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SLC Agricola SA (SLCJY)
OTHER OTC:SLCJY
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SLC Agricola SA
(OTC:SLCJY)
Rating:71Outperform
Price Target:
$3.50
▲( 7.03% Upside)
SLC Agricola SA (SLCJY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.47B
Dividend Yield3.92%
Average Volume (3M)6.58K
Price to Earnings (P/E)9.9
Beta (1Y)0.46
Revenue Growth1.90%
EPS Growth21.37%
CountryUS
Employees5,757
SectorGeneral
Sector StrengthN/A
IndustryAgricultural Farm Products
Share Statistics
EPS (TTM)0.18
Shares Outstanding886,659,400
10 Day Avg. Volume3,034
30 Day Avg. Volume6,577
Financial Highlights & Ratios
PEG Ratio0.59
Price to Book (P/B)1.95
Price to Sales (P/S)0.00
P/FCF Ratio11.80
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
SLC Agricola SA Business Overview & Revenue Model
Company DescriptionSLC Agricola SA is a leading Brazilian agricultural company engaged primarily in the production and sale of agricultural commodities. The company operates in sectors such as soybean, cotton, corn, and sugarcane cultivation. It is known for its large-scale farming operations, employing advanced technologies and sustainable practices to maximize yield and efficiency across its vast agricultural land holdings.
How the Company Makes MoneySLC Agricola SA generates revenue primarily through the cultivation and sale of various agricultural products, including soybeans, cotton, corn, and sugarcane. The company leverages its extensive land holdings and advanced farming technologies to produce high-quality commodities for both domestic and international markets. Key revenue streams include the sale of raw agricultural products to processors and distributors, as well as strategic partnerships with other agribusiness firms. SLC Agricola's earnings are significantly influenced by factors such as commodity prices, climate conditions, and foreign exchange rates, given its export activities. The company also invests in sustainable practices to enhance productivity and maintain competitive advantage in the agribusiness sector.
SLC Agricola SA Financial Statement Overview
Summary
SLC Agricola SA demonstrates a solid financial position with strong revenue growth and efficient operations, evidenced by healthy margins. However, high leverage and declining net profit margins present potential risks. The company's cash flow management appears stable but shows signs of strain in recent periods.Income Statement
SLC Agricola SA has shown resilience in its revenue growth, with a modest increase of 7.9% in the latest year, despite a dip from 2022 to 2023. The gross profit margin is healthy at nearly 29.6%, and the EBITDA margin is strong at 25.1%, indicating efficient operational management. However, the net profit margin has declined to 6.5%, showing potential concerns in cost management or increased expenses. The absence of EBIT in the latest report year is notable and should be monitored.72
Positive
Balance Sheet
The company maintains a high debt-to-equity ratio of 2.17, reflecting significant leverage but also implying potential risk if interest rates rise or earnings falter. The return on equity is moderate at 12.7%, indicating decent profitability relative to shareholder investment. The equity ratio of 22.7% suggests limited financial flexibility, with a substantial portion of assets financed by debt.66
Positive
Cash Flow
The free cash flow decreased by 35.8% from the previous year, indicating potential challenges in cash generation. The operating cash flow to net income ratio is robust at 2.90, reflecting good cash conversion efficiency. However, the free cash flow to net income ratio is lower at 1.30, suggesting that a significant portion of earnings is reinvested back into the business or used to manage debt obligations.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 7.80B | 7.23B | 9.59B | 6.32B | 4.40B | Gross Profit |
| 2.31B | 2.62B | 3.13B | 2.25B | 1.60B | EBIT |
| 0.00 | 1.92B | 2.51B | 1.91B | 780.93M | EBITDA |
| 1.96B | 2.53B | 2.95B | 2.18B | 1.03B | Net Income Common Stockholders |
| 509.41M | 895.60M | 1.27B | 1.06B | 488.67M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.98B | 1.61B | 1.24B | 139.78M | 1.60B | Total Assets |
| 17.57B | 15.86B | 14.87B | 12.87B | 8.59B | Total Debt |
| 8.67B | 7.69B | 6.72B | 5.94B | 3.36B | Net Debt |
| 6.69B | 6.07B | 5.49B | 5.80B | 1.75B | Total Liabilities |
| 13.47B | 10.61B | 9.97B | 9.09B | 5.44B | Stockholders Equity |
| 4.00B | 4.93B | 4.60B | 3.52B | 2.94B |
| Cash Flow | Free Cash Flow | |||
| 662.07M | 1.03B | 1.51B | -1.31M | 573.08M | Operating Cash Flow |
| 1.48B | 1.85B | 1.99B | 435.09M | 784.86M | Investing Cash Flow |
| -843.11M | -856.41M | -485.81M | -476.19M | -169.85M | Financing Cash Flow |
| -271.15M | -618.48M | -409.97M | -1.42B | 159.61M |
SLC Agricola SA Technical Analysis
Neutral
3.27
Price Trends
3.28
Negative
3.13
Positive
3.08
Positive
Market Momentum
>-0.01
Positive
45.27
Neutral
3.65
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SLCJY, the sentiment is Neutral. The current price of 3.27 is below the 20-day moving average (MA) of 3.35, below the 50-day MA of 3.28, and above the 200-day MA of 3.08, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.27 is Neutral, neither overbought nor oversold. The STOCH value of 3.65 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SLCJY.
SLC Agricola SA Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $1.62B | 11.05 | 7.51% | 3.11% | -0.64% | ― | |
71 Outperform | $1.47B | 9.85 | 16.24% | 3.92% | 1.90% | 21.37% | |
69 Neutral | $1.32B | 14.11 | 8.87% | 2.29% | 0.91% | -49.71% | |
68 Neutral | $373.41M | 6.53 | 15.25% | 6.72% | 1.09% | 21.46% | |
67 Neutral | $10.81B | 10.19 | 10.36% | 3.48% | -10.90% | -36.54% | |
64 Neutral | $949.93M | 15.17 | 4.51% | 3.64% | 17.05% | -73.53% | |
57 Neutral | $4.81B | 19.87 | -17.81% | 5.21% | 13.60% | -27.95% |
* General Sector Average
Performance Comparison
SLCJY
SLC Agricola SA
3.27
-0.20
-5.76%
AGRO
Adecoagro SA
9.50
-0.30
-3.06%
BG
Bunge Global
77.80
-22.61
-22.52%
FDP
Fresh Del Monte Produce
33.82
11.37
50.65%
LND
BrasilAgro Cia Brasileira de Propriedades Agricolas
3.80
-0.83
-17.93%
DOLE
Dole
13.91
1.88
15.63%
SLC Agricola SA Earnings Call Summary
Earnings Call Date:May 13, 2025
(Q1-2025)
| % Change Since: -2.68%|
Next Earnings Date:Aug 13, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong financial performance, successful cost management, and strategic advancements in hedging and planted area expansion. However, concerns were raised over increased leverage, market instability for cotton, and volatility in soybean and corn markets.Q1-2025 Updates
Positive Updates
Strong Financial Performance
Net revenue for Q1 2025 was BRL2.3 billion, a 19.1% increase compared to Q1 2024, driven by record volume invoiced. Adjusted EBITDA reached BRL943 million with a margin of 40.5%. Net income increased by 123.1% to BRL510.7 million.
Successful Cost Management
The estimated cost per hectare for the ‘24-25 harvest is projected to decline by 5.4% compared to the ‘23-24 forecast, achieving a 10% reduction in costs compared to the previous season.
Significant Advancements in Hedging
83.8% of soybean, 50.6% of corn, and 49.6% of cotton for the ‘24-25 crop have been successfully hedged, with favorable exchange rates offsetting commodity price declines.
Expansion in Planted Area
The acquisition of Sierentz Agro Brasil will allow for a 13.6% growth in planted area, with strategic diversification in the land portfolio to mitigate climate risk.
Negative Updates
Increased Leverage
Adjusted net debt rose to BRL5.2 billion, an increase of BRL1.5 billion compared to 2024, mainly due to investments and payment of crop inputs, resulting in a net debt over adjusted EBITDA ratio of 2.27x.
Cotton Market Instability
Cotton prices closed April at approximately BRL0.66 per pound, reflecting global instability and a challenging macroeconomic environment. U.S. production was impacted by severe weather conditions, causing a significant reduction in output.
Challenges in the Soybean and Corn Markets
Soybean prices have been volatile due to tariffs between the U.S. and China, and the global corn market is projected to show a deficit of 1.1 million tons for the ‘25-26 season.
Company Guidance
During the Q1 2025 earnings call, SLC Agricola provided detailed guidance and metrics on both operational and financial fronts. Cotton prices in April were around BRL0.66 per pound, with a global surplus forecast at 4.4 million bags for the '24-'25 harvest. The U.S. cotton harvest concluded at 14 million bales, below the initial 17 million estimate, due to adverse weather, while Brazil's production is expected to rise by 5.1% to 3.9 million tons. Soybean production globally is projected to exceed consumption by 10.6 million tons. The U.S. '24-'25 soybean yield was robust at 119.8 million tons, and Brazil anticipates a record 169 million tons despite early planting delays. Corn faced a 23 million ton global deficit, with Brazil's ongoing harvest showing strong demand driven by ethanol production. Financially, SLC Agricola reported a 19.1% increase in net revenue to BRL2.3 billion for Q1 '25, driven by higher soybean and cotton volumes. Adjusted EBITDA reached BRL943 million with a 40.5% margin, and net income rose by 123.1% to BRL510.7 million. The company’s cash flow was negative BRL1.4 billion due to strategic land acquisitions totaling BRL635 million. The adjusted net debt stood at BRL5.2 billion, with a net debt over adjusted EBITDA ratio of 2.27x. The dividend yield was reported at 3.1% based on 2024 closing, with a historical average of 4.9% over four years. Looking ahead to the '25-'26 season, the company has made significant progress in securing inputs and hedging positions, anticipating a 13.6% growth in planted area following strategic acquisitions.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.