Rural Funds Group
Market Cap
AU$703.8m
Last Updated
2020/08/08 10:33 UTC
Data Sources
Company Financials +
Executive Summary
RFF owns a diversified portfolio of high quality Australian agricultural assets.
Rewards
Risk Analysis
Snowflake Analysis
Acceptable track record second-rate dividend payer.
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
Stable Share Price: RFF has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
2.0%
RFF
0.5%
AU REITs
1.9%
AU Market
1 Year Return
14.9%
RFF
-23.6%
AU REITs
-8.3%
AU Market
Return vs Industry: RFF exceeded the Australian REITs industry which returned -23.6% over the past year.
Return vs Market: RFF exceeded the Australian Market which returned -8.3% over the past year.
Shareholder returns
| RFF | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.0% | 0.5% | 1.9% |
| 30 Day | 4.5% | 1.8% | 2.5% |
| 90 Day | 8.9% | 7.7% | 13.2% |
| 1 Year | 21.7%14.9% | -20.3%-23.6% | -4.5%-8.3% |
| 3 Year | 25.0%5.9% | 12.6%-2.4% | 19.7%3.9% |
| 5 Year | 159.7%86.5% | 33.2%4.2% | 39.8%9.6% |
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
5 days ago | Simply Wall St
Did You Participate In Any Of Rural Funds Group's (ASX:RFF) Fantastic 153% Return ?1 month ago | Simply Wall St
Here's Why I Think Rural Funds Group (ASX:RFF) Might Deserve Your Attention TodayValuation
Is Rural Funds Group undervalued compared to its fair value and its price relative to the market?
34.1%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: RFF (A$2.08) is trading below our estimate of fair value (A$3.16)
Significantly Below Fair Value: RFF is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: RFF is poor value based on its PE Ratio (16.9x) compared to the AU REITs industry average (10.1x).
PE vs Market: RFF is poor value based on its PE Ratio (16.9x) compared to the Australian market (15.8x).
Price to Earnings Growth Ratio
PEG Ratio: RFF is poor value based on its PEG Ratio (5.2x)
Price to Book Ratio
PB vs Industry: RFF is overvalued based on its PB Ratio (1.3x) compared to the AU REITs industry average (0.8x).
Next Steps
Future Growth
How is Rural Funds Group forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
3.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RFF's forecast earnings growth (3.2% per year) is above the savings rate (2.3%).
Earnings vs Market: RFF's earnings (3.2% per year) are forecast to grow slower than the Australian market (14.7% per year).
High Growth Earnings: RFF's earnings are forecast to grow, but not significantly.
Revenue vs Market: RFF's revenue (1.9% per year) is forecast to grow slower than the Australian market (4.2% per year).
High Growth Revenue: RFF's revenue (1.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: RFF's Return on Equity is forecast to be low in 3 years time (8.4%).
Next Steps
Past Performance
How has Rural Funds Group performed over the past 5 years?
21.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RFF has a large one-off gain of A$17.0M impacting its December 31 2019 financial results.
Growing Profit Margin: RFF's current net profit margins (54.2%) are lower than last year (54.8%).
Past Earnings Growth Analysis
Earnings Trend: RFF's earnings have grown significantly by 21.4% per year over the past 5 years.
Accelerating Growth: RFF's earnings growth over the past year (36.2%) exceeds its 5-year average (21.4% per year).
Earnings vs Industry: RFF earnings growth over the past year (36.2%) exceeded the REITs industry -0.2%.
Return on Equity
High ROE: RFF's Return on Equity (7.7%) is considered low.
Next Steps
Financial Health
How is Rural Funds Group's financial position?
Financial Position Analysis
Short Term Liabilities: RFF's short term assets (A$51.4M) exceed its short term liabilities (A$21.0M).
Long Term Liabilities: RFF's short term assets (A$51.4M) do not cover its long term liabilities (A$310.7M).
Debt to Equity History and Analysis
Debt Level: RFF's debt to equity ratio (56.5%) is considered high.
Reducing Debt: RFF's debt to equity ratio has reduced from 75.9% to 56.5% over the past 5 years.
Debt Coverage: RFF's debt is not well covered by operating cash flow (14%).
Interest Coverage: RFF's interest payments on its debt are not well covered by EBIT (2.2x coverage).
Balance Sheet
Next Steps
Dividend
What is Rural Funds Group current dividend yield, its reliability and sustainability?
5.21%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: RFF's dividend (5.21%) is higher than the bottom 25% of dividend payers in the Australian market (2.47%).
High Dividend: RFF's dividend (5.21%) is low compared to the top 25% of dividend payers in the Australian market (6.63%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, RFF has been paying a dividend for less than 10 years.
Growing Dividend: RFF's dividend payments have increased, but the company has only paid a dividend for 6 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (74.2%), RFF's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: RFF's dividends in 3 years are forecast to be covered by earnings (85.4% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
10.3yrs
Average board tenure
CEO
John Bryant
no data
Tenure
Mr. David Anthony Bryant, also known as John, serves as the Managing Director of Rural Funds Management Limited has been its Director since February 17, 1997. Mr. Bryant is responsible for leading the exec ...
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD & Director of Rural Funds Management Limited | no data | no data | 1% A$ 7.1m | |
| Independent Non-Executive Chairman of Rural Funds Management Limited | no data | no data | 0.36% A$ 2.5m | |
| Independent Non-Executive Director of Rural Funds Management Limited | 10.33yrs | no data | 0.062% A$ 438.4k | |
| Independent Non-Executive Director of Rural Funds Management Limited | 3.5yrs | no data | 0.033% A$ 232.4k |
10.3yrs
Average Tenure
Experienced Board: RFF's board of directors are seasoned and experienced ( 10.3 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
Rural Funds Group's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Rural Funds Group
- Ticker: RFF
- Exchange: ASX
- Founded:
- Industry: Specialized REITs
- Sector: Real Estate
- Market Cap: AU$703.784m
- Shares outstanding: 338.36m
- Website: https://ruralfunds.com.au/rural-funds-group/
Location
- Rural Funds Group
- 2 King Street
- Level 2
- Deakin
- Australian Capital Territory
- 2600
- Australia
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| RFF | ASX (Australian Securities Exchange) | Yes | Units | AU | AUD | Feb 2014 |
| RFF | CHIA (Chi-X Australia) | Yes | Units | AU | AUD | Feb 2014 |
| RFND.F | OTCPK (Pink Sheets LLC) | Yes | Units | US | USD | Feb 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/08/08 10:33 |
| End of Day Share Price | 2020/08/07 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/06/30 |
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.