Farm Pride Foods Limited (FRM) AI Stock Analysis

• Market Cap: AU$68.08M
• Dividend Yield: N/A
• Average Volume (3M): 37.95K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.23
• Revenue Growth: -0.71%
• EPS Growth: 91.71%
• Country: AU
• Employees: 230
• Sector: Consumer Defensive
• Sector Strength: 63
• Industry: Agricultural Farm Products
• EPS (TTM): >-0.01
• Shares Outstanding: 230,791,260
• 10 Day Avg. Volume: 42,214
• 30 Day Avg. Volume: 37,947
• PEG Ratio: 3.23
• Price to Book (P/B): 2.22
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.23
• 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: N/A
• Number of Analyst Covering: 0

• Rating: 51 Neutral
• Price Target: AU$0.50 ▲(66.67%Upside)

The overall score is primarily influenced by the company's strong technical momentum, which is offset by financial risks and poor valuation. Continued revenue growth and improved cash flow serve as positives, but high leverage and ongoing net losses weigh heavily on the score.

Farm Pride Foods Limited Business Overview & Revenue Model

Company Description

Farm Pride Foods Limited (FRM) is an Australian company operating in the food production and processing sector, primarily focusing on the supply of egg and egg-related products. The company engages in the production, processing, and distribution of shell eggs, value-added egg products, and specialty products to retail, industrial, and food service sectors. Farm Pride Foods is committed to maintaining high standards of quality and sustainability in its operations.

How the Company Makes Money

Farm Pride Foods Limited generates revenue through the sale of its egg and egg-related products. The company's primary revenue streams include the sale of shell eggs to retail grocery stores, food service providers, and industrial customers. Additionally, the company produces value-added products such as liquid eggs, egg powders, and specialty egg products, which are supplied to various sectors including the food manufacturing and hospitality industries. Farm Pride Foods may also engage in strategic partnerships with retailers and distributors to expand its market reach and enhance its distribution network. The company focuses on maintaining strong relationships with its customers and ensuring product quality to drive sales and profitability.

Farm Pride Foods Limited Financial Statement Overview

Summary

The company shows revenue growth and operational improvements, but profitability challenges and a high leverage position pose significant financial risks. Improved cash flow is a positive sign, but net losses continue to be a concern.

Income Statement

The company demonstrated a significant revenue growth of 17.27% from 2023 to 2024, indicating a positive trend. However, the negative net profit margin of -2.42% in 2024 reflects ongoing profitability challenges, as the company still reports losses. The gross profit margin improved to 29.02%, suggesting better cost management compared to previous years. EBIT and EBITDA margins were positive at 5.69% and 7.26%, respectively, showing some improvement in operational performance but still not enough to offset the net losses.

Balance Sheet

The company has a high debt-to-equity ratio of 15.33, indicating significant leverage and potential risk if earnings do not improve. The equity ratio is low at 4.64%, pointing to a thin equity cushion. The negative return on equity of -83.11% highlights the company's inability to generate profits for its shareholders. Overall, the balance sheet shows a leveraged position with limited equity support.

Cash Flow

The company achieved a substantial improvement in operating cash flow compared to previous years, with a positive figure of $2.93 million in 2024. This is a positive sign, although the free cash flow to net income ratio is negative, reflecting ongoing challenges in translating cash generation into net profits. The free cash flow growth rate is positive due to a turnaround from negative free cash flows in previous years, indicating better cash management.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
92.06M	97.07M	82.78M	74.04M	73.32M	90.23M
	Gross Profit
29.89M	28.17M	-2.47M	-6.15M	-5.09M	964.00K
	EBIT
7.25M	5.52M	-6.54M	-9.47M	-8.95M	-897.00K
	EBITDA
8.47M	7.04M	10.54M	5.44M	6.40M	19.71M
	Net Income Common Stockholders
206.00K	-2.35M	-9.11M	-19.78M	-11.97M	-2.17M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.07M	1.69M	1.99M	2.15M	1.28M	4.41M
	Total Assets
80.96M	60.81M	55.91M	58.74M	72.01M	92.08M
	Total Debt
33.48M	43.27M	34.55M	34.81M	30.13M	35.47M
	Net Debt
31.41M	41.58M	32.56M	32.66M	28.84M	31.06M
	Total Liabilities
44.94M	57.99M	50.86M	49.38M	42.87M	50.97M
	Stockholders Equity
36.03M	2.82M	5.05M	9.36M	29.14M	41.12M
Cash Flow		Free Cash Flow
4.02M	1.72M	-3.93M	-5.08M	-615.00K	3.22M
	Operating Cash Flow
5.12M	2.93M	-3.40M	-3.73M	-215.00K	6.88M
	Investing Cash Flow
1.24M	1.14M	-523.00K	16.77M	2.71M	-3.66M
	Financing Cash Flow
-3.73M	-4.37M	3.76M	-12.18M	-5.63M	1.98M

Farm Pride Foods Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:FRM, the sentiment is Positive. The current price of 0.3 is above the 20-day moving average (MA) of 0.28, above the 50-day MA of 0.24, and above the 200-day MA of 0.16, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 66.86 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:FRM.

Farm Pride Foods Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ING	76 Outperform	€1.40B	15.60	38.76%	5.42%	1.77%	-15.93%
RFF	74 Outperform	AU$705.40M	14.41	4.68%	4.07%	14.72%	-42.17%
RIC	73 Outperform	$1.00B	21.07	12.66%	3.51%	1.90%	-4.00%
Sector *	65 Neutral	$8.92B	15.03	4.68%	6.11%	3.59%	-2.49%
FRM	51 Neutral	AU$68.08M	―	1.33%	―	-0.71%	91.71%
AAC	51 Neutral	$825.44M	25.13	-0.01%	―	15.11%	―

Farm Pride Foods Limited Corporate Events

Farm Pride Foods Strengthens Capital Structure with New $27.5 Million Finance Facility

Farm Pride Foods Ltd has secured a new $27.57 million finance facility with National Australia Bank, aimed at refinancing existing debt and investing in capital initiatives and infrastructure improvements. This move is expected to strengthen the company’s capital structure and support its operational growth, offering a lower cost of funds compared to previous arrangements, thus enhancing its market positioning.

Farm Pride Foods Boosts Production and Strengthens Financial Position

Farm Pride Foods Limited reported a successful quarter ending March 31, 2025, with a 15% increase in farm production following the repopulation of its Avian Influenza-affected farms in Lethbridge, Victoria. The company achieved net operating cash inflows of $1.258 million, driven by an 8% increase in customer receipts due to higher production. Farm Pride is investing in biosecurity and operational improvements, and has converted a director’s loan to equity to strengthen its balance sheet. Despite rising costs, the company is focused on efficiency and cost reduction strategies to mitigate financial pressures.

Farm Pride Foods Announces Change in Substantial Shareholder Interests

Farm Pride Foods Limited has announced a change in the interests of its substantial holders, West Coast Eggs Pty Ltd and Southern Egg Pty Ltd. The change, effective from March 17, 2025, reflects a dilution in voting power due to the issuance of new shares, resulting in a decrease in West Coast Eggs Pty Ltd’s voting power from 20.01% to 18.858%. This adjustment in shareholding may affect the company’s governance dynamics and influence over strategic decisions.

Farm Pride Foods Sees Increase in Substantial Shareholding

Farm Pride Foods Limited has seen a change in the substantial holding of its shares, with LDL Custodians Pty Ltd ATF The 17 Holroyd Trust increasing its voting power from 9.74% to 10.97%. This change was primarily due to the conversion of vested options and performance rights into fully paid ordinary shares, as well as the dilution of holdings following the issuance of additional shares by the company. This adjustment in shareholding reflects strategic financial maneuvers that may influence the company’s market positioning and shareholder dynamics.