Elders Limited (ELD) AI Stock Analysis

• Market Cap: €1.22B
• Dividend Yield: 6.03%
• Average Volume (3M): 813.86K
• Price to Earnings (P/E): 22.8
• Beta (1Y): 0.89
• Revenue Growth: -5.72%
• EPS Growth: -55.55%
• Country: AU
• Employees: 2,884
• Sector: Consumer Defensive
• Sector Strength: 82
• Industry: Agricultural Farm Products
• EPS (TTM): 0.28
• Shares Outstanding: 190,197,340
• 10 Day Avg. Volume: 555,982
• 30 Day Avg. Volume: 813,859
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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: €8.84
• Price Target Upside: 37.23% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

Elders Limited faces significant challenges with declining revenues, profitability, and a bearish technical trend. The company's high leverage and reduced cash flow generation are risks that could impact future financial stability. Despite these challenges, the attractive dividend yield provides some support. However, the relatively high P/E ratio suggests potential overvaluation, which, combined with the negative technical indicators, results in a moderate stock score.

Elders Limited Business Overview & Revenue Model

Company Description

Elders Limited provides agricultural products and services to rural and regional customers primarily in Australia. The company operates through Branch Network, Wholesale Products, and Feed and Processing Services segments. It offers rural farm inputs, such as fertilizers, seeds, agricultural chemicals, animal health products, and general rural merchandise, as well as professional production and cropping advisory services; and provides retail services through corporate owned stores and through the Tucker Pet and Produce brand to independently owned member stores. The company also provides on-farm sales to third parties, regular physical, and online public livestock auctions, as well as directly sells through its owned and third-party feedlots and livestock exporters; agency services for the sale of greasy wool; and brokering services for wool growers. In addition, it offers farms, stations, and lifestyle estates marketing; residential real estate agency and property management; and water and home loan broking services. Further, the company provides a range of banking and insurance products and services; and operates AuctionsPlus, an online livestock auction platform. Additionally, it operates a beef cattle feedlot; and imports, processes, and distributes Australian meat in China. The company was founded in 1839 and is headquartered in Adelaide, Australia.

How the Company Makes Money

Elders Limited generates revenue through multiple streams. The primary revenue source is its rural services segment, which includes the sale of agricultural products such as seeds, fertilizers, and chemicals. Additionally, Elders makes money by providing livestock and wool agency services, earning commissions on the sale and purchase of these commodities. The real estate division contributes to revenue through property sales and management services, focusing on rural and regional properties. Financial services, including insurance and banking products tailored for the agricultural sector, also add to its earnings. Strategic partnerships and a strong distribution network further bolster its revenue generation, enabling Elders to maintain a significant market presence in the Australian agribusiness landscape.

Elders Limited Financial Statement Overview

Summary

Elders Limited is facing a challenging financial environment with declining revenues and profitability, reflected in its financial statements. While the company maintains a relatively stable equity position, increased leverage and declining cash flow generation pose risks for future financial stability. Strategic improvements are needed to enhance revenue growth and operational efficiency.

Income Statement

Elders Limited has shown resilience in its income statement metrics. The gross profit margin stood at 19.58%, which is relatively stable over the years. However, the net profit margin decreased to 1.44% from the previous year's 3.04%, indicating pressure on net earnings. Revenue growth is negative at -6.10%, reflecting a decline in sales. The absence of EBIT coupled with a decreased EBITDA margin of 5.48% highlights operational challenges.

Balance Sheet

The balance sheet of Elders Limited presents a mixed picture. The debt-to-equity ratio increased to 0.87, suggesting higher leverage and potential risk if interest rates rise. On the positive side, the equity ratio remains healthy at 36.14%, and ROE is positive at 5.36%, though it has decreased compared to previous years, indicating a dip in profitability.

Cash Flow

Cash flow analysis shows a decline in performance. Free cash flow growth rate is negative, emphasizing reduced cash available for expansion or debt repayment. The operating cash flow to net income ratio is 1.84, indicating a stable ability to convert earnings into cash flow. However, the free cash flow to net income ratio dropped to 0.79, revealing less efficient cash generation.

Breakdown
Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
3.12B	3.32B	3.43B	2.54B	2.09B
	Gross Profit
610.76M	604.84M	628.37M	508.29M	430.25M
	EBIT
20.12M	156.68M	250.57M	164.09M	106.11M
	EBITDA
157.94M	204.55M	280.19M	195.46M	146.40M
	Net Income Common Stockholders
45.08M	100.84M	162.87M	149.78M	122.95M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
40.21M	21.48M	17.84M	48.06M	50.74M
	Total Assets
2.33B	2.07B	2.02B	1.80B	1.55B
	Total Debt
730.72M	484.79M	302.75M	264.94M	288.19M
	Net Debt
690.51M	463.31M	284.91M	216.88M	237.45M
	Total Liabilities
1.48B	1.21B	1.16B	1.02B	881.74M
	Stockholders Equity
840.72M	862.48M	854.86M	775.42M	671.00M
Cash Flow		Free Cash Flow
35.59M	121.48M	184.94M	133.93M	134.96M
	Operating Cash Flow
82.95M	169.24M	210.11M	142.16M	142.34M
	Investing Cash Flow
-150.94M	-132.15M	-45.14M	-35.49M	-123.15M
	Financing Cash Flow
86.72M	-33.45M	-98.75M	-109.34M	24.23M

Elders Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 6.44
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ELD, the sentiment is Neutral. The current price of 6.44 is above the 20-day moving average (MA) of 6.13, below the 50-day MA of 6.57, and below the 200-day MA of 7.63, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 54.43 is Neutral, neither overbought nor oversold. The STOCH value of 90.60 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:ELD.

Elders Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	64 Neutral	$8.81B	14.72	5.05%	174.27%	3.55%	3.81%
ELD	55 Neutral	€1.22B	22.79	5.24%	6.03%	-5.72%	-55.55%

Elders Limited Corporate Events

Elders Limited Announces Change in Substantial Holder Interests

Elders Limited has announced a change in the interests of a substantial holder, with State Street Corporation and its subsidiaries being the primary entities involved. This change in voting power and relevant interests reflects adjustments in the control and management of voting securities, which may impact the company’s governance and stakeholder dynamics.

Elders Limited Reports Change in Substantial Holder Interests

Elders Limited has announced a change in the interests of a substantial holder, with State Street Bank and Trust Company and its subsidiaries reporting changes in their voting power and relevant interests in the company’s securities. This update reflects the dynamic nature of shareholder interests and the ongoing management of securities lending agreements, which may influence Elders Limited’s market positioning and stakeholder relationships.

Elders Limited Releases 2024 Modern Slavery Statement

Elders Limited has released its 2024 Modern Slavery Statement in compliance with the Modern Slavery Act 2018. This statement, available on the Australian Border Force Register, highlights the company’s commitment to addressing modern slavery risks within its operations and supply chains, underscoring its dedication to ethical practices and stakeholder transparency.

Elders Limited Announces 2025 Financial Calendar

Elders Limited has announced its key financial and corporate event dates for 2025, including the release of half-year and full-year results, interim and final dividend announcements, and the annual general meeting. These events are critical for stakeholders as they provide insights into the company’s financial health and strategic direction, although all dividend announcements are subject to board approval.

Elders Limited Director Increases Shareholding

Elders Limited announced a change in the interest of one of its directors, Bethwyn Todd, who has acquired 8,000 additional ordinary fully paid shares at a price of $7.56 each. This increase in shareholding reflects an on-market purchase, raising her total holding to 11,809 shares. Such transactions can indicate confidence in the company’s future performance, potentially impacting investor perception and market dynamics.