SLC Agricola SA (SLCJY) AI Stock Analysis

SLC Agricola SA

(Other OTC:SLCJY)

Select Model

Rating:54Neutral

Price Target:$3.00▼(-3.54% Downside)

Action:reiterated

Date:09/11/26

Overall score is held back primarily by weaker recent financial performance (margin compression, negative free cash flow) and elevated leverage. Technicals are supportive due to a clear uptrend, but extremely overbought readings increase near-term risk. Valuation is mixed: an attractive dividend yield is tempered by a P/E that looks demanding given current profitability and cash flow pressures, while the earnings call adds modest support through strong operational results and hedging despite leverage and EBITDA headwinds.

Positive Factors

Strong Crop YieldsRecord soybean productivity and the expected improvement in cotton yields indicate strong operational execution across key crops. Yields above national benchmarks can support cost competitiveness, improve revenue per hectare, and strengthen earnings resilience through future agricultural cycles.

Negative Factors

Elevated LeverageLeverage above management’s target reduces financial flexibility and increases the importance of strong harvest cash generation. If operating conditions weaken, debt service and refinancing needs could constrain investment, acquisitions, shareholder returns, and the ability to absorb commodity volatility.

SLC Agricola SA (SLCJY) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $1.54B
Dividend Yield: 7.01%
Average Volume (3M): 28.14K
Price to Earnings (P/E): 21.4
Beta (1Y): 0.18
Revenue Growth: 12.63%
EPS Growth: -33.26%
Country: US
Employees: 6,729
Sector: Consumer Defensive
Sector Strength: 62
Industry: Agricultural Farm Products

SLC Agricola SA Business Overview & Revenue Model

Company Description

SLC Agrícola S.A. is a prominent agricultural enterprise engaged in the cultivation, production, and sale of a diverse range of agricultural commodities, both within Brazil and across international markets. Its primary crop portfolio features soybean...

How the Company Makes Money

SLC Agricola makes money primarily by producing and selling agricultural commodities. Its core revenue streams come from (1) sales of soybeans and corn (typically sold into domestic and export-linked channels) and (2) sales of cotton (including cotto...

SLC Agricola SA Earnings Call Summary

Earnings Call Date:Aug 11, 2026(Q2-2026)|% Change Since:21.44%|Next Earnings Date:Nov 10, 2026

Earnings Call SentimentPositive

The call presented strong operational and strategic positives: record semester revenue, improved gross profit, record soybean yields, robust cotton outlook, high hedging coverage, targeted irrigation and other CapEx, land revaluation and ESG recognition. These fundamentals support revenue visibility and resilience. However, the company is managing notable near-term financial headwinds — an indicated ~15% EBITDA contraction, higher net debt (BRL 7.5 billion) and leverage at ~3.09x, elevated SG&A and logistics costs, and concentrated debt amortization risk. Management outlined mitigation steps (hedging, irrigation, input procurement timing, potential debt refinancing) and reiterated a medium-term target to reduce leverage. Overall, operational achievements and strong risk management actions are meaningful, but financial leverage and margin pressures represent material cautions.

Positive Updates

Record Semester Revenue

Net revenue for the semester reached BRL 4.4 billion, a 6% increase year-over-year, driven by higher volumes of cotton, soybean, corn and cattle sold.

Negative Updates

Adjusted EBITDA Contraction

Adjusted EBITDA totaled BRL 1.3 billion in H1 and management indicated a 15% change versus first half 2025 (context and commentary indicate this represented a decline), driven by lower gross profit from soybeans and cotton seeds and higher selling & administrative expenses.

Company Guidance

Management guided to a constructive outlook: market fundamentals show global cotton consumption ~123M bales vs production ~117M (≈5.3M bale deficit), supporting prices, while SLC reported a record soybean yield of 4,146 kg/ha (↑4.7% vs prior cycle, ↑2.7% vs plan, ≈12% above national average), cotton 62% harvested with expected yields ~12% above last year, and second‑crop corn 90% harvested with expected yield ~6,798 kg/ha. Risk management and input coverage remain strong: '25‑'26 hedges at 90% soy / 94% cotton / 54% corn, '26‑'27 hedges at 49.2% soy and 55% cotton (including committed volumes), and fertilizer/crop protection coverage for '26‑'27 at 100% phosphate, 90% KCl, 70% N and 96% crop protection. Financial and capital metrics: H1 net revenue BRL 4.4bn (+6% y/y), gross profit BRL 1.9bn (+8.8%), adjusted EBITDA BRL 1.3bn (‑15% y/y), H1 irrigation CapEx BRL 155m (maintenance CapEx run‑rate ≈BRL 700m; PP&E ≈BRL 900m), adjusted net debt BRL 7.5bn with leverage 3.09x EBITDA (78% long‑term), land portfolio valued BRL 13.5bn (assets +8.4% over 5 years) and NAV BRL 27.12/share; management expects leverage to decline after harvest and targets <2x net debt/EBITDA over the medium term.

SLC Agricola SA Financial Statement Overview

Summary

Financials show a softer TTM cycle: revenue down (-3.1%), net margin compressed (~4.6% vs ~6.7%), and free cash flow turned negative (~-0.18B) despite positive operating cash flow (~1.36B). Balance sheet leverage is elevated (debt-to-equity ~2.0), which increases downside risk if commodity conditions weaken.

Income Statement

56Neutral

Balance Sheet

45Neutral

Cash Flow

40Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	8.54B	8.16B	7.80B	7.23B	9.59B	6.32B
Gross Profit	2.35B	2.63B	2.31B	2.62B	3.13B	2.25B
EBITDA	1.96B	2.34B	1.96B	2.53B	2.95B	2.18B
Net Income	388.38M	544.66M	509.41M	895.60M	1.27B	1.06B
Balance Sheet
Total Assets	19.96B	21.33B	17.57B	15.86B	14.87B	12.87B
Cash, Cash Equivalents and Short-Term Investments	922.83M	2.65B	1.98B	1.61B	1.24B	139.78M
Total Debt	11.07B	11.14B	8.67B	7.69B	6.72B	5.94B
Total Liabilities	13.87B	15.68B	13.47B	10.61B	9.97B	9.09B
Stockholders Equity	5.42B	5.03B	4.00B	4.93B	4.60B	3.52B
Cash Flow
Free Cash Flow	-182.41M	289.52M	662.07M	1.03B	1.51B	-1.31M
Operating Cash Flow	1.36B	1.77B	1.48B	1.85B	1.99B	435.09M
Investing Cash Flow	-1.94B	-2.20B	-843.11M	-856.41M	-485.81M	-476.19M
Financing Cash Flow	324.86M	1.08B	-271.15M	-618.48M	-409.97M	-1.42B

SLC Agricola SA Technical Analysis

Technical Analysis SentimentNegative

Last Price3.11

Price Trends

50DMA3.33Negative

100DMA2.99Positive

200DMA3.14Negative

Market Momentum

MACD-0.04Positive

RSI38.45Neutral

STOCH0.31Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SLCJY, the sentiment is Negative. The current price of 3.11 is below the 20-day moving average (MA) of 3.38, below the 50-day MA of 3.33, and below the 200-day MA of 3.14, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 38.45 is Neutral, neither overbought nor oversold. The STOCH value of 0.31 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SLCJY.

SLC Agricola SA Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

SLCJY against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
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	58Neutral	$1.40B	29.81	3.03%	3.06%	7.20%	-10.41%
SLCJY	54Neutral	$1.55B	21.41	7.39%	7.01%	12.63%	-33.26%
LND	52Neutral	$315.55M	-19.13	-4.37%	1.81%	10.11%	-167.71%
BG	49Neutral	$18.57B	16.16	7.22%	2.94%	55.48%	-36.15%

* Consumer Defensive Sector Average

Performance Comparison

SLCJY and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
SLCJY	Slc Agricola	3.13	0.55	21.17%
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%
LND	Brasilagro Cia Brasileira De Propriedades Agricolas ADR	3.18	-0.47	-12.83%

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.

Date of analysis: Sep 11, 2026

SLC Agricola SA AI Stock Analysis