DB:AY5

Stock Analysis Report

Executive Summary

Australian Agricultural Company Limited produces and sells cattle and beef in Australia.


Snowflake Analysis

Moderate growth potential and overvalued.

Share Price & News

How has Australian Agricultural's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AY5 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.1%

AY5

2.4%

DE Food

-0.6%

DE Market


1 Year Return

-4.3%

AY5

-5.7%

DE Food

-20.9%

DE Market

Return vs Industry: AY5 exceeded the German Food industry which returned -5.5% over the past year.

Return vs Market: AY5 exceeded the German Market which returned -20.9% over the past year.


Shareholder returns

AY5IndustryMarket
7 Day4.1%2.4%-0.6%
30 Day-4.5%-2.9%-16.6%
90 Day-4.5%-17.3%-26.0%
1 Year-4.3%-4.3%-4.1%-5.7%-18.6%-20.9%
3 Year-43.1%-43.1%-23.8%-28.5%-19.0%-25.8%
5 Year-44.5%-44.5%12.3%2.4%-21.1%-31.8%

Price Volatility Vs. Market

How volatile is Australian Agricultural's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Australian Agricultural undervalued compared to its fair value and its price relative to the market?

0.82x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: AY5 (€0.64) is trading above our estimate of fair value (€0.11)

Significantly Below Fair Value: AY5 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AY5 is unprofitable, so we can't compare its PE Ratio to the Food industry average.

PE vs Market: AY5 is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate AY5's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AY5 is good value based on its PB Ratio (0.8x) compared to the DE Food industry average (1.8x).


Next Steps

Future Growth

How is Australian Agricultural forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

109.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AY5 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.4%).

Earnings vs Market: AY5 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: AY5's is expected to become profitable in the next 3 years.

Revenue vs Market: AY5's revenue is expected to decline over the next 3 years (-5.5% per year).

High Growth Revenue: AY5's revenue is forecast to decline over the next 3 years (-5.5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AY5's Return on Equity is forecast to be low in 3 years time (2.2%).


Next Steps

Past Performance

How has Australian Agricultural performed over the past 5 years?

-55.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AY5 is currently unprofitable.

Growing Profit Margin: AY5 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AY5 is unprofitable, and losses have increased over the past 5 years at a rate of -55.4% per year.

Accelerating Growth: Unable to compare AY5's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: AY5 is unprofitable, making it difficult to compare its past year earnings growth to the Food industry (-34.5%).


Return on Equity

High ROE: AY5 has a negative Return on Equity (-11.38%), as it is currently unprofitable.


Next Steps

Financial Health

How is Australian Agricultural's financial position?


Financial Position Analysis

Short Term Liabilities: AY5's short term assets (A$253.7M) exceed its short term liabilities (A$59.3M).

Long Term Liabilities: AY5's short term assets (A$253.7M) do not cover its long term liabilities (A$425.7M).


Debt to Equity History and Analysis

Debt Level: AY5's debt to equity ratio (45.7%) is considered high.

Reducing Debt: AY5's debt to equity ratio has increased from 44.8% to 45.7% over the past 5 years.


Balance Sheet

Inventory Level: AY5 has a high level of physical assets or inventory.

Debt Coverage by Assets: AY5's debt is not covered by short term assets (assets are 0.7x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: AY5 has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if AY5 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Australian Agricultural's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate AY5's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate AY5's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AY5's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AY5's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: AY5 is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AY5's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Hugh Killen

2.17s

Tenure

AU$811,481

Compensation

Mr. Hugh Killen, GMP (Harvard Business School) is Managing Director, Chief Executive Officer and Director of Australian Agricultural Company Limited since February 1, 2018. Mr. Killen is a highly experienc ...


CEO Compensation Analysis

Compensation vs Market: Hugh's total compensation ($USD487.64K) is below average for companies of similar size in the German market ($USD1.10M).

Compensation vs Earnings: Hugh's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Hugh Killen
MD, CEO & Director2.17yrsAU$811.48k0.033% A$127.1k
Nigel Simonsz
Chief Financial Officer1.67yrsAU$621.21kno data
Anna Speer
Chief Operating Officer1.75yrsAU$480.60kno data
Bruce Bennett
General Counsel & Company Secretary13.42yrsAU$471.70k0.016% A$62.2k
S. Grant
Head of People & Culture2.58yrsAU$458.60kno data
Andrew O'Brien
Chief Commercial Officer1.33yrsAU$508.43kno data
Aaron Wakeley
Head of Corporate Affairs and Communicationsno datano datano data

2.0yrs

Average Tenure

Experienced Management: AY5's management team is not considered experienced ( 2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Hugh Killen
MD, CEO & Director2.17yrsAU$811.48k0.033% A$127.1k
Donald McGauchie
Non-Executive Chairman9.67yrsAU$273.75k0.19% A$717.9k
Shehan Dissanayake
Director8yrsAU$239.80k0.34% A$1.3m
Marc Blazer
Director0.75yrno datano data
Neil Reisman
Non-Executive Director3.92yrsAU$115.00k0.0075% A$28.8k
Thomas Keene
Independent Non Executive Director8.5yrsAU$153.30k0.012% A$48.0k
Stuart Black
Independent Non Executive Director8.5yrsAU$136.88k0.0066% A$25.6k
Anthony Abraham
Independent Non-Executive Director5.58yrsAU$109.50k0.0050% A$19.2k
Jessica Rudd
Independent Non-Executive Director2.42yrsAU$109.50kno data

5.6yrs

Average Tenure

56.5yo

Average Age

Experienced Board: AY5's board of directors are considered experienced (5.6 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

Australian Agricultural Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Australian Agricultural Company Limited
  • Ticker: AY5
  • Exchange: DB
  • Founded: 1824
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: AU$693.182m
  • Listing Market Cap: AU$386.101m
  • Shares outstanding: 602.77m
  • Website: https://www.aaco.com.au

Number of Employees


Location

  • Australian Agricultural Company Limited
  • GPO Box 587
  • Brisbane
  • Queensland
  • 4001
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AACASX (Australian Securities Exchange)YesOrdinary SharesAUAUDAug 2001
AY5DB (Deutsche Boerse AG)YesOrdinary SharesDEEURAug 2001
ASAG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDAug 2001
AACCHIA (Chi-X Australia)YesOrdinary SharesAUAUDAug 2001
AY5BRSE (Berne Stock Exchange)YesOrdinary SharesCHCHFAug 2001

Biography

Australian Agricultural Company Limited produces and sells cattle and beef in Australia. The company engages in owning, operating, and developing pastoral properties; producing beef, including breeding, backgrounding, feedlotting, and processing cattle; and the production of grass fed beef, grain fed beef, and Wagyu beef. It provides its products under the Wylarah, Westholme, Master Kobe, Kobe Cuisine, and Darling Downs Wagyu brands. The company operates an integrated cattle production system across 19 owned cattle stations, 2 leased stations, 5 agisted properties, 2 owned feedlots, and 2 owned farms covering an area of approximately 6.4 million hectares of land in Queensland and the Northern Territory. It also exports its products. The company was founded in 1824 and is based in Brisbane, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/05 21:02
End of Day Share Price2020/04/03 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.