Select Harvests (SHV) AI Stock Analysis

• Market Cap: $638.06M
• Dividend Yield: N/A
• Average Volume (3M): 633.48K
• Price to Earnings (P/E): 20.0
• Beta (1Y): 1.19
• Revenue Growth: 18.08%
• EPS Growth: 1680.16%
• Country: AU
• Employees: 471
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 0.02
• Shares Outstanding: 142,107,640
• 10 Day Avg. Volume: 1,599,305
• 30 Day Avg. Volume: 633,481
• PEG Ratio: -2.93
• Price to Book (P/B): 0.93
• Price to Sales (P/S): 1.32
• P/FCF Ratio: 332.08
• Enterprise Value/Market Cap: 1.37
• Enterprise Value/Revenue: 2.33
• Enterprise Value/Gross Profit: 12.00
• Enterprise Value/Ebitda: 10.17
• 1Y Price Target: $5.16
• Price Target Upside: 14.96% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 0.64
• Revenue Forecast (FY): $620.96M

• Rating: 61 Neutral
• Price Target: AU$4.00 ▼(-10.91% Downside)

Select Harvests' overall score is driven by its financial recovery and reasonable valuation. The company's leveraged balance sheet and neutral technical indicators present potential risks. The absence of a dividend yield and lack of earnings call data limit further insights.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for Select Harvests' products, enhancing its market position and potential for future expansion.

Positive Operating Cash Flow

Positive operating cash flow improves financial stability, allowing Select Harvests to reinvest in growth opportunities and manage debt.

Improved Profit Margins

Improved profit margins reflect better cost management and pricing power, contributing to long-term profitability and competitiveness.

Negative Factors

High Leverage

High leverage can constrain financial flexibility, increasing risk in volatile markets and potentially limiting growth and investment capacity.

Tight Free Cash Flow

Limited free cash flow restricts the company's ability to reduce debt or fund new projects, impacting long-term strategic initiatives.

Operational Inefficiencies

Low EBIT margin suggests inefficiencies in operations, which could hinder profitability and competitiveness if not addressed.

Select Harvests Business Overview & Revenue Model

Company Description

Select Harvests Limited engages in the processing, packaging, marketing, and distribution of edible nuts, dried fruits, seeds, muesli, and various natural health foods in Australia. It grows, processes, and sells almonds to the food industry from company owned and leased almond orchards, as well as holds a portfolio of approximately 9,262 hectares of almond orchards located in Victoria, New South Wales, and South Australia. The company also exports its products to Asia, Europe, and the Middle East. It offers its products under Renshaw and Alling Farms in the wholesale and industrial markets. Select Harvests Limited was incorporated in 1969 and is based in Richmond, Australia.

How the Company Makes Money

Select Harvests generates revenue primarily through the cultivation, processing, and sale of almonds. The company operates its own almond orchards, which contribute to a significant portion of its revenue by directly producing raw almonds for sale. In addition to raw almonds, Select Harvests also produces and sells a variety of value-added almond products, such as almond meal, almond oil, and snack items. The company benefits from both domestic sales and exports, with key markets including Asia and North America. Significant partnerships with distributors and retailers further enhance its market reach and revenue potential. Additionally, Select Harvests may engage in strategic collaborations or joint ventures to expand its product offerings and distribution networks, contributing to its overall earnings.

Select Harvests Financial Statement Overview

Summary

Select Harvests shows signs of recovery with revenue and profitability improvements. The balance sheet remains leveraged, posing potential risks in volatile markets. Positive operating cash flow is a favorable sign, yet free cash flow remains tight, limiting strategic flexibility.

Income Statement

Select Harvests has shown a positive turnaround in its income statement with revenues increasing from the previous year by 64%. The gross profit margin improved significantly from a negative value to 9.76%, and the net profit margin also turned positive to 0.45%. Despite improvements, the company still faces challenges with its EBIT margin at 0.13%, indicating some operational inefficiencies.

Balance Sheet

The balance sheet reflects a stable equity position, with an equity ratio of 47.59%. However, the debt-to-equity ratio is relatively high at 0.83, indicating a significant level of leverage. The return on equity has improved but remains modest at 0.31%.

Cash Flow

Operating cash flow has recovered to a positive $21.35 million, from a negative position in the prior year. This positive cash flow supports a slightly positive free cash flow, though it remains low relative to net income, indicating limited cash reserves for expansion or debt reduction.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	373.96M	336.84M	205.44M	235.52M	228.26M	247.88M
Gross Profit	72.63M	32.88M	-26.99M	25.07M	44.84M	61.91M
EBITDA	85.68M	30.55M	-135.28M	33.59M	53.72M	57.79M
Net Income	32.30M	1.50M	-114.73M	4.76M	15.12M	25.00M
Balance Sheet
Total Assets	1.02B	1.01B	913.25M	1.00B	1.00B	824.89M
Cash, Cash Equivalents and Short-Term Investments	3.79M	2.87M	1.13M	1.14M	2.00M	1.45M
Total Debt	396.14M	400.52M	420.98M	377.78M	353.22M	323.76M
Total Liabilities	507.35M	529.31M	501.73M	494.00M	476.85M	419.88M
Stockholders Equity	514.46M	480.76M	411.52M	520.28M	526.96M	405.01M
Cash Flow
Free Cash Flow	32.00M	1.34M	-31.23M	-5.95M	-127.34M	-12.95M
Operating Cash Flow	57.33M	21.35M	-8.25M	26.30M	38.19M	13.15M
Investing Cash Flow	-22.16M	-18.39M	-26.15M	-35.57M	-169.72M	-35.26M
Financing Cash Flow	-29.93M	5.09M	30.74M	10.27M	133.25M	9.38M

Select Harvests Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.49
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SHV, the sentiment is Positive. The current price of 4.49 is above the 20-day moving average (MA) of 3.79, above the 50-day MA of 3.85, and above the 200-day MA of 4.25, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 73.75 is Negative, neither overbought nor oversold. The STOCH value of 86.10 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:SHV.

Select Harvests Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CBO	75 Outperform	AU$1.53B	27.07	14.44%	1.45%	6.09%	166.89%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
SHV	61 Neutral	$638.06M	20.02	6.00%	―	18.08%	1680.16%
RIC	60 Neutral	$985.86M	19.54	10.88%	3.69%	3.15%	7.29%
BGA	51 Neutral	€1.62B	-189.61	-0.68%	2.00%	0.49%	-127.84%

Select Harvests Corporate Events

Select Harvests Updates on 2025 Crop and Financial Performance

Select Harvests Limited has announced a 2025 crop size estimate of 24,700MT, which is below the midpoint of its forecast range. Despite initial softening, global almond prices are recovering, with the company strategically selling its remaining 2025 crop. The company has reduced its net debt to $80 million and maintained flat production costs, reflecting strong financial management. The 2026 crop bloom has been positive despite challenges, and the company is optimistic about future almond prices due to global demand and structural changes in the US industry.

The most recent analyst rating on (AU:SHV) stock is a Hold with a A$4.00 price target. To see the full list of analyst forecasts on Select Harvests stock, see the AU:SHV Stock Forecast page.

Select Harvests Detects Varroa Mite in South Australia, Ensures No Impact on Almond Crop

Select Harvests Limited has detected varroa mite in bees at its Jubilee Orchard in South Australia following annual pollination. The company has isolated the affected hives and is working with the Department of Primary Industries and Regions to prevent further spread. Despite the detection, there is no expected impact on the pollination or the 2026 almond crop’s quality and quantity. The company is actively sourcing bees for the 2027 crop, considering the potential spread of varroa mite, and remains committed to supporting the horticultural sector in South Australia.

The most recent analyst rating on (AU:SHV) stock is a Hold with a A$4.00 price target. To see the full list of analyst forecasts on Select Harvests stock, see the AU:SHV Stock Forecast page.