Cobram Estate Olives Ltd. (CBO) AI Stock Analysis

• Market Cap: AU$1.79B
• Dividend Yield: 1.55%
• Average Volume (3M): 1.09M
• Price to Earnings (P/E): 31.5
• Beta (1Y): 0.29
• Revenue Growth: 6.09%
• EPS Growth: 166.89%
• Country: AU
• Employees: N/A
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 0.12
• Shares Outstanding: 477,411,200
• 10 Day Avg. Volume: 508,670
• 30 Day Avg. Volume: 1,093,483
• PEG Ratio: 0.11
• Price to Book (P/B): 2.44
• Price to Sales (P/S): 3.69
• P/FCF Ratio: -38.14
• 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$3.28
• Price Target Upside: -12.30% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: AU$4.00 ▲(6.95% Upside)

Cobram Estate Olives Ltd. scores well due to its strong financial performance, particularly in revenue and profit growth, and positive technical indicators. However, the high P/E ratio suggests the stock is expensive, which could limit future gains. The absence of earnings call and corporate events data means these factors do not influence the score.

Positive Factors

Strong revenue growth

A >100% revenue increase signals durable demand expansion and effective go-to-market execution across channels. Sustained top-line growth over multiple reporting periods supports reinvestment capacity, scale economics, and improves long-term returns if margins and cash conversion hold.

High and improving gross margins

A 56.6% gross margin reflects strong cost control and product mix advantages, likely driven by branded products and processing efficiencies. Elevated gross margins provide a structural buffer against commodity price swings and underpin sustainable profitability if maintained through operational discipline.

Vertical integration and diversified revenue streams

Owning olive groves, milling and branded packaging creates durable competitive advantages: margin capture, quality control, and flexibility to shift between higher-margin branded sales and bulk contracts. This integration reduces supplier risk and supports steady revenue across cycles.

Negative Factors

Negative free cash flow

Negative free cash flow despite positive operating cash flow indicates capital spending or working capital needs outpacing core cash generation. This can limit the company's ability to fund growth, pay dividends, or reduce debt without external financing, affecting long-term financial flexibility.

Agricultural production risk

Reliance on agricultural yields exposes earnings and input supply to weather, water constraints and alternate bearing. These structural agronomic risks create multi-year variability in production volumes and costs, requiring capital for irrigation, inventory buffers, or supply contracts to stabilize margins.

Moderate leverage requires monitoring

A 0.76 debt/equity ratio reflects a leveraged but manageable balance sheet; however, leverage reduces financial headroom for large capex or adverse years. In an agro-business with crop volatility, this structural leverage can constrain strategic flexibility and increase refinancing or interest-rate sensitivity.

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 premium extra virgin olive oil products. The company has established multiple revenue streams, including direct sales to consumers through its online platform and retail partnerships with supermarkets and specialty food stores. Additionally, CBO engages in bulk sales to food service businesses and other manufacturers. Strategic partnerships with distributors and retailers expand the company's market reach, while its focus on quality and branding allows it to command premium pricing. Factors contributing to its earnings include successful marketing campaigns, growing consumer demand for healthy cooking oils, and the company's commitment to sustainable farming practices, which enhance its brand reputation.

Cobram Estate Olives Ltd. Financial Statement Overview

Summary

Cobram Estate Olives Ltd. demonstrates robust financial performance with strong revenue and profit growth. The company maintains a healthy balance sheet with a prudent debt-to-equity ratio and improved return on equity. While operational cash flow is strong, attention is needed to address negative free cash flow. Overall, the company is on a positive trajectory, but should focus on optimizing cash flow and managing leverage to sustain growth.

Income Statement

Cobram Estate Olives Ltd. has shown impressive revenue growth with a 101.9% increase in the latest year, indicating strong market demand and effective sales strategies. The gross profit margin improved significantly to 56.62%, reflecting efficient cost management. The net profit margin also increased to 20.54%, showcasing enhanced profitability. However, the EBIT and EBITDA margins, at 37.84% and 48.16% respectively, highlight strong operational performance, although there is room for further improvement in cost control.

Balance Sheet

The company's debt-to-equity ratio of 0.76 indicates a balanced approach to leveraging, with manageable debt levels relative to equity. The return on equity improved to 13.58%, reflecting effective use of shareholders' funds to generate profits. The equity ratio stands at 45.01%, suggesting a solid equity base supporting the company's assets. While the balance sheet shows stability, continuous monitoring of debt levels is advisable to maintain financial health.

Cash Flow

Operating cash flow remains positive at $58.09 million, indicating strong cash generation from core operations. However, the free cash flow is negative, which could signal challenges in covering capital expenditures and dividends. The operating cash flow to net income ratio of 0.74 suggests a healthy conversion of income to cash. Despite the negative free cash flow growth, the company should focus on improving cash flow management to support future investments.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	183.79M	241.66M	227.78M	168.95M	139.62M	139.95M
Gross Profit	82.01M	136.83M	42.31M	17.82M	39.96M	18.77M
EBITDA	64.73M	116.37M	66.68M	40.80M	24.88M	72.91M
Net Income	22.58M	49.63M	18.53M	7.72M	-696.00K	35.22M
Balance Sheet
Total Assets	811.87M	811.87M	697.41M	616.34M	550.61M	458.15M
Cash, Cash Equivalents and Short-Term Investments	4.01M	4.01M	11.35M	13.67M	5.94M	1.18M
Total Debt	277.15M	277.15M	231.01M	197.47M	146.71M	170.70M
Total Liabilities	446.37M	446.37M	375.66M	328.55M	263.58M	267.46M
Stockholders Equity	365.50M	365.50M	321.75M	287.79M	287.03M	190.69M
Cash Flow
Free Cash Flow	-19.30M	-23.38M	-18.31M	-17.02M	-9.33M	-2.77M
Operating Cash Flow	47.46M	58.09M	47.88M	39.01M	27.39M	16.32M
Investing Cash Flow	-85.03M	-85.03M	-60.36M	-55.97M	-36.70M	-18.97M
Financing Cash Flow	19.45M	19.45M	10.18M	24.70M	14.08M	55.00K

Cobram Estate Olives Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.74
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 3.74 is below the 20-day moving average (MA) of 3.83, above the 50-day MA of 3.37, and above the 200-day MA of 2.80, indicating a neutral trend. The MACD of 0.12 indicates Positive momentum. The RSI at 53.96 is Neutral, neither overbought nor oversold. The STOCH value of 54.95 is Neutral, 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	75 Outperform	AU$1.79B	31.53	14.44%	1.55%	6.09%	166.89%
CLV	74 Outperform	AU$130.26M	18.57	10.07%	2.19%	38.25%	361.54%
SHV	74 Outperform	AU$630.96M	19.79	6.00%	―	18.08%	1680.16%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
RIC	60 Neutral	AU$937.13M	18.57	10.88%	3.74%	3.15%	7.29%
BUB	60 Neutral	AU$120.71M	21.77	13.97%	―	28.66%	―
BGA	51 Neutral	AU$1.87B	-219.00	-0.68%	1.95%	0.49%	-127.84%

Cobram Estate Olives Ltd. Corporate Events

Cobram Estate Olives Flags Lapse of Options and Performance Rights

Cobram Estate Olives Limited has notified the ASX of the cessation of certain securities, including 1.2 million options expiring in April 2028 and 30,000 performance rights expiring in September 2027, after the conditions attached to these instruments were not met or became incapable of being satisfied. The lapse of these conditional rights slightly reduces the company’s pool of potential equity issuance under these incentive instruments, which may modestly affect future dilution but does not alter its current issued capital structure materially.

The most recent analyst rating on (AU:CBO) stock is a Buy with a A$3.65 price target. To see the full list of analyst forecasts on Cobram Estate Olives Ltd. stock, see the AU:CBO Stock Forecast page.

Cobram Estate Olives to Acquire California Olive Ranch in US$173.5m Deal and Updates US Operations

Cobram Estate Olives has agreed to acquire California Olive Ranch, Inc., the leading producer and marketer of Californian extra virgin olive oil, in a US$173.5 million deal funded through a mix of cash, vendor notes and an earn-out. The acquisition will substantially expand Cobram’s Californian grove footprint to about 3,292 hectares, add premium brands including the top-selling California Olive Ranch® label in the US, and is projected to deliver meaningful operational and cost synergies, with expected EBITDA contributions, rising annual synergies by 2030 and earnings per share accretion from FY2027. Separately, the company reported the successful completion of its FY2026 Californian harvest, securing 3.8 million litres of olive oil supply for the next year and increasing the share of production from its own groves, while flagging that first-half FY2026 operating cash flow and EBITDA will be lower than the prior year due to higher spot oil purchases, timing of bulk sales and increased water costs, as well as accounting effects related to fair value treatment of its Australian crop.

The most recent analyst rating on (AU:CBO) stock is a Hold with a A$2.90 price target. To see the full list of analyst forecasts on Cobram Estate Olives Ltd. stock, see the AU:CBO Stock Forecast page.

Cobram Estate Olives Ltd. Director Increases Stake

Cobram Estate Olives Ltd. announced a change in the director’s interest, with Samuel James Beaton acquiring additional shares through a dividend reinvestment plan. This change reflects a slight increase in Beaton’s holdings, indicating confidence in the company’s future prospects and potentially impacting stakeholder perceptions positively.

The most recent analyst rating on (AU:CBO) stock is a Buy with a A$3.51 price target. To see the full list of analyst forecasts on Cobram Estate Olives Ltd. stock, see the AU:CBO Stock Forecast page.

Cobram Estate Olives Director Increases Shareholding

Cobram Estate Olives Ltd. announced a change in the director’s interest, with Joanna Mary Ruth McMillan acquiring 497 fully paid ordinary shares under the dividend reinvestment plan, bringing her total to 34,784 shares. This change reflects the company’s ongoing commitment to shareholder value and may influence investor confidence, as it demonstrates the director’s increased stake and potential alignment with shareholder interests.

The most recent analyst rating on (AU:CBO) stock is a Buy with a A$3.51 price target. To see the full list of analyst forecasts on Cobram Estate Olives Ltd. stock, see the AU:CBO Stock Forecast page.

Cobram Estate Olives Director Increases Shareholding

Cobram Estate Olives Limited announced a change in the director’s interest, with David Wills acquiring 1,476 fully paid ordinary shares under the company’s dividend reinvestment plan. This change reflects a slight increase in Wills’ shareholding, indicating a continued commitment to the company, which may positively influence stakeholder confidence and align with the company’s growth strategies.

The most recent analyst rating on (AU:CBO) stock is a Buy with a A$3.51 price target. To see the full list of analyst forecasts on Cobram Estate Olives Ltd. stock, see the AU:CBO Stock Forecast page.

Cobram Estate Olives Ltd. Director Increases Stake

Cobram Estate Olives Ltd. announced a change in the director’s interest, with Craig Peter Ball acquiring additional shares through the company’s dividend reinvestment plan. This change reflects the director’s increased investment in the company, potentially signaling confidence in its future performance and stability, which could positively impact stakeholders’ perception.

The most recent analyst rating on (AU:CBO) stock is a Buy with a A$3.51 price target. To see the full list of analyst forecasts on Cobram Estate Olives Ltd. stock, see the AU:CBO Stock Forecast page.

Cobram Estate Olives Ltd. Announces New Securities Issuance

Cobram Estate Olives Ltd. has announced the issuance of 1,253,250 ordinary fully paid securities, which will be quoted on the Australian Securities Exchange (ASX) under the code CBO. This move is part of a dividend or distribution plan and is expected to enhance the company’s financial flexibility and market presence.

The most recent analyst rating on (AU:CBO) stock is a Buy with a A$3.51 price target. To see the full list of analyst forecasts on Cobram Estate Olives Ltd. stock, see the AU:CBO Stock Forecast page.

Cobram Estate Olives Updates Dividend Distribution Details

Cobram Estate Olives Ltd. has announced an update regarding its dividend distribution for the period ending June 30, 2025. The update specifies the Dividend Reinvestment Plan (DRP) price, following a previous announcement made on October 31, 2025. This update is crucial for stakeholders as it impacts the financial returns and investment strategies related to the company’s shares.

The most recent analyst rating on (AU:CBO) stock is a Buy with a A$3.51 price target. To see the full list of analyst forecasts on Cobram Estate Olives Ltd. stock, see the AU:CBO Stock Forecast page.

Cobram Estate Olives Sets FY2025 Dividend Reinvestment Plan Price

Cobram Estate Olives Limited announced the allocation price for shares issued through its Dividend Reinvestment Plan for the FY2025 final dividend at $3.1035, reflecting a 2.5% discount on the volume-weighted average price of shares traded on ASX and Cboe Australia. With 18.2% of shareholders opting into the plan, the issuance of shares is scheduled for November 28, 2025, potentially enhancing shareholder value and reinforcing the company’s financial strategies.

The most recent analyst rating on (AU:CBO) stock is a Buy with a A$3.51 price target. To see the full list of analyst forecasts on Cobram Estate Olives Ltd. stock, see the AU:CBO Stock Forecast page.

Cobram Estate Olives Addresses Director’s Interest Change

Cobram Estate Olives Limited has announced a change in a director’s interest due to an administrative oversight, resulting in a late lodgement of the notice to the ASX. The company assures that this is an isolated incident and maintains that its current compliance practices are adequate, highlighting its commitment to adhering to ASX Listing Rules.

The most recent analyst rating on (AU:CBO) stock is a Buy with a A$3.51 price target. To see the full list of analyst forecasts on Cobram Estate Olives Ltd. stock, see the AU:CBO Stock Forecast page.