BrasilAgro Cia Brasileira de Propriedades Agricolas (LND) AI Stock Analysis

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BrasilAgro Cia Brasileira de Propriedades Agricolas

(NYSE:LND)

68Neutral

BrasilAgro exhibits strong financial performance, particularly in profitability and cash flow management, despite facing revenue growth challenges. The technical analysis suggests a stable market position with the potential for upward movement. The valuation is attractive, with a low P/E ratio and high dividend yield, indicating good value for investors. These factors collectively support a solid overall stock score.

BrasilAgro Cia Brasileira de Propriedades Agricolas (LND) vs. S&P 500 (SPY)

Market Cap

$354.18M

Dividend Yield6.94%

Average Volume (3M)43.99K

Price to Earnings (P/E)6.2

Beta (1Y)0.11

Revenue Growth1.09%

EPS Growth21.46%

CountryUS

Employees342

SectorReal Estate

Sector Strength82

IndustryAgricultural Farm Products

Share Statistics

EPS (TTM)-0.03

Shares Outstanding102,683,440

10 Day Avg. Volume33,342

30 Day Avg. Volume43,991

Financial Highlights & Ratios

PEG Ratio-1.68

Price to Book (P/B)1.01

Price to Sales (P/S)0.00

P/FCF Ratio10.54

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

BrasilAgro Cia Brasileira de Propriedades Agricolas Business Overview & Revenue Model

Company DescriptionBrasilAgro - Companhia Brasileira de Propriedades Agrícolas engages in the acquisition, development, exploration, and sale of rural properties suitable for agricultural activities in Brazil. The company operates through six segments: Real Estate, Grains, Sugarcane, Cattle Raising, Cotton, and Other. It is involved in the cultivation of soybean, corn, sorghum, and cotton, as well as sugarcane; and production and sale of beef calves after weaning. The company has 17 farms in 6 Brazilian states and 1 farm in Paraguay with a total area of 223,551 hectares of own lands and 51,747 hectares of leased lands. It also imports and exports agricultural products and inputs; purchases, sells, and/or rents properties, land, buildings, and real estate in rural and/or urban areas; provides real estate brokerage services; and manages third-party assets. The company was incorporated in 2005 and is headquartered in Sao Paulo, Brazil.

How the Company Makes MoneyBrasilAgro generates revenue primarily through the sale of agricultural commodities produced on its properties, including soybeans, corn, sugarcane, and cattle. The company's revenue model is centered on optimizing the use of its land assets to produce high-yield crops and livestock, which are then sold in domestic and international markets. Additionally, BrasilAgro increases its earnings by selling improved and developed rural properties at a premium, capitalizing on the appreciation in land value resulting from enhanced agricultural productivity. The company may also engage in strategic partnerships and joint ventures to leverage expertise and expand its operational capacity, further contributing to its revenue streams.

BrasilAgro Cia Brasileira de Propriedades Agricolas Financial Statement Overview

Summary

Overall, BrasilAgro demonstrates strong profitability and cash flow management but faces headwinds in revenue growth. The balance sheet is solid with a healthy equity position and controlled leverage. Despite revenue challenges, operational efficiency and cash flow strength provide a stable financial foundation.

Income Statement

Positive

The income statement shows moderate performance with a current TTM gross profit margin of approximately 27.1% and a net profit margin of 29.6%. While the gross margin has decreased compared to previous years, the net profit margin is strong due to an increase in net income. Revenue has been declining, with a notable decrease from previous periods, reflecting challenges in growth. Despite this, the company maintains a healthy EBIT margin of 6.5% and EBITDA margin of 16.6%, indicating operational efficiency.

Balance Sheet

Positive

The balance sheet indicates a solid equity position, with a debt-to-equity ratio of 0.57, suggesting manageable leverage. The equity ratio is 55.9%, reflecting a strong balance of equity financing. Return on equity stands at 12.7%, showing satisfactory profitability relative to shareholder equity. The company's financial stability is underlined by a strong equity base and controlled debt levels, although there has been an increase in total debt.

Cash Flow

Positive

The cash flow statement shows robust cash management, with a significant increase in free cash flow. The operating cash flow to net income ratio is 0.52, indicating effective conversion of income to cash. The free cash flow to net income ratio is 0.75, showing strong cash generation relative to net income. The company has improved its cash flow from operations, bolstering its ability to support operations and investments.

TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Breakdown
Income Statement		Total Revenue
948.62M	1.02B	1.35B	1.37B	693.32M	554.91M
	Gross Profit
257.08M	311.89M	393.74M	775.92M	491.52M	221.39M
	EBIT
61.67M	185.81M	254.91M	690.18M	394.12M	164.28M
	EBITDA
157.63M	338.91M	343.40M	787.98M	436.83M	219.03M
	Net Income Common Stockholders
280.54M	226.87M	268.54M	520.10M	317.65M	119.55M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
219.60M	193.89M	412.04M	530.36M	1.06B	171.04M
	Total Assets
727.70M	3.61B	3.51B	3.35B	3.43B	2.04B
	Total Debt
59.77M	1.04B	871.97M	702.19M	862.18M	666.48M
	Net Debt
-159.83M	873.04M	488.13M	266.70M	-196.93M	495.43M
	Total Liabilities
145.39M	1.43B	1.31B	1.13B	1.25B	922.80M
	Stockholders Equity
575.98M	2.18B	2.20B	2.22B	2.18B	1.12B
Cash Flow		Free Cash Flow
211.60M	11.02M	94.95M	154.34M	132.52M	43.94M
	Operating Cash Flow
145.16M	79.42M	155.73M	205.18M	151.23M	69.02M
	Investing Cash Flow
-41.11M	-27.85M	55.04M	-89.73M	-214.01M	-29.30M
	Financing Cash Flow
-214.05M	-265.80M	-261.06M	-737.80M	954.86M	18.45M

BrasilAgro Cia Brasileira de Propriedades Agricolas Technical Analysis

Technical Analysis Sentiment

Negative

Last Price3.69

Price Trends

50DMA

3.79

Negative

100DMA

3.76

Negative

200DMA

4.02

Negative

Market Momentum

MACD

-0.05

Positive

RSI

43.99

Neutral

STOCH

23.40

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LND, the sentiment is Negative. The current price of 3.69 is below the 20-day moving average (MA) of 3.78, below the 50-day MA of 3.79, and below the 200-day MA of 4.02, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 43.99 is Neutral, neither overbought nor oversold. The STOCH value of 23.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LND.

BrasilAgro Cia Brasileira de Propriedades Agricolas Risk Analysis

BrasilAgro Cia Brasileira de Propriedades Agricolas disclosed 54 risk factors in its most recent earnings report. BrasilAgro Cia Brasileira de Propriedades Agricolas reported the most risks in the “Macro & Political” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

BrasilAgro Cia Brasileira de Propriedades Agricolas Peers Comparison

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LND	68 Neutral	$354.18M	6.23	15.25%	6.94%	1.09%	21.46%
AGRO	61 Neutral	$878.94M	9.77	7.11%	3.82%	18.45%	-57.55%
Sector *	60 Neutral	$2.82B	11.08	0.22%	8543.15%	6.09%	-16.11%
LMNR	60 Neutral	$280.06M	37.37	4.34%	1.93%	2.39%	―
ALCO	48 Neutral	$222.64M	32.96	-17.05%	0.69%	14.59%	-194.05%
LOCL	47 Neutral	$25.87M	―	-2448.28%	―	38.40%	9.06%

* Real Estate Sector Average

Performance Comparison

LND

BrasilAgro Cia Brasileira de Propriedades Agricolas

3.67

-1.00

-21.41%

AGRO

Adecoagro SA

8.79

-2.12

-19.43%

ALCO

Alico

29.24

2.44

9.10%

LMNR

Limoneira Co

15.84

-5.11

-24.39%

LOCL

Local Bounti Corporation

2.42

-0.54

-18.24%

BrasilAgro Cia Brasileira de Propriedades Agricolas Earnings Call Summary

Earnings Call Date:Feb 06, 2025

(Q1-2025)

% Change Since: -4.40%|

Next Earnings Date:May 13, 2025

Earnings Call Sentiment Neutral

The earnings call reflected a mixed outlook with strong financial performance and strategic achievements offset by climate-related challenges and commodity price volatility. While operational resilience was emphasized, ongoing challenges in planting and cost management were significant concerns.

Q1-2025 Updates

Positive Updates

Net Income and Adjusted EBITDA

The company reported a net income of BRL 97.5 million and adjusted EBITDA from operational revenues, including significant contributions from the Alto Taquari Farm.

Operational Achievements

1.6 million tonnes harvested in the quarter, with positive performances in soy and sugarcane contributing significantly to revenues.

Commodity Price Recovery

Increase in sugarcane prices by 21%, soy by 3%, and corn by 5%, reflecting a recovery in commodity markets.

Strong Sugarcane Productivity

Sugarcane productivity exceeded budgeted expectations with a tonnage of 85 TCH, contributing to strong company performance.

Strategic Sales and Revenue

Land sales including the Taquari Farm generated BRL 199 million in revenue, contributing to a gross result significantly.

Negative Updates

Challenges in Crop Planting

Delayed start in soy plantations in Mato Grosso due to weather, affecting potential yields and operational timelines.

Corn Planting and Margins

Reduced corn planting area due to previously low expected margins, though recent price recoveries are noted.

Cotton Price Decline

Significant drop in cotton prices, impacting revenue from cotton sales.

Climate Impact on Sugarcane

Sugarcane productivity impacted by regional droughts, with future harvests potentially affected by climatic uncertainties.

High Cost of Capital

Increased cost of capital posing challenges for expansion and investment in new areas.

Company Guidance

During the AGRO3.SA earnings call for Q1 2025, various guidance metrics were discussed by the executives. The company's net income was reported at BRL 97.5 million, with an adjusted EBITDA stemming partly from the Phase 2 sale of the Alto Taquari Farm, generating BRL 525 million at a price of BRL 1,100 per hectare for a total of 2,694 hectares. Operationally, BrasilAgro harvested 1.6 million tonnes, with a significant focus on soy and sugarcane. The company is projected to finish the harvest with approximately 180,000 hectares planted. Sugarcane yields averaged 85 tons per hectare, exceeding budget expectations. The company sold approximately 40% of its soy at $11.46 and maintained a hedge strategy with 31% ethanol sales at BRL 2,600. The total receivables were BRL 900 million, reflecting strong financial management. The executives also highlighted a reduction in the cost per ton of soy and sugarcane, attributing it to lower input prices and improved logistics. Moreover, dividends of BRL 1.96 per share were announced, emphasizing a consistent return to shareholders. Overall, the call underlined BrasilAgro's strategic resilience and effective management amid agricultural and market challenges.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.