NYSE:AGRO

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Executive Summary

Adecoagro S.A., an agro-industrial company, engages in farming crops and other agricultural products, dairy operations, sugar, ethanol and energy production, and land transformation activities in South America.

Rewards

Trading at 52% below our estimate of its fair value

Earnings are forecast to grow 85.6% per year

Risk Analysis

No risks detected for AGRO from our risk checks.


Snowflake Analysis

Adequate balance sheet and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-3.8%

AGRO

0.5%

US Food

2.3%

US Market


1 Year Return

-39.7%

AGRO

-0.6%

US Food

6.7%

US Market

Return vs Industry: AGRO underperformed the US Food industry which returned -2.8% over the past year.

Return vs Market: AGRO underperformed the US Market which returned 6.1% over the past year.


Shareholder returns

AGROIndustryMarket
7 Day-3.8%0.5%2.3%
30 Day-6.2%-1.9%1.5%
90 Day-6.4%4.4%17.8%
1 Year-39.7%-39.7%1.9%-0.6%9.0%6.7%
3 Year-57.2%-57.2%1.0%-7.4%36.6%27.7%
5 Year-53.9%-53.9%10.2%-4.7%64.2%46.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AGRO ($4.26) is trading below our estimate of fair value ($8.88)

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


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: AGRO is good value based on its PB Ratio (0.6x) compared to the US Food industry average (1.8x).


Next Steps

Future Growth

How is Adecoagro forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

85.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AGRO is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

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

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

Revenue vs Market: AGRO's revenue (5.9% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: AGRO's revenue (5.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AGRO's Return on Equity is forecast to be low in 3 years time (1%).


Next Steps

Past Performance

How has Adecoagro performed over the past 5 years?

-22.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AGRO is currently unprofitable.

Growing Profit Margin: AGRO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AGRO is unprofitable, and losses have increased over the past 5 years at a rate of -22.3% per year.

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

Earnings vs Industry: AGRO is unprofitable, making it difficult to compare its past year earnings growth to the Food industry (-2.2%).


Return on Equity

High ROE: AGRO has a negative Return on Equity (-5.8%), as it is currently unprofitable.


Next Steps

Financial Health

How is Adecoagro's financial position?


Financial Position Analysis

Short Term Liabilities: AGRO's short term assets ($570.2M) exceed its short term liabilities ($364.2M).

Long Term Liabilities: AGRO's short term assets ($570.2M) do not cover its long term liabilities ($1.1B).


Debt to Equity History and Analysis

Debt Level: AGRO's debt to equity ratio (105.9%) is considered high.

Reducing Debt: AGRO's debt to equity ratio has reduced from 116.7% to 105.9% over the past 5 years.


Balance Sheet


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: Whilst unprofitable AGRO has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: AGRO is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 51.7% per year.


Next Steps

Dividend

What is Adecoagro current dividend yield, its reliability and sustainability?

1.83%

Forecast Dividend Yield


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

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


Next Steps

Management

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

14.0yrs

Average management tenure


CEO

Mariano Bosch (50yo)

18.5yrs

Tenure

Mr. Mariano Bosch has been the Chief Executive Officer of Adeco Agropecuaria S.A. and Adecoagro S.A. since 2002. Mr. Bosch is a Co-Founder of Adecoagro S.A. He serves as Independent Director at Replay Acqu ...


Leadership Team

NamePositionTenureCompensationOwnership
Mariano Bosch
Co-Founder18.5yrsno datano data
Ezequiel Garbers
Co-Founder and Country Manager of Argentina & Uruguay16.5yrsno datano data
Carlos A. Boero Hughes
Chief Financial Officer12.5yrsno datano data
Emilio Federico Gnecco
Chief Legal Officer15.5yrsno datano data
Juan Galleano
Investor Relations Manager5.5yrsno datano data
Alejandro Moriena
Chief Sustainability Officerno datano datano data
Renato Pereira
Director of Sugar & Ethanol Operations6.5yrsno datano data

14.0yrs

Average Tenure

50yo

Average Age

Experienced Management: AGRO's management team is seasoned and experienced (14 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mariano Bosch
Co-Founder18.5yrsno datano data
Mark Schachter
Independent Director11.5yrsno datano data
Plínio Musetti
Independent Chairman2.17yrsno datano data
Andrés Brañes
Independent Director9.5yrsno datano data
Daniel Gonzalez Casartelli
Independent Director6.25yrsno datano data
Alan Boyce
Independent Director18.5yrsno datano data
Guillaume van der Linden
Independent Director11.5yrsno datano data
Ivo Andrés Sarjanovic
Independent Director2.5yrsno datano data
Alejandra Smith
Independent Director1.5yrsno datano data

9.5yrs

Average Tenure

59yo

Average Age

Experienced Board: AGRO's board of directors are considered experienced (9.5 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Adecoagro S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Adecoagro S.A.
  • Ticker: AGRO
  • Exchange: NYSE
  • Founded: 2002
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: US$497.544m
  • Shares outstanding: 116.79m
  • Website: https://www.adecoagro.com

Number of Employees


Location

  • Adecoagro S.A.
  • Vertigo Naos Building
  • 6, Rue EugEne Ruppert
  • Luxembourg City
  • 2453
  • Luxembourg

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AGRONYSE (New York Stock Exchange)YesCommon SharesUSUSDJan 2011
ACDDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 2011
AGRON NBMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNJan 2011
0DWLLSE (London Stock Exchange)YesCommon SharesGBUSDJan 2011
ADGOBASE (Buenos Aires Stock Exchange)CEDEAR EACH 1 REP 2 COM USD1.50ARARSMay 2019

Biography

Adecoagro S.A., an agro-industrial company, engages in farming crops and other agricultural products, dairy operations, sugar, ethanol and energy production, and land transformation activities in South America. The company is involved in the planting, harvesting, and sale of grains and oilseeds, as well as fibers, including wheat, corn, soybeans, cotton, sunflowers, and other; provision of grain warehousing/conditioning, handling, and drying services to third parties; and purchase and sale of crops produced by third parties. It also plants, harvests, processes, and markets rice; and produces and sells milk and other dairy products. In addition, the company engages in the cultivation and processing of sugar and ethanol, as well as cogeneration of electricity from sugarcane bagasse; and identification and acquisition of underdeveloped and undermanaged farmland, and realization of value through the strategic disposition of assets. Further, it is involved in leasing of approximately 18,005 hectares of pasture land to cattle farmers in Argentina; and coffee plantation. As of December 31, 2019, the company owned a total of 225,630 hectares, including 19 farms in Argentina, 8 farms in Brazil, and 1 farm in Uruguay; 3 rice processing facilities in Argentina; and 3 dairy facilities with approximately 9,066 milking cows in Argentina. It also had 11 grain and rice conditioning and storage plants in Argentina; and 3 sugar and ethanol mills in Brazil with a sugarcane crushing capacity of 14.2 million tons, as well as had a total of 232 megawatts of installed cogeneration capacity. Adecoagro S.A. was founded in 2002 and is based in Luxembourg. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/11 00:07
End of Day Share Price2020/07/10 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.