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

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AU:FRM

Farm Pride Foods Limited

(Sydney:FRM)

Rating:46Neutral
Price Target:
AU$0.50
▲(72.41%Upside)
The stock score is primarily affected by financial performance challenges and high leverage, which present significant risks. Technical analysis shows some positive trends, but valuation concerns due to ongoing losses and lack of dividends weigh heavily on the overall 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 key revenue streams include retail sales of shell eggs to supermarkets and grocery stores, supply of liquid eggs and egg powders to foodservice providers and manufacturers, and specialized egg products for industrial use. Farm Pride Foods benefits from strategic partnerships with retailers and distributors, which help in expanding its market reach. Additionally, the company focuses on operational efficiency and sustainable farming practices to maintain competitive pricing and profitability in the egg production industry.

Farm Pride Foods Limited Financial Statement Overview

Summary
Farm Pride Foods Limited shows promising revenue growth and improvements in operational efficiency; however, profitability remains a concern with continued net losses. The high leverage and low equity base present financial risk, while the improved cash flow reflects better management. The company needs to focus on sustaining revenue growth and improving profitability to strengthen its financial position.
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.
BreakdownJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue97.07M82.78M74.04M73.32M90.23M
Gross Profit28.17M22.45M-6.15M-5.09M964.00K
EBITDA7.04M10.54M5.44M6.40M7.26M
Net Income-2.35M-9.11M-19.78M-11.97M-2.17M
Balance Sheet
Total Assets60.81M55.91M58.74M72.01M92.08M
Cash, Cash Equivalents and Short-Term Investments1.69M1.99M2.15M1.28M4.41M
Total Debt43.27M34.55M34.81M30.13M35.47M
Total Liabilities57.99M50.86M49.38M42.87M50.97M
Stockholders Equity2.82M5.05M9.36M29.14M41.12M
Cash Flow
Free Cash Flow1.72M-3.93M-5.08M-615.00K3.22M
Operating Cash Flow2.93M-3.40M-3.73M-215.00K6.88M
Investing Cash Flow1.14M-523.00K16.77M2.71M-3.66M
Financing Cash Flow-4.37M3.76M-12.18M-5.63M1.98M

Farm Pride Foods Limited Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.29
Price Trends
50DMA
0.29
Negative
100DMA
0.25
Positive
200DMA
0.19
Positive
Market Momentum
MACD
<0.01
Positive
RSI
43.44
Neutral
STOCH
20.35
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:FRM, the sentiment is Neutral. The current price of 0.29 is below the 20-day moving average (MA) of 0.31, below the 50-day MA of 0.29, and above the 200-day MA of 0.19, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 43.44 is Neutral, neither overbought nor oversold. The STOCH value of 20.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
$27.19B15.58-4.44%2.56%1.05%4.97%
46
Neutral
AU$68.08M1.33%-0.71%91.71%
€7.32M-130.28%
58
Neutral
AU$18.06M9.4215.59%65.25%766.67%
54
Neutral
AU$40.95M59.940.65%23.89%89.65%
46
Neutral
AU$1.23M-130.24%-61.74%69.69%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:FRM
Farm Pride Foods Limited
0.29
0.19
190.00%
DE:2WO
Wide Open Agriculture Ltd.
0.01
0.00
0.00%
AU:WNR
Wingara Ag Ltd.
0.01
0.00
0.00%
AU:DBF
Duxton Farms Limited
1.00
-0.27
-21.26%
AU:AAP
Australian Agricultural Projects Ltd.
0.05
0.01
25.00%

Farm Pride Foods Limited Corporate Events

Farm Pride Foods Secures New Financing and Reports Increased Production
Jul 24, 2025

Farm Pride Foods Limited has secured $27.568 million in new financing facilities from National Australia Bank, which will be used to repay existing debt and fund capital projects at its processing facilities and farms. The company reported a 27% increase in farm production this quarter, contributing to net operating cash inflows of $3.611 million. Despite facing cost pressures, Farm Pride is focusing on capital expenditure and operational improvements to enhance efficiency and reduce costs, with plans to increase hen rearing and laying capacity.

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.

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.Date of analysis: Jul 19, 2025