Australian Agricultural Company Limited (AU:AAC)
ASX:AAC
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Australian Agricultural Company
(Sydney:AAC)
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Rating:55Neutral
Price Target:
AU$1.50
▲(5.63% Upside)
Action:Reiterated
Date:05/22/26
The score is held back primarily by inconsistent profitability and uneven cash generation (frequent negative free cash flow and cash-conversion risk). Partially offsetting this are a comparatively solid, moderately levered balance sheet, a low P/E valuation, and an earnings call that emphasized improving operational momentum despite notable macro and earnings-quality risks.
Positive Factors
Balance-sheet resilience
AACo’s balance sheet shows moderate, stable leverage and growing equity, providing a durable capital cushion against asset and livestock volatility. This supports capital flexibility for cyclical investments, sustains borrowing capacity through cattle cycles, and reduces refinancing risk over the medium term.
Negative Factors
Weak cash conversion
AACo’s recurring negative or minimal free cash flow indicates limited internally generated liquidity once reinvestment is accounted for. This constrains dividend capacity, reduces scope for opportunistic M&A and leaves the company reliant on external funding or asset sales during adverse cycles, a persistent financial risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance-sheet resilience
AACo’s balance sheet shows moderate, stable leverage and growing equity, providing a durable capital cushion against asset and livestock volatility. This supports capital flexibility for cyclical investments, sustains borrowing capacity through cattle cycles, and reduces refinancing risk over the medium term.
Read all positive factors
Australian Agricultural Company (AAC) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$783.26M
Dividend YieldN/A
Average Volume (3M)170.22K
Price to Earnings (P/E)7.3
Beta (1Y)0.07
Revenue Growth8.81%
EPS GrowthN/A
CountryAU
Employees423
SectorConsumer Defensive
Sector Strength42
IndustryAgricultural Farm Products
Share Statistics
EPS (TTM)0.18
Shares Outstanding602,766,700
10 Day Avg. Volume140,417
30 Day Avg. Volume170,221
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.45
Price to Sales (P/S)1.91
P/FCF Ratio-53.24
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$1.85Price Target Upside30.28% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.02
Revenue Forecast (FY)AU$443.80M
Australian Agricultural Company Business Overview & Revenue Model
Company Description
Australian Agricultural Company Limited produces and sells cattle and beef in Australia. The company engages in owning, operating, and developing pastoral properties; and produces beef, including breeding, backgrounding, and feedlotting. It provid...
How the Company Makes Money
AACo generates revenue primarily from the production and sale of beef and cattle-related products through a vertically integrated model. Key revenue streams include: (1) Branded beef sales: selling packaged and branded beef products (including pre...
Australian Agricultural Company Earnings Call Summary
Earnings Call Date:May 20, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Nov 18, 2026
Earnings Call Sentiment Positive
The call presented strong operational and financial momentum: record operating profit (+23%), revenue growth (+9%), improved prices (+8% Wagyu) and a growing herd (+6%) alongside strategic investments in genetics, finishing capacity and ESG projects. These positives were balanced by discrete but manageable challenges — a significant flood loss (~7,000 head), geopolitical-driven supply chain cost increases (freight ~+20%), tariff headwinds and a statutory profit partly driven by unrealized livestock valuation gains. Core free cash flow remains small ($0.8m) and carbon credit benefits are multi‑year. Overall, highlights substantially outweigh the lowlights, though management flagged several risks to monitor into FY'27.Positive Updates
Record Operating Profit
Operating profit of $71.6 million, up 23% versus prior year — the strongest full-year result since the metric was introduced in 2019; record result driven by sales execution and disciplined cost management.
Negative Updates
North Queensland Flood Losses
Estimated loss of approximately 7,000 head of cattle from the Gulf of Carpentaria flooding event; financial impact was material but partially mitigated by prior infrastructure investments.
Read all updates
Q4-2026 Updates
Positive
Negative
Record Operating Profit
Operating profit of $71.6 million, up 23% versus prior year — the strongest full-year result since the metric was introduced in 2019; record result driven by sales execution and disciplined cost management.
Read all positive updates
Company Guidance
AACo did not give explicit FY‑27 earnings guidance but set clear forward priorities — protect resilience, maintain cost discipline, execute Better Beef and target medium‑to‑long‑term value — while flagging key forward metrics and exposures: beef demand is expected to remain strong despite tariffs and geopolitical risk, freight costs are up ~20%, and ~60% of expected international sales are hedged over the next 24 months at ~A$0.65. Balance sheet flexibility is supported by a club debt facility and gearing at the low end of the Board’s 20–35% target; NTA is $1.8bn ($2.92/share). Operationally the herd is ~482,000 head (up 6%, net ~7,000 flood losses), Goonoo finishing capacity +10%, ~215 bores converted to solar, Glentana’s soil carbon project is registered for ACCUs (25‑year project; first credits in coming years), and there are no franking credits. Previous FY‑26 results referenced for context: revenue $422.1m (+9%), operating profit $71.6m (+23%), beef sales $314.4m, Wagyu beef price +8%, cattle prices +17%, and core free cash flow $0.8m (+$11.4m).Australian Agricultural Company Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
72
Positive
Cash Flow
38
Negative
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 422.07M | 387.90M | 336.13M | 313.42M | 276.07M |
| Gross Profit | -125.41M | 215.46M | -33.34M | -135.69M | -112.05M |
| EBITDA | -166.99M | 56.33M | -87.86M | 49.05M | 228.61M |
| Net Income | 107.28M | -1.05M | -94.62M | 4.61M | 136.93M |
Balance Sheet | |||||
| Total Assets | 2.81B | 2.43B | 2.36B | 2.42B | 2.09B |
| Cash, Cash Equivalents and Short-Term Investments | 9.18M | 12.14M | 8.96M | 4.02M | 9.27M |
| Total Debt | 516.84M | 497.18M | 478.48M | 430.02M | 402.38M |
| Total Liabilities | 1.04B | 885.27M | 847.57M | 861.18M | 731.53M |
| Stockholders Equity | 1.78B | 1.54B | 1.52B | 1.56B | 1.36B |
Cash Flow | |||||
| Free Cash Flow | -15.15M | 6.49M | -22.52M | -2.45M | 9.07M |
| Operating Cash Flow | 9.51M | 27.07M | 9.32M | 16.03M | 24.25M |
| Investing Cash Flow | -25.63M | -20.93M | -29.93M | -16.02M | -13.61M |
| Financing Cash Flow | 13.16M | -2.96M | 25.55M | -5.26M | -10.24M |
Australian Agricultural Company Technical Analysis
Negative
1.42
Price Trends
1.31
Negative
1.33
Negative
1.38
Negative
Market Momentum
>-0.01
Negative
47.46
Neutral
28.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:AAC, the sentiment is Negative. The current price of 1.42 is above the 20-day moving average (MA) of 1.30, above the 50-day MA of 1.31, and above the 200-day MA of 1.38, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 47.46 is Neutral, neither overbought nor oversold. The STOCH value of 28.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:AAC.
Australian Agricultural Company Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | AU$1.19B | 20.51 | 4.83% | 5.16% | 11.05% | -30.84% | |
64 Neutral | AU$830.42M | 11.15 | 11.83% | 4.07% | -2.82% | 12.29% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
62 Neutral | AU$1.09B | -79.73 | -0.99% | 6.42% | -1.68% | -119.86% | |
59 Neutral | AU$775.76M | 13.58 | 21.20% | 7.63% | -2.47% | -37.04% | |
55 Neutral | AU$783.26M | 7.33 | 6.29% | ― | 8.81% | ― | |
42 Neutral | AU$58.92M | -2.29 | -20.91% | 29.49% | -33.47% | -2365.66% |
* Consumer Defensive Sector Average
AU:AAC
Australian Agricultural Company
1.31
-0.06
-4.38%
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5.48
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Graincorp Limited Class A
5.00
-2.17
-30.25%
AU:ING
Inghams Group Ltd.
2.07
-1.49
-41.90%
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Duxton Farms Limited
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-0.44
-45.12%
AU:SGLLV
Ricegrowers Ltd. Class B
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17.30%
Australian Agricultural Company Corporate Events
Australian Agricultural Company posts record profit as premium beef strategy and asset gains lift FY26 results
May 21, 2026
Australian Agricultural Company reported a record operating profit of $71.6 million for FY26, up 23% on the prior year, with revenue rising 9% to $422.1 million on the back of price growth and disciplined global sales execution. Statutory net prof...
AACo Highlights Experienced Leadership Team in 2026 Financial Report
May 21, 2026
Australian Agricultural Company Limited has released its financial report for the year ended 31 March 2026, accompanied by a directors’ report outlining the current leadership structure. The board continues to be led by Chairman Donald McGau...
AACo profits surge in FY26 on stronger beef and cattle revenues
May 21, 2026
Australian Agricultural Company reported strong financial results for the year ended 31 March 2026, with beef sales revenue rising 7% to $314.4 million and cattle sales revenue up 15% to $107.7 million. Operating profit increased 23% to $71.6 mill...
Australian Agricultural Company Reports Lapse of Long-Term Incentive Performance Rights
Apr 1, 2026
Australian Agricultural Company Limited has reported the lapse of 69,113 performance rights issued under its Long Term Incentive Plan. The rights ceased on 24 February 2026 after the conditions attached to these securities were not met or became i...
AACo Says Queensland Flood Losses Manageable, FY26 Impact Limited
Mar 26, 2026
Australian Agricultural Company Limited has reported that recent monsoon floods across three north-west Queensland properties affected about 280,000 to 300,000 hectares but caused less damage than initially feared. Post-2019 mitigation works, incl...
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.