Ridley Corporation Limited (RIC) AI Stock Analysis

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Ridley Corporation Limited

(Sydney:RIC)

Select Model

Neutral 68 (OpenAI - 5.2)

Rating:68Neutral

Price Target:

AU$2.50

▼(-13.19% Downside)

Action:ReiteratedDate:02/26/26

The score is driven primarily by solid underlying financial performance (growth and improved leverage) and a constructive earnings outlook from management, partially offset by weaker operational efficiency/free-cash-flow stability and a weak-to-neutral technical setup (below key longer-term moving averages). Valuation is supportive due to a moderate P/E and a ~3.9% dividend yield.

Positive Factors

Revenue Growth

Consistent revenue growth indicates successful market penetration and product demand, supporting long-term business sustainability.

Profitability Improvement

Improved profitability through cost management enhances financial health, allowing for reinvestment and competitive positioning.

Leverage Management

Better leverage management reduces financial risk, providing more flexibility for strategic investments and growth initiatives.

Negative Factors

Operational Efficiency Challenges

Decreased margins suggest operational inefficiencies, which could hinder profitability and competitiveness if not addressed.

Cash Flow Volatility

Volatile cash flow can impact the company's ability to fund operations and growth, posing a risk to financial stability.

Equity Financing

High reliance on equity financing may restrict financial agility, affecting the company's ability to respond to market changes.

Ridley Corporation Limited (RIC) vs. iShares MSCI Australia ETF (EWA)

Market Cap

AU$1.08B

Dividend Yield3.74%

Average Volume (3M)723.85K

Price to Earnings (P/E)14.1

Beta (1Y)1.26

Revenue Growth3.15%

EPS Growth7.29%

CountryAU

Employees613

SectorConsumer Defensive

Sector Strength42

IndustryPackaged Foods

Share Statistics

EPS (TTM)0.06

Shares Outstanding374,853,100

10 Day Avg. Volume500,910

30 Day Avg. Volume723,849

Financial Highlights & Ratios

PEG Ratio2.69

Price to Book (P/B)2.12

Price to Sales (P/S)0.75

P/FCF Ratio28.60

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

AU$3.19

Price Target Upside10.94% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering2

EPS Forecast (FY)0.16

Revenue Forecast (FY)AU$2.55B

Ridley Corporation Limited Business Overview & Revenue Model

Company DescriptionRidley Corporation Limited, together with its subsidiaries, provides animal nutrition solutions in Australia. It operates in two segments, Packaged Feeds and Ingredients, and Bulk Stockfeeds. The company offers packaged products and supplements, such as bagged poultry, dairy, dog, horse, and lifestyle animal feeds, as well as block and loose lick supplements; aquafeed, which includes extruded and steam pelleted products for various fin fish and prawns; and rendered poultry, red meat, and fish products for the pet food, stockfeed, and aquaculture sectors. It also provides monogastric and ruminant feeds, such as pellets, meals, concentrates, and premixes for poultry, pigs, dairy cattle, beef cattle, and sheep. In addition, the company provides nutrition solutions to various food producers in the dairy, poultry, pig, aquaculture, sheep, and beef industries; laboratory animals in the research sector; and equine, canine, and home layer markets in retail sector. The company offers its products primarily under the Barastoc, Rumevite, Cobber, Primo, and Food for Dogs brands. It also exports its products. Ridley Corporation Limited was incorporated in 1987 and is headquartered in Melbourne, Australia.

How the Company Makes MoneyRidley Corporation generates revenue through the sale of its animal nutrition products, which include a variety of feed formulations tailored to different livestock species. The company operates several production facilities and utilizes a distribution network to reach its customers, which include farmers, agricultural cooperatives, and retailers. Key revenue streams include direct sales of feed products, custom feed formulations, and value-added services such as nutrition consulting and on-farm support. Additionally, Ridley has established partnerships with key players in the agricultural sector, which help to enhance its market presence and drive sales. The company's focus on research and development allows it to innovate and improve its product offerings, further contributing to its financial performance.

Ridley Corporation Limited Earnings Call Summary

Earnings Call Date:Feb 26, 2026

(Q2-2026)

% Change Since: |

Next Earnings Date:Aug 26, 2026

Earnings Call Sentiment Positive

The call presents a largely positive operational and strategic picture: group underlying EBITDA grew (H1 underlying EBITDA +9%), Bulk Stockfeeds performed strongly (+25% EBITDA with robust volume growth), the fertiliser acquisition is delivering early margin/cost benefits and a provisional bargain gain, and operating cash flow and leverage metrics are healthy (operating cash flow $128m; covenant leverage 0.8x). Offsetting these positives are a pronounced decline in the Packaged & Ingredients segment (EBITDA -28%), temporary processing disruptions (Maroota dam, Timaru commissioning delays), commodity headwinds for protein meals, and acquisition-related debt and one-off costs that increased finance expense. Management has clear integration and cost-saving plans (headcount reductions, ERP migration, debottlenecking projects) and expects H2 improvement, but near-term risks from seasonality and processing issues remain.

Q2-2026 Updates

Positive Updates

Underlying EBITDA Growth

Underlying EBITDA of $55.4 million, a 9% increase on the prior corresponding period (PCP); combined segment EBITDA of ~$63 million for the half, demonstrating overall earnings growth despite integration activity.

Bulk Stockfeeds Strong Performance

Bulk Stockfeeds delivered EBITDA of $27.1 million, up 25% on PCP, driven by volume growth (ruminant +13%, monogastric +7%), higher-margin supplementary feeding, and Ridley Direct commercial gains; result achieved despite $1.7 million of lost earnings in FY'25 from the sold Wadley mill.

Fertiliser Segment Outperformance and Strategic Acquisition

Fertiliser contributed EBITDA of $10.3 million from 3 months (above the top end of expectations and above PCP) due to cost control and margin management. Acquisition summary: total consideration $433 million (cash outlay $357 million), fair value of assets acquired ~$489 million (including ~$386 million working capital). A provisional bargain purchase gain of $56 million was recognized, producing net individually significant gains after tax of $31.4 million in the period.

Strong Operating Cash Flow and Balance Sheet Metrics

Operating cash flow of $128 million. Excluding the acquisition, working capital reduced by $72.5 million and net debt (pro forma/excluding acquisition effects) reduced by $22.4 million. Post-acquisition bank leverage for covenant purposes reported at 0.8x and debtor days remained healthy at 33 days.

Dividend Increase and Capital Allocation Discipline

Board declared a progressive interim dividend of $0.051 per share, fully franked (up from $0.0475 in H1 FY'25, ~+7.4%). Dividend payout is ~59% of underlying NPAT and capital allocation priorities (maintenance capex, targeted leverage range) were maintained.

Cost Savings & Integration Plans

Restructure of the fertiliser business removed 45 roles, targeting ~$8 million per annum in savings from FY'27 (one-off cost ~ $3 million in FY'26). Migration to Ridley ERP (Microsoft Dynamics) estimated at ~$30 million with expected corporate synergies of ~$7 million p.a. from calendar 2027. Targeted debottlenecking investments (e.g., $5.7 million at Lara) and new product lines (1.6 million concentrates line at Gunbower) to support growth.

Negative Updates

Packaged & Ingredients EBITDA Decline

Packaged and Ingredients EBITDA decreased 28% to $25.6 million year-on-year. Key drivers included short-term ovine supply constraints (lower lamb slaughter rates), weaker protein meal prices versus prior year, and processing disruptions that reduced throughput and yields.

Processing Disruptions and Operational Constraints

Temporary processing issues: a slip in the Maroota main cooling dam wall rendered the dam inoperable (necessitating costly diversion of material), and commissioning delays at the new OMP Timaru greenfield facility constrained daily throughput and yields. These issues added costs and lowered near-term performance.

Commodity Price and Market Headwinds

Lower protein meal prices and residual market dislocation from prior avian influenza (excess poultry meal) pressured margins in Ingredients. Management expects only a modest commodity price recovery in H2 and indicated that Ingredients will improve but likely not recover fully to prior-year levels within FY'26.

Acquisition-Related Debt, Costs and Increased Finance Costs

The acquisition required significant funding: net debt increased by ~$321 million in the period (including ~$358 million used to fund the acquisition). Finance costs rose from $4.9 million to $8.7 million. Acquisition-related costs included $17.8 million (stamp duty, legal, advisory) and $1.7 million of integration project costs; an unwind of an inventory step-up of $5 million was also recognized (net effect produced a $31.4 million gain in the period).

Seasonal Working Capital Peak and Funding Needs

The fertiliser business brought on ~$387 million of working capital at acquisition and, despite subsequent reductions (~$98 million), management expects working capital to increase seasonally (peak up to ~A$200 million higher than December levels). This seasonality will require active use of the new working capital facility (uncommitted) and close management of cash flows.

Ingredients Segment Full-Year Uncertainty

Management expects improvements in the second half but indicated Ingredients is unlikely to deliver full-year EBITDA growth versus FY'25; a significant portion (~half) of the H1 Ingredients headwind was attributed to reduced land bone supply to OMP which may be slower to normalize.

Company Guidance

Guidance from the call is that Ridley expects FY‑26 group earnings growth driven by nine months’ contribution from the acquired Fertilisers business (IPF) including the H2 seasonal demand peak, continued market‑share and volume‑driven operating‑efficiency gains in Bulk Stockfeeds, processing improvements in Packaged & Ingredients from recent capex, and a modest commodity price recovery in H2; key metrics cited include H1 underlying EBITDA $55.4m (up 9% PCP) with combined segment EBITDA $63m (Bulk $27.1m, +25%; Packaged & Ingredients $25.6m, -28%; Fertiliser $10.3m, above guidance), operating cash flow $128m, interim dividend $0.051/share (fully franked, up from $0.0475), H1 depreciation & amortisation $18.6m, finance costs $8.7m, an underlying tax rate of 29.9%, the IPF acquisition cash outlay $357m (total consideration $433m) with a provisional bargain purchase gain $56m and net significant gains after tax $31.4m, net debt increased during the period by ~$321m to fund the acquisition (but bank leverage remains comfortably within covenants at 0.8x), available facilities increased by $500m to $690m (including a $200m revolver and $300m working‑capital facility), expected working‑capital peak for Fertilisers ~+$200m vs Dec (fully funded), cost saves of $8m p.a. from a 45‑role restructure (one‑off ~$3m in FY‑26), $30m IT migration capex with $7m p.a. run‑rate synergies from CY‑27, and ongoing target of modest core‑business EBITDA growth for FY‑26.

Ridley Corporation Limited Financial Statement Overview

Summary

Income statement strength (revenue growth and higher gross/net margins) is tempered by slightly weaker EBIT/EBITDA margins. Balance sheet leverage improved meaningfully (debt-to-equity down to 0.21), but cash flow quality is mixed with volatile and weakening free cash flow conversion despite stable operating cash flow.

Income Statement

Positive

Ridley Corporation Limited has shown consistent revenue growth over the years, with a notable increase in gross profit margin from 6.9% in 2020 to 9.3% in 2025. The net profit margin has also improved, indicating better cost management and profitability. However, the EBIT and EBITDA margins have slightly decreased in the latest year, suggesting some operational efficiency challenges.

Balance Sheet

Positive

The company's debt-to-equity ratio has improved significantly from 0.74 in 2020 to 0.21 in 2025, indicating better leverage management. Return on equity has remained stable, reflecting consistent profitability relative to shareholder equity. However, the equity ratio suggests that a substantial portion of assets is financed by equity, which could limit financial flexibility.

Cash Flow

Positive

Operating cash flow has been positive and relatively stable, but free cash flow has shown volatility, with a significant decline in growth rate in the latest year. The operating cash flow to net income ratio indicates a healthy conversion of income to cash, but the free cash flow to net income ratio has decreased, highlighting potential challenges in maintaining cash reserves.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	1.67B	1.30B	1.26B	1.26B	1.05B	927.72M
Gross Profit	138.31M	121.20M	115.94M	111.36M	99.56M	79.03M
EBITDA	90.03M	86.27M	90.55M	88.90M	89.08M	68.81M
Net Income	73.80M	43.32M	39.85M	41.83M	42.43M	24.90M
Balance Sheet
Total Assets	1.64B	734.55M	664.38M	617.70M	607.37M	613.06M
Cash, Cash Equivalents and Short-Term Investments	138.46M	84.67M	34.20M	43.02M	27.08M	39.90M
Total Debt	801.88M	94.17M	98.29M	81.17M	61.79M	136.52M
Total Liabilities	1.10B	276.44M	341.26M	302.31M	291.34M	325.52M
Stockholders Equity	542.07M	458.12M	323.12M	315.39M	316.03M	287.55M
Cash Flow
Free Cash Flow	68.03M	34.00M	74.19M	43.75M	22.79M	63.98M
Operating Cash Flow	114.57M	68.26M	105.06M	78.52M	46.59M	85.78M
Investing Cash Flow	-384.18M	-28.57M	-86.17M	-34.77M	36.36M	-16.43M
Financing Cash Flow	353.06M	10.78M	-27.71M	-28.37M	-95.78M	-75.26M

Ridley Corporation Limited Technical Analysis

Technical Analysis Sentiment

Positive

Last Price2.88

Price Trends

50DMA

2.54

Positive

100DMA

2.68

Positive

200DMA

2.77

Positive

Market Momentum

MACD

0.06

Negative

RSI

72.95

Negative

STOCH

82.95

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:RIC, the sentiment is Positive. The current price of 2.88 is above the 20-day moving average (MA) of 2.51, above the 50-day MA of 2.54, and above the 200-day MA of 2.77, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 72.95 is Negative, neither overbought nor oversold. The STOCH value of 82.95 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:RIC.

Ridley Corporation Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CBO	75 Outperform	AU$1.42B	30.55	14.44%	1.55%	6.09%	166.89%
CLV	74 Outperform	AU$131.09M	18.57	10.07%	2.19%	38.25%	361.54%
SHV	74 Outperform	AU$562.75M	17.65	6.00%	―	18.08%	1680.16%
RIC	68 Neutral	AU$1.08B	14.06	10.88%	3.74%	3.15%	7.29%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
BUB	59 Neutral	AU$107.30M	28.57	13.97%	―	28.66%	―
BGA	51 Neutral	AU$1.94B	235.21	-0.68%	1.95%	0.49%	-127.84%

* Consumer Defensive Sector Average

Performance Comparison

AU:RIC

Ridley Corporation Limited

2.88

0.47

19.70%

AU:SHV

Select Harvests

3.96

-0.66

-14.29%

AU:BGA

Bega Cheese Limited

6.35

1.29

25.54%

AU:CBO

Cobram Estate Olives Ltd.

2.98

1.04

53.61%

AU:BUB

Bubs Australia Ltd.

0.12

0.00

0.00%

AU:CLV

Clover Corporation Limited

0.79

0.38

91.46%

Ridley Corporation Limited Corporate Events

Ridley lifts earnings and dividend on strong cash flow, boosted by fertiliser acquisition

Feb 25, 2026

Ridley Corporation reported a strong first-half FY26 performance, with underlying EBITDA rising 9% to $55.4 million and statutory EBITDA jumping 66% on the prior corresponding period. Earnings were driven by a three-month contribution from the newly acquired fertilisers business at the high end of expectations, increased market share in Bulk Stockfeeds and growth in Packaged Feeds from new customer contracts, partly offset by weaker Ingredients results due to operational constraints and lower commodity prices.

The group generated operating cash flow of $127.9 million, sharply higher than $49.2 million a year earlier, and maintained disciplined capital management with leverage at 0.8 times despite higher working capital and the fertiliser acquisition. Return on funds employed dipped to 9.7% from 10.4%, but the board signalled confidence by lifting the fully franked interim dividend to 5.10 cents per share, underscoring a commitment to shareholder returns while integrating the new fertiliser operations.

The most recent analyst rating on (AU:RIC) stock is a Buy with a A$3.03 price target. To see the full list of analyst forecasts on Ridley Corporation Limited stock, see the AU:RIC Stock Forecast page.

Ridley Corporation Declares Interim Dividend for Half-Year to December 2025

Feb 25, 2026

Ridley Corporation Limited has declared an interim dividend of AUD 0.051 per ordinary fully paid share for the six-month period ended 31 December 2025. The dividend will trade ex-dividend on 1 April 2026, with a record date of 2 April 2026 and payment scheduled for 23 April 2026, providing shareholders with a defined timetable for the distribution.

This announcement reinforces Ridley’s practice of returning capital to investors on a regular half-yearly basis aligned with its financial reporting calendar. The scheduled payment and clear key dates offer income visibility for shareholders and may support the stock’s appeal to dividend-focused investors in the Australian market.

Ridley Profit Surges on Fertiliser Deal as Cash Flow Strengthens

Feb 25, 2026

Ridley Corporation reported a strong first half for FY26, with revenue from continuing operations up 55.8% to $1.03 billion and statutory net profit after tax surging 137.4% to $52.7 million. EBITDA before significant items rose 9.5% to $55.4 million, supported by a $10.3 million contribution from the newly acquired Incitec Pivot Fertilisers Distribution business and improved bulk segment volumes and margins.

The company’s net tangible assets per share increased and operating cash flow jumped to $127.9 million, aided by better working capital management in the fertiliser business. Ridley’s net debt climbed to $256.5 million due to the IPF acquisition and higher capital expenditure, though leverage remained relatively low, and the board lifted the fully franked interim dividend to 5.10 cents per share, signalling confidence in the enlarged group’s financial strength.

Ridley to Issue 1.83 Million Unquoted Performance Rights Under Incentive Plan

Feb 20, 2026

Ridley Corporation Limited has notified the market of the planned issue of 1,833,974 unquoted performance rights under its employee incentive scheme. These RICAT performance rights are scheduled to be issued on 27 November 2025 and will not be quoted on the ASX, reflecting the company’s continued use of equity-based incentives to align employee interests with long-term shareholder value.

The issuance of these performance rights expands Ridley’s pool of unquoted equity securities and signals an ongoing commitment to performance-linked remuneration. While the securities will not trade on market, they may influence future dilution levels for existing shareholders and underscore the company’s focus on retaining and motivating key personnel in a competitive agribusiness landscape.

Ridley to Unveil FY26–FY28 Growth Plan at Investor Strategy Day

Feb 10, 2026

Ridley Corporation Limited will host an Investor Strategy Day in Geelong, Victoria, on 10 March 2026 to outline its FY26–FY28 Growth Plan to investors and analysts. The company will lodge the strategy presentation with the ASX the same day and publish the materials on its website.

On 11 March 2026, Ridley will conduct site visits to key operational assets, including its Oyster Cove fertiliser distribution centre, Lara feedmill, Werribee soil analysis laboratory, and Oceania Meat Proteins plant. The event is designed to deepen market understanding of Ridley’s strategy and operations, potentially strengthening investor engagement and confidence in its medium‑term growth plans.

Ridley Corporation Cancels Performance Rights

Dec 11, 2025

Ridley Corporation Limited announced the cessation of 121,614 performance rights, which were cancelled by mutual agreement between the entity and the holder. This action reflects a strategic decision impacting the company’s issued capital, potentially influencing its financial structuring and stakeholder interests.

Ridley Corporation Announces Cessation of Securities

Nov 27, 2025

Ridley Corporation Limited has announced the cessation of 54,126 performance rights, which were canceled by agreement between the entity and the holder, effective October 1, 2025. This announcement may impact Ridley Corporation’s issued capital and could have implications for its stakeholders, reflecting a strategic decision in managing its securities.

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.Date of analysis: Feb 26, 2026