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SLC Agricola SA (SLCJY) AI Stock Analysis
SLC Agricola SA
(Other OTC:SLCJY)
The overall score reflects a fundamentally profitable but currently strained financial profile driven by weakening margins, lower returns on equity, high leverage and recent negative free cash flow as the dominant risk factors. Technicals show a strong recent advance but very overextended momentum, increasing the likelihood of a short-term correction and limiting the upside implied by the trend. Earnings call insights are mixed, with excellent operational execution, strong hedging and valuable land backing offset by EBITDA contraction, cost and working-capital pressures, and a leverage level above management’s target. The valuation appears only moderately appealing on earnings but is supported by a high dividend yield, which helps but does not fully offset the balance-sheet and cash-flow concerns.
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 AgrÃcola 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
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.
Q2-2026 Updates
Positive Updates
Negative Updates
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
Income, balance sheet, and cash flow metrics show a profitable but pressured profile: margins and net income are trending down, leverage is high with debt roughly twice equity, and free cash flow has recently turned negative, leaving the company more exposed in this phase of the cycle despite solid operating profitability.
Income Statement
52NeutralBalance Sheet
48NeutralCash Flow
42Neutral| 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
Price Trends
Market Momentum
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 3.13 is below the 20-day moving average (MA) of 3.37, below the 50-day MA of 3.33, and below the 200-day MA of 3.14, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 38.45 is Neutral, neither overbought nor oversold. The STOCH value of 0.20 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
ADM69Neutral
ANDE65Neutral- SLCJY57Neutral
LND52Neutral
AGRO49Neutral
BG49Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ADM | 69Neutral | $37.07B | 20.76 | 7.73% | 2.73% | -0.79% | 60.09% |
| ANDE | 65Neutral | $2.18B | 12.28 | 14.15% | 1.25% | -5.20% | 120.12% |
| Sector * | 62Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% |
| SLCJY | 57Neutral | $1.55B | 21.41 | 7.39% | 7.01% | 12.63% | -33.26% |
| LND | 52Neutral | $315.49M | -19.13 | -4.37% | 1.80% | 10.11% | -167.71% |
| AGRO | 49Neutral | $1.40B | 29.41 | 3.03% | 3.10% | 7.20% | -10.41% |
| BG | 49Neutral | $18.57B | 15.76 | 7.22% | 3.01% | 55.48% | -36.15% |
* Consumer Defensive Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| SLCJY | Slc Agricola | 3.13 | 0.54 | 21.09% | |
| AGRO | Adecoagro | 9.56 | 1.99 | 26.24% | |
| ADM | Archer-Daniels-Midland Company | 75.77 | 17.36 | 29.71% | |
| BG | Bunge Global Sa | 94.22 | 2.67 | 2.92% | |
| ANDE | The Andersons | 63.97 | 18.14 | 39.58% | |
| LND | Brasilagro Cia Brasileira De Propriedades Agricolas ADR | 3.20 | -0.45 | -12.28% |
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