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PGG Wrightson
(PGW)
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Rating:58Neutral
Price Target:
$2.00
▼(-13.42% Downside)
Action:N/A
Date:10/05/26
The score is driven primarily by mixed financial performance (stronger cash generation but thin/volatile profitability and higher leverage) and weak technicals (price below major moving averages with negative MACD). These are partially offset by supportive valuation (low P/E and high dividend yield) and a generally positive FY26 earnings call narrative, albeit with limited FY27 guidance and elevated external risks.
Positive Factors
FY26 revenue and earnings growth
The return to more than $1 billion of revenue, combined with double-digit EBITDA growth and stronger net profit, shows improved operating scale and customer activity. If supported across rural supplies, agency and livestock services, this expansion can strengthen earnings capacity over the next several reporting periods.
Negative Factors
Higher leverage and weaker returns
Rising debt relative to equity reduces financial flexibility and leaves less capacity to absorb weaker agricultural conditions or fund expansion without additional borrowing. Lower ROE also indicates that the enlarged capital base is currently producing weaker returns, increasing the need for sustained profit improvement.
Read all positive and negative factors
Positive Factors
Negative Factors
FY26 revenue and earnings growth
The return to more than $1 billion of revenue, combined with double-digit EBITDA growth and stronger net profit, shows improved operating scale and customer activity. If supported across rural supplies, agency and livestock services, this expansion can strengthen earnings capacity over the next several reporting periods.
Read all positive factors
PGG Wrightson (PGW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$154.74M
Dividend Yield5.74%
Average Volume (3M)8.49K
Price to Earnings (P/E)9.7
Beta (1Y)0.28
Revenue Growth10.15%
EPS Growth46.00%
CountryNZ
Employees1,870
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)0.21
Shares Outstanding75,484,080
10 Day Avg. Volume7,556
30 Day Avg. Volume8,493
Financial Highlights & Ratios
PEG Ratio0.21
Price to Book (P/B)0.93
Price to Sales (P/S)0.16
P/FCF Ratio3.61
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
EPS Forecast (FY)0.15
Revenue Forecast (FY)$981.60M
PGG Wrightson Business Overview & Revenue Model
Company Description
PGG Wrightson Limited provides goods and services for agricultural and horticultural sectors in New Zealand. It operates through two segments: Agency, and Retail & Water. The company operates rural supplies stores that offer a range of products, s...
How the Company Makes Money
PGW primarily makes money by selling goods and services to rural customers across New Zealand. A major revenue stream is rural supplies/merchandise, where it earns sales revenue (and associated gross margin) from distributing and retailing farm in...
PGG Wrightson Earnings Call Summary
Earnings Call Date:Aug 10, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Mar 02, 2027
Earnings Call Sentiment Positive
The call conveys a broadly positive operational and financial story: double-digit revenue growth, sizable EBITDA and NPAT increases, stronger operating cash flow, successful strategic acquisition (Nexan) and digital/product traction (platform bids ~30%, Blue ag adoption). These positives are balanced by a missed return-on-capital target, a small rise in net debt, margin pressure in Retail & Water partly due to an impairment, and sector/external risks (El Niño, supply chains, input costs). While some reported figures in the transcript are inconsistent and need reconciliation, management describes confidence in underlying cash generation and a constructive outlook, with caution over near-term risks.Positive Updates
Revenue Growth Exceeds $1 Billion
Operating revenue of $1.1 billion, up $99 million or 10% year-on-year — the first time PGW exceeded $1 billion revenue since the 2019 divestment of PGG Seeds.
Negative Updates
Missed Return on Capital Target
Target of 10% growth in return on capital over a 3-year rolling cycle was missed; the 3-year rolling average was 8.1%, impacted by tough market conditions in FY '24.
Read all updates
Q4-2026 Updates
Positive
Negative
Revenue Growth Exceeds $1 Billion
Operating revenue of $1.1 billion, up $99 million or 10% year-on-year — the first time PGW exceeded $1 billion revenue since the 2019 divestment of PGG Seeds.
Read all positive updates
Company Guidance
Management did not give firm FY27 numerical guidance — saying it’s “too soon” and that FY27 guidance will be provided at the Annual Shareholder Meeting on 30 October — but described FY27 as starting from a position of relative strength supported by healthy international demand and strong red‑meat, dairy and horticulture returns while flagging risks from El Niño/dry conditions, geopolitical tensions, supply‑chain disruption and elevated input costs. For context they reported FY26 metrics of operating revenue $1.1bn (up $99m, +10% YoY), operating EBITDA $64.3m (up $8.2m, +15% YoY), net profit after tax $15.6m (up $4.9m, +46% YoY), operating cash flow $52.6m (up ~ $42m vs FY25), headline EPS c.$0.26, full‑year dividend ~$0.10 per share, NIBD $2.4m higher than the prior year, Nexan revenue $8.1m and NPAT $1.0m, dairy real estate volumes +30%, other sales volumes +60% YoY, ~30% of livestock bids placed via the bidder platform, and expanded banking facilities to a $265m limit (from $185m) with Go facilities ~ $115m.PGG Wrightson Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
56
Neutral
Cash Flow
61
Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.06B | 864.90M | 829.75M | 966.41M | 840.97M |
| Gross Profit | 72.80M | 144.63M | 149.50M | 156.43M | 136.98M |
| EBITDA | 53.07M | 52.29M | 45.62M | 61.49M | 67.34M |
| Net Income | 15.57M | 10.66M | 3.06M | 17.52M | 24.29M |
Balance Sheet | |||||
| Total Assets | 600.34M | 529.68M | 477.63M | 496.53M | 509.95M |
| Cash, Cash Equivalents and Short-Term Investments | 4.78M | 2.61M | 3.79M | 4.64M | 4.68M |
| Total Debt | 192.48M | 175.33M | 159.67M | 158.31M | 134.02M |
| Total Liabilities | 417.77M | 355.87M | 312.90M | 327.27M | 337.27M |
| Stockholders Equity | 182.57M | 173.81M | 164.73M | 169.26M | 172.68M |
Cash Flow | |||||
| Free Cash Flow | 47.08M | -5.03M | 34.89M | 8.33M | 14.85M |
| Operating Cash Flow | 52.73M | 12.40M | 57.73M | 25.51M | 23.66M |
| Investing Cash Flow | -24.68M | -14.24M | -22.66M | -16.76M | -7.75M |
| Financing Cash Flow | -26.67M | 675.00K | -35.93M | -8.78M | -14.60M |
PGG Wrightson Technical Analysis
Negative
2.31
Price Trends
2.17
Negative
2.13
Negative
2.12
Negative
Market Momentum
-0.03
Positive
41.48
Neutral
47.62
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NZ:PGW, the sentiment is Negative. The current price of 2.31 is above the 20-day moving average (MA) of 2.11, above the 50-day MA of 2.17, and above the 200-day MA of 2.12, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 41.48 is Neutral, neither overbought nor oversold. The STOCH value of 47.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NZ:PGW.
PGG Wrightson Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $5.48B | 35.61 | 6.78% | 2.99% | 4.13% | -10.00% | |
65 Neutral | $6.47B | 26.18 | 12.02% | 3.15% | 2.81% | -8.51% | |
64 Neutral | $2.15B | 23.27 | 17.19% | 4.41% | 13.50% | 17.16% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | $154.74M | 9.68 | 8.41% | 5.74% | 10.15% | 46.00% | |
45 Neutral | $1.28B | -5.14 | -13.80% | 3.25% | 3.86% | -299.47% | |
44 Neutral | $23.10M | 47.11 | 6.10% | 6.80% | 1.52% | ― |
* Industrials Sector Average
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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.