company background image
RFF

Rural Funds Group ASX:RFF Stock Report

Last Price

AU$2.78

Market Cap

AU$1.1b

7D

1.1%

1Y

7.3%

Updated

07 Aug, 2022

Data

Company Financials +
RFF fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance2/6
Financial Health2/6
Dividends2/6

RFF Stock Overview

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

Rural Funds Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Rural Funds Group
Historical stock prices
Current Share PriceAU$2.78
52 Week HighAU$3.22
52 Week LowAU$2.47
Beta0.34
1 Month Change8.59%
3 Month Change-4.80%
1 Year Change7.34%
3 Year Change53.59%
5 Year Change41.48%
Change since IPO270.67%

Recent News & Updates

Shareholder Returns

RFFAU REITsAU Market
7D1.1%-0.9%1.0%
1Y7.3%-7.9%-7.9%

Return vs Industry: RFF exceeded the Australian REITs industry which returned -7.9% over the past year.

Return vs Market: RFF exceeded the Australian Market which returned -7.9% over the past year.

Price Volatility

Is RFF's price volatile compared to industry and market?
RFF volatility
RFF Average Weekly Movement5.3%
REITs Industry Average Movement4.1%
Market Average Movement10.6%
10% most volatile stocks in AU Market17.5%
10% least volatile stocks in AU Market4.7%

Stable Share Price: RFF is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: RFF's weekly volatility (5%) 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$1.06b
Earnings (TTM)AU$95.85m
Revenue (TTM)AU$76.12m

11.1x

P/E Ratio

14.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RFF income statement (TTM)
RevenueAU$76.12m
Cost of RevenueAU$16.41m
Gross ProfitAU$59.71m
Other Expenses-AU$36.14m
EarningsAU$95.85m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.25
Gross Margin78.45%
Net Profit Margin125.92%
Debt/Equity Ratio59.4%

How did RFF perform over the long term?

See historical performance and comparison

Dividends

4.2%

Current Dividend Yield

39%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is RFF undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for RFF?

Other financial metrics that can be useful for relative valuation.

RFF key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue20x
Enterprise Value/EBITDA28.5x
PEG Ratio-33.7x

Price to Earnings Ratio vs Peers

How does RFF's PE Ratio compare to its peers?

RFF PE Ratio vs Peers
The above table shows the PE ratio for RFF vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average5.6x
CQE Charter Hall Social Infrastructure REIT
4.4x-25.9%AU$1.4b
ARF Arena REIT
5.9x-2.6%AU$1.7b
HPI Hotel Property Investments
3.6x-13.6%AU$624.1m
COF Centuria Office REIT
8.7x-4.7%AU$1.0b
RFF Rural Funds Group
11.1x-0.3%AU$1.1b

Price-To-Earnings vs Peers: RFF is expensive based on its Price-To-Earnings Ratio (11.1x) compared to the peer average (5.6x).


Price to Earnings Ratio vs Industry

How does RFF's PE Ratio compare vs other companies in the AU REITs Industry?

Price-To-Earnings vs Industry: RFF is expensive based on its Price-To-Earnings Ratio (11.1x) compared to the Australian REITs industry average (6.8x)


Price to Earnings Ratio vs Fair Ratio

What is RFF's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

RFF PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.1x
Fair PE Ratio10.3x

Price-To-Earnings vs Fair Ratio: RFF is expensive based on its Price-To-Earnings Ratio (11.1x) compared to the estimated Fair Price-To-Earnings Ratio (10.3x).


Share Price vs Fair Value

What is the Fair Price of RFF when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: RFF (A$2.78) is trading below our estimate of fair value (A$4.47)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is lower than the current share price.


Discover undervalued companies

Future Growth

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

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-0.3%

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 (-0.3% per year).

Earnings vs Market: RFF's earnings are forecast to decline over the next 3 years (-0.3% per year).

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

Revenue vs Market: RFF's revenue (9.9% per year) is forecast to grow faster than the Australian market (5.7% per year).

High Growth Revenue: RFF's revenue (9.9% 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 (5.7%).


Discover growth companies

Past Performance

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

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


30.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: RFF has a large one-off gain of A$47.2M impacting its December 31 2021 financial results.

Growing Profit Margin: RFF's current net profit margins are higher than last year (99.7%).


Past Earnings Growth Analysis

Earnings Trend: RFF's earnings have grown significantly by 30.2% per year over the past 5 years.

Accelerating Growth: RFF's earnings growth over the past year (29.6%) is below its 5-year average (30.2% per year).

Earnings vs Industry: RFF earnings growth over the past year (29.6%) underperformed the REITs industry 182.6%.


Return on Equity

High ROE: RFF's Return on Equity (13%) is considered low.


Discover strong past performing companies

Financial Health

How is Rural Funds Group's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: RFF's short term assets (A$24.9M) do not cover its short term liabilities (A$29.4M).

Long Term Liabilities: RFF's short term assets (A$24.9M) do not cover its long term liabilities (A$460.2M).


Debt to Equity History and Analysis

Debt Level: RFF's net debt to equity ratio (57.9%) is considered high.

Reducing Debt: RFF's debt to equity ratio has reduced from 80.6% to 59.4% over the past 5 years.

Debt Coverage: RFF's debt is not well covered by operating cash flow (7.5%).

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


Balance Sheet


Discover healthy companies

Dividend

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

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


4.22%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: RFF's dividend (4.22%) is higher than the bottom 25% of dividend payers in the Australian market (2.62%).

High Dividend: RFF's dividend (4.22%) is low compared to the top 25% of dividend payers in the Australian market (6.24%).


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.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (39.3%), RFF's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: RFF is paying a dividend but the company has no free cash flows.


Discover strong dividend paying companies

Management

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

4.0yrs

Average management 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, the responsible entity and manager of Rural Funds Group has been its Director since February...


Leadership Team

Experienced Management: RFF's management team is considered experienced (4 years average tenure).


Board Members

Experienced Board: RFF's board of directors are seasoned and experienced ( 12.3 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 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 Analysis2022/08/07 00:00
End of Day Share Price2022/08/05 00:00
Earnings2021/12/31
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.