| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 0/6 |
| Past Performance | 4/6 |
| Financial Health | 3/6 |
| Dividends | 0/6 |
AAC Stock Overview
Australian Agricultural Company Limited produces and sells cattle and beef in Australia.
Australian Agricultural Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | AU$1.51 |
| 52 Week High | AU$1.81 |
| 52 Week Low | AU$1.08 |
| Beta | -0.036 |
| 1 Month Change | 0.33% |
| 3 Month Change | 4.14% |
| 1 Year Change | 36.04% |
| 3 Year Change | 37.27% |
| 5 Year Change | -5.33% |
| Change since IPO | 52.53% |
Recent News & Updates
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...
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
| AAC | AU Food | AU Market | |
|---|---|---|---|
| 7D | 0.7% | -3.4% | -0.5% |
| 1Y | 36.0% | -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
| AAC volatility | |
|---|---|
| AAC Average Weekly Movement | 4.7% |
| Food Industry Average Movement | 6.1% |
| Market Average Movement | 8.4% |
| 10% most volatile stocks in AU Market | 15.2% |
| 10% least volatile stocks in AU Market | 3.6% |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1824 | 423 | Hugh Killen | https://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
| AAC fundamental statistics | |
|---|---|
| Market Cap | AU$910.18m |
| Earnings (TTM) | AU$130.37m |
| Revenue (TTM) | AU$265.09m |
7.0x
P/E Ratio3.4x
P/S RatioIs AAC overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| AAC income statement (TTM) | |
|---|---|
| Revenue | AU$265.09m |
| Cost of Revenue | AU$290.85m |
| Gross Profit | -AU$25.76m |
| Expenses | -AU$156.13m |
| Earnings | AU$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 Margin | 49.18% |
| Debt/Equity Ratio | 33.1% |
How did AAC perform over the long term?
See historical performance and comparisonValuation
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/17 07:01 |
| End of Day Share Price | 2022/01/17 00:00 |
| Earnings | 2021/09/30 |
| Annual Earnings | 2021/03/31 |
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.