Rural Funds Group (RFF) AI Stock Analysis

• Market Cap: AU$709.30M
• Dividend Yield: 6.45%
• Average Volume (3M): 611.83K
• Price to Earnings (P/E): 14.5
• Beta (1Y): 0.59
• Revenue Growth: 14.72%
• EPS Growth: -42.17%
• Country: AU
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 70
• Industry: REIT - Specialty
• EPS (TTM): 0.03
• Shares Outstanding: 389,723,000
• 10 Day Avg. Volume: 622,168
• 30 Day Avg. Volume: 611,826
• PEG Ratio: -0.15
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 57.25
• 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: AU$2.18
• Price Target Upside: 18.34% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 74 Outperform
• Price Target: AU$2.00 ▲(8.70%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 operators under long-term lease agreements. These leases provide a steady stream of rental income, which constitutes the majority of RFF's revenue. The company also benefits from the capital appreciation of its property assets over time. Additionally, RFF engages in strategic acquisitions and developments to enhance its portfolio and increase its revenue potential. The diversification across different agricultural sectors and geographies helps mitigate risks and ensure stability in earnings.

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, but increasing leverage requires careful monitoring. Overall, while the company is performing well, it needs to address its cash flow issues to ensure long-term financial health.

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
	EBIT
121.96M	28.48M	41.57M	46.59M	46.19M	47.42M
	EBITDA
63.97M	53.91M	54.20M	53.95M	51.24M	54.70M
	Net Income Common Stockholders
48.74M	83.25M	94.50M	209.14M	119.63M	48.99M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.00M	7.24M	5.75M	4.96M	11.65M	5.08M
	Total Assets
1.90B	1.90B	1.67B	1.41B	1.05B	919.59M
	Total Debt
742.74M	787.74M	640.61M	457.82M	346.60M	301.06M
	Net Debt
735.74M	780.50M	634.86M	452.86M	334.95M	295.98M
	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: 1.84
• 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 1.84 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 1.77, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 54.29 is Neutral, neither overbought nor oversold. The STOCH value of 28.89 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	AU$709.30M	14.49	4.68%	6.45%	14.72%	-42.17%
DXI	70 Outperform	AU$907.39M	17.38	4.90%	5.73%	-10.26%	―
Sector *	61 Neutral	$2.84B	10.85	0.42%	9.90%	5.94%	-21.26%
LIC	59 Neutral	AU$802.31M	14.84	7.50%	1.51%	8.28%	-39.60%
AOF	53 Neutral	AU$78.08M	―	-26.33%	202.10%	-7.19%	-94.37%
COF	50 Neutral	AU$734.72M	―	-8.21%	8.21%	-9.52%	47.94%
CMW	47 Neutral	AU$903.51M	―	-12.54%	8.70%	-52.49%	47.09%

Rural Funds Group Corporate Events

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.