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Farm Pride Foods Limited (AU:FRM)
ASX:FRM
Australian Market

Farm Pride Foods Limited (FRM) AI Stock Analysis

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AU

Farm Pride Foods Limited

(Sydney:FRM)

Rating:51Neutral
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 (FRM) vs. iShares MSCI Australia ETF (EWA)

Farm Pride Foods Limited Business Overview & Revenue Model

Company DescriptionFarm Pride Foods Limited produces, processes, manufactures, and sells eggs and egg products in Australia. The company offers free range, barn laid, birds, and farm fresh eggs. It also provides egg products, such as whole eggs, egg white, egg yolk, scrambled eggs, peeled boiled eggs, fried eggs, and omelettes, as well as egg cartons. The company serves retail, industrial, and food service sectors. It exports its products to Asia. Farm Pride Foods Limited was founded in 1937 and is headquartered in Keysborough, Australia.
How the Company Makes MoneyFarm 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
45
Neutral
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
30
Negative
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
50
Neutral
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
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
92.06M97.07M82.78M74.04M73.32M90.23M
Gross Profit
29.89M28.17M-2.47M-6.15M-5.09M964.00K
EBIT
7.25M5.52M-6.54M-9.47M-8.95M-897.00K
EBITDA
8.47M7.04M10.54M5.44M6.40M19.71M
Net Income Common Stockholders
206.00K-2.35M-9.11M-19.78M-11.97M-2.17M
Balance SheetCash, Cash Equivalents and Short-Term Investments
2.07M1.69M1.99M2.15M1.28M4.41M
Total Assets
80.96M60.81M55.91M58.74M72.01M92.08M
Total Debt
33.48M43.27M34.55M34.81M30.13M35.47M
Net Debt
31.41M41.58M32.56M32.66M28.84M31.06M
Total Liabilities
44.94M57.99M50.86M49.38M42.87M50.97M
Stockholders Equity
36.03M2.82M5.05M9.36M29.14M41.12M
Cash FlowFree Cash Flow
4.02M1.72M-3.93M-5.08M-615.00K3.22M
Operating Cash Flow
5.12M2.93M-3.40M-3.73M-215.00K6.88M
Investing Cash Flow
1.24M1.14M-523.00K16.77M2.71M-3.66M
Financing Cash Flow
-3.73M-4.37M3.76M-12.18M-5.63M1.98M

Farm Pride Foods Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.30
Price Trends
50DMA
0.23
Positive
100DMA
0.21
Positive
200DMA
0.16
Positive
Market Momentum
MACD
0.02
Negative
RSI
66.86
Neutral
STOCH
104.17
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 0.27, above the 50-day MA of 0.23, 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 104.17 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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
$8.88B15.034.75%203.74%3.58%-2.49%
AUFRM
51
Neutral
AU$68.08M1.33%-0.71%91.71%
$537.54M24.83-0.01%
AUEBO
AU$7.09B27.2810.15%3.27%
$458.69M14.214.68%6.53%
$653.25M18.3912.66%3.97%
DEIH1
€795.26M14.4238.76%5.47%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:FRM
Farm Pride Foods Limited
0.30
0.20
200.00%
ASAGF
Australian Agricultural Company
0.94
-0.02
-2.08%
AU:EBO
EBOS Group Limited
34.40
4.83
16.33%
RFNDF
Rural Funds Group
1.18
-0.08
-6.35%
RIDYF
Ridley Corporation Limited
1.54
0.20
14.93%
DE:IH1
Inghams Group Ltd.
2.14
0.13
6.47%

Farm Pride Foods Limited Corporate Events

Farm Pride Foods Strengthens Capital Structure with New $27.5 Million Finance Facility
May 9, 2025

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
Apr 30, 2025

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
Mar 17, 2025

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
Mar 12, 2025

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.

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.