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Australian Agricultural Company Limited (AU:AAC)
ASX:AAC
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Australian Agricultural Company (AAC) AI Stock Analysis

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Australian Agricultural Company

(Sydney:AAC)

Rating:53Neutral
Price Target:
AU$1.50
▲(5.63%Upside)
The overall stock score of 53 reflects a company with strong revenue growth and improved gross margins but facing significant challenges with profitability and leverage. Technical indicators are neutral, but valuation metrics remain weak due to negative earnings.

Australian Agricultural Company (AAC) vs. iShares MSCI Australia ETF (EWA)

Australian Agricultural Company Business Overview & Revenue Model

Company DescriptionAustralian Agricultural Company (AAC) is one of Australia's oldest and largest integrated cattle and beef producers. Established in 1824, the company operates extensive cattle stations across Queensland and the Northern Territory, focusing on breeding, growing, and selling cattle to domestic and international markets. AAC's core products include high-quality beef, specifically Wagyu and Angus, which are renowned for their superior marbling and flavor.
How the Company Makes MoneyAustralian Agricultural Company generates revenue primarily through the sale of cattle and beef products. The company's revenue model is centered around breeding and growing high-quality cattle, which are then processed and sold as premium beef to wholesalers, retailers, and food service providers both domestically and internationally. Key revenue streams include the sale of branded beef products, live cattle exports, and by-products. Significant partnerships with distributors and retailers help AAC reach a broad customer base, while export agreements enable access to lucrative overseas markets, particularly in Asia and North America. Additionally, the company benefits from favorable market conditions and strategic management of its vast land holdings, which contribute to efficient cattle production and cost management.

Australian Agricultural Company Financial Statement Overview

Summary
The company shows financial improvement with strong revenue growth and better gross margins. However, ongoing negative net income and high debt levels pose risks to long-term financial stability. Focus on enhancing profitability and managing leverage is essential.
Income Statement
45
Neutral
The income statement shows an improvement in revenue and profitability over the past year. The gross profit margin has significantly improved from negative to positive, indicating better cost control. However, the net profit margin remains negative, reflecting ongoing profitability challenges. The revenue growth rate is strong, with a notable increase in total revenue compared to the previous year, but the negative net income highlights persistent struggles with operating efficiency.
Balance Sheet
55
Neutral
The balance sheet indicates a stable financial position with a reasonable debt-to-equity ratio, suggesting manageable leverage levels. The equity ratio is healthy, reflecting strong equity backing relative to total assets. However, the company has a relatively high level of total debt, which could pose risks if not managed effectively. Return on equity is currently negative, pointing to the need for improved profitability to enhance shareholder returns.
Cash Flow
60
Neutral
Cash flow statements reveal a positive trend in operating cash flow and an improvement in free cash flow, suggesting better cash management. The operating cash flow to net income ratio is strong, indicating efficient cash generation from operations. Despite this, the free cash flow to net income ratio is impacted by the negative net income, highlighting the need for sustained profitability to support cash flow stability.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue387.90M336.13M313.42M276.07M265.52M
Gross Profit215.46M-33.34M-135.69M-112.05M-89.73M
EBITDA56.33M-87.86M49.05M-162.75M-128.41M
Net Income-1.05M-94.62M4.61M136.93M45.47M
Balance Sheet
Total Assets2.43B2.36B2.42B2.09B1.62B
Cash, Cash Equivalents and Short-Term Investments12.14M8.96M4.02M9.27M8.88M
Total Debt497.18M478.48M430.02M402.38M391.24M
Total Liabilities885.27M847.57M861.18M731.53M580.28M
Stockholders Equity1.54B1.52B1.56B1.36B1.04B
Cash Flow
Free Cash Flow6.49M-22.52M-2.45M9.07M9.00M
Operating Cash Flow27.07M9.32M16.03M24.25M18.42M
Investing Cash Flow-20.93M-29.93M-16.02M-13.61M-6.35M
Financing Cash Flow-2.96M25.55M-5.26M-10.24M-21.32M

Australian Agricultural Company Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.42
Price Trends
50DMA
1.40
Positive
100DMA
1.44
Negative
200DMA
1.41
Positive
Market Momentum
MACD
<0.01
Negative
RSI
60.74
Neutral
STOCH
71.21
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:AAC, the sentiment is Positive. The current price of 1.42 is above the 20-day moving average (MA) of 1.39, above the 50-day MA of 1.40, and above the 200-day MA of 1.41, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 60.74 is Neutral, neither overbought nor oversold. The STOCH value of 71.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:AAC.

Australian Agricultural Company Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUING
72
Outperform
€1.34B14.9738.76%5.32%1.77%-15.93%
70
Outperform
AU$715.42M10.6911.56%6.02%-1.58%6.26%
AUELD
68
Neutral
AU$1.27B16.687.21%6.86%6.54%-0.58%
65
Neutral
$27.03B15.38-4.26%3.26%1.00%3.39%
AUGNC
64
Neutral
$1.64B23.304.61%2.63%2.00%-28.15%
AUAAC
53
Neutral
$861.59M25.13-0.01%15.40%98.85%
AUCSS
43
Neutral
$28.29M-83.19%-5.83%-153.17%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:AAC
Australian Agricultural Company
1.43
0.03
2.15%
AU:CSS
Clean Seas Seafood Limited
0.14
-0.06
-30.77%
AU:ING
Inghams Group Ltd.
3.57
0.15
4.51%
AU:ELD
Elders Limited
6.65
-2.20
-24.89%
AU:GNC
Graincorp Limited Class A
7.38
-0.81
-9.90%
AU:SGLLV
Ricegrowers Ltd. Class B
10.80
3.16
41.36%

Australian Agricultural Company Corporate Events

Australian Agricultural Company Releases 2025 Annual Report
Jun 18, 2025

Australian Agricultural Company Limited has released its Annual Report for the fiscal year ending 31 March 2025. The report, which will be distributed to shareholders, provides insights into the company’s performance and strategic direction. This announcement underscores the company’s commitment to transparency and shareholder engagement, potentially impacting its market positioning and stakeholder relations.

The most recent analyst rating on (AU:AAC) stock is a Buy with a A$1.90 price target. To see the full list of analyst forecasts on Australian Agricultural Company stock, see the AU:AAC Stock Forecast page.

Australian Agricultural Company Announces 2025 AGM
Jun 18, 2025

Australian Agricultural Company Limited has announced its 2025 Annual General Meeting (AGM), scheduled for July 23, 2025. The meeting will address key business resolutions, including the election of directors. This announcement, authorized by the AACo Chairman, is crucial for stakeholders as it outlines the company’s strategic decisions and governance for the upcoming year.

The most recent analyst rating on (AU:AAC) stock is a Buy with a A$1.90 price target. To see the full list of analyst forecasts on Australian Agricultural Company stock, see the AU:AAC Stock Forecast page.

Australian Agricultural Company Schedules 2025 AGM
Jun 3, 2025

Australian Agricultural Company Limited has announced that its 2025 Annual General Meeting will be held on July 23, 2025, in Brisbane. The announcement also includes the deadline for director nominations, which is set for June 11, 2025. This meeting is an important event for stakeholders as it provides insights into the company’s strategic direction and governance.

The most recent analyst rating on (AU:AAC) stock is a Buy with a A$1.90 price target. To see the full list of analyst forecasts on Australian Agricultural Company stock, see the AU:AAC Stock Forecast page.

Australian Agricultural Company Releases 2025 Corporate Governance Statement
May 21, 2025

Australian Agricultural Company Limited has released its corporate governance statement for the financial year ending March 31, 2025, confirming adherence to the ASX Corporate Governance Council’s principles. The statement, approved by the board, is accessible on the company’s website and outlines the company’s commitment to transparency and accountability in its governance practices. This release underscores the company’s dedication to maintaining high governance standards, which is crucial for its stakeholders and market reputation.

AACo Releases FY25 Results, Emphasizes Caution in Forward-Looking Statements
May 21, 2025

The Australian Agricultural Company Limited has released its FY25 results presentation, highlighting the company’s financial performance and strategic direction. The presentation includes general information about AACo’s activities and emphasizes the inherent risks and uncertainties in the agricultural sector, such as climatic conditions and market demand fluctuations. The company advises stakeholders to independently assess the information provided and cautions against relying on forward-looking statements due to potential variances in future outcomes. The release underscores AACo’s commitment to transparency while acknowledging the challenges faced in the industry.

AACo Achieves Strong Financial Performance Amid Market Challenges
May 21, 2025

AACo reported a strong financial performance for FY25, with an operating profit of $58.4 million and a significant increase in operating cash flow to $27.1 million. The company’s revenue rose to $387.9 million, driven by increased meat and cattle sales volumes. Despite a statutory net loss of $1.1 million, AACo’s strategic cost management and brand positioning have bolstered its resilience against challenging market conditions. The company has successfully expanded its market presence, particularly in Asia and Australia, through strategic brand initiatives and increased production capacity.

Australian Agricultural Company Releases 2025 Financial Report
May 21, 2025

The Australian Agricultural Company Limited has released its financial report for the year ending 31 March 2025. The report highlights the leadership of Chairman Donald McGauchie and CEO David Harris, both of whom bring extensive experience in agriculture and business management. The company’s strategic focus on operational improvements and supply chain efficiency is expected to enhance its market position and stakeholder value.

Australian Agricultural Company Limited Reports Strong FY25 Financial Performance
May 21, 2025

Australian Agricultural Company Limited has reported its financial results for the fiscal year ending March 31, 2025, showing significant improvements in key financial metrics. The company achieved a 9% increase in meat sales revenue and a 39% rise in cattle sales revenue, contributing to a substantial turnaround in profitability with a statutory EBITDA of $56.3 million compared to a loss in the previous year. This financial performance highlights AACo’s strengthened market position and operational efficiency, reflecting positively on its stakeholders.

Australian Agricultural Company to Announce FY25 Results
May 15, 2025

Australian Agricultural Company Limited announced it will hold a webcast briefing on May 22, 2025, to present its full-year financial results for FY25. This announcement is significant for stakeholders as it provides insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and investor relations.

Australian Agricultural Company Appoints New Director
May 12, 2025

Australian Agricultural Company Limited announced the appointment of Nicole Tania Sparshott as a new director, effective May 13, 2025. The notice indicates that Sparshott currently holds no relevant interests in securities or contracts related to the company, suggesting a fresh perspective without prior financial entanglements, which could impact the company’s governance and strategic direction.

Director Change at Australian Agricultural Company
May 12, 2025

Australian Agricultural Company Limited has announced the cessation of Jessica Claire Rudd as a director, effective May 13, 2025. This change in the board of directors may impact the company’s governance and strategic direction, potentially influencing its market positioning and stakeholder relations.

AACo Announces Board Changes with New Appointment
May 12, 2025

Australian Agricultural Company Limited announced the retirement of Non-Executive Director Jessica Rudd after seven years of service and the appointment of Nicole Sparshott as an independent Non-Executive Director. Sparshott brings over 30 years of experience in consumer goods and retail, having held significant roles at Unilever and T2 Tea, and will join AACo’s Brand Marketing and Sales Committee and the Board Nomination Committee. This change in leadership is expected to support AACo’s next phase of growth, leveraging Sparshott’s extensive international experience and expertise in transformation and sustainability.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 17, 2025