| Snowflake Score | |
|---|---|
| Valuation | 4/6 |
| Future Growth | 1/6 |
| Past Performance | 4/6 |
| Financial Health | 3/6 |
| Dividends | 3/6 |
RFF Overview
Rural Funds Group is an agricultural Real Estate Investment Trust (REIT) listed on the ASX under the code RFF.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of 11.3% per year for the next 3 years
+ 1 more risk
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | AU$2.77 |
| 52 Week High | AU$2.26 |
| 52 Week Low | AU$2.77 |
| Beta | 0.19 |
| 1 Month Change | 4.14% |
| 3 Month Change | 9.06% |
| 1 Year Change | 14.94% |
| 3 Year Change | 30.66% |
| 5 Year Change | 70.99% |
| Change since IPO | 269.33% |
Recent News & Updates
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
| RFF | AU REITs | AU Market | |
|---|---|---|---|
| 7D | 3.0% | 1.5% | 0.9% |
| 1Y | 14.9% | 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
| RFF volatility | |
|---|---|
| RFF Beta | 0.19 |
| Industry Beta | 0.86 |
| Market Beta | 1 |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| n/a | n/a | John Bryant | https://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
| RFF fundamental statistics | |
|---|---|
| Market Cap | AU$1.05b |
| Earnings (TTM) | AU$117.70m |
| Revenue (TTM) | AU$71.10m |
9.0x
P/E Ratio14.8x
P/S RatioIs RFF overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| RFF income statement (TTM) | |
|---|---|
| Revenue | AU$71.10m |
| Cost of Revenue | AU$13.19m |
| Gross Profit | AU$57.91m |
| Expenses | -AU$59.79m |
| Earnings | AU$117.70m |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 0.31 |
| Gross Margin | 81.44% |
| Net Profit Margin | 165.53% |
| Debt/Equity Ratio | 56.8% |
How did RFF perform over the long term?
See historical performance and comparisonDividends
4.1%
Current Dividend Yield43%
Payout RatioValuation
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
- Name: Rural Funds Group
- Ticker: RFF
- Exchange: ASX
- Founded: NaN
- Industry: Specialized REITs
- Sector: Real Estate
- Market Cap: AU$1.055b
- Shares outstanding: 380.77m
- Website: https://ruralfunds.com.au/rural-funds-group/
Location
- Rural Funds Group
- 2 King Street
- Level 2
- Deakin
- Australian Capital Territory
- 2600
- Australia
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/10/17 07:05 |
| End of Day Share Price | 2021/10/15 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2021/06/30 |
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.