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Cobram Estate Olives Ltd. (AU:CBO)
ASX:CBO
Australian Market

Cobram Estate Olives Ltd. (CBO) AI Stock Analysis

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AU

Cobram Estate Olives Ltd.

(Sydney:CBO)

Rating:63Neutral
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. (CBO) vs. iShares MSCI Australia ETF (EWA)

Cobram Estate Olives Ltd. Business Overview & Revenue Model

Company DescriptionCobram 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 MoneyCobram 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
72
Positive
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
65
Positive
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
58
Neutral
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
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
239.22M227.78M168.95M139.62M139.95M140.65M
Gross Profit
51.94M86.07M17.82M39.96M18.77M14.93M
EBIT
6.10M43.73M-24.09M7.20M-12.29M-25.41M
EBITDA
72.57M66.68M40.80M25.09M72.91M-19.67M
Net Income Common Stockholders
21.29M18.53M7.72M-696.00K35.22M-32.70M
Balance SheetCash, Cash Equivalents and Short-Term Investments
10.71M11.35M13.67M5.94M1.18M3.77M
Total Assets
734.17M697.41M616.34M550.61M458.15M401.12M
Total Debt
267.25M231.01M197.47M146.71M170.70M169.23M
Net Debt
257.55M219.67M183.80M140.76M169.52M165.47M
Total Liabilities
417.56M375.66M328.55M263.58M267.46M255.03M
Stockholders Equity
316.62M321.75M287.79M287.03M190.69M146.09M
Cash FlowFree Cash Flow
-24.15M-18.31M-17.02M-9.33M-2.77M-17.99M
Operating Cash Flow
62.05M47.88M39.01M27.39M16.32M6.99M
Investing Cash Flow
-81.66M-60.36M-55.97M-36.70M-18.97M-24.24M
Financing Cash Flow
20.34M10.18M24.70M14.08M55.00K18.36M

Cobram Estate Olives Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.10
Price Trends
50DMA
1.89
Positive
100DMA
1.94
Positive
200DMA
1.89
Positive
Market Momentum
MACD
0.05
Negative
RSI
72.12
Negative
STOCH
81.75
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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUCBO
63
Neutral
AU$858.83M40.207.32%1.61%13.04%103.19%
61
Neutral
$2.86B10.960.41%6.08%5.73%-21.25%
$410.60M22.457.05%
$536.74M24.83-0.01%
$458.01M14.214.68%4.07%
AUEGL
68
Neutral
AU$95.12M25.509.28%19.70%8.70%
DEB6G
€965.09M46.133.35%1.93%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:CBO
Cobram Estate Olives Ltd.
2.10
0.31
17.32%
SHVTF
Select Harvests
3.35
1.06
46.29%
ASAGF
Australian Agricultural Company
0.95
0.00
0.00%
RFNDF
Rural Funds Group
1.20
-0.06
-4.76%
AU:EGL
Environmental Group Limited
0.26
-0.03
-10.34%
DE:B6G
Bega Cheese Limited
3.10
0.65
26.53%

Cobram Estate Olives Ltd. Corporate Events

Cobram Estate Olives Announces Company Secretary Update
Feb 21, 2025

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
Feb 20, 2025

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.

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.