Australian Agricultural Projects Ltd. (AAP) AI Stock Analysis

• Market Cap: AU$18.43M
• Dividend Yield: N/A
• Average Volume (3M): 25.30K
• Price to Earnings (P/E): 9.4
• Beta (1Y): 0.11
• Revenue Growth: 18.35%
• EPS Growth: 55.88%
• Country: AU
• Employees: 12
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Agricultural Farm Products
• EPS (TTM): <0.01
• Shares Outstanding: 368,603,700
• 10 Day Avg. Volume: 64,980
• 30 Day Avg. Volume: 25,299
• PEG Ratio: 0.20
• Price to Book (P/B): 1.08
• Price to Sales (P/S): 2.97
• P/FCF Ratio: 22.85
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Neutral
• Price Target: AU$0.05 ▲(8.00% Upside)

The overall stock score of 69.5 reflects strong financial performance with improved profitability and reduced leverage. The technical analysis indicates a bullish trend, though the stock is currently overbought. Valuation is reasonable, with a P/E ratio suggesting fair pricing. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial health.

Profitability

Improved profit margins suggest effective cost management and pricing strategies, enhancing the company's competitive position.

Financial Stability

Reduced leverage enhances financial stability, providing more flexibility for future investments and growth opportunities.

Negative Factors

Cash Flow Management

Decreasing cash flow ratios may indicate challenges in converting income to cash, potentially impacting liquidity and investment capacity.

Operational Challenges

A decline in EBIT margin suggests operational inefficiencies, which could affect profitability if not addressed.

Cash Conversion Efficiency

A low cash conversion ratio indicates potential inefficiencies in turning profits into cash, which could constrain financial flexibility.

Australian Agricultural Projects Ltd. Business Overview & Revenue Model

Company Description

Australian Agricultural Projects Ltd operates and manages olive groves in Boort, Victoria. It produces and sells extra virgin olive oil. The company was formerly known as Redisland Australia Limited and changed its name to Australian Agricultural Projects Ltd in February 2013. The company was incorporated in 2003 and is headquartered in Melbourne, Australia.

How the Company Makes Money

AAP generates revenue primarily through the cultivation and sale of its agricultural produce, which includes a range of fruits and vegetables sold both domestically and internationally. The company benefits from long-term contracts and agreements with distributors and retailers, ensuring a steady stream of income. Additionally, AAP may engage in joint ventures or partnerships with other agricultural firms, which can provide access to new markets and technologies, further enhancing its revenue potential. Factors contributing to its earnings include efficient farm management practices, favorable growing conditions, and strong demand for high-quality produce.

Australian Agricultural Projects Ltd. Financial Statement Overview

Summary

Australian Agricultural Projects Ltd. demonstrates strong revenue growth and improved profitability, with significant improvements in gross and net profit margins. The balance sheet shows reduced leverage and improved return on equity, enhancing financial stability. However, cash flow management presents some challenges, with a decrease in the free cash flow to net income ratio.

Income Statement

The company has shown consistent revenue growth over the years, with a notable 4.64% increase in the latest year. Gross profit margin has improved significantly from 24.17% in 2023 to 52.88% in 2025, indicating better cost management. Net profit margin also increased to 35.03%, reflecting strong profitability. However, the EBIT margin slightly decreased from 31.18% in 2024 to 30.35% in 2025, suggesting some operational challenges.

Balance Sheet

The company's debt-to-equity ratio has improved from 0.92 in 2021 to 0.40 in 2025, indicating reduced leverage and better financial stability. Return on equity has increased to 12.77%, showing efficient use of equity to generate profits. However, the equity ratio is not provided, which limits the full assessment of financial stability.

Cash Flow

Free cash flow has grown by 57.83% in the latest year, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 0.28, suggesting a moderate conversion of income to cash. However, the free cash flow to net income ratio has decreased from 2.33 in 2024 to 0.78 in 2025, indicating potential cash flow management issues.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.60M	5.60M	4.73M	3.35M	2.63M	3.32M
Gross Profit	2.96M	2.96M	2.48M	810.20K	30.04K	1.20M
EBITDA	2.48M	2.48M	2.14M	1.35M	606.74K	1.60M
Net Income	1.96M	1.96M	1.25M	534.65K	-246.59K	978.23K
Balance Sheet
Total Assets	23.89M	23.89M	22.38M	19.90M	18.21M	17.19M
Cash, Cash Equivalents and Short-Term Investments	450.57K	450.57K	458.12K	229.34K	68.04K	134.94K
Total Debt	6.06M	6.06M	6.81M	6.86M	6.74M	6.95M
Total Liabilities	8.54M	8.54M	9.72M	10.31M	9.97M	9.67M
Stockholders Equity	15.35M	15.35M	12.66M	9.60M	8.24M	7.52M
Cash Flow
Free Cash Flow	728.40K	728.39K	-729.58K	42.52K	786.04K	-1.25M
Operating Cash Flow	929.85K	929.85K	-312.58K	42.52K	892.89K	-1.05M
Investing Cash Flow	-194.64K	-194.64K	-351.00K	0.00	-676.44K	-250.51K
Financing Cash Flow	-742.76K	-742.76K	892.36K	118.78K	-283.35K	1.36M

Australian Agricultural Projects Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:AAP, the sentiment is Positive. The current price of 0.05 is below the 20-day moving average (MA) of 0.05, above the 50-day MA of 0.05, and above the 200-day MA of 0.05, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 74.25 is Negative, neither overbought nor oversold. The STOCH value of <0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:AAP.

Australian Agricultural Projects Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AAP	70 Neutral	AU$18.43M	9.43	14.00%	―	18.35%	55.88%
FRM	66 Neutral	AU$46.16M	6.62	29.12%	―	2.63%	―
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
MCA	55 Neutral	AU$117.69M	11.74	8.91%	―	4.34%	―
DBF	54 Neutral	AU$84.10M	-2.58	-11.46%	30.43%	-16.73%	-343.82%
WOA	44 Neutral	€11.78M	-1.40	-122.46%	―	-94.79%	82.57%
WNR	37 Underperform	AU$1.23M	-1.19	-130.24%	―	17.85%	52.81%

Australian Agricultural Projects Ltd. Corporate Events

Australian Agricultural Projects Ltd Reports Strong Quarter Amid Market Challenges

Australian Agricultural Projects Ltd reported a positive quarter ending September 2025, with a net operating cash surplus of $873,000. The company has sold nearly all of its 2025 olive oil harvest, maintaining strong prices despite international market fluctuations. The company is restructuring its maintenance program and relying more on external contractors to optimize operations. Climatic conditions remain dry, impacting water prices and irrigation management. The company anticipates maintaining positive cash flow in the coming quarters, although a temporary deficit is expected in June 2026 due to harvest expenses.

Australian Agricultural Projects Announces 2025 AGM Details

Australian Agricultural Projects Limited has announced that its 2025 Annual General Meeting will be held on November 26, 2025, in Applecross, Western Australia. Shareholders are encouraged to participate by submitting proxy votes electronically, as the company will not be dispatching physical copies of the meeting notice. This move aligns with the Corporations Amendments (Meetings and Documents) Act 2022, reflecting a shift towards digital communication with stakeholders.

Australian Agricultural Projects Ltd. Releases 2025 Corporate Governance Statement

Australian Agricultural Projects Ltd. has released its Corporate Governance Statement for the financial year ending June 30, 2025. The statement outlines the company’s adherence to the ASX Corporate Governance Principles and Recommendations, detailing its compliance and any deviations with explanations. This move is aimed at bolstering the company’s governance framework, thereby enhancing its operational efficiency and integrity, which is crucial for maintaining investor confidence and stakeholder value.

Australian Agricultural Projects Ltd. Releases 2025 Financial Report

Australian Agricultural Projects Ltd. has released its financial report for the year ending June 30, 2025. This announcement provides stakeholders with insights into the company’s financial performance and operational status, which may influence its market positioning and strategic decisions moving forward.