Australian Agricultural Company (AAC) AI Stock Analysis

• Market Cap: AU$873.64M
• Dividend Yield: N/A
• Average Volume (3M): 170.22K
• Price to Earnings (P/E): 15.0
• Beta (1Y): -0.07
• Revenue Growth: 16.63%
• EPS Growth: 66.67%
• Country: AU
• Employees: 423
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Agricultural Farm Products
• EPS (TTM): 0.14
• Shares Outstanding: 602,766,700
• 10 Day Avg. Volume: 140,417
• 30 Day Avg. Volume: 170,221
• PEG Ratio: 8.32
• Price to Book (P/B): 0.56
• Price to Sales (P/S): 2.23
• P/FCF Ratio: 133.39
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$1.94
• Price Target Upside: 36.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.02
• Revenue Forecast (FY): AU$635.76M

• Rating: 49 Neutral
• Price Target: AU$1.50 ▲(5.63% Upside)

The overall stock score is primarily influenced by financial performance and valuation. While there is strong revenue growth and improved gross margins, the negative net income and high debt levels pose significant risks. Technical analysis indicates a neutral trend, but the valuation is unattractive due to a negative P/E ratio and lack of dividend yield.

Positive Factors

Revenue Growth

Strong revenue growth indicates expanding market reach and effective sales strategies, which can support long-term business sustainability and market position.

Gross Margin Improvement

Improved gross margins reflect better cost control and operational efficiency, enhancing the company's ability to generate profits over time.

Cash Flow Management

Strong cash flow management ensures liquidity and financial flexibility, enabling the company to invest in growth opportunities and manage debt effectively.

Negative Factors

Negative Net Income

Persistent negative net income indicates challenges in achieving operational efficiency, which can hinder long-term financial health and shareholder returns.

High Debt Levels

High debt levels can strain financial resources and limit strategic flexibility, potentially impacting the company's ability to invest in growth.

Return on Equity

Negative return on equity suggests inefficient use of shareholder funds, which can deter investment and affect long-term growth prospects.

Australian Agricultural Company Business Overview & Revenue Model

Company Description

The Australian Agricultural Company (AAC) is one of Australia's largest and oldest beef producers, established in 1824. The company operates across various sectors of the agricultural industry, primarily focusing on the production and supply of high-quality beef. AAC manages extensive cattle stations and feedlots across Australia, leveraging its expertise in cattle breeding, farming, and processing to deliver premium beef products to both domestic and international markets. The company also engages in land management and sustainable agricultural practices to support its operations.

How the Company Makes Money

AAC generates revenue through several key streams, primarily from the sale of beef products. The company markets its beef under various brands, including the premium 'Australia's Finest Beef' and exports to numerous countries, capitalizing on the growing global demand for high-quality beef. Additional revenue comes from the sale of cattle, as well as value-added products and services related to beef processing. AAC also benefits from strategic partnerships and supply agreements with retailers and distributors, enhancing its market reach. The company's commitment to sustainability and ethical farming practices further attracts premium pricing for its products, contributing positively to its overall earnings.

Australian Agricultural Company Financial Statement Overview

Summary

Australian Agricultural Company shows signs of financial improvement with strong revenue growth and better gross margins. However, continued negative net income and high debt levels pose risks to long-term financial stability. The company needs to focus on enhancing profitability and managing leverage to strengthen its financial position further.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	425.26M	387.90M	336.13M	313.42M	276.07M	265.52M
Gross Profit	-86.45M	215.46M	-33.34M	-135.69M	-112.05M	-89.73M
EBITDA	34.31M	56.33M	-87.86M	49.05M	228.61M	98.94M
Net Income	57.59M	-1.05M	-94.62M	4.61M	136.93M	45.47M
Balance Sheet
Total Assets	2.57B	2.43B	2.36B	2.42B	2.09B	1.62B
Cash, Cash Equivalents and Short-Term Investments	9.62M	12.14M	8.96M	4.02M	9.27M	8.88M
Total Debt	507.04M	497.18M	478.48M	430.02M	402.38M	391.24M
Total Liabilities	930.75M	885.27M	847.57M	861.18M	731.53M	580.28M
Stockholders Equity	1.64B	1.54B	1.52B	1.56B	1.36B	1.04B
Cash Flow
Free Cash Flow	-2.26M	6.49M	-22.52M	-2.45M	9.07M	9.00M
Operating Cash Flow	24.92M	27.07M	9.32M	16.03M	24.25M	18.42M
Investing Cash Flow	-27.47M	-20.93M	-29.93M	-16.02M	-13.61M	-6.35M
Financing Cash Flow	6.00M	-2.96M	25.55M	-5.26M	-10.24M	-21.32M

Australian Agricultural Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.42
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 below the 20-day moving average (MA) of 1.44, below the 50-day MA of 1.43, and below the 200-day MA of 1.43, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 51.66 is Neutral, neither overbought nor oversold. The STOCH value of 34.85 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SGLLV	69 Neutral	AU$1.18B	15.58	12.11%	4.07%	-2.82%	12.29%
GNC	67 Neutral	AU$1.59B	39.54	2.58%	6.42%	12.27%	-35.60%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
ING	60 Neutral	€924.23M	10.31	36.84%	7.63%	-3.36%	-11.53%
ELD	57 Neutral	AU$1.49B	25.61	5.24%	5.16%	2.25%	-2.41%
AAC	49 Neutral	AU$873.64M	15.03	3.47%	―	16.63%	66.67%

Australian Agricultural Company Corporate Events

AACo Announces Change in Director’s Interest

Australian Agricultural Company Limited has announced a change in the director’s interest, specifically involving David Harris. The update reveals an increase in performance rights under the AACo Long Term Incentive Plan, reflecting the company’s strategic focus on aligning executive interests with long-term company performance. This change is indicative of AACo’s efforts to incentivize leadership and align their goals with shareholder value, potentially impacting the company’s operational strategies and stakeholder confidence.

Australian Agricultural Company Issues New Performance Rights

Australian Agricultural Company Limited announced the issuance of 6,493,879 performance rights under its Long Term Incentive Plan. This move is part of an employee incentive scheme and reflects the company’s commitment to aligning employee interests with long-term corporate goals, potentially enhancing operational performance and stakeholder value.

AACo Enhances CEO Compensation with New Incentive Targets

Australian Agricultural Company Limited has announced changes to the employment agreement of its Managing Director and CEO, Mr. David Harris. The board has introduced stretch targets for employees eligible for short-term incentives (STI), allowing Mr. Harris to potentially earn up to 62.5% of his total fixed annual remuneration as a cash bonus, an increase from the previous 50%. Additionally, Mr. Harris’ long-term incentives may now include a mix of cash and performance rights, rather than solely performance rights, enhancing the flexibility and potential rewards of his compensation package.

Australian Agricultural Company Releases HY26 Results with Cautionary Notes

The Australian Agricultural Company Limited (AACo) has released a presentation of its HY26 results, emphasizing the general nature of the information provided and disclaiming any guarantees regarding its accuracy or completeness. The presentation includes non-IFRS financial information, which AACo believes is useful for measuring its financial performance, though it cautions investors against placing undue reliance on these figures. The release highlights potential risks and uncertainties affecting future performance, such as market conditions, geopolitical risks, and operational challenges, but does not provide specific financial forecasts or advice.

AACo Reports Robust First-Half Financial Results Amid Strategic Growth

Australian Agricultural Company Limited (AACo) reported a strong first-half financial performance with an operating profit of $39.8 million, a 97% increase from the previous period, driven by favorable beef and cattle sales margins. The company’s revenue rose by nearly 20% to $232.9 million, supported by strategic sales and stable production costs. AACo’s strategic initiatives, including its Better Beef program and investments in sustainability projects, have positioned the company for long-term growth and value creation. The company also expanded its market presence with its premium brands and continued to invest in innovative partnerships to enhance its operations.

Australian Agricultural Company Releases Half-Year Financial Report

Australian Agricultural Company Limited has released its financial report for the half-year ending 30 September 2025. The report highlights the company’s financial position and performance, providing insights into its operations and market strategy. This interim report is to be read in conjunction with the annual financial report and reflects the company’s compliance with continuous disclosure requirements. The release of this report is crucial for stakeholders to assess the company’s financial health and strategic direction.

Australian Agricultural Company Reports Robust Half-Year Financial Performance

Australian Agricultural Company Limited reported strong financial results for the half-year ending 30 September 2025, with a notable increase in statutory net profit after tax by 248% to $82.2 million. The company saw significant growth in cattle sales, which increased by 71%, and a substantial rise in operating profit and statutory EBITDA, indicating robust operational performance and improved market positioning.

Australian Agricultural Company to Host Webcast on FY2026 Half Year Results

The Australian Agricultural Company Limited announced a webcast briefing for shareholders to discuss its Financial Year 2026 Half Year Results. This event provides stakeholders with insights into the company’s financial performance and strategic direction, potentially impacting investor confidence and market positioning.

AACo Announces Change in Director’s Interest

Australian Agricultural Company Limited has announced a change in the director’s interest, specifically involving David Harris. On September 4, 2025, Harris acquired 111,879 performance rights under the 2025 Deferred Equity Award, increasing his total holdings of performance rights to 261,348. This change reflects AACo’s ongoing commitment to aligning executive incentives with long-term company performance, potentially impacting stakeholder confidence and market perception.

Australian Agricultural Company Issues New Performance Rights

Australian Agricultural Company Limited has announced the issuance of 504,044 performance rights under a deferred equity award scheme. This move is part of an employee incentive program, aimed at aligning staff interests with company performance, which could enhance employee motivation and retention, potentially impacting the company’s operational efficiency and market competitiveness.