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Ridley Corporation Limited
(Sydney:RIC)
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Rating:54Neutral
Price Target:
AU$3.00
▲(6.76% Upside)
Action:Downgraded
Date:08/21/26
The score is held back primarily by weaker financial quality (margin compression, lower earnings, and a materially more leveraged balance sheet) and a high P/E valuation. These are partially offset by constructive FY27 guidance and a technically strong uptrend with positive momentum.
Positive Factors
Acquisition-Driven Earnings Expansion
The fertilizers acquisition has materially expanded Ridley’s earnings base and diversified operations. Its first nine-month contribution provides a platform for further growth as the business receives a full-year benefit and integration efficiencies mature.
Negative Factors
Higher Leverage and Finance Costs
The acquisition shifted Ridley from net cash to material net debt and substantially increased finance costs. Although liquidity headroom remains available, higher leverage reduces financial flexibility and makes future earnings more sensitive to operating underperformance.
Read all positive and negative factors
Positive Factors
Negative Factors
Acquisition-Driven Earnings Expansion
The fertilizers acquisition has materially expanded Ridley’s earnings base and diversified operations. Its first nine-month contribution provides a platform for further growth as the business receives a full-year benefit and integration efficiencies mature.
Read all positive factors
Ridley Corporation Limited (RIC) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$1.09B
Dividend Yield3.64%
Average Volume (3M)723.85K
Price to Earnings (P/E)37.3
Beta (1Y)1.05
Revenue Growth119.88%
EPS Growth-45.11%
CountryAU
Employees613
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)0.07
Shares Outstanding374,853,100
10 Day Avg. Volume500,910
30 Day Avg. Volume723,849
Financial Highlights & Ratios
PEG Ratio-0.83
Price to Book (P/B)1.99
Price to Sales (P/S)0.35
P/FCF Ratio18.49
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$3.18Price Target Upside12.99% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.21
Revenue Forecast (FY)AU$3.01B
Ridley Corporation Limited Business Overview & Revenue Model
Company Description
Ridley Corporation Limited, an Australian enterprise, specializes in offering extensive animal nutrition solutions. Its operations are divided into two main segments: Packaged Feeds and Ingredients, and Bulk Stockfeeds. The company provides a dive...
How the Company Makes Money
RIC primarily makes money by selling manufactured animal feed and animal nutrition products to agricultural customers. Its revenue model is largely volume-driven: it procures feed ingredients (commodities and additives), processes them into formul...
Ridley Corporation Limited Earnings Call Summary
Earnings Call Date:Aug 19, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Feb 24, 2027
Earnings Call Sentiment Positive
The call emphasized strong, acquisition-driven earnings growth and solid cash generation (61.8% EBITDA growth, EPS +18%, fertilizer EBITDA contribution), successful integration steps and several operational wins (volume growth in Bulk, private-label gains in Packaged Feeds). Offsetting negatives include an $11.4M decline in Packaged & Ingredients EBITDA due to operational issues, a $28.7M NovaqPro impairment, one-off acquisition/integration costs and a move from net cash to $296M net debt with higher finance costs. Management presented a constructive FY'27 outlook with expected earnings growth across segments, ongoing integration synergies and a maintained dividend policy, indicating confidence in delivering accretion from the acquisition despite near-term headwinds.Positive Updates
Strong EBITDA Growth
Underlying EBITDA increased 61.8% year-on-year to $157.8 million in FY'26, driven by the nine-month contribution from the acquired fertilizers business and earnings growth in Bulk Stockfeeds and Packaged Feeds.
Negative Updates
Packaged & Ingredients Earnings Decline
Packaged and Ingredients delivered EBITDA of $51.6 million, down $11.4 million year-on-year. Operational disruptions (Maroota dam reconstruction and Timaru greenfield commissioning/design issues) and lower ovine raw material availability were the primary drivers.
Read all updates
Q4-2026 Updates
Positive
Negative
Strong EBITDA Growth
Underlying EBITDA increased 61.8% year-on-year to $157.8 million in FY'26, driven by the nine-month contribution from the acquired fertilizers business and earnings growth in Bulk Stockfeeds and Packaged Feeds.
Read all positive updates
Company Guidance
Guidance: Ridley expects group earnings growth in FY27 in each segment — driven by a full‑year contribution from Fertilisers, volume growth and higher capacity utilisation in Bulk Stockfeeds, and operational recovery plus a better commodity outlook in Packaged & Ingredients — and will continue its capital allocation framework targeting a dividend payout ratio of 50–70% of NPAT. Key metrics and assumptions: FY26 EBITDA was $157.8m (Fertilisers 9‑month EBITDA $72.2m; Bulk $50.3m; Packaged & Ingredients $51.6m), underlying EPS $0.163 (up 18%), operating cash flow $122m (including $40m one‑offs), headline leverage 0.85x at 30 June (net debt $296m versus prior net cash $64m) with $444m liquidity headroom and a target leverage range of 1–2x, capex $67m (growth capex $23m), maintenance/ESG capex reset to 80–100% of depreciation, expected normalized tax rate ~26–30%, integration/IT program $30m ( $13.3m spent in FY26) delivering ~$7m IT synergies over two years plus ~$8m headcount savings in FY27 and $5–10m procurement savings by FY28; FY26 included an ISI net charge of $4.8m after tax and a NovaqPro non‑cash write‑off of $28.7m after tax.Ridley Corporation Limited Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
35
Negative
Cash Flow
40
Negative
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.86B | 1.30B | 1.26B | 1.26B | 1.05B |
| Gross Profit | 216.04M | 121.20M | 115.94M | 111.36M | 99.56M |
| EBITDA | 149.68M | 86.27M | 90.55M | 88.90M | 89.08M |
| Net Income | 27.57M | 43.32M | 39.85M | 41.83M | 42.43M |
Balance Sheet | |||||
| Total Assets | 1.98B | 734.55M | 664.38M | 617.70M | 607.37M |
| Cash, Cash Equivalents and Short-Term Investments | 251.57M | 84.67M | 34.20M | 43.02M | 27.08M |
| Total Debt | 761.12M | 94.17M | 98.29M | 81.17M | 61.79M |
| Total Liabilities | 1.49B | 276.44M | 341.26M | 302.31M | 291.34M |
| Stockholders Equity | 498.72M | 458.12M | 323.12M | 315.39M | 316.03M |
Cash Flow | |||||
| Free Cash Flow | 53.72M | 34.00M | 74.19M | 43.75M | 22.79M |
| Operating Cash Flow | 122.41M | 68.26M | 105.06M | 78.52M | 46.59M |
| Investing Cash Flow | -412.19M | -28.57M | -86.17M | -34.77M | 36.36M |
| Financing Cash Flow | 456.68M | 10.78M | -27.71M | -28.37M | -95.78M |
Ridley Corporation Limited Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | AU$154.47M | 16.92 | 12.22% | 2.27% | 27.60% | 96.31% | |
63 Neutral | AU$636.64M | 21.10 | 5.52% | 0.79% | -5.67% | -9.70% | |
63 Neutral | AU$2.04B | 36.90 | 5.46% | 1.95% | 6.66% | ― | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
54 Neutral | AU$1.09B | 37.26 | 14.76% | 3.53% | 119.88% | -45.11% | |
49 Neutral | AU$33.25M | -0.51 | 19.78% | ― | 8.82% | 55.22% | |
42 Neutral | AU$12.60M | -2.67 | -19.17% | ― | 44.25% | 41.58% |
* Consumer Defensive Sector Average
AU:RIC
Ridley Corporation Limited
2.72
-0.21
-7.26%
AU:SHV
Select Harvests
4.48
0.57
14.43%
AU:NOU
Noumi Limited
0.12
-0.04
-25.00%
AU:AHF
Australian Dairy Nutritionals Group
0.02
-0.03
-62.79%
AU:BGA
Bega Cheese Limited
6.49
1.11
20.61%
AU:CLV
Clover Corporation Limited
0.90
0.35
64.84%
Ridley Corporation Limited Corporate Events
Ridley boosts earnings base with fertiliser acquisition and broader agri portfolio
Aug 19, 2026
Ridley Corporation has reported its FY26 results highlighting a strategic step-change, anchored by the acquisition of Incitec Pivot Fertilisers and the creation of a more diversified, resilient portfolio. The company emphasized that each of its op...
Ridley Corporation Declares Interim Dividend for June 2026 Half-Year
Aug 19, 2026
Ridley Corporation Limited has declared a fully franked interim dividend of AUD 0.0535 per ordinary share for the six‑month period ended 30 June 2026, reinforcing its commitment to returning capital to shareholders. The dividend will trade e...
Ridley grows revenue on fertiliser acquisition but profit hit by impairments
Aug 19, 2026
Ridley reported a sharp 119.9% jump in revenue to $2.86 billion for the year to 30 June 2026, largely driven by the first nine months’ contribution from its newly acquired fertilisers distribution business, and lifted EBITDA after significan...
Ridley Corporation Cancels 150,985 Performance Rights in Capital Adjustment
Jul 8, 2026
Ridley Corporation has reported the cessation of 150,985 performance rights from its issued capital, following a cancellation agreed between the company and the holder. The change, effective 3 July 2026, slightly reduces the pool of outstanding eq...
Ridley Sets Date for Release of FY26 Results and Investor Briefing
Jul 2, 2026
Ridley Corporation has scheduled the release of its full-year FY26 financial results for 20 August 2026, prior to the market open. The announcement signals an upcoming detailed update on the company’s performance for the year ended 30 June 2...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.