Cobram Estate Olives Ltd. (CBO) AI Stock Analysis

• Market Cap: AU$858.83M
• Dividend Yield: 1.61%
• Average Volume (3M): 175.69K
• Price to Earnings (P/E): 40.2
• Beta (1Y): 0.21
• Revenue Growth: 13.04%
• EPS Growth: 103.19%
• Country: AU
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 63
• Industry: Packaged Foods
• EPS (TTM): -0.01
• Shares Outstanding: 418,943,600
• 10 Day Avg. Volume: 72,273
• 30 Day Avg. Volume: 175,687
• PEG Ratio: -0.06
• Price to Book (P/B): 1.80
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -30.42
• 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$2.14
• Price Target Upside: 1.90% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 63 Neutral
• Price Target: AU$2.00 ▼(-4.76%Downside)

Cobram Estate Olives Ltd. receives a moderate score of 63, driven primarily by its strong financial performance in terms of revenue and profit growth, despite financial risks associated with increased leverage and negative free cash flow. The technical analysis shows positive market momentum, though valuation concerns due to a high P/E ratio and modest dividend yield moderate the score.

Cobram Estate Olives Ltd. Business Overview & Revenue Model

Company Description

Cobram Estate Olives Limited operates as a food and agribusiness company with olive farming and milling operations in Australia and the United States. Its portfolio of olive oil brands includes Cobram Estate and Red Island. The company's olive farming assets include approximately 2.4 million olive trees planted on 6,584 hectares of freehold farmland in Victoria, Australia; and 207,500 trees planted on 358 hectares of long-term leased and freehold properties in California, the United States. It also owns olive tree nursery, three olive mills, two olive oil bottling and storage facilities, and Olives laboratory. The company exports its products to 16 countries. Cobram Estate Olives Limited was founded in 1998 and is headquartered in Lara, Australia.

How the Company Makes Money

Cobram Estate Olives Ltd. generates revenue primarily through the sale of its olive oil products. The company's key revenue streams include wholesale distribution to retailers, direct sales through online platforms, and exports to international markets. Cobram Estate leverages its extensive olive groves and advanced processing facilities to produce high-quality olive oil, which is marketed under its own brand as well as private labels. Strategic partnerships with retailers and distributors, along with a strong focus on branding and quality assurance, play a significant role in driving sales and expanding market reach. Additionally, the company may engage in value-added activities such as the development of new olive oil products or by-products to diversify its income streams.

Cobram Estate Olives Ltd. Financial Statement Overview

Summary

Cobram Estate Olives Ltd. shows positive revenue and profit growth trends with improved margins, indicating enhanced operational performance. However, a moderate increase in leverage and consistent negative free cash flow highlight potential financial risks. The company must balance growth initiatives with cash flow management to sustain long-term financial health.

Income Statement

Cobram Estate Olives Ltd. has shown strong revenue growth with a 34.8% increase from 2023 to 2024, and a significant improvement in profitability as evidenced by a net profit margin increase from 4.6% to 8.1% over the same period. The gross profit margin also improved to 37.8% in 2024. EBIT and EBITDA margins have transitioned from previous losses to positive figures, reflecting operational efficiency. However, past volatility in EBIT and net income suggests potential risks in maintaining stable profitability.

Balance Sheet

The company's debt-to-equity ratio of 0.72 indicates moderate leverage, which is manageable but increased from the previous year. The equity ratio stands at 46.1%, showing a solid equity base. Return on equity improved to 5.8%, reflecting better utilization of equity compared to previous years. However, rising debt levels could pose a risk if not managed carefully in future growth strategies.

Cash Flow

Operating cash flow has improved to $47.9 million, supporting liquidity needs. However, the company reported negative free cash flow due to high capital expenditures, which could indicate aggressive reinvestment or expansion efforts. The operating cash flow to net income ratio of 2.58 suggests strong cash generation relative to reported earnings, but consistent negative free cash flow could be a concern if it persists.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
239.22M	227.78M	168.95M	139.62M	139.95M	140.65M
	Gross Profit
51.94M	86.07M	17.82M	39.96M	18.77M	14.93M
	EBIT
6.10M	43.73M	-24.09M	7.20M	-12.29M	-25.41M
	EBITDA
72.57M	66.68M	40.80M	25.09M	72.91M	-19.67M
	Net Income Common Stockholders
21.29M	18.53M	7.72M	-696.00K	35.22M	-32.70M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
10.71M	11.35M	13.67M	5.94M	1.18M	3.77M
	Total Assets
734.17M	697.41M	616.34M	550.61M	458.15M	401.12M
	Total Debt
267.25M	231.01M	197.47M	146.71M	170.70M	169.23M
	Net Debt
257.55M	219.67M	183.80M	140.76M	169.52M	165.47M
	Total Liabilities
417.56M	375.66M	328.55M	263.58M	267.46M	255.03M
	Stockholders Equity
316.62M	321.75M	287.79M	287.03M	190.69M	146.09M
Cash Flow		Free Cash Flow
-24.15M	-18.31M	-17.02M	-9.33M	-2.77M	-17.99M
	Operating Cash Flow
62.05M	47.88M	39.01M	27.39M	16.32M	6.99M
	Investing Cash Flow
-81.66M	-60.36M	-55.97M	-36.70M	-18.97M	-24.24M
	Financing Cash Flow
20.34M	10.18M	24.70M	14.08M	55.00K	18.36M

Cobram Estate Olives Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:CBO, the sentiment is Positive. The current price of 2.1 is above the 20-day moving average (MA) of 1.96, above the 50-day MA of 1.89, and above the 200-day MA of 1.89, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 72.12 is Negative, neither overbought nor oversold. The STOCH value of 81.75 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:CBO.

Cobram Estate Olives Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CBO	63 Neutral	AU$858.83M	40.20	7.32%	1.61%	13.04%	103.19%
Sector *	61 Neutral	$2.86B	10.96	0.41%	6.08%	5.73%	-21.25%
SHVTF		$410.60M	22.45	7.05%	―	―	―
ASAGF		$536.74M	24.83	-0.01%	―	―	―
RFNDF		$458.01M	14.21	4.68%	4.07%	―	―
EGL	68 Neutral	AU$95.12M	25.50	9.28%	―	19.70%	8.70%
B6G		€965.09M	46.13	3.35%	1.93%	―	―

Cobram Estate Olives Ltd. Corporate Events

Cobram Estate Olives Announces Company Secretary Update

Cobram Estate Olives Limited announced a change in company secretarial appointments, with Mr. Hasaka Martin becoming the sole Company Secretary following his departure from the Automic Group, which also led to the resignation of Ms. Emily Austin. This move aligns with the company’s operational needs and reinforces its internal management framework, potentially affecting its communication strategies with the ASX.

Cobram Estate Olives Announces Half-Year FY2025 Results

Cobram Estate Olives Limited announced the presentation of its Half-Year FY2025 Results, which will be discussed in a webinar for investors and analysts. The company’s strong market presence and vertically integrated operations suggest these results could provide insights into its performance and future industry positioning.