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Elders Limited (EDESY) AI Stock Analysis
Elders Limited
(Other OTC:EDESY)
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.
Elders Limited (EDESY) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $815.07M
- Dividend Yield
- 5.54%
- Average Volume (3M)
- ―
- Price to Earnings (P/E)
- 22.6
- Beta (1Y)
- 0.62
- Revenue Growth
- 12.31%
- EPS Growth
- -29.41%
- Country
- US
- Employees
- 2,884
- Sector
- Consumer Defensive
- Sector Strength
- 62
- Industry
- Agricultural Farm Products
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 divid...
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 ot...
Elders Limited Earnings Call Summary
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.
Q2-2026 Updates
Positive Updates
Negative 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
Mixed fundamentals: revenue and profitability have been under pressure (declining revenue trend and weaker net/EBITDA margins), but the balance sheet remains stable with moderate leverage, and cash flow quality is a standout with strong free cash flow growth and healthy cash conversion metrics.
Income Statement
65PositiveBalance Sheet
72PositiveCash Flow
78Positive| 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 | 195.10M | 177.91M | 171.91M | 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
Price Trends
Market Momentum
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 22.02 is below the 20-day moving average (MA) of 22.04, below the 50-day MA of 22.10, and below the 200-day MA of 22.23, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 50.31 is Neutral, neither overbought nor oversold. The STOCH value of 35.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EDESY.
Elders Limited Peers Comparison
Overall Rating
- EDESY72Outperform
ADM69Neutral
ANDE65Neutral
AGRO49Neutral
BG49Neutral
SDOT39Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| EDESY | 72Outperform | $948.19M | 22.58 | 4.83% | 5.54% | 12.31% | -29.41% |
| ADM | 69Neutral | $37.07B | 21.07 | 7.73% | 2.69% | -0.79% | 60.09% |
| ANDE | 65Neutral | $2.18B | 12.34 | 14.15% | 1.24% | -5.20% | 120.12% |
| Sector * | 62Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% |
| AGRO | 49Neutral | $1.40B | 29.81 | 3.03% | 3.06% | 7.20% | -10.41% |
| BG | 49Neutral | $18.57B | 16.16 | 7.22% | 2.94% | 55.48% | -36.15% |
| SDOT | 39Underperform | $10.07M | -0.14 | 224.04% | ― | -99.94% | -1172.55% |
* Consumer Defensive Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| EDESY | Elders Limited Unsponsored ADR | 22.02 | 1.06 | 5.06% | |
| AGRO | Adecoagro | 9.69 | 2.12 | 27.95% | |
| ADM | Archer-Daniels-Midland Company | 76.91 | 18.50 | 31.67% | |
| BG | Bunge Global Sa | 96.64 | 5.09 | 5.56% | |
| ANDE | The Andersons | 64.29 | 18.46 | 40.28% | |
| SDOT | Sadot Group Inc. | 6.91 | -94.49 | -93.19% |
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 19, 2026