Australian Agricultural
Market Cap
AU$693.2m
Last Updated
2020/04/07 12:06 UTC
Data Sources
Company Financials +
Executive Summary
Australian Agricultural Company Limited produces and sells cattle and beef in Australia.
Rewards
Risk Analysis
Snowflake Analysis
Moderate growth potential and overvalued.
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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
2.7%
AAC
3.4%
AU Food
2.8%
AU Market
1 Year Return
3.7%
AAC
-17.4%
AU Food
-16.2%
AU Market
Return vs Industry: AAC exceeded the Australian Food industry which returned -17.4% over the past year.
Return vs Market: AAC exceeded the Australian Market which returned -16.2% over the past year.
Shareholder returns
| AAC | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.7% | 3.4% | 2.8% |
| 30 Day | -1.3% | -10.0% | -15.2% |
| 90 Day | 2.3% | -8.2% | -23.4% |
| 1 Year | 3.7%3.7% | -8.7%-17.4% | -12.4%-16.2% |
| 3 Year | -31.0%-31.0% | 7.7%-7.6% | -0.2%-13.9% |
| 5 Year | -30.6%-30.6% | 33.9%7.6% | 11.5%-13.6% |
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
2 weeks ago | Simply Wall St
Could Australian Agricultural Company Limited's (ASX:AAC) Investor Composition Influence The Stock Price?1 month ago | Simply Wall St
Introducing Australian Agricultural (ASX:AAC), A Stock That Climbed 31% In The Last Year2 months ago | Simply Wall St
Have Insiders Been Buying Australian Agricultural Company Limited (ASX:AAC) Shares?Valuation
Is Australian Agricultural undervalued compared to its fair value and its price relative to the market?
0.8x
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: AAC (A$1.13) is trading above our estimate of fair value (A$0.2)
Significantly Below Fair Value: AAC is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: AAC is unprofitable, so we can't compare its PE Ratio to the Food industry average.
PE vs Market: AAC is unprofitable, so we can't compare its PE Ratio to the Australian market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate AAC's PEG Ratio to determine if it is good value.
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 (1.2x).
Next Steps
Future Growth
How is Australian Agricultural forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?
109.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AAC is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.1%).
Earnings vs Market: AAC is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: AAC's is expected to become profitable in the next 3 years.
Revenue vs Market: AAC's revenue is expected to decline over the next 3 years (-5.5% per year).
High Growth Revenue: AAC's revenue is forecast to decline over the next 3 years (-5.5% 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 (2.2%).
Next Steps
Past Performance
How has Australian Agricultural performed over the past 5 years?
-55.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AAC is currently unprofitable.
Growing Profit Margin: AAC is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: AAC is unprofitable, and losses have increased over the past 5 years at a rate of -55.4% per year.
Accelerating Growth: Unable to compare AAC's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: AAC is unprofitable, making it difficult to compare its past year earnings growth to the Food industry (-7%).
Return on Equity
High ROE: AAC has a negative Return on Equity (-11.38%), as it is currently unprofitable.
Next Steps
Financial Health
How is Australian Agricultural's financial position?
Financial Position Analysis
Short Term Liabilities: AAC's short term assets (A$253.7M) exceed its short term liabilities (A$59.3M).
Long Term Liabilities: AAC's short term assets (A$253.7M) do not cover its long term liabilities (A$425.7M).
Debt to Equity History and Analysis
Debt Level: AAC's debt to equity ratio (45.7%) is considered high.
Reducing Debt: AAC's debt to equity ratio has increased from 44.8% to 45.7% over the past 5 years.
Balance Sheet
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.
Stable Cash Runway: AAC has less than a year of cash runway based on its current free cash flow.
Forecast Cash Runway: Insufficient data to determine if AAC has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.
Next Steps
Dividend
What is Australian Agricultural's 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 payouts.
High Dividend: Unable to evaluate AAC's dividend yield against the top 25% of dividend payers, as the company has not reported any 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: AAC is not paying a notable dividend for the Australian market.
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?
2.0yrs
Average management tenure
CEO
Hugh Killen
2.17s
Tenure
AU$811,481
Compensation
Mr. Hugh Killen, GMP (Harvard Business School) is Managing Director, Chief Executive Officer and Director of Australian Agricultural Company Limited since February 1, 2018. Mr. Killen is a highly experienc ...
CEO Compensation Analysis
Compensation vs Market: Hugh's total compensation ($USD494.56K) is below average for companies of similar size in the Australian market ($USD779.51K).
Compensation vs Earnings: Hugh's compensation has increased whilst the company is unprofitable.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD, CEO & Director | 2.17yrs | AU$811.48k | 0.033% A$228.1k | |
| Chief Financial Officer | 1.67yrs | AU$621.21k | no data | |
| Chief Operating Officer | 1.75yrs | AU$480.60k | no data | |
| General Counsel & Company Secretary | 13.42yrs | AU$471.70k | 0.016% A$111.7k | |
| Head of People & Culture | 2.58yrs | AU$458.60k | no data | |
| Chief Commercial Officer | 1.33yrs | AU$508.43k | no data | |
| Head of Corporate Affairs and Communications | no data | no data | no data |
2.0yrs
Average Tenure
Experienced Management: AAC's management team is not considered experienced ( 2 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD, CEO & Director | 2.17yrs | AU$811.48k | 0.033% A$228.1k | |
| Non-Executive Chairman | 9.67yrs | AU$273.75k | 0.19% A$1.3m | |
| Director | 8yrs | AU$239.80k | 0.34% A$2.3m | |
| Director | 0.75yr | no data | no data | |
| Non-Executive Director | 3.92yrs | AU$115.00k | 0.0075% A$51.8k | |
| Independent Non Executive Director | 8.5yrs | AU$153.30k | 0.012% A$86.2k | |
| Independent Non Executive Director | 8.5yrs | AU$136.88k | 0.0066% A$46.0k | |
| Independent Non-Executive Director | 5.58yrs | AU$109.50k | 0.0050% A$34.5k | |
| Independent Non-Executive Director | 2.42yrs | AU$109.50k | no data |
5.6yrs
Average Tenure
56.5yo
Average Age
Experienced Board: AAC's board of directors are considered experienced (5.6 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 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$693.182m
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| AAC | ASX (Australian Securities Exchange) | Yes | Ordinary Shares | AU | AUD | Aug 2001 |
| AY5 | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Aug 2001 |
| ASAG.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Aug 2001 |
| AAC | CHIA (Chi-X Australia) | Yes | Ordinary Shares | AU | AUD | Aug 2001 |
| AY5 | BRSE (Berne Stock Exchange) | Yes | Ordinary Shares | CH | CHF | Aug 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, backgrounding, feedlotting, and processing cattle; and the production of grass fed beef, grain fed beef, and Wagyu beef. It provides its products under the Wylarah, Westholme, Master Kobe, Kobe Cuisine, and Darling Downs Wagyu brands. The company operates an integrated cattle production system across 19 owned cattle stations, 2 leased stations, 5 agisted properties, 2 owned feedlots, and 2 owned farms covering an area of approximately 6.4 million hectares of land in Queensland and the Northern Territory. It also exports its products. The company was founded in 1824 and is based in Brisbane, Australia.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/07 12:06 |
| End of Day Share Price | 2020/04/07 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2019/03/31 |
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.