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RFF

Rural Funds GroupASX:RFF Stock Report

Market Cap

AU$1.1b

7D

3.0%

1Y

14.9%

Updated

17 Oct, 2021

Data

Company Financials +
RFF fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance4/6
Financial Health3/6
Dividends3/6

RFF Overview

Rural Funds Group is an agricultural Real Estate Investment Trust (REIT) listed on the ASX under the code RFF.

Price History & Performance

Summary of all time highs, changes and price drops for Rural Funds Group
Historical stock prices
Current Share PriceAU$2.77
52 Week HighAU$2.26
52 Week LowAU$2.77
Beta0.19
1 Month Change4.14%
3 Month Change9.06%
1 Year Change14.94%
3 Year Change30.66%
5 Year Change70.99%
Change since IPO269.33%

Recent News & Updates

Mar 01
Rural Funds Group (ASX:RFF) Has Gifted Shareholders With A Fantastic 140% Total Return On Their Investment

Rural Funds Group (ASX:RFF) Has Gifted Shareholders With A Fantastic 140% Total Return On Their Investment

When we invest, we're generally looking for stocks that outperform the market average. And while active stock picking...

Shareholder Returns

RFFAU REITsAU Market
7D3.0%1.5%0.9%
1Y14.9%20.9%20.2%

Return vs Industry: RFF underperformed the Australian REITs industry which returned 20.9% over the past year.

Return vs Market: RFF underperformed the Australian Market which returned 20.2% over the past year.

Price Volatility

Is RFF's price volatile compared to industry and market?
RFF volatility
RFF Beta0.19
Industry Beta0.86
Market Beta1

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

Volatility Over Time: RFF's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
n/an/aJohn Bryanthttps://ruralfunds.com.au/rural-funds-group/

Rural Funds Group is an agricultural Real Estate Investment Trust (REIT) listed on the ASX under the code RFF. RFF owns a diversified portfolio of Australian agricultural assets which are leased predominantly to corporate agricultural operators. RFF targets distribution growth of 4% per annum by owning and improving farms that are leased to good counterparties.

Rural Funds Group Fundamentals Summary

How do Rural Funds Group's earnings and revenue compare to its market cap?
RFF fundamental statistics
Market CapAU$1.05b
Earnings (TTM)AU$117.70m
Revenue (TTM)AU$71.10m

9.0x

P/E Ratio

14.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RFF income statement (TTM)
RevenueAU$71.10m
Cost of RevenueAU$13.19m
Gross ProfitAU$57.91m
Expenses-AU$59.79m
EarningsAU$117.70m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.31
Gross Margin81.44%
Net Profit Margin165.53%
Debt/Equity Ratio56.8%

How did RFF perform over the long term?

See historical performance and comparison

Dividends

4.1%

Current Dividend Yield

43%

Payout Ratio

Valuation

Is Rural Funds Group undervalued compared to its fair value and its price relative to the market?

41.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RFF (A$2.77) is trading below our estimate of fair value (A$4.7)

Significantly Below Fair Value: RFF is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: RFF is good value based on its PE Ratio (9x) compared to the Australian REITs industry average (9.4x).

PE vs Market: RFF is good value based on its PE Ratio (9x) compared to the Australian market (19.8x).


Price to Earnings Growth Ratio

PEG Ratio: RFF's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: RFF is overvalued based on its PB Ratio (1.7x) compared to the AU REITs industry average (1.1x).


Future Growth

How is Rural Funds Group forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

-11.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RFF's earnings are forecast to decline over the next 3 years (-11.3% per year).

Earnings vs Market: RFF's earnings are forecast to decline over the next 3 years (-11.3% per year).

High Growth Earnings: RFF's earnings are forecast to decline over the next 3 years.

Revenue vs Market: RFF's revenue (8.3% per year) is forecast to grow faster than the Australian market (5.5% per year).

High Growth Revenue: RFF's revenue (8.3% 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 (7.5%).


Past Performance

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

33.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RFF has a large one-off gain of A$70.4M impacting its June 30 2021 financial results.

Growing Profit Margin: RFF's current net profit margins are higher than last year (60.6%).


Past Earnings Growth Analysis

Earnings Trend: RFF has become profitable over the past 5 years, growing earnings by 33.5% per year.

Accelerating Growth: RFF's earnings growth over the past year (172.6%) exceeds its 5-year average (33.5% per year).

Earnings vs Industry: RFF earnings growth over the past year (172.6%) exceeded the REITs industry 106.4%.


Return on Equity

High ROE: RFF's Return on Equity (18.4%) is considered low.


Financial Health

How is Rural Funds Group's financial position?


Financial Position Analysis

Short Term Liabilities: RFF's short term assets (A$26.7M) exceed its short term liabilities (A$19.3M).

Long Term Liabilities: RFF's short term assets (A$26.7M) do not cover its long term liabilities (A$374.1M).


Debt to Equity History and Analysis

Debt Level: RFF's debt to equity ratio (56.8%) is considered high.

Reducing Debt: RFF's debt to equity ratio has reduced from 76.4% to 56.8% over the past 5 years.

Debt Coverage: RFF's debt is not well covered by operating cash flow (9.6%).

Interest Coverage: RFF earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

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

4.07%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RFF's dividend (4.07%) is higher than the bottom 25% of dividend payers in the Australian market (2.27%).

High Dividend: RFF's dividend (4.07%) is low compared to the top 25% of dividend payers in the Australian market (5.32%).


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 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (42.7%), RFF's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RFF's dividends in 3 years are forecast to be covered by earnings (91.3% payout ratio).


Next Steps

Management

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

11.5yrs

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

Experienced Board: RFF's board of directors are seasoned and experienced ( 11.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: RFF insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 12.5%.


Top Shareholders

Company Information

Rural Funds Group's 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/17 07:05
End of Day Share Price2021/10/15 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.