ASX:RFF

Stock Analysis Report

Executive Summary

RFF owns a diversified portfolio of high quality Australian agricultural assets.

Snowflake

Fundamentals

Good value with moderate growth potential.

Risks

  • Rural Funds Group has significant price volatility in the past 3 months.
  • Rural Funds Group's last earnings update was 185 days ago.

Share Price & News

How has Rural Funds Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.0%

ASX:RFF

3.0%

AU REITs

1.9%

AU Market


1 Year Return

-7.5%

ASX:RFF

19.1%

AU REITs

2.3%

AU Market

RFF underperformed the REITs industry which returned 18.9% over the past year.

RFF underperformed the Market in Australia which returned 2.2% over the past year.


Share holder returns

RFFIndustryMarket
7 Day1.0%3.0%1.9%
30 Day-16.2%0.3%-4.2%
90 Day-12.4%3.8%1.2%
1 Year-3.1%-7.5%25.1%19.1%8.0%2.3%
3 Year42.4%20.1%35.7%16.2%32.9%15.6%
5 Year183.9%99.0%102.4%57.3%39.3%8.4%

Price Volatility Vs. Market

How volatile is Rural Funds Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Rural Funds Group undervalued based on future cash flows and its price relative to the stock market?

45%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Rural Funds Group's share price is below the future cash flow value, and at a moderate discount (> 20%).

Rural Funds Group's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Rural Funds Group is overvalued based on earnings compared to the AU REITs industry average.

Rural Funds Group is good value based on earnings compared to the Australia market.


Price Based on Expected Growth

Rural Funds Group is good value based on expected growth next year.


Price Based on Value of Assets

Rural Funds Group is overvalued based on assets compared to the AU REITs industry average.


Next Steps

Future Growth

How is Rural Funds Group expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

16.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Rural Funds Group's revenue is expected to grow by 9.6% yearly, however this is not considered high growth (20% yearly).

Rural Funds Group's earnings are expected to grow by 16.1% yearly, however this is not considered high growth (20% yearly).

Rural Funds Group's revenue growth is expected to exceed the Australia market average.

Rural Funds Group's earnings growth is expected to exceed the Australia market average.

Rural Funds Group's earnings growth is expected to exceed the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

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


Next Steps

Past Performance

How has Rural Funds Group performed over the past 5 years?

29.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Rural Funds Group has delivered over 20% year on year earnings growth in the past 5 years.

Rural Funds Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Rural Funds Group's 1-year earnings growth is negative, it can't be compared to the AU REITs industry average.


Return on Equity

Rural Funds Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Rural Funds Group used its assets less efficiently than the AU REITs industry average last year based on Return on Assets.


Return on Capital Employed

Rural Funds Group has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Rural Funds Group's financial position?


Financial Position Analysis

Rural Funds Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Rural Funds Group's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Rural Funds Group's level of debt (45.7%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (82.3% vs 45.7% today).

Debt is not well covered by operating cash flow (16.4%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 3.4x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.1x debt.


Next Steps

Dividend

What is Rural Funds Group's current dividend yield, its reliability and sustainability?

5.61%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Rural Funds Group's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.55%).

Rural Funds Group's dividend is below the markets top 25% of dividend payers in Australia (5.77%).

Whilst dividend payments have been stable, Rural Funds Group has been paying a dividend for less than 10 years.

Dividend payments have increased, but Rural Funds Group only paid a dividend in the past 5 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.4x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.3x coverage).


Next Steps

Management

What is the CEO of Rural Funds Group's salary, the management and board of directors tenure and is there insider trading?

9.3yrs

Average board tenure


CEO

John Bryant 0

0.0yrs

Tenure

0

Mr. David Anthony Bryant, also known as John, serves as the Managing Director of Rural Funds Management Limited has been its Director since February 17, 1997. Mr. Bryant is responsible for leading the exec ...


Board Age and Tenure

9.3yrs

Average Tenure

The tenure for the Rural Funds Group board of directors is about average.


Insider Trading

More shares have been bought than sold by Rural Funds Group individual insiders in the past 3 months.


Recent Insider Transactions

BuyAU$69,92313 Aug 19
Michael Carroll
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director of Rural Funds Management Limited
Shares38,105
Max PriceAU$1.84
BuyAU$2,99912 Aug 19
David Bryant
EntityIndividual
Role
Chief Executive Officer
MD & Director of Rural Funds Management Limited
Shares1,538
Max PriceAU$1.95
BuyAU$499,91209 Aug 19
David Bryant
EntityIndividual
Role
Chief Executive Officer
MD & Director of Rural Funds Management Limited
Shares292,500
Max PriceAU$1.71
BuyAU$29,80808 Aug 19
Michael Carroll
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director of Rural Funds Management Limited
Shares15,730
Max PriceAU$1.90
BuyAU$254,92508 Aug 19
Boskenna Pty Ltd
EntityCompany
Shares150,000
Max PriceAU$1.70
BuyAU$443,72508 Aug 19
Leslie Paynter
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman of Rural Funds Management Limited
Shares250,000
Max PriceAU$1.77

Ownership Breakdown


Management Team

  • John Bryant

    MD & Director of Rural Funds Management Limited

    • Tenure: 0.0yrs
  • Daniel Yap

    Financial Controller of Rural Funds Management Limited

    • Tenure: 0.0yrs
  • James Powell

    General Manager of Investor Relations & Marketing - Rural Funds Management Limited

    • Tenure: 0.0yrs
  • Tim Sheridan

    Chief Operating Officer of Rural Funds Management Ltd.

    • Tenure: 0.6yrs
  • Emma Spear

    Company Secretary of Rural Funds Management Ltd

    • Tenure: 1.0yrs

Board Members

  • Leslie Paynter (76yo)

    Non-Executive Chairman of Rural Funds Management Limited

    • Tenure: 0.0yrs
  • Mike Carroll

    Independent Non-Executive Director of Rural Funds Management Limited

    • Tenure: 9.3yrs
  • Julian Widdup

    Independent Non-Executive Director of Rural Funds Management Limited

    • Tenure: 2.5yrs
  • John Bryant

    MD & Director of Rural Funds Management Limited

    • Tenure: 0.0yrs

Company Information

Rural Funds Group's company bio, employee growth, exchange listings and data sources


Key Information


Location

  • Rural Funds Group
  • 2 King Street
  • Level 2
  • Deakin
  • Australian Capital Territory
  • 2600
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RFFASX (Australian Securities Exchange)YesUnitsAUAUDFeb 2014
RFFCHIA (Chi-X Australia)YesUnitsAUAUDFeb 2014
RFND.FOTCPK (Pink Sheets LLC)YesUnitsUSUSDFeb 2014

Biography

RFF owns a diversified portfolio of high quality Australian agricultural assets. RFF’s investment objective is to generate a stable income stream derived from leasing its assets to suitable counterparts an ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/24 10:37
End of Day Share Price2019/08/23 00:00
Earnings2018/12/31
Annual Earnings2018/06/30


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.