Rural Funds Group (RFF) AI Stock Analysis

• Market Cap: $720.99M
• Dividend Yield: 6.39%
• Average Volume (3M): 732.36K
• Price to Earnings (P/E): 14.7
• Beta (1Y): 0.67
• Revenue Growth: 14.72%
• EPS Growth: -42.17%
• Country: AU
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 50
• Industry: REIT - Specialty
• EPS (TTM): 0.03
• Shares Outstanding: 389,723,000
• 10 Day Avg. Volume: 708,860
• 30 Day Avg. Volume: 732,355
• PEG Ratio: -0.15
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 57.72
• 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: $1.89
• Price Target Upside: 4.01% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: AU$2.00 ▲(9.89%Upside)

Rural Funds Group's overall stock score is driven by strong technical analysis and attractive valuation, despite challenges in cash flow management. The company's ability to maintain profitability amidst declining net profit margins and negative free cash flow is a key consideration.

Rural Funds Group Business Overview & Revenue Model

Company Description

Rural Funds Group is an agricultural Real Estate Investment Trust (REIT) listed on the ASX under the code RFF. RFF owns a diversified portfolio of Australian agricultural assets which are leased predominantly to corporate agricultural operators. RFF targets distribution growth of 4% per annum by owning and improving farms that are leased to good counterparties.

How the Company Makes Money

Rural Funds Group makes money primarily through leasing its agricultural properties to established agribusinesses. The company generates stable rental income from long-term lease agreements with experienced operators in various agricultural sectors. These leases typically include fixed rental increases or indexation to provide predictable revenue growth. Additionally, RFF may engage in strategic asset enhancements or developments that can increase the value of its properties and, subsequently, the rental income. The company also benefits from capital appreciation of its assets over time. Partnerships with reputable agricultural operators and a focus on sustainable farming practices further enhance RFF's ability to maintain and grow its revenue streams.

Rural Funds Group Financial Statement Overview

Summary

Rural Funds Group demonstrates solid revenue growth and profitability, supported by strong EBIT and gross profit margins. However, the decline in net profit margin and negative free cash flow highlight areas for improvement. The balance sheet is stable, with a moderately high debt-to-equity ratio that requires careful monitoring.

Income Statement

The company shows a strong revenue growth trend, with a 14.7% increase from the previous year. The gross profit margin is high at 64.6%, indicating efficient cost management. However, the net profit margin has decreased from 96.3% in 2023 to 74.0% in 2024. EBIT and EBITDA margins are solid, reflecting good operational performance.

Balance Sheet

The debt-to-equity ratio is moderately high at 0.73, suggesting a balanced leverage position. Return on equity is strong at 7.7%, indicating effective use of equity capital. The equity ratio is at 56.7%, showing a stable financial structure, though increasing debt levels could be a concern if not managed well.

Cash Flow

Free cash flow has decreased, resulting in a negative free cash flow for the year, which is a potential red flag. The operating cash flow to net income ratio is 0.38, indicating that cash generation from operations is not keeping pace with accounting earnings. The company needs to improve cash flow management to sustain operations without relying heavily on external financing.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	121.96M	95.06M	98.11M	85.29M	70.97M	71.10M
Gross Profit	103.03M	67.95M	69.47M	66.96M	62.82M	61.98M
EBITDA	63.97M	53.91M	54.20M	53.95M	51.24M	54.70M
Net Income	48.74M	83.25M	94.50M	209.14M	119.63M	48.99M
Balance Sheet
Total Assets	1.90B	1.90B	1.67B	1.41B	1.05B	919.59M
Cash, Cash Equivalents and Short-Term Investments	7.00M	7.24M	5.75M	4.96M	11.65M	5.08M
Total Debt	742.74M	787.74M	640.61M	457.82M	346.60M	301.06M
Total Liabilities	834.17M	829.90M	680.34M	489.75M	397.21M	361.62M
Stockholders Equity	1.07B	1.08B	993.16M	917.01M	648.54M	557.97M
Cash Flow
Free Cash Flow	12.49M	-23.27M	-8.13M	-58.89M	15.77M	34.91M
Operating Cash Flow	34.29M	31.58M	29.25M	37.66M	35.47M	43.38M
Investing Cash Flow	-89.28M	-138.25M	-172.07M	-215.41M	-41.66M	-17.34M
Financing Cash Flow	47.50M	108.15M	143.61M	171.07M	12.75M	-23.55M

Rural Funds Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.82
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:RFF, the sentiment is Positive. The current price of 1.82 is above the 20-day moving average (MA) of 1.80, above the 50-day MA of 1.78, and above the 200-day MA of 1.74, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 58.04 is Neutral, neither overbought nor oversold. The STOCH value of 71.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:RFF.

Rural Funds Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RFF	74 Outperform	$720.99M	14.73	4.68%	6.39%	14.72%	-42.17%
DXI	70 Outperform	AU$862.97M	16.52	4.90%	6.03%	-10.26%	―
Sector *	66 Neutral	$1.97B	17.66	2.45%	4.97%	-1.17%	4.31%
LIC	62 Neutral	AU$504.48M	9.33	7.50%	2.41%	8.28%	-39.60%
COF	55 Neutral	AU$719.79M	―	-8.21%	8.38%	-9.52%	47.94%
CMW	54 Neutral	AU$982.08M	―	-12.54%	8.00%	-52.49%	47.09%
AOF	53 Neutral	AU$77.26M	―	-26.33%	7.23%	-7.19%	-94.37%

Rural Funds Group Corporate Events

Rural Funds Group Strengthens Market Position with Diversified Agricultural Portfolio

Rural Funds Group (RFF), managed by Rural Funds Management Limited, is a significant player in the agricultural real estate sector with a diversified portfolio valued at $2.0 billion. The company’s operations span various agricultural sectors, including almonds, macadamias, vineyards, and cattle, positioning it as a robust entity in the Australian agricultural market. The announcement underscores RFF’s commitment to precision-based asset management, which is central to its operational strategy and long-term growth. This strategic focus is likely to enhance RFF’s market position and provide stable returns to its stakeholders, reflecting its motto of ‘Managing good assets with good people.’

The most recent analyst rating on (AU:RFF) stock is a Hold with a A$2.20 price target. To see the full list of analyst forecasts on Rural Funds Group stock, see the AU:RFF Stock Forecast page.

Rural Funds Group Announces New Quarterly Dividend Distribution

Rural Funds Group has announced a new dividend distribution of AUD 0.029325 per fully paid unit stapled security, with the ex-date set for June 27, 2025, and the payment date on July 31, 2025. This announcement is part of the company’s quarterly financial reporting, reflecting its ongoing commitment to providing consistent returns to its stakeholders.

The most recent analyst rating on (AU:RFF) stock is a Hold with a A$2.20 price target. To see the full list of analyst forecasts on Rural Funds Group stock, see the AU:RFF Stock Forecast page.

Rural Funds Group Confirms Quarterly Distribution Payment

Rural Funds Group has confirmed the payment of a distribution for its fully paid units stapled securities, relating to the quarter ending March 31, 2025. This update solidifies the company’s commitment to providing returns to its investors, reinforcing its stable financial positioning within the agricultural investment sector.

Rural Funds Group Announces Estimated Taxable Distribution Components for March 2025 Quarter

Rural Funds Management Limited, as the responsible entity for Rural Funds Group, announced the estimated taxable components for the distribution for the quarter ending 31 March 2025. The distribution includes various income components and is franked at 2.68% at a corporate tax rate of 30%. This announcement provides stakeholders with an understanding of the taxable components, impacting foreign entities with a 30% withholding tax on certain income derived from agricultural land assets.