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AAC

Australian AgriculturalASX:AAC Stock Report

Last Price

AU$1.51

Market Cap

AU$910.2m

7D

0.7%

1Y

36.0%

Updated

17 Jan, 2022

Data

Company Financials +
AAC fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance4/6
Financial Health3/6
Dividends0/6

AAC Stock Overview

Australian Agricultural Company Limited produces and sells cattle and beef in Australia.

Australian Agricultural Competitors

Inghams Group

ASX:ING

AU$1.2b

Tassal Group

ASX:TGR

AU$726.3m

Murray Cod Australia

ASX:MCA

AU$229.6m

Seafarms Group

ASX:SFG

AU$164.4m

Price History & Performance

Summary of all time highs, changes and price drops for Australian Agricultural
Historical stock prices
Current Share PriceAU$1.51
52 Week HighAU$1.81
52 Week LowAU$1.08
Beta-0.036
1 Month Change0.33%
3 Month Change4.14%
1 Year Change36.04%
3 Year Change37.27%
5 Year Change-5.33%
Change since IPO52.53%

Recent News & Updates

Aug 13
Is Australian Agricultural (ASX:AAC) A Risky Investment?

Is Australian Agricultural (ASX:AAC) A Risky Investment?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Jul 22
This Is Why Australian Agricultural Company Limited's (ASX:AAC) CEO Compensation Looks Appropriate

This Is Why Australian Agricultural Company Limited's (ASX:AAC) CEO Compensation Looks Appropriate

CEO Hugh Killen has done a decent job of delivering relatively good performance at Australian Agricultural Company...

Shareholder Returns

AACAU FoodAU Market
7D0.7%-3.4%-0.5%
1Y36.0%-0.8%10.4%

Return vs Industry: AAC exceeded the Australian Food industry which returned -0.8% over the past year.

Return vs Market: AAC exceeded the Australian Market which returned 10.4% over the past year.

Price Volatility

Is AAC's price volatile compared to industry and market?
AAC volatility
AAC Average Weekly Movement4.7%
Food Industry Average Movement6.1%
Market Average Movement8.4%
10% most volatile stocks in AU Market15.2%
10% least volatile stocks in AU Market3.6%

Stable Share Price: AAC is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: AAC's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1824423Hugh Killenhttps://www.aaco.com.au

Australian Agricultural Company Limited produces and sells cattle and beef in Australia. The company engages in owning, operating, and developing pastoral properties; and production of beef, including breeding, backgrounding, and feedlotting. It provides its products under the Wylarah, Westholme, and Darling Downs Wagyu brands.

Australian Agricultural Fundamentals Summary

How do Australian Agricultural's earnings and revenue compare to its market cap?
AAC fundamental statistics
Market CapAU$910.18m
Earnings (TTM)AU$130.37m
Revenue (TTM)AU$265.09m

7.0x

P/E Ratio

3.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AAC income statement (TTM)
RevenueAU$265.09m
Cost of RevenueAU$290.85m
Gross Profit-AU$25.76m
Expenses-AU$156.13m
EarningsAU$130.37m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.22
Gross Margin-9.72%
Net Profit Margin49.18%
Debt/Equity Ratio33.1%

How did AAC perform over the long term?

See historical performance and comparison

Valuation

Is Australian Agricultural undervalued compared to its fair value and its price relative to the market?

6.98x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AAC (A$1.51) is trading above our estimate of fair value (A$0.02)

Significantly Below Fair Value: AAC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AAC is good value based on its PE Ratio (7x) compared to the Australian Food industry average (19.3x).

PE vs Market: AAC is good value based on its PE Ratio (7x) compared to the Australian market (19.3x).


Price to Earnings Growth Ratio

PEG Ratio: AAC's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: AAC is good value based on its PB Ratio (0.8x) compared to the AU Food industry average (1.4x).


Future Growth

How is Australian Agricultural forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-78.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AAC's earnings are forecast to decline over the next 3 years (-78.8% per year).

Earnings vs Market: AAC's earnings are forecast to decline over the next 3 years (-78.8% per year).

High Growth Earnings: AAC's earnings are forecast to decline over the next 3 years.

Revenue vs Market: AAC's revenue (2.6% per year) is forecast to grow slower than the Australian market (4.9% per year).

High Growth Revenue: AAC's revenue (2.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AAC is forecast to be unprofitable in 3 years.


Past Performance

How has Australian Agricultural performed over the past 5 years?

16.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AAC has a large one-off gain of A$345.2M impacting its September 30 2021 financial results.

Growing Profit Margin: AAC's current net profit margins (49.2%) are higher than last year (14.8%).


Past Earnings Growth Analysis

Earnings Trend: AAC's earnings have grown by 16.5% per year over the past 5 years.

Accelerating Growth: AAC's earnings growth over the past year (197.9%) exceeds its 5-year average (16.5% per year).

Earnings vs Industry: AAC earnings growth over the past year (197.9%) exceeded the Food industry 106.9%.


Return on Equity

High ROE: AAC's Return on Equity (11.6%) is considered low.


Financial Health

How is Australian Agricultural's financial position?


Financial Position Analysis

Short Term Liabilities: AAC's short term assets (A$370.9M) exceed its short term liabilities (A$41.0M).

Long Term Liabilities: AAC's short term assets (A$370.9M) do not cover its long term liabilities (A$541.5M).


Debt to Equity History and Analysis

Debt Level: AAC's net debt to equity ratio (31.9%) is considered satisfactory.

Reducing Debt: AAC's debt to equity ratio has reduced from 43.8% to 33.1% over the past 5 years.

Debt Coverage: AAC's debt is not well covered by operating cash flow (3.6%).

Interest Coverage: Insufficient data to determine if AAC's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

What is Australian Agricultural current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate AAC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate AAC's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AAC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AAC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AAC's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.1yrs

Average management tenure


CEO

Hugh Killen

3.92yrs

Tenure

AU$948,531

Compensation

Mr. Hugh Killen, GMP (Harvard Business School) is Managing Director, Chief Executive Officer and Director of Australian Agricultural Company Limited since February 1, 2018. Mr. Killen is a highly experienc...


CEO Compensation Analysis

Compensation vs Market: Hugh's total compensation ($USD685.31K) is about average for companies of similar size in the Australian market ($USD934.40K).

Compensation vs Earnings: Hugh's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: AAC's management team is considered experienced (3.1 years average tenure).


Board Members

Experienced Board: AAC's board of directors are considered experienced (7.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Australian Agricultural Company Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Australian Agricultural Company Limited
  • Ticker: AAC
  • Exchange: ASX
  • Founded: 1824
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Implied Market Cap: AU$910.178m
  • Shares outstanding: 602.77m
  • Website: https://www.aaco.com.au

Number of Employees


Location

  • Australian Agricultural Company Limited
  • GPO Box 587
  • Brisbane
  • Queensland
  • 4001
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/17 07:01
End of Day Share Price2022/01/17 00:00
Earnings2021/09/30
Annual Earnings2021/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.