Rural Funds Group (RFF) AI Stock Analysis

• Market Cap: AU$787.24M
• Dividend Yield: 5.71%
• Average Volume (3M): 791.66K
• Price to Earnings (P/E): 30.1
• Beta (1Y): 0.47
• Revenue Growth: 18.40%
• EPS Growth: -67.76%
• Country: AU
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Specialty
• EPS (TTM): 0.06
• Shares Outstanding: 389,723,000
• 10 Day Avg. Volume: 501,222
• 30 Day Avg. Volume: 791,660
• PEG Ratio: -0.35
• Price to Book (P/B): 0.65
• Price to Sales (P/S): 6.02
• P/FCF Ratio: 50.07
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: AU$2.00 ▲(3.63% Upside)

The overall stock score for Rural Funds Group is driven primarily by its stable financial performance and positive technical indicators. While the company shows strong operational efficiency, concerns about declining revenue growth and cash flow conversion weigh on the score. The valuation is mixed, with a high P/E ratio offset by an attractive dividend yield.

Positive Factors

Long-term lease income stability

Long-term leases provide predictable rental cash flows that underpin the REIT business model, supporting consistent distributions and reducing vacancy volatility. This durable income stream aids budgeting for capex and strategic investments across multiple quarters.

Diversified agricultural portfolio

Exposure across vineyards, orchards and livestock spreads operational, climate and commodity risks, reducing reliance on any single crop or region. This structural diversification supports steadier rental income, operational synergies with tenants, and resilience to sector-specific shocks.

Healthy balance sheet and equity base

A moderate leverage profile and healthy equity ratio provide financial flexibility to fund acquisitions and withstand cyclical pressures. Lower refinancing risk and a strong asset base support long-term dividend capacity and resilience versus peers with weaker balance sheets.

Negative Factors

Declining revenue growth trend

A recent negative revenue trend points to weakening top-line momentum for rental and operational income. If sustained, declining revenues can compress margins, reduce reinvestment capacity and pressure distributions, making long-term recovery critical to uphold returns.

Weak cash flow conversion

Operating cash flow below net income and low free cash flow conversion show earnings aren't translating efficiently into cash. Persistent weak conversion constrains dividend sustainability, capex funding and debt servicing, reducing the group's financial resilience over time.

Decreasing ROE and EPS weakness

Falling return on equity combined with a steep EPS decline signals worsening capital efficiency and profitability. This structural deterioration can reduce the group's ability to generate shareholder returns and suggests asset performance or cost pressures need strategic correction.

Rural Funds Group Business Overview & Revenue Model

Company Description

Rural Funds Group (RFF) is an Australian real estate investment trust (REIT) that focuses on acquiring, developing, and managing agricultural assets across Australia. RFF primarily invests in sectors such as vineyards, orchards, and livestock, providing investors with exposure to agricultural land and related infrastructure. The group aims to deliver sustainable returns through a diversified portfolio that includes both operational and rental income from its agricultural holdings.

How the Company Makes Money

Rural Funds Group generates revenue primarily through rental income derived from leasing its agricultural properties to tenants engaged in various farming activities. The company benefits from long-term lease agreements, which provide stable cash flow. Additionally, RFF may generate supplementary income through the operational activities on its properties, such as crop production and livestock management. Strategic partnerships with farmers and agribusinesses enhance its operational efficiency and income potential. Furthermore, RFF's focus on sustainable agricultural practices aligns with growing market demand for environmentally responsible farming, which can lead to increased asset value and revenue generation over time.

Rural Funds Group Financial Statement Overview

Summary

Rural Funds Group shows a stable financial position with strong operational efficiency, as evidenced by healthy margins. However, declining revenue growth and challenges in cash flow conversion are potential risks. The company maintains a balanced leverage position, but decreasing return on equity suggests room for improvement in capital utilization.

Income Statement

The income statement shows a mixed performance. The company has strong gross and EBIT margins, indicating efficient operations. However, there is a notable decline in revenue growth, with a negative growth rate in the most recent year, which could be a concern for future profitability. The net profit margin has also decreased significantly compared to previous years, suggesting potential challenges in maintaining profitability.

Balance Sheet

The balance sheet reflects a stable financial position with a moderate debt-to-equity ratio, indicating a balanced approach to leverage. The equity ratio is healthy, showing a strong asset base supported by equity. However, the return on equity has decreased over the years, which may indicate less efficient use of equity capital.

Cash Flow

Cash flow analysis reveals some concerns. While there is positive free cash flow growth in the latest year, the operating cash flow to net income ratio is below 1, suggesting potential issues in converting income into cash. The free cash flow to net income ratio is also low, indicating challenges in generating free cash flow relative to net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	113.82M	113.82M	95.06M	98.11M	85.29M	70.97M
Gross Profit	87.04M	87.04M	67.95M	69.47M	66.96M	62.82M
EBITDA	74.84M	70.72M	53.91M	54.20M	53.95M	51.24M
Net Income	26.04M	31.46M	83.25M	94.50M	209.14M	119.63M
Balance Sheet
Total Assets	1.91B	1.91B	1.90B	1.67B	1.41B	1.05B
Cash, Cash Equivalents and Short-Term Investments	8.91M	8.91M	7.24M	5.75M	4.96M	11.65M
Total Debt	811.05M	811.05M	787.74M	640.61M	457.82M	346.60M
Total Liabilities	862.84M	862.84M	829.90M	680.34M	489.75M	397.21M
Stockholders Equity	1.06B	1.06B	1.08B	993.16M	917.01M	648.54M
Cash Flow
Free Cash Flow	33.97M	13.69M	-23.27M	-8.13M	-58.89M	15.77M
Operating Cash Flow	55.80M	55.73M	31.58M	29.25M	37.66M	35.47M
Investing Cash Flow	-35.94M	-35.74M	-138.25M	-172.07M	-215.41M	-41.66M
Financing Cash Flow	-19.32M	-19.32M	108.15M	143.61M	171.07M	12.75M

Rural Funds Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.93
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 1.93 is below the 20-day moving average (MA) of 2.02, below the 50-day MA of 1.98, and above the 200-day MA of 1.85, indicating a bullish trend. The MACD of 0.01 indicates Positive momentum. The RSI at 55.81 is Neutral, neither overbought nor oversold. The STOCH value of 21.88 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
DXI	70 Outperform	AU$812.21M	9.65	7.99%	6.09%	-8.67%	―
RFF	67 Neutral	AU$787.24M	30.15	2.40%	5.71%	18.40%	-67.76%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
CMW	54 Neutral	AU$1.11B	-18.75	-9.33%	6.12%	-5.64%	89.16%
COF	53 Neutral	AU$645.12M	-32.18	-1.91%	8.63%	-4.50%	88.28%
AOF	49 Neutral	AU$61.64M	-1.71	-23.55%	15.14%	-68.24%	42.03%
LIC	46 Neutral	AU$673.45M	-3.53	-26.73%	―	-38.91%	-453.73%

Rural Funds Group Corporate Events

Rural Funds Group Director Reports Internal Transfer of Stapled Securities

Rural Funds Group has announced that director Michael Carroll has reported a change in the nature of his indirect interests in the stapled securities of the trust, although the total number of units he controls remains unchanged at 350,604. The update reflects an off-market transfer of units held via two related entities, Productivity Investments Pty Ltd and Mudgegonga Pty Ltd as trustee for the Carroll Family Super Fund, with no units acquired or disposed and no trading during a closed period, indicating an internal restructuring of holdings rather than a change in his overall economic exposure, thereby having limited immediate implications for other securityholders.

The most recent analyst rating on (AU:RFF) stock is a Buy with a A$2.50 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 Declares Quarterly Distribution

Rural Funds Group has announced a new distribution of AUD 0.029325 per fully paid unit stapled security, with the ex-date set for December 30, 2025, and the payment date on January 30, 2026. This quarterly distribution reflects the company’s ongoing commitment to providing returns to its investors, potentially enhancing its attractiveness to stakeholders and maintaining its market position in the agricultural investment sector.

The most recent analyst rating on (AU:RFF) stock is a Buy with a A$2.43 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 Estimated Taxable Components for September 2025 Quarter

Rural Funds Group has announced the estimated taxable components for its distribution for the quarter ending 30 September 2025. The distribution is part of its strategy to provide regular income to its unitholders, although the components are preliminary and subject to change. The total cash distribution is 2.9325 cents per unit, with no franking credits, and includes fund payments relevant to the financial year ending 30 June 2026. This announcement is significant for stakeholders as it outlines the expected returns and tax implications for the upcoming financial period.

The most recent analyst rating on (AU:RFF) stock is a Buy with a A$2.43 price target. To see the full list of analyst forecasts on Rural Funds Group stock, see the AU:RFF Stock Forecast page.