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Nufarm Limited (AU:NUF)
ASX:NUF

Nufarm Limited (NUF) AI Stock Analysis

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AU

Nufarm Limited

(Sydney:NUF)

Rating:54Neutral
Price Target:
AU$2.00
▼(-6.98%Downside)
Nufarm's stock score is primarily impacted by its financial performance and technical analysis. While the company shows resilience in cash flow and a stable balance sheet, profitability concerns and a bearish technical outlook weigh heavily. The valuation is further affected by negative earnings, despite a reasonable dividend yield. The earnings call provided mixed signals, with some strategic improvements but also highlighted challenges, particularly in leverage and specific markets.

Nufarm Limited (NUF) vs. iShares MSCI Australia ETF (EWA)

Nufarm Limited Business Overview & Revenue Model

Company DescriptionNufarm Limited, together with its subsidiaries, develops, manufactures, and sells crop protection solutions and seed technologies in Europe, the Middle East, Africa, North America, and the Asia Pacific. It operates through two segments, Crop Protection and Seed Technology. The company's protection solutions include herbicides, insecticides, and fungicides that help growers protect crops against weeds, pests, and diseases. It focuses on crops, such as cereals; corn; soybean; pasture, turf, and ornamentals; and trees, nuts, vines, and vegetables. It also provides seed treatment products for the protection and treatment of damage caused by insects, fungus, and disease; and distributes sunflower, sorghum, and canola seeds. Nufarm Limited was founded in 1916 and is headquartered in Laverton North, Australia.
How the Company Makes MoneyNufarm Limited generates revenue primarily through the sale of its crop protection products, which include herbicides, insecticides, and fungicides. These products are essential for farmers to increase crop yields by managing weeds, pests, and plant diseases. The company benefits from a broad portfolio of active ingredients and proprietary formulations, catering to various crops and climatic conditions across the globe. Nufarm's revenue streams are further supported by strategic partnerships and distribution agreements that enhance its market reach and product availability. Additionally, the company invests in research and development to innovate and expand its product offerings, ensuring competitiveness in the agricultural chemicals industry.

Nufarm Limited Earnings Call Summary

Earnings Call Date:May 20, 2025
(Q2-2025)
|
% Change Since: -46.52%|
Next Earnings Date:Nov 19, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook for Nufarm. While the company showed strong performance in Crop Protection and reduced inventory days, the significant challenges faced by the omega-3 platform and increased leverage raised concerns. The outlook for North America remained uncertain due to competitive pressures and tariffs, although the company is taking steps to improve efficiency and profitability.
Q2-2025 Updates
Positive Updates
Strong Market Position in Seed Technologies
Nufarm's hybrid canola, sorghum, and sunflower seeds platforms have a strong market position, delivering over $200 million in revenue annually with high margins and strong cash generation.
Significant Opportunities in Bioenergy
Nufarm's bioenergy platform, led by carinata, is underpinned by a 10-year agreement with BP, with plans for a 3x expansion in carinata area planted in 2025 compared to 2024.
Strong Recovery in Crop Protection
Nufarm reported underlying EBIT from Crop Protection up 34% year-on-year, with notable improvements in profitability in Europe and APAC.
Reduction in Inventory Days
Nufarm achieved a 22-day year-on-year reduction in inventory days at the half-year and is on track for a 25-day reduction by the end of financial year '25.
Improved Net Working Capital
Net working capital to sales improved to 39.2%, indicating better efficiency in using the balance sheet.
Negative Updates
Challenges in Omega-3 Platform
Omega-3 platform faced a $28 million write-down due to a significant reduction in fish oil prices, impacting sales and profitability.
Increased Leverage
Nufarm finished the period with leverage of 4.5 times, an increase from previous years, partly due to investments in omega-3 and currency translation impacts.
Delayed Season and Competitive Pressures in North America
North America EBIT was down 10% year-on-year due to pricing pressures, a delayed season, and just-in-time buying.
Impact of Tariffs
Uncertainties in tariffs, especially the 125% tariffs for a six-week period, may impact sales in the second half due to supply chain decisions.
No Interim Dividend
Due to leverage and cash flow management, Nufarm announced there will be no interim dividend.
Company Guidance
During the Nufarm Limited 1H25 Results Call, CEO Greg Hunt provided detailed guidance on several performance metrics and strategic initiatives. The company reported an underlying EBIT of $103 million and earnings per share before material items of $7.02. The period ended with a leverage of 4.5 times, reflecting significant investments in Crop Protection and Seed portfolios. Nufarm is advancing its bioenergy platform, planning a threefold expansion in carinata area planted in 2025 compared to 2024, underpinned by a market development agreement with BP. The company is also targeting a $50 million annualized run rate savings in overhead costs by the end of FY25 and aims to reduce inventory days by 25 year-on-year. Capital expenditure for FY26 is projected to be around $200 million, indicating a shift beyond peak CapEx. The review of Seed Technologies has commenced, with UBS assisting in exploring capital structure options to accelerate growth, although there is no certainty of a transaction. Additionally, Brent Zacharias highlighted challenges in the omega-3 canola platform due to temporary fish oil market oversupply, with a $28 million write-down of inventories, yet expressed confidence in long-term omega-3 demand.

Nufarm Limited Financial Statement Overview

Summary
Income Statement
Balance Sheet
Cash Flow
Breakdown
TTMSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income StatementTotal Revenue
4.05B3.35B3.48B3.77B3.22B2.85B
Gross Profit
1.10B840.37M1.03B972.59M834.71M734.73M
EBIT
117.61M0.00239.40M203.16M151.17M-428.54M
EBITDA
305.76M263.77M427.18M421.60M363.37M-69.59M
Net Income Common Stockholders
-15.97M-5.60M111.14M107.44M65.13M-456.08M
Balance SheetCash, Cash Equivalents and Short-Term Investments
460.73M463.56M410.96M585.70M724.22M686.55M
Total Assets
4.64B4.43B4.63B4.66B4.37B4.54B
Total Debt
954.30M1.10B1.26B931.87M1.04B1.13B
Net Debt
493.58M634.76M849.84M346.17M316.82M441.26M
Total Liabilities
2.51B2.22B2.32B2.51B2.25B2.39B
Stockholders Equity
2.12B2.21B2.31B2.15B2.12B2.14B
Cash FlowFree Cash Flow
208.53M219.43M-352.36M160.20M281.70M-400.42M
Operating Cash Flow
442.18M0.00-125.62M321.12M424.19M-231.51M
Investing Cash Flow
-370.14M-207.46M-241.73M-240.41M-146.30M1.12B
Financing Cash Flow
-167.36M-200.76M185.98M-264.37M19.18M-670.68M

Nufarm Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2.15
Price Trends
50DMA
3.49
Negative
100DMA
3.62
Negative
200DMA
3.72
Negative
Market Momentum
MACD
-0.44
Positive
RSI
19.88
Positive
STOCH
6.21
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:NUF, the sentiment is Negative. The current price of 2.15 is below the 20-day moving average (MA) of 2.94, below the 50-day MA of 3.49, and below the 200-day MA of 3.72, indicating a bearish trend. The MACD of -0.44 indicates Positive momentum. The RSI at 19.88 is Positive, neither overbought nor oversold. The STOCH value of 6.21 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:NUF.

Nufarm Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUNUF
54
Neutral
$823.41M-1.17%4.06%3.49%-757.04%
51
Neutral
$2.02B-1.14-21.37%3.64%2.88%-30.57%
AUBC8
49
Neutral
AU$615.53M-7.78%-875.00%
AUSVM
42
Neutral
AU$459.33M-77.74%-654.93%
AUGG8
36
Underperform
AU$342.22M-12.08%46.56%
AUVUL
AU$929.36M-13.59%
AUPDI
39
Underperform
AU$1.02B-9.04%-114.29%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:NUF
Nufarm Limited
2.15
-2.55
-54.26%
AU:BC8
Black Cat Syndicate Ltd.
0.87
0.57
190.00%
AU:SVM
Sovereign Metals Limited
0.71
0.11
18.33%
AU:GG8
Labyrinth Resources Limited
0.54
0.44
440.00%
AU:VUL
Vulcan Energy Resources Ltd.
4.25
-0.68
-13.79%
AU:PDI
Predictive Discovery Limited
0.39
0.21
116.67%

Nufarm Limited Corporate Events

Nufarm Director Increases Shareholding
May 30, 2025

Nufarm Limited has announced a change in the director’s interest, with David John Jones acquiring 80,000 fully paid ordinary shares through an on-market trade. This acquisition increases his direct holding to 80,000 shares, while maintaining an indirect holding of 82,000 shares. The transaction was valued at $201,792, reflecting confidence in the company’s prospects.

The most recent analyst rating on (AU:NUF) stock is a Hold with a A$2.80 price target. To see the full list of analyst forecasts on Nufarm Limited stock, see the AU:NUF Stock Forecast page.

Nufarm Director Increases Stake with Share Acquisition
May 30, 2025

Nufarm Limited announced a change in the director’s interest, with Frederico Tripodi acquiring 6,370 ordinary shares through an on-market trade. This acquisition reflects an increased personal investment in the company, potentially signaling confidence in Nufarm’s future performance and strategic direction.

The most recent analyst rating on (AU:NUF) stock is a Hold with a A$2.80 price target. To see the full list of analyst forecasts on Nufarm Limited stock, see the AU:NUF Stock Forecast page.

Nufarm Limited Announces Change in Director’s Interest
May 30, 2025

Nufarm Limited has announced a change in the director’s interest, specifically involving Lynne Saint. On May 23, 2025, Ms. Saint acquired 4,969 fully paid ordinary shares under the Nufarm Limited Non-executive Director Share Rights Plan, while an equivalent number of rights vested under the FY25 NED Plan. This change reflects the company’s ongoing commitment to aligning director interests with shareholder value, potentially impacting stakeholder perceptions and the company’s governance practices.

The most recent analyst rating on (AU:NUF) stock is a Hold with a A$2.80 price target. To see the full list of analyst forecasts on Nufarm Limited stock, see the AU:NUF Stock Forecast page.

Nufarm Limited Announces Issuance of Unquoted Equity Securities
May 30, 2025

Nufarm Limited announced the issuance and conversion of unquoted equity securities, specifically 4,969 ordinary fully paid securities, as of May 23, 2025. This move reflects the company’s ongoing financial strategies and may impact its equity structure, potentially influencing investor perception and stakeholder interests.

The most recent analyst rating on (AU:NUF) stock is a Hold with a A$2.80 price target. To see the full list of analyst forecasts on Nufarm Limited stock, see the AU:NUF Stock Forecast page.

Nufarm Limited Corrects Director’s Shareholding Disclosure
May 26, 2025

Nufarm Limited has corrected an error in its previously lodged Appendix 3Y regarding the number of ordinary shares held indirectly by Director Greg Hunt. The total number of shares was misstated as 878,813 instead of the correct total of 928,813. This correction ensures accurate reporting of the director’s interests, maintaining transparency and compliance with ASX regulations.

The most recent analyst rating on (AU:NUF) stock is a Hold with a A$2.80 price target. To see the full list of analyst forecasts on Nufarm Limited stock, see the AU:NUF Stock Forecast page.

Nufarm Limited Addresses ASX Inquiry on Earnings Consistency
May 26, 2025

Nufarm Limited has responded to an ASX inquiry regarding its earnings for the half-year ended March 31, 2025. The company clarified that its earnings information, particularly the EBITDA, did not materially differ from market expectations, remaining within 10% of analyst consensus following an adjustment to its omega 3 inventory valuation. This response highlights Nufarm’s commitment to transparency and its proactive approach in addressing market concerns, ensuring stakeholders are informed about its financial performance.

The most recent analyst rating on (AU:NUF) stock is a Hold with a A$2.80 price target. To see the full list of analyst forecasts on Nufarm Limited stock, see the AU:NUF Stock Forecast page.

Nufarm Director Increases Stake with New Share Acquisition
May 23, 2025

Nufarm Limited has announced a change in the director’s interest, specifically involving Greg Hunt. Mr. Hunt has acquired 50,000 ordinary shares through an on-market trade, valued at $128,465.25. This acquisition reflects a strategic move to increase his indirect holdings in the company, potentially signaling confidence in Nufarm’s future performance. The transaction does not alter his direct holdings, but it does increase his indirect stake, which could have implications for stakeholder perceptions and the company’s market positioning.

The most recent analyst rating on (AU:NUF) stock is a Hold with a A$2.80 price target. To see the full list of analyst forecasts on Nufarm Limited stock, see the AU:NUF Stock Forecast page.

Nufarm Limited Announces Change in Substantial Holder Interests
May 12, 2025

Nufarm Limited has announced a change in the interests of its substantial holder, L1 Capital Pty Ltd, which affects the voting power associated with its shares. This change in relevant interests could have implications for the company’s governance and decision-making processes, potentially impacting stakeholders and the company’s strategic direction.

Nufarm Limited to Announce 2025 Half-Year Financial Results
May 2, 2025

Nufarm Limited will announce its 2025 half-year financial results on May 21, 2025, with a briefing for investors scheduled on the same day. This announcement is significant for stakeholders as it provides insights into the company’s financial health and strategic direction, potentially impacting its market positioning and investor relations.

Nufarm Director Increases Stake Significantly
Mar 17, 2025

Nufarm Limited announced a change in the director’s interest, with Alexandra Gartmann acquiring 12,850 additional securities through an on-market trade, bringing her total to 31,300 shares. This change reflects a significant increase in Gartmann’s stake in the company, potentially indicating confidence in Nufarm’s future performance and aligning her interests more closely with those of the shareholders.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.