $28,668,000. Despite these gains, no interim dividends were declared, which may impact shareholder expectations.

The most recent analyst rating on (AU:SHV) stock is a Buy with a A$4.40 price target. To see the full list of analyst forecasts on Select Harvests stock, see the AU:SHV Stock Forecast page.

Select Harvests to Webcast 1H FY2025 Results

Select Harvests has announced a live webcast for its 1H FY2025 results briefing, scheduled for 29 May 2025. The results will be released to the ASX earlier that day, and stakeholders can participate via a provided link. This event is significant for stakeholders as it provides insights into the company’s financial performance and strategic direction.

The most recent analyst rating on (AU:SHV) stock is a Buy with a A$4.40 price target. To see the full list of analyst forecasts on Select Harvests stock, see the AU:SHV Stock Forecast page.

Macquarie Group Increases Stake in Select Harvests

Select Harvests Limited, a company involved in the agricultural sector, has seen a change in the substantial holding interests held by Macquarie Group Limited and its controlled entities. The voting power of Macquarie Group in Select Harvests has increased from 5.00% to 6.03%, indicating a significant shift in the control and influence over the company’s voting securities. This change may impact the company’s governance and strategic decisions, potentially affecting stakeholders and market positioning.

The most recent analyst rating on (AU:SHV) stock is a Buy with a A$4.40 price target. To see the full list of analyst forecasts on Select Harvests stock, see the AU:SHV Stock Forecast page.

United Super Pty Ltd Ceases Substantial Holding in Select Harvests

Select Harvests Limited has announced that United Super Pty Ltd has ceased to be a substantial holder of its shares as of April 28, 2025. This change in substantial holding may impact the company’s shareholder composition and influence its voting dynamics, potentially affecting future strategic decisions.

United Super Pty Ltd Ceases Substantial Holding in Select Harvests

United Super Pty Ltd has ceased to be a substantial holder in Select Harvests Limited as of April 28, 2025. This change in substantial holding may impact the company’s shareholder structure and could influence its market dynamics, although specific implications for stakeholders are not detailed in the release.

Perpetual Limited Reduces Stake in Select Harvests

Perpetual Limited has reduced its voting power in Select Harvests Limited from 14.205% to 13.092%, as indicated in a recent change notice. This reduction in voting power might impact Perpetual Limited’s influence on company decisions, potentially affecting strategic directions and stakeholder interests.

Select Harvests Appoints New Company Secretary

Select Harvests Limited has appointed Jason Arnheim as the new Company Secretary, effective immediately. Arnheim, who joined the company in March 2025 as General Counsel, brings extensive legal experience from the FMCG, materials, and pharmaceutical sectors. This change follows the resignation of Mark Rhys Davies, who served as Interim Company Secretary during the recruitment process. The appointment is expected to enhance the company’s executive leadership and streamline communications with the ASX.

Select Harvests Reports Strong Almond Pricing Amid Reduced Crop Forecast

Select Harvests Limited has announced a business update highlighting strong almond pricing at A$10.35/kg, despite a reduced crop forecast for 2025 due to growing conditions. The company remains optimistic about its strategic positioning and ability to meet demand, particularly from key markets like China and India, despite challenges such as retaliatory tariffs and variable weather conditions affecting the US almond crop. The company’s strategy is on track to deliver value, with a significant portion of the 2025 crop already hedged and a positive outlook for future pricing dynamics.

Select Harvests Highlights Financial Reporting and Crop Valuation Challenges

Select Harvests has released a management briefing and site tour presentation, highlighting the financial statements prepared in accordance with Australian Accounting Standards. The company emphasizes the inherent risks and uncertainties in estimating the value of its almond crop, which is classified as a biological asset. These estimates may lead to material adjustments in the company’s financials, impacting stakeholders and operational strategies.

Select Harvests Releases Financial Statement with Almond Crop Valuation Insights

Select Harvests Limited has released a financial statement prepared in accordance with Australian Accounting Standards, highlighting the application of AASB 141 Agriculture for accounting the current year almond crop. The company acknowledges the inherent uncertainties in estimating the crop’s selling price and yield, which could lead to material adjustments in asset and liability valuations in the next financial year.