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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:FRM

Farm Pride Foods Limited

(Sydney:FRM)

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Outperform 74 (OpenAI - 5.2)
,
Outperform 74 (OpenAI - 5.2)
,
Outperform 74 (OpenAI - 5.2)
Rating:74Outperform
Price Target:
AU$0.25
▲(23.00% Upside)
Action:UpgradedDate:02/27/26
The score is driven primarily by improved financial performance, especially the profitability recovery and very strong free cash flow generation, with leverage trending better. Technicals add support with price above key moving averages and positive MACD. Valuation is a further positive with a low P/E, while earnings call and corporate events were excluded due to missing data.
Positive Factors
Revenue recovery & improved margins
Sustained revenue growth and a material gross margin lift point to improved pricing, cost control or mix, producing recurring profitability. A positive net margin supports reinvestment, debt paydown and resilience versus seasonal cycles, strengthening fundamentals over coming months.
Very strong free cash flow generation
Exceptional FCF growth and conversion ratios above 1 indicate high quality earnings and strong internal funding. This durable cash generation boosts liquidity for capex, working capital and deleveraging, increasing strategic flexibility across the next 2–6 months.
Improved leverage and stable capital structure
Reducing debt-to-equity and a near-45% equity ratio signal a healthier capital structure, lowering refinancing and solvency risk. This structural improvement expands capacity for investment or shock absorption and supports sustainable operations over the medium term.
Negative Factors
Leverage still material
Although leverage has fallen, a debt-to-equity near 0.9 still represents meaningful financial obligations for an agricultural products firm. Persistent debt service can constrain capital allocation, increase interest sensitivity and limit rapid reinvestment if margins or cash flow weaken.
Moderate return on equity
A mid-teens ROE indicates the company is not yet achieving top-tier capital efficiency. If ROE remains constrained, investor returns and internal reinvestment capacity may be limited relative to higher-return peers, potentially capping long-term growth unless efficiency improves.
Limited forward guidance / disclosure
Absence of formal guidance or earnings-call highlights reduces visibility into management's outlook and allocation plans. This creates uncertainty for investors and counterparties over planning horizons, hindering confidence in forecasts and strategic decision-making over several months.

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 Moneynull

Farm Pride Foods Limited Financial Statement Overview

Summary
Strong turnaround supported by solid revenue growth (8.22%), sharply improved gross margin (43.47%), and a return to positive net margin (6.68%). Cash generation is a standout with very strong free cash flow growth (95.37%) and good cash conversion (operating cash flow to net income 1.39). Balance sheet is improved but still mixed, with leverage reduced (debt-to-equity 0.91) and moderate ROE (15.52%).
Income Statement
75
Positive
Farm Pride Foods Limited has shown a strong recovery in its income statement metrics. The company achieved a significant revenue growth rate of 8.22% in 2025, indicating a positive trend in sales. The gross profit margin improved substantially from previous years, reaching 43.47% in 2025, which suggests enhanced operational efficiency. The net profit margin turned positive at 6.68% in 2025, reflecting improved profitability. EBIT and EBITDA margins also showed considerable improvement, indicating better cost management and operational performance.
Balance Sheet
65
Positive
The balance sheet of Farm Pride Foods Limited shows a mixed picture. The debt-to-equity ratio decreased to 0.91 in 2025, indicating a reduction in leverage and a stronger equity position. However, the return on equity (ROE) is still relatively low at 15.52%, suggesting room for improvement in generating returns for shareholders. The equity ratio stands at 45.49%, indicating a stable capital structure with a reasonable level of equity financing.
Cash Flow
80
Positive
The cash flow statement reflects a robust performance with a significant free cash flow growth rate of 95.37% in 2025, highlighting strong cash generation capabilities. The operating cash flow to net income ratio of 1.39 indicates efficient conversion of net income into cash. The free cash flow to net income ratio of 1.18 further supports the company's ability to generate cash relative to its net income, showcasing strong liquidity and financial health.
BreakdownJun 2025Jun 2024Jun 2023Jun 2022Jun 2021
Income Statement
Total Revenue99.62M97.07M82.78M74.04M73.32M
Gross Profit43.32M28.17M22.45M-6.15M19.31M
EBITDA11.57M7.04M10.54M5.44M6.40M
Net Income6.66M-2.35M-9.11M-19.78M-11.97M
Balance Sheet
Total Assets94.30M60.81M55.91M58.74M72.01M
Cash, Cash Equivalents and Short-Term Investments8.30M1.69M1.99M2.15M1.28M
Total Debt38.92M43.27M34.55M34.81M30.13M
Total Liabilities51.40M57.99M50.86M49.38M42.87M
Stockholders Equity42.90M2.82M5.05M9.36M29.14M
Cash Flow
Free Cash Flow7.85M1.72M-3.93M-5.08M-615.00K
Operating Cash Flow9.23M2.93M-3.40M-3.73M-215.00K
Investing Cash Flow-1.38M1.14M-523.00K16.77M2.71M
Financing Cash Flow-1.24M-4.37M3.76M-12.18M-5.63M

Farm Pride Foods Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.20
Price Trends
50DMA
0.22
Negative
100DMA
0.24
Negative
200DMA
0.28
Negative
Market Momentum
MACD
<0.01
Positive
RSI
44.41
Neutral
STOCH
2.65
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:FRM, the sentiment is Negative. The current price of 0.2 is below the 20-day moving average (MA) of 0.24, below the 50-day MA of 0.22, and below the 200-day MA of 0.28, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 44.41 is Neutral, neither overbought nor oversold. The STOCH value of 2.65 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:FRM.

Farm Pride Foods Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
AU$50.77M1.3928.29%2.63%
70
Neutral
AU$18.06M-5.784.51%18.35%55.88%
62
Neutral
$20.33B14.63-3.31%3.23%1.93%-12.26%
45
Neutral
AU$74.99M-1.37-20.91%29.49%-16.73%-343.82%
44
Neutral
AU$10.47M-1.51-90.33%-94.79%82.57%
37
Underperform
AU$1.23M-0.43-229.02%17.85%52.81%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:FRM
Farm Pride Foods Limited
0.22
-0.01
-4.35%
AU:WOA
Wide Open Agriculture Ltd.
0.02
-0.01
-39.29%
AU:WNR
Wingara Ag Ltd.
0.01
0.00
0.00%
AU:DBF
Duxton Farms Limited
0.70
-0.44
-38.54%
AU:AAP
Australian Agricultural Projects Ltd.
0.05
<0.01
22.50%

Farm Pride Foods Limited Corporate Events

Farm Pride director Malcolm Ward marginally increases indirect shareholding
Mar 12, 2026

Farm Pride Foods has disclosed a minor change in director Malcolm Ward’s indirect shareholding following an off-market transfer. Ward, whose interests are held through Oakmeadow Pty Ltd and Palmgate Holdings Pty Ltd, acquired 1,584 fully paid ordinary shares at $0.20 per share.

The transaction lifts Ward’s indirect holding from 6,426,179 to 6,427,763 shares, indicating a slight increase in his stake in the company. The trade was not conducted during a closed period, and there were no associated changes in any contracts related to the director’s interests.

The most recent analyst rating on (AU:FRM) stock is a Buy with a A$0.30 price target. To see the full list of analyst forecasts on Farm Pride Foods Limited stock, see the AU:FRM Stock Forecast page.

Farm Pride launches buyback for small shareholders to streamline register
Mar 12, 2026

Farm Pride Foods has launched a small shareholding buyback facility for Australian and New Zealand investors holding less than A$500 worth of its shares, enabling these shareholders to exit cost effectively without brokerage or handling fees. The initiative is aimed at simplifying the share register and lowering administrative costs, with around 531 investors, or about 40% of the shareholder base, currently classified as small parcel holders.

Eligible shareholders who take no action will have their small parcels automatically bought back at the five-day VWAP up to and including 28 April 2026, with proceeds paid within 10 business days and all repurchased shares cancelled. The move is expected to streamline Farm Pride’s capital structure and reduce ongoing servicing expenses tied to numerous small accounts, while offering liquidity to minor investors who might otherwise find trading uneconomic.

The most recent analyst rating on (AU:FRM) stock is a Buy with a A$0.30 price target. To see the full list of analyst forecasts on Farm Pride Foods Limited stock, see the AU:FRM Stock Forecast page.

Farm Pride Foods Delivers Strong Profit Surge but Holds Off on Dividend
Feb 26, 2026

Farm Pride Foods Limited reported a strong first-half performance for the six months to 31 December 2025, with revenue from ordinary activities rising 40.27% to $63.3 million compared with the prior corresponding period. Net profit after tax attributable to members surged 409.21% to $8.3 million, reflecting significantly improved profitability and a stronger balance sheet, as evidenced by an increase in net tangible asset backing per share from 18.59 cents to 22.23 cents.

Despite the sharp earnings rebound, the company did not declare an interim dividend for the period, indicating a preference to retain cash, potentially to reinvest in operations or strengthen its financial position. The combination of higher revenue, sharply higher profit and improved asset backing underscores a notable turnaround in performance, which may enhance Farm Pride’s standing with investors and other stakeholders in the Australian food sector.

The most recent analyst rating on (AU:FRM) stock is a Hold with a A$0.25 price target. To see the full list of analyst forecasts on Farm Pride Foods Limited stock, see the AU:FRM Stock Forecast page.

Farm Pride Delivers Strong Cash Inflows Amid Rising Egg Supply and Pricing Pressure
Jan 29, 2026

Farm Pride Foods reported net operating cash inflows of $4.57 million for the quarter ended 31 December 2025, with customer receipts rising 3% to $32.56 million on the back of higher farm production, processing efficiency and external egg supplies. The company invested $2.59 million in infrastructure to upgrade farming, biosecurity, production and grading operations, achieving top-tier audit results from key retail partner Coles at its Keysborough grading facility. However, a rapid increase in industry egg volumes late in the quarter created pricing pressure amid higher costs, resulting in a more challenging operating environment and prompting Farm Pride to double down on capital expenditure and operational efficiency measures to mitigate margin pressure and support future competitiveness.

The most recent analyst rating on (AU:FRM) stock is a Hold with a A$0.22 price target. To see the full list of analyst forecasts on Farm Pride Foods Limited stock, see the AU:FRM Stock Forecast page.

Farm Pride Foods Director Darren Lurie Increases Indirect Shareholding
Jan 20, 2026

Farm Pride Foods Ltd has disclosed a change in director Darren Lurie’s indirect interests, with Lurie increasing his holding in the company through associated entities. The director acquired 500,000 fully paid ordinary shares on-market for $100,000 on 14 January 2026, adding to his substantial existing share and option holdings, a move that signals continued confidence in the company’s prospects and strengthens his alignment with shareholder interests.

The most recent analyst rating on (AU:FRM) stock is a Hold with a A$0.22 price target. To see the full list of analyst forecasts on Farm Pride Foods Limited stock, see the AU:FRM Stock Forecast page.

Farm Pride Director Palatianos Increases Indirect Shareholding via On-Market Purchase
Jan 16, 2026

Farm Pride Foods Limited has disclosed a change in the relevant interests of director George Palatianos, who has increased his indirect shareholding in the company through entities Bait of Brets Pty Ltd and Ackenberg Pty Ltd. On 14 January 2026, Bait of Brets Pty Ltd acquired 6,492,700 ordinary shares in Farm Pride Foods on-market for $1,298,540, lifting its holding to 57,644,096 shares, while the Ackenberg Super Fund account maintained its existing 17,550,000 shares, signalling a further vote of confidence in the company by a key director-shareholder and consolidating his indirect stake without any changes to contractual interests.

The most recent analyst rating on (AU:FRM) stock is a Hold with a A$0.22 price target. To see the full list of analyst forecasts on Farm Pride Foods Limited stock, see the AU:FRM Stock Forecast page.

Farm Pride Flags Potential Major Share Sale by Substantial Holder
Jan 14, 2026

Farm Pride Foods has disclosed that substantial shareholder West Coast Eggs Pty Ltd intends to sell up to 30 million Farm Pride shares on-market at a price of $0.20 per share over the coming days, which, if completed in full, would still leave West Coast Eggs holding 5.86% of the company. Parties associated with Non-Executive Chairman George Palatianos and Managing Director Darren Lurie have signalled they may acquire up to 7 million shares if the sale proceeds, potentially mitigating some selling pressure, but the company stressed there is no assurance that any of the proposed transactions will be completed and has refrained from making any recommendation to investors, leaving the market to interpret the potential shift in the shareholder register and its implications for governance and liquidity.

The most recent analyst rating on (AU:FRM) stock is a Hold with a A$0.22 price target. To see the full list of analyst forecasts on Farm Pride Foods Limited stock, see the AU:FRM Stock Forecast page.

Farm Pride Foods: Director’s Interests Updated
Dec 18, 2025

Farm Pride Foods Ltd announced changes to Director Darren Lurie’s interests. As part of his shareholder-approved remuneration package, Mr. Lurie received 3,600,000 unlisted options with an exercise price of $0.30, expiring three years from vesting. This adjustment aligns with the company’s governance practices and reflects efforts to incentivize leadership through equity-based rewards, potentially strengthening stakeholder confidence in long-term strategic goals.

The most recent analyst rating on (AU:FRM) stock is a Hold with a A$0.23 price target. To see the full list of analyst forecasts on Farm Pride Foods Limited stock, see the AU:FRM Stock Forecast page.

Farm Pride Foods Issues 3.6 Million Unquoted Equity Securities to Bolster Growth
Dec 18, 2025

Farm Pride Foods Limited announced the issuance of 3.6 million unquoted equity securities in the form of options with an exercise price of $0.30, each expiring three years from vesting, as part of its growth strategy. This move may impact the company’s financial positioning, supporting long-term planning and enhancing its market competitiveness within the industry, offering potential benefits for stakeholders.

The most recent analyst rating on (AU:FRM) stock is a Hold with a A$0.23 price target. To see the full list of analyst forecasts on Farm Pride Foods Limited stock, see the AU:FRM Stock Forecast page.

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: Feb 27, 2026