ASX:AAC

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Moderate growth potential and overvalued.

Risks

  • Australian Agricultural is covered by less than 3 analysts.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-0.5%

ASX:AAC

0.9%

AU Food

1.9%

AU Market


1 Year Return

-26.4%

ASX:AAC

-19.6%

AU Food

2.3%

AU Market

AAC underperformed the Food industry which returned -19.6% over the past year.

AAC underperformed the Market in Australia which returned 2.3% over the past year.


Share holder returns

AACIndustryMarket
7 Day-0.5%0.9%1.9%
30 Day-2.4%-9.7%-4.2%
90 Day-12.0%-10.7%1.2%
1 Year-26.4%-26.4%-17.5%-19.6%8.0%2.3%
3 Year-41.6%-41.6%-10.9%-15.3%32.9%15.6%
5 Year-17.3%-17.3%25.3%14.4%39.3%8.4%

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 based on future cash flows and its price relative to the stock market?

0.73x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Unable to calculate intrinsic value for Australian Agricultural to establish if it is available at moderate discount.

Unable to calculate intrinsic value for Australian Agricultural to establish if it is available at substantial discount.


Price Based on Earnings

Australian Agricultural is loss making, we can't compare its value to the AU Food industry average.

Australian Agricultural is loss making, we can't compare the value of its earnings to the Australia market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Australian Agricultural, we can't assess if its growth is good value.


Price Based on Value of Assets

Australian Agricultural is good value based on assets compared to the AU Food industry average.


Next Steps

Future Growth

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

99.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Australian Agricultural's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

Australian Agricultural's earnings are expected to grow significantly at over 20% yearly.

Australian Agricultural's revenues are expected to decrease over the next 1-3 years, this is below the Australia market average.

Australian Agricultural's earnings growth is expected to exceed the Australia market average.

Australian Agricultural's earnings growth is expected to exceed the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

Australian Agricultural is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Australian Agricultural performed over the past 5 years?

-42.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Australian Agricultural does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Australian Agricultural's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Australian Agricultural's 1-year growth to the AU Food industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Australian Agricultural has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Australian Agricultural has efficiently used its assets last year compared to the AU Food industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Australian Agricultural improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Australian Agricultural's financial position?


Financial Position Analysis

Australian Agricultural is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Australian Agricultural's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Australian Agricultural's level of debt (43.7%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (36.8% vs 43.7% today).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.6x debt.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Australian Agricultural has less than a year of cash runway based on current free cash flow.

Australian Agricultural has less than a year of cash runway if free cash flow continues to grow at historical rates of 2.8% each year.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Australian Agricultural's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Australian Agricultural's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Australian Agricultural has not reported any payouts.

Unable to verify if Australian Agricultural's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Australian Agricultural has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

  • Explore strong dividend paying companies in the Food, Beverage & Tobacco industry.

Management

What is the CEO of Australian Agricultural's salary, the management and board of directors tenure and is there insider trading?

1.3yrs

Average management tenure


CEO

Hugh Killen 0

1.5yrs

Tenure

AU$811,481

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

Hugh's remuneration is about average for companies of similar size in Australia.

Hugh's compensation has increased whilst company is loss making.


Management Age and Tenure

1.3yrs

Average Tenure

The average tenure for the Australian Agricultural management team is less than 2 years, this suggests a new team.


Board Age and Tenure

4.9yrs

Average Tenure

56.5yo

Average Age

The tenure for the Australian Agricultural board of directors is about average.


Insider Trading

More shares have been bought than sold by Australian Agricultural individual insiders in the past 3 months.


Recent Insider Transactions

BuyAU$7,093,94107 Aug 19
Bryan Glinton
EntityIndividual
Shares6,090,472
Max PriceAU$1.18
BuyAU$1,852,39102 Aug 19
Schroder Investment Management Limited
EntityCompany
Shares1,764,489
Max PriceAU$1.05
BuyAU$16,337,88304 Dec 18
Bryan Glinton
EntityIndividual
Shares14,251,896
Max PriceAU$1.19
SellAU$4,075,36525 Nov 18
New York Life Investment Management LLC
EntityCompany
Shares3,335,439
Max PriceAU$1.28
SellAU$13,673,29805 Nov 18
New York Life Investment Management LLC
EntityCompany
Shares11,390,051
Max PriceAU$1.20

Ownership Breakdown


Management Team

  • Shehan Dissanayake

    Executive Director

    • Tenure: 7.3yrs
    • Compensation: AU$239.80k
  • Bruce Bennett

    General Counsel & Company Secretary

    • Tenure: 12.8yrs
    • Compensation: AU$471.70k
  • Nigel Simonsz

    Chief Financial Officer

    • Tenure: 1.0yrs
    • Compensation: AU$621.21k
  • Hugh Killen

    MD, CEO & Director

    • Tenure: 1.5yrs
    • Compensation: AU$811.48k
  • Anna Speer

    Chief Operating Officer

    • Tenure: 1.1yrs
    • Compensation: AU$480.60k
  • S. Grant

    Head of People & Culture

    • Tenure: 1.9yrs
    • Compensation: AU$458.60k
  • Andrew O’Brien

    Chief Commercial Officer

    • Tenure: 0.7yrs
    • Compensation: AU$508.43k
  • Aaron Wakeley

    Head of Corporate Affairs and Communications

    • Tenure: 0.0yrs

Board Members

  • Donald McGauchie (69yo)

    Non-Executive Chairman

    • Tenure: 9.0yrs
    • Compensation: AU$273.75k
  • Shehan Dissanayake

    Executive Director

    • Tenure: 7.3yrs
    • Compensation: AU$239.80k
  • Marc Blazer (50yo)

    Director

    • Tenure: 0.1yrs
  • Neil Reisman (57yo)

    Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: AU$115.00k
  • Tom Keene

    Independent Non Executive Director

    • Tenure: 7.8yrs
    • Compensation: AU$153.30k
  • Stuart Black

    Independent Non Executive Director

    • Tenure: 7.8yrs
    • Compensation: AU$136.88k
  • Anthony Abraham (56yo)

    Independent Non-Executive Director

    • Tenure: 4.9yrs
    • Compensation: AU$109.50k
  • Jessica Rudd

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: AU$109.50k
  • Hugh Killen

    MD, CEO & Director

    • Tenure: 1.5yrs
    • Compensation: AU$811.48k

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$620.850m
  • 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 Analysis2019/08/25 10:35
End of Day Share Price2019/08/23 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


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.