ASX:AAC

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Fair value with questionable track record.

Share Price & News

How has Australian Agricultural's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AAC is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: AAC's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-1.2%

AAC

-1.2%

AU Food

1.7%

AU Market


1 Year Return

11.6%

AAC

9.6%

AU Food

-1.6%

AU Market

Return vs Industry: AAC exceeded the Australian Food industry which returned 8.8% over the past year.

Return vs Market: AAC exceeded the Australian Market which returned -0.6% over the past year.


Shareholder returns

AACIndustryMarket
7 Day-1.2%-1.2%1.7%
30 Day11.1%4.3%9.5%
90 Day15.4%4.7%9.2%
1 Year11.6%11.6%12.3%9.6%1.8%-1.6%
3 Year-7.3%-7.3%-14.6%-21.3%24.8%9.2%
5 Year-18.6%-18.6%10.4%-4.0%56.1%25.0%

Long-Term Price Volatility Vs. Market

How volatile is Australian Agricultural's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

16.44x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AAC (A$1.2) is trading above our estimate of fair value (A$0.45)

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 (16.4x) compared to the AU Food industry average (25.4x).

PE vs Market: AAC is good value based on its PE Ratio (16.4x) compared to the Australian market (22.8x).


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 (1.5x).


Next Steps

Future Growth

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

-35.9%

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 (-35.9% per year).

Earnings vs Market: AAC's earnings are forecast to decline over the next 3 years (-35.9% per year).

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

Revenue vs Market: AAC's revenue (0.6% per year) is forecast to grow slower than the Australian market (5.1% per year).

High Growth Revenue: AAC's revenue (0.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AAC's Return on Equity is forecast to be low in 3 years time (1.1%).


Next Steps

Past Performance

How has Australian Agricultural performed over the past 5 years?

-35.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AAC has a large one-off gain of A$234.3M impacting its September 30 2020 financial results.

Growing Profit Margin: AAC became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: AAC has become profitable over the past 5 years, growing earnings by -35.5% per year.

Accelerating Growth: AAC has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: AAC has become profitable in the last year, making it difficult to compare its past year earnings growth to the Food industry (-13.2%).


Return on Equity

High ROE: AAC's Return on Equity (4.8%) is considered low.


Next Steps

Financial Health

How is Australian Agricultural's financial position?


Financial Position Analysis

Short Term Liabilities: AAC's short term assets (A$253.3M) exceed its short term liabilities (A$39.8M).

Long Term Liabilities: AAC's short term assets (A$253.3M) do not cover its long term liabilities (A$454.1M).


Debt to Equity History and Analysis

Debt Level: AAC's debt to equity ratio (40.3%) is considered high.

Reducing Debt: AAC's debt to equity ratio has reduced from 47.2% to 40.3% over the past 5 years.

Debt Coverage: AAC's debt is not well covered by operating cash flow (8.5%).

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


Balance Sheet


Next Steps

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?

2.3yrs

Average management tenure


CEO

Hugh Killen

2.75yrs

Tenure

AU$774,210

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 ($USD569.48K) is about average for companies of similar size in the Australian market ($USD700.86K).

Compensation vs Earnings: Hugh's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Hugh Killen
MD, CEO & Director2.75yrsAU$774.21k0.047%
A$ 328.2k
Nigel Simonsz
Chief Financial Officer2.25yrsAU$619.65kno data
Anna Speer
Chief Operating Officer2.33yrsAU$590.42kno data
Bruce Bennett
General Counsel & Company Secretary14yrsAU$475.92k0.032%
A$ 222.1k
S. Grant
Head of People & Culture3.17yrsAU$428.35kno data
Andrew O'Brien
Chief Commercial Officer1.92yrsAU$746.20k0.0083%
A$ 58.0k
Aaron Wakeley
Head of Corporate Affairs and Communicationsno datano datano data
David Harris
Chief Operating Officer of Supply Chain0.83yrno datano data

2.3yrs

Average Tenure

Experienced Management: AAC's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Hugh Killen
MD, CEO & Director2.75yrsAU$774.21k0.047%
A$ 328.2k
Donald McGauchie
Independent Non-Executive Chairman10.25yrsAU$273.75k0.19%
A$ 1.3m
Shehan Dissanayake
Non-Executive Director8.58yrsAU$213.33k0.34%
A$ 2.3m
Marc Blazer
Independent Non-Executive Director1.33yrsAU$83.56kno data
Neil Reisman
Non-Executive Director4.5yrsAU$115.00k0.0075%
A$ 52.2k
Thomas Keene
Independent Non Executive Director9.08yrsAU$147.00k0.012%
A$ 87.0k
Stuart Black
Independent Non Executive Director9.08yrsAU$136.88k0.0066%
A$ 46.4k
Anthony Abraham
Independent Non-Executive Director6.17yrsAU$115.80k0.0050%
A$ 34.8k
Jessica Rudd
Independent Non-Executive Director3yrsAU$115.53kno data

6.2yrs

Average Tenure

57.5yo

Average Age

Experienced Board: AAC's board of directors are considered experienced (6.2 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.


Ownership Breakdown

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


Top Shareholders

Company Information

Australian Agricultural Company Limited's company bio, 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
  • Market Cap: AU$699.209m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AACASX (Australian Securities Exchange)YesOrdinary SharesAUAUDAug 2001
AY5DB (Deutsche Boerse AG)YesOrdinary SharesDEEURAug 2001
ASAG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDAug 2001
AACCHIA (Chi-X Australia)YesOrdinary SharesAUAUDAug 2001

Biography

Australian Agricultural Company Limited produces and sells cattle and beef in Australia. The company engages in owning, operating, and developing pastoral properties; producing beef, including breeding, ba...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/26 07:02
End of Day Share Price2020/11/26 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


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.