Ridley Corporation Limited (AU:RIC)
ASX:RIC
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Ridley Corporation Limited
(Sydney:RIC)
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Rating:73Outperform
Price Target:
AU$3.00
▲(10.70% Upside)
Action:UpgradedDate:03/10/26
The score is driven mainly by solid underlying financial performance (growth and improved profitability, with stronger leverage metrics) and very attractive valuation (low P/E and solid yield). The latest earnings call supports the outlook with expected FY-26 growth and healthy cash generation, but operational issues in Packaged & Ingredients and acquisition-related debt/seasonal working capital needs temper the score. Technically, the trend is improving but not yet fully confirmed given the price remains below the 200-day average.
Positive Factors
Consistent revenue and margin improvement
Ridley has shown sustained revenue growth and rising gross and net margins, reflecting pricing power, better cost control and product-mix improvements. These durable trends support ongoing cash generation and strengthen core profitability absent one-off disruptions.
Negative Factors
Packaged & Ingredients profitability hit
A substantial 28% EBITDA decline in Ingredients reflects supply constraints, weaker protein meal prices and processing shortfalls. Prolonged normalization of lamb supply and processing yields could keep segment margins depressed and limit group earnings upside for multiple quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent revenue and margin improvement
Ridley has shown sustained revenue growth and rising gross and net margins, reflecting pricing power, better cost control and product-mix improvements. These durable trends support ongoing cash generation and strengthen core profitability absent one-off disruptions.
Read all positive factors
Ridley Corporation Limited (RIC) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$1.02B
Dividend Yield3.74%
Average Volume (3M)723.85K
Price to Earnings (P/E)4.7
Beta (1Y)1.18
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$3.28Price Target Upside21.17% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)0.16
Revenue Forecast (FY)AU$2.55B
Ridley Corporation Limited Business Overview & Revenue Model
Company Description
Ridley 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, s...
How the Company Makes Money
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Ridley Corporation Limited Earnings Call Summary
Earnings Call Date:Feb 25, 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.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.
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.
Read all updates
Q2-2026 Updates
Positive
Negative
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.
Read all positive updates
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
75
Positive
Balance Sheet
70
Positive
Cash Flow
65
Positive
| 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
Positive
2.71
Price Trends
2.59
Positive
2.64
Positive
2.78
Negative
Market Momentum
0.01
Positive
51.14
Neutral
33.33
Neutral
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 2.71 is below the 20-day moving average (MA) of 2.76, above the 50-day MA of 2.59, and below the 200-day MA of 2.78, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 51.14 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, 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
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | AU$1.57B | -40.41 | 14.44% | 1.55% | 6.09% | 166.89% | |
74 Outperform | AU$531.48M | 45.12 | 6.00% | ― | 18.08% | 1680.16% | |
73 Outperform | AU$1.02B | 4.72 | 10.88% | 3.74% | 3.15% | 7.29% | |
72 Outperform | AU$146.12M | 7.66 | 10.01% | 2.19% | 38.25% | 361.54% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
59 Neutral | AU$93.88M | 17.11 | 13.97% | ― | 28.66% | ― | |
51 Neutral | AU$1.79B | 9.86 | 0.82% | 1.95% | 0.49% | -127.84% |
* Consumer Defensive Sector Average
AU:RIC
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2.71
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Ridley Corporation Limited Corporate Events
Ridley maps FY26–FY28 growth plan with diversified earnings drivers
Mar 9, 2026
Ridley Corporation has outlined its FY26–FY28 growth plan in an investor presentation delivered at its Investor Strategy Day, setting out expectations for earnings expansion in the next financial year. Management is targeting growth in FY26 ...
Pinnacle Exits Substantial Holder Position in Ridley Corporation
Mar 5, 2026
Pinnacle Investment Management Group Limited and its listed subsidiaries have notified Ridley Corporation Limited that they have ceased to be a substantial holder in the company as of 2 March 2026. The change, lodged via a Form 605 and signed by R...
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 new...
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 pay...
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 mill...
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 quo...
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 a...
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, p...
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.