ASX:RFF

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Proven track record and fair value.

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 is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: RFF's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-4.5%

RFF

0.7%

AU REITs

1.3%

AU Market


1 Year Return

39.7%

RFF

-9.7%

AU REITs

-1.7%

AU Market

Return vs Industry: RFF exceeded the Australian REITs industry which returned -9.7% over the past year.

Return vs Market: RFF exceeded the Australian Market which returned -1.7% over the past year.


Shareholder returns

RFFIndustryMarket
7 Day-4.5%0.7%1.3%
30 Day7.1%12.7%11.1%
90 Day19.0%11.3%9.0%
1 Year47.3%39.7%-6.0%-9.7%1.7%-1.7%
3 Year25.4%6.2%24.4%7.6%23.1%7.9%
5 Year159.1%89.0%61.7%25.8%57.2%26.0%

Long-Term 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 compared to its fair value and its price relative to the market?

20.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RFF (A$2.57) is trading below our estimate of fair value (A$3.23)

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 (20x) compared to the AU REITs industry average (17.8x).

PE vs Market: RFF is good value based on its PE Ratio (20x) compared to the Australian market (23x).


Price to Earnings Growth Ratio

PEG Ratio: RFF is poor value based on its PEG Ratio (4.8x)


Price to Book Ratio

PB vs Industry: RFF is overvalued based on its PB Ratio (1.6x) compared to the AU REITs industry average (1.1x).


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?

4.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RFF's forecast earnings growth (4.1% per year) is above the savings rate (2.3%).

Earnings vs Market: RFF's earnings (4.1% per year) are forecast to grow slower than the Australian market (17.9% per year).

High Growth Earnings: RFF's earnings are forecast to grow, but not significantly.

Revenue vs Market: RFF's revenue (4.6% per year) is forecast to grow slower than the Australian market (5.1% per year).

High Growth Revenue: RFF's revenue (4.6% 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 (8.1%).


Next Steps

Past Performance

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

25.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RFF has a large one-off gain of A$19.4M impacting its June 30 2020 financial results.

Growing Profit Margin: RFF's current net profit margins (60.6%) are higher than last year (53.5%).


Past Earnings Growth Analysis

Earnings Trend: RFF's earnings have grown significantly by 25.9% per year over the past 5 years.

Accelerating Growth: RFF's earnings growth over the past year (38.2%) exceeds its 5-year average (25.9% per year).

Earnings vs Industry: RFF earnings growth over the past year (38.2%) exceeded the REITs industry 6.8%.


Return on Equity

High ROE: RFF's Return on Equity (8.5%) 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$76.6M) exceed its short term liabilities (A$22.0M).

Long Term Liabilities: RFF's short term assets (A$76.6M) do not cover its long term liabilities (A$335.0M).


Debt to Equity History and Analysis

Debt Level: RFF's debt to equity ratio (59.6%) is considered high.

Reducing Debt: RFF's debt to equity ratio has reduced from 61.9% to 59.6% over the past 5 years.

Debt Coverage: RFF's debt is not well covered by operating cash flow (13%).

Interest Coverage: RFF's interest payments on its debt are not well covered by EBIT (2.7x coverage).


Balance Sheet


Next Steps

Dividend

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

4.39%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RFF's dividend (4.39%) is higher than the bottom 25% of dividend payers in the Australian market (2.05%).

High Dividend: RFF's dividend (4.39%) is low compared to the top 25% of dividend payers in the Australian market (5.06%).


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 7 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (76%), RFF's 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 (92.3% payout ratio).


Next Steps

Management

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

10.6yrs

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

NamePositionTenureCompensationOwnership
David Bryant
MD & Director of Rural Funds Management Limitedno datano data1%
A$ 8.8m
Leslie Paynter
Independent Non-Executive Chairman of Rural Funds Management Limitedno datano data0.46%
A$ 4.1m
Michael Carroll
Independent Non-Executive Director of Rural Funds Management Limited10.58yrsno data0.063%
A$ 554.8k
Julian Widdup
Independent Non-Executive Director of Rural Funds Management Limited3.67yrsno data0.033%
A$ 294.0k

10.6yrs

Average Tenure

Experienced Board: RFF's board of directors are seasoned and experienced ( 10.6 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$881.154m
  • Shares outstanding: 338.91m
  • Website: https://ruralfunds.com.au/rural-funds-group/

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

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 predominan...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/30 07:06
End of Day Share Price2020/11/30 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.