Duxton Farms (ASX:DBF) - Share price, News & Analysis

Q: What is the Fair Price of DBF when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

DBF (A$1.82) is trading above our estimate of [[fair value]] (A$0.77)

DBF fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	0/6
Past Performance	0/6
Financial Health	2/6
Dividends	1/6

DBF Stock Overview

Duxton Farms Ltd primarily engages in the sowing and harvesting of dryland and irrigated crops in Australia.

Risk Analysis

Has less than 1 year of cash runway

Dividend of 3.42% is not well covered by earnings or forecast to be in the next 3 years

Does not have a meaningful market cap (A$76M)

Duxton Farms Competitors

Australian Dairy Nutritionals Group

ASX:AHF

AU$41.7m

Lynch Group Holdings

ASX:LGL

AU$293.0m

Sustainable Nutrition Group

ASX:TSN

AU$16.9m

Wide Open Agriculture

ASX:WOA

AU$76.8m

Price History & Performance

Summary of all time highs, changes and price drops for Duxton Farms
Historical stock prices
Current Share Price	AU$1.82
52 Week High	AU$1.95
52 Week Low	AU$1.40
Beta	0.066
1 Month Change	-1.89%
3 Month Change	-0.82%
1 Year Change	25.17%
3 Year Change	48.77%
5 Year Change	n/a
Change since IPO	14.87%

Recent News & Updates

Jul 05

Calculating The Fair Value Of Duxton Broadacre Farms Limited (ASX:DBF)

Today we will run through one way of estimating the intrinsic value of Duxton Broadacre Farms Limited ( ASX:DBF ) by...

Mar 06

Robust Earnings May Not Tell The Whole Story For Duxton Broadacre Farms (ASX:DBF)

Duxton Broadacre Farms Limited ( ASX:DBF ) just released a solid earnings report, and the stock displayed some...

Shareholder Returns

	DBF	AU Food	AU Market
7D	-6.0%	1.6%	1.0%
1Y	25.2%	-11.4%	-7.9%

Return vs Industry: DBF exceeded the Australian Food industry which returned -11.4% over the past year.

Return vs Market: DBF exceeded the Australian Market which returned -7.9% over the past year.

Price Volatility

Is DBF's price volatile compared to industry and market?
DBF volatility
DBF Average Weekly Movement	4.6%
Food Industry Average Movement	6.7%
Market Average Movement	10.6%
10% most volatile stocks in AU Market	17.5%
10% least volatile stocks in AU Market	4.7%

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

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

About the Company

Founded	Employees	CEO	Website
2008	n/a	n/a	https://www.duxtonfarms.com

Duxton Farms Ltd primarily engages in the sowing and harvesting of dryland and irrigated crops in Australia. The company is also involved in the infrastructure maintenance and upgrade; trading and breeding of livestock; and sale of grains, pulses, and lucerne. Its products include hay, cotton, chickpea, wheat, barley, and field peas, as well as cattle, sheep, and wool.

Duxton Farms Fundamentals Summary

How do Duxton Farms's earnings and revenue compare to its market cap?
DBF fundamental statistics
Market Cap	AU$75.85m
Earnings (TTM)	-AU$3.04m
Revenue (TTM)	AU$17.22m

4.4x

P/S Ratio

-24.9x

P/E Ratio

Is DBF overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
DBF income statement (TTM)
Revenue	AU$17.22m
Cost of Revenue	AU$14.47m
Gross Profit	AU$2.75m
Other Expenses	AU$5.80m
Earnings	-AU$3.04m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	-0.073
Gross Margin	15.98%
Net Profit Margin	-17.68%
Debt/Equity Ratio	27.0%

How did DBF perform over the long term?

See historical performance and comparison

Dividends

3.4%

Current Dividend Yield

0%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is DBF undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for DBF?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for DBF. This is calculated by dividing DBF's market cap by their current preferred multiple.
What is DBF's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	AU$75.85m

DBF key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	6.1x
Enterprise Value/EBITDA	-30.6x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does DBF's PS Ratio compare to its peers?

DBF PS Ratio vs Peers

The above table shows the PS ratio for DBF vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	5.3x
AHF Australian Dairy Nutritionals Group	2.3x	n/a	AU$41.7m
LGL Lynch Group Holdings	0.9x	8.0%	AU$293.0m
TSN Sustainable Nutrition Group	6.2x	n/a	AU$16.9m
WOA Wide Open Agriculture	11.8x	56.1%	AU$76.8m
DBF Duxton Farms	4.4x	n/a	AU$75.8m

Price-To-Sales vs Peers: DBF is good value based on its Price-To-Sales Ratio (4.4x) compared to the peer average (5.3x).

Price to Earnings Ratio vs Industry

How does DBF's PE Ratio compare vs other companies in the AU Food Industry?

Price-To-Sales vs Industry: DBF is expensive based on its Price-To-Sales Ratio (4.4x) compared to the Australian Food industry average (1.6x)

Price to Sales Ratio vs Fair Ratio

What is DBF's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

DBF PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	4.4x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate DBF's Price-To-Sales Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of DBF when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DBF (A$1.82) is trading above our estimate of fair value (A$0.77)

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

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

How is Duxton Farms forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

10.4%

Forecasted Food, Beverage & Tobacco industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Duxton Farms has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

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Duxton Farms competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Duxton Farms performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

30.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: DBF is currently unprofitable.

Growing Profit Margin: DBF is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: DBF is unprofitable, but has reduced losses over the past 5 years at a rate of 30.3% per year.

Accelerating Growth: Unable to compare DBF's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: DBF is unprofitable, making it difficult to compare its past year earnings growth to the Food industry (82.3%).

Return on Equity

High ROE: DBF has a negative Return on Equity (-2.8%), as it is currently unprofitable.

Discover strong past performing companies

Financial Health

How is Duxton Farms's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: DBF's short term assets (A$18.6M) exceed its short term liabilities (A$7.3M).

Long Term Liabilities: DBF's short term assets (A$18.6M) do not cover its long term liabilities (A$38.6M).

Debt to Equity History and Analysis

Debt Level: DBF's net debt to equity ratio (25.5%) is considered satisfactory.

Reducing Debt: DBF's debt to equity ratio has increased from 14.4% to 27% 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: DBF has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: DBF has less than a year of cash runway if free cash flow continues to grow at historical rates of 7% each year.

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Dividend

What is Duxton Farms's current dividend yield, its reliability and sustainability?

Dividend Score

1/6

Dividend Score 1/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

3.42%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: DBF's dividend (3.42%) is higher than the bottom 25% of dividend payers in the Australian market (2.62%).

High Dividend: DBF's dividend (3.42%) is low compared to the top 25% of dividend payers in the Australian market (6.24%).

Stability and Growth of Payments

Stable Dividend: Too early to tell whether DBF's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if DBF's dividend payments are increasing as they only just started paying a dividend.

Earnings Payout to Shareholders

Earnings Coverage: Unable to calculate sustainability of dividends as DBF has not reported any payouts.

Cash Payout to Shareholders

Cash Flow Coverage: DBF is paying a dividend but the company has no free cash flows.

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Management

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

3.4yrs

Average management tenure

CEO

Duxton Farms has no CEO, or we have no data on them.

Leadership Team

Experienced Management: DBF's management team is considered experienced (3.4 years average tenure).

Board Members

Experienced Board: DBF's board of directors are considered experienced (4.9 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.

Data	Last Updated (UTC time)
Company Analysis	2022/08/07 00:00
End of Day Share Price	2022/08/05 00:00
Earnings	2021/12/31
Annual Earnings	2021/06/30