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Elders Limited
(OTC:EDESY)
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Rating:72Outperform
Price Target:
$22.50
▲(7.14% Upside)
Action:Upgraded
Date:08/20/26
Overall score reflects solid financial resilience led by strong cash generation and a stable balance sheet, supported by a constructive and optimistic earnings update (strong H1 EBIT growth and strong cash conversion). Offsetting factors are ongoing profitability pressure in the financial statements, elevated costs/working-capital needs and leverage above target, plus somewhat stretched near-term technical momentum.
Positive Factors
Broad operating growth
Strong sales and EBIT growth across Crop Protection, Elders Rural Services and Delta Ag indicate improving scale and customer activity. If sustained, broader divisional growth can strengthen earnings resilience beyond any single agricultural segment.
Negative Factors
Persistent profitability pressure
Lower margins and a weakening recent revenue trend suggest that growth has not consistently converted into stronger profitability. Continued pressure could constrain returns on equity and reduce the earnings benefit from higher activity.
Read all positive and negative factors
Positive Factors
Negative Factors
Broad operating growth
Strong sales and EBIT growth across Crop Protection, Elders Rural Services and Delta Ag indicate improving scale and customer activity. If sustained, broader divisional growth can strengthen earnings resilience beyond any single agricultural segment.
Read all positive factors
Elders Limited (EDESY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$967.87M
Dividend Yield5.45%
Average Volume (3M)0.00
Price to Earnings (P/E)22.4
Beta (1Y)0.62
Revenue Growth12.31%
EPS Growth-29.41%
CountryUS
Employees2,884
SectorConsumer Defensive
Sector Strength42
IndustryAgricultural Farm Products
Share Statistics
EPS (TTM)1.33
Shares Outstanding43,079,765
10 Day Avg. Volume0
30 Day Avg. Volume0
Financial Highlights & Ratios
PEG Ratio-6.19
Price to Book (P/B)1.02
Price to Sales (P/S)0.35
P/FCF Ratio13.02
Enterprise Value/Market Cap1.92
Enterprise Value/Revenue0.53
Enterprise Value/Gross Profit2.58
Enterprise Value/Ebitda8.25
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Elders Limited Business Overview & Revenue Model
Company Description
Elders Limited, established in 1839 and based in Adelaide, Australia, serves as a leading provider of agricultural products and services predominantly for rural and regional customers across Australia. The company's operations are strategically di...
How the Company Makes Money
Elders makes money primarily by earning fees, commissions, and trading margin across a set of agribusiness service lines. A key revenue stream is livestock agency, where Elders acts as an intermediary in the sale and purchase of cattle, sheep, and...
Elders Limited Earnings Call Summary
Earnings Call Date:May 17, 2026
(Q2-2026)
| Next Earnings Date:Nov 16, 2026
Earnings Call Sentiment Positive
The call reported strong underlying operating performance: sales rose 32%, underlying EBIT grew 33% to $76.6m, gross margin expanded 27%, and cash conversion was exceptionally strong at 176.6%. Integration of Delta Ag is progressing and safety and systems milestones (new livestock system live, SysMod waves on track) were highlighted. Offsetting these positives are elevated transformation and corporate costs (including $13.5m SysMod spend), a $147m working capital build, elevated normalized leverage (~2.6x) pending Killara proceeds, seasonal and volume weaknesses in some livestock areas, and geopolitical supply risks that could pressure margins. Management positioned many of the cost and balance-sheet issues as temporary or weighted to H2/FY27 recoveries (Killara sale, Delta synergies, SysMod completion), and the tone was optimistic about returning to targeted leverage and extracting transformational benefits.Positive Updates
Strong Revenue Growth
Sales revenue increased by $426.4 million, up 32% year-on-year, supported by improved seasonal conditions in southern states and five months of Delta Ag sales.
Negative Updates
Elevated Transformation Costs (SysMod)
Transformation costs of $13.5 million ran through the period (SysMod program) and contributed to higher underlying operating costs; significant IT and dual-running system costs are expected to persist into late 2026/early 2027 until legacy AS400 systems are retired.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Revenue Growth
Sales revenue increased by $426.4 million, up 32% year-on-year, supported by improved seasonal conditions in southern states and five months of Delta Ag sales.
Read all positive updates
Company Guidance
Management reiterated a positive FY26 outlook while flagging seasonality and project timing: H1 underlying EBIT was $76.6m (+33% YoY) on sales up $426.4m (+32%) with gross margin $396.6m (+27% / +$83.1m), operating cash inflow $67m and cash conversion 176.6%; dividend 18c/share was declared. They expect Delta Ag (five‑month contribution: $10.4m EBIT, $45.8m gross margin) to deliver fast‑track synergies of $8m in year one (versus a $12m three‑year target) and noted Delta earnings are up to 75% weighted to H2; Killara Feedlot divestment is expected June–July with proceeds to reduce net debt (post‑Killara net debt $425.8m, core debt $210m ex‑receivables) and normalized leverage of 2.6x (targeting a return to 1.5–2.0x in FY26). Other guidance: working capital up $147m, underlying cost growth $12m (4.7%), normalized ROC ~12% (down 0.3ppt), third‑party client lending limits >$75m (drawn $35m), SysMod Waves 3–4 remain on track for calendar‑2026 completion with expected >15% ROIC and material IT cost relief by early 2027, company tax payments to recommence June 2026, and management warned fertilizer and crop‑protection pricing/volumes remain uncertain.Elders Limited Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
72
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.51B | 3.19B | 3.12B | 3.32B | 3.43B | 2.54B |
| Gross Profit | 720.10M | 654.17M | 610.76M | 604.84M | 628.37M | 508.29M |
| EBITDA | 225.30M | 177.91M | 170.81M | 216.13M | 290.83M | 205.02M |
| Net Income | 55.00M | 50.29M | 45.08M | 100.84M | 162.87M | 149.78M |
Balance Sheet | ||||||
| Total Assets | 3.57B | 2.54B | 2.33B | 2.07B | 2.02B | 1.80B |
| Cash, Cash Equivalents and Short-Term Investments | 87.08M | 46.73M | 40.21M | 21.48M | 17.84M | 48.06M |
| Total Debt | 983.28M | 594.13M | 730.72M | 484.79M | 302.75M | 264.94M |
| Total Liabilities | 2.33B | 1.45B | 1.48B | 1.21B | 1.16B | 1.02B |
| Stockholders Equity | 1.24B | 1.08B | 840.72M | 862.48M | 854.86M | 775.42M |
Cash Flow | ||||||
| Free Cash Flow | 134.15M | 84.67M | 35.59M | 121.48M | 184.94M | 133.93M |
| Operating Cash Flow | 151.01M | 117.89M | 82.95M | 169.24M | 210.11M | 142.16M |
| Investing Cash Flow | -346.09M | -77.94M | -150.94M | -132.15M | -45.14M | -35.49M |
| Financing Cash Flow | 241.47M | -33.43M | 86.72M | -33.45M | -98.75M | -109.34M |
Elders Limited Technical Analysis
Positive
21.00
Price Trends
19.87
Positive
20.83
Positive
22.35
Positive
Market Momentum
0.64
Negative
75.07
Negative
97.91
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EDESY, the sentiment is Positive. The current price of 21 is above the 20-day moving average (MA) of 20.89, above the 50-day MA of 19.87, and below the 200-day MA of 22.35, indicating a bullish trend. The MACD of 0.64 indicates Negative momentum. The RSI at 75.07 is Negative, neither overbought nor oversold. The STOCH value of 97.91 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EDESY.
Elders Limited Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $967.87M | 22.40 | 4.83% | 6.32% | 12.31% | -29.41% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
55 Neutral | $1.67B | 181.02 | 3.03% | 2.80% | 7.20% | -10.41% | |
54 Neutral | $1.31B | 17.92 | 4.38% | 2.40% | 8.32% | 208.64% | |
51 Neutral | $296.67M | 192.52 | 1.50% | 0.52% | -61.38% | ― | |
44 Neutral | $367.35M | -124.48 | -0.70% | 3.81% | 0.76% | -105.51% |
* Consumer Defensive Sector Average
EDESY
Elders Limited
22.37
-1.51
-6.33%
AGRO
Adecoagro SA
11.77
3.74
46.59%
ALCO
Alico
40.43
7.08
21.22%
LND
BrasilAgro Cia Brasileira de Propriedades Agricolas
3.79
-0.07
-1.81%
DOLE
Dole
14.01
0.77
5.81%
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.