Rural Funds Group (RFF) AI Stock Analysis

• Market Cap: AU$707.35M
• Dividend Yield: 6.24%
• Average Volume (3M): 702.23K
• Price to Earnings (P/E): 14.4
• Beta (1Y): 0.60
• Revenue Growth: 14.72%
• EPS Growth: -42.17%
• Country: AU
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 81
• Industry: REIT - Specialty
• EPS (TTM): 0.13
• Shares Outstanding: 389,723,000
• 10 Day Avg. Volume: 507,792
• 30 Day Avg. Volume: 702,230
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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$2.26
• Price Target Upside: 24.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

Rural Funds Group's overall score reflects solid financial performance with strong revenue growth and profitability. However, the decline in net profit margin and negative cash flow are notable risks. The technical indicators suggest stable but cautious momentum. Valuation is favorable with a reasonable P/E ratio and high dividend yield, making it attractive for income-focused investors.

Rural Funds Group Business Overview & Revenue Model

Company Description

Rural Funds Group (RFF) is an Australian-based real estate investment trust (REIT) that specializes in owning and leasing agricultural assets. The company focuses on high-quality agricultural properties, including farmland, water entitlements, and infrastructure assets, which are leased to experienced agricultural operators. RFF operates across various sectors such as cattle, vineyards, almond orchards, and other cropping ventures, providing essential resources to the agricultural industry.

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
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
95.06M	98.11M	85.29M	70.97M	71.10M
	Gross Profit
67.95M	69.47M	66.96M	62.82M	61.98M
	EBIT
28.48M	41.57M	46.59M	46.19M	47.42M
	EBITDA
53.91M	54.20M	53.95M	51.24M	54.70M
	Net Income Common Stockholders
83.25M	94.50M	209.14M	119.63M	48.99M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.24M	5.75M	4.96M	11.65M	5.08M
	Total Assets
1.90B	1.67B	1.41B	1.05B	919.59M
	Total Debt
787.74M	640.61M	457.82M	346.60M	301.06M
	Net Debt
780.50M	634.86M	452.86M	334.95M	295.98M
	Total Liabilities
829.90M	680.34M	489.75M	397.21M	361.62M
	Stockholders Equity
1.08B	993.16M	917.01M	648.54M	557.97M
Cash Flow		Free Cash Flow
-23.27M	-8.13M	-58.89M	15.77M	34.91M
	Operating Cash Flow
31.58M	29.25M	37.66M	35.47M	43.38M
	Investing Cash Flow
-138.25M	-172.07M	-215.41M	-41.66M	-17.34M
	Financing Cash Flow
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: Negative

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 1.75, above the 50-day MA of 1.75, and above the 200-day MA of 1.80, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 64.19 is Neutral, neither overbought nor oversold. The STOCH value of 88.06 is Negative, 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
EGL	70 Outperform	AU$93.22M	24.50	9.28%	―	19.70%	8.70%
RFF	68 Neutral	AU$707.35M	14.45	4.68%	6.24%	14.72%	-42.17%
BGA	64 Neutral	€1.81B	52.85	3.35%	1.85%	4.28%	―
GNC	62 Neutral	$1.51B	24.16	3.92%	3.18%	-20.98%	-75.30%
Sector *	60 Neutral	$2.80B	11.09	0.20%	8508.36%	6.13%	-16.84%
SHV	59 Neutral	AU$744.64M	412.60	0.34%	―	64.18%	―
AAC	51 Neutral	AU$897.74M	27.40	2.26%	―	15.11%	―

Rural Funds Group Corporate Events

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.

Rural Funds Group Announces Quarterly Distribution

Rural Funds Group has announced a new quarterly distribution of AUD 0.029325 per fully paid unit stapled security, with an ex-date of March 28, 2025, and a payment date of April 30, 2025. This distribution reflects the company’s ongoing commitment to providing consistent returns to its investors, reinforcing its position in the agricultural investment sector.

Rural Funds Group Reports Surge in Net Property Income and Reaffirms Financial Forecasts

Rural Funds Group reported a 17.3% increase in net property income for the first half of 2025, driven by additional rental income from macadamia developments. The group’s financial strategy includes a reinforced full-year forecast with adjusted funds from operations at 11.4 cents per unit and a distribution forecast of 11.73 cents per unit. The group is actively involved in leasing activities, with new lease agreements covering eight properties and significant leasing extensions for vineyards and other agricultural assets. The developments are fully funded, with plans to reduce gearing through strategic asset sales, which is expected to enhance their market positioning while maintaining a diverse portfolio across multiple agricultural sectors.

Rural Funds Group Releases Half-Year Financial Statements

Rural Funds Group has released their financial statements for the half-year ended 31 December 2024, which includes comprehensive financial data such as statements of income, financial position, and cash flows. The report is essential for stakeholders to assess the company’s performance during this period, providing insights into its operational and financial health.

Rural Funds Group Reports Mixed Half-Year Financial Results Amid Strategic Adjustments

Rural Funds Group’s half-year financial results reveal a mixed performance, with a 17% increase in revenue but a significant decline in profit after tax and total comprehensive income, dropping by 72% and 82% respectively. The suspension of the distribution reinvestment plan and the decrease in net tangible and adjusted net asset values indicate strategic adjustments in response to market conditions, potentially impacting stakeholders’ returns and investment strategies.