Select Harvests (SHV) AI Stock Analysis

• Market Cap: AU$744.64M
• Dividend Yield: N/A
• Average Volume (3M): 576.90K
• Price to Earnings (P/E): 412.6
• Beta (1Y): 1.08
• Revenue Growth: 64.18%
• EPS Growth: N/A
• Country: AU
• Employees: 471
• Sector: Consumer Defensive
• Sector Strength: 81
• Industry: Packaged Foods
• EPS (TTM): 0.01
• Shares Outstanding: 142,107,640
• 10 Day Avg. Volume: 314,601
• 30 Day Avg. Volume: 576,897
• 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$5.38
• Price Target Upside: 2.63% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

Select Harvests is experiencing a positive turnaround in its financial performance with improved revenue and profitability. However, the high leverage on its balance sheet and tight free cash flow pose risks. The stock is technically in an upward trend, but the lack of key indicators limits depth in analysis. Overvaluation is a concern with a high P/E ratio, making the stock less attractive from a valuation perspective.

Select Harvests Business Overview & Revenue Model

Company Description

Select Harvests Limited (SHV) is one of Australia's largest almond producers and a leading agribusiness involved in the production, processing, and marketing of almonds. The company operates in two main segments: the Almond Division, which encompasses the growing, processing, and sale of almonds, and the Food Division, which focuses on the processing, packaging, and distribution of a range of nut-based and health food products. With a vertically integrated business model, Select Harvests manages extensive almond orchards and processing facilities, ensuring quality control across its operations.

How the Company Makes Money

Select Harvests generates revenue primarily through the cultivation and sale of almonds. The company owns and operates significant almond orchards, allowing it to produce almonds at scale. Revenue streams include the sale of raw almonds, value-added almond products, and other nut-based food items. The company capitalizes on both domestic and international markets, exporting a substantial portion of its almond produce to key markets such as Asia, Europe, and the United States. Additionally, the Food Division contributes to revenue through the sale of packaged food products under various brands. Strategic partnerships and contracts with distributors and retailers further enhance Select Harvests' market reach and sales potential.

Select Harvests Financial Statement Overview

Summary

Select Harvests shows signs of recovery with revenue and profitability improvements. However, 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
Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
336.84M	205.44M	198.97M	228.26M	247.88M
	Gross Profit
32.88M	-101.50M	23.68M	44.84M	61.91M
	EBIT
15.17M	-119.30M	12.04M	32.61M	38.73M
	EBITDA
30.55M	-135.28M	24.33M	53.72M	63.01M
	Net Income Common Stockholders
1.50M	-114.73M	4.76M	25.29M	25.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.87M	1.13M	1.14M	2.00M	1.45M
	Total Assets
1.01B	913.25M	1.00B	1.00B	824.89M
	Total Debt
400.52M	420.98M	377.78M	353.22M	323.76M
	Net Debt
397.65M	419.84M	376.65M	351.22M	322.31M
	Total Liabilities
529.31M	501.73M	481.41M	476.85M	419.88M
	Stockholders Equity
480.76M	411.52M	520.28M	526.96M	405.01M
Cash Flow		Free Cash Flow
1.34M	-31.23M	-5.95M	-127.34M	-12.95M
	Operating Cash Flow
21.35M	-8.25M	26.30M	38.19M	13.15M
	Investing Cash Flow
-18.39M	-26.15M	-35.57M	-169.72M	-35.26M
	Financing Cash Flow
5.09M	30.74M	10.27M	133.25M	9.38M

Select Harvests Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.24
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 5.24 is above the 20-day moving average (MA) of 5.11, above the 50-day MA of 4.93, and above the 200-day MA of 4.34, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 56.54 is Neutral, neither overbought nor oversold. The STOCH value of 73.42 is Neutral, 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
RFF	68 Neutral	$715.14M	14.61	4.68%	6.24%	14.72%	-42.17%
Sector *	64 Neutral	$8.79B	14.77	5.05%	174.29%	3.63%	3.48%
BGA	64 Neutral	€1.79B	52.23	3.35%	1.84%	4.28%	―
SHV	59 Neutral	AU$744.64M	412.60	0.34%	―	64.18%	―
ELD	55 Neutral	€1.22B	22.83	5.24%	6.03%	-5.72%	-55.55%
AAC	51 Neutral	$945.94M	27.40	2.26%	―	15.11%	―

Select Harvests Corporate Events

United Super Pty Ltd Ceases Substantial Holding in Select Harvests

Select Harvests Limited has announced that United Super Pty Ltd has ceased to be a substantial holder of its shares as of April 28, 2025. This change in substantial holding may impact the company’s shareholder composition and influence its voting dynamics, potentially affecting future strategic decisions.

United Super Pty Ltd Ceases Substantial Holding in Select Harvests

United Super Pty Ltd has ceased to be a substantial holder in Select Harvests Limited as of April 28, 2025. This change in substantial holding may impact the company’s shareholder structure and could influence its market dynamics, although specific implications for stakeholders are not detailed in the release.

Perpetual Limited Reduces Stake in Select Harvests

Perpetual Limited has reduced its voting power in Select Harvests Limited from 14.205% to 13.092%, as indicated in a recent change notice. This reduction in voting power might impact Perpetual Limited’s influence on company decisions, potentially affecting strategic directions and stakeholder interests.

Select Harvests Appoints New Company Secretary

Select Harvests Limited has appointed Jason Arnheim as the new Company Secretary, effective immediately. Arnheim, who joined the company in March 2025 as General Counsel, brings extensive legal experience from the FMCG, materials, and pharmaceutical sectors. This change follows the resignation of Mark Rhys Davies, who served as Interim Company Secretary during the recruitment process. The appointment is expected to enhance the company’s executive leadership and streamline communications with the ASX.

Select Harvests Reports Strong Almond Pricing Amid Reduced Crop Forecast

Select Harvests Limited has announced a business update highlighting strong almond pricing at A$10.35/kg, despite a reduced crop forecast for 2025 due to growing conditions. The company remains optimistic about its strategic positioning and ability to meet demand, particularly from key markets like China and India, despite challenges such as retaliatory tariffs and variable weather conditions affecting the US almond crop. The company’s strategy is on track to deliver value, with a significant portion of the 2025 crop already hedged and a positive outlook for future pricing dynamics.

Select Harvests Highlights Financial Reporting and Crop Valuation Challenges

Select Harvests has released a management briefing and site tour presentation, highlighting the financial statements prepared in accordance with Australian Accounting Standards. The company emphasizes the inherent risks and uncertainties in estimating the value of its almond crop, which is classified as a biological asset. These estimates may lead to material adjustments in the company’s financials, impacting stakeholders and operational strategies.

Select Harvests Releases Financial Statement with Almond Crop Valuation Insights

Select Harvests Limited has released a financial statement prepared in accordance with Australian Accounting Standards, highlighting the application of AASB 141 Agriculture for accounting the current year almond crop. The company acknowledges the inherent uncertainties in estimating the crop’s selling price and yield, which could lead to material adjustments in asset and liability valuations in the next financial year.

Select Harvests Experiences Shift in Substantial Holdings

Select Harvests, a company involved in the agricultural sector, has seen a change in the substantial holdings by Regal Funds Management Pty Limited and its associates. This change in voting power, involving several investment and custody firms, impacts the control over the company’s shares, potentially affecting its market influence and decision-making processes.

Select Harvests AGM Results: Key Resolutions Carried Amidst Governance Concerns

Select Harvests Limited recently held its Annual General Meeting where all resolutions were carried, though the Remuneration Report faced significant opposition, marking a first strike under the Corporations Act 2001. The meeting’s outcomes highlight ongoing governance and compensation issues, potentially impacting investor confidence and requiring strategic attention to address shareholder concerns.

Select Harvests Shows Strong Financial Turnaround in 2024

Select Harvests reported a significant improvement in its 2024 financial results, achieving a $46 million EBITDA and a $1.5 million net profit after tax, marking a $116 million improvement compared to 2023. The company made progress in increasing crop volumes, sales velocity, and processing capacity, as well as reducing greenhouse gas emissions by 21%. The company also enhanced its sustainability initiatives, including advancements in irrigation technology and food safety metrics, reinforcing its strong position in the almond industry.

Select Harvests Emphasizes Compliance in Financial Reporting Amid Crop Yield Uncertainties

The latest news release from Select Harvests highlights the company’s financial statement preparation in accordance with Australian Accounting Standards, particularly AASB 141 Agriculture for the almond crop. This indicates a strong focus on transparency and compliance, which is crucial for stakeholders. The company acknowledges the inherent uncertainties and risks in estimating crop yields and selling prices, which could result in material adjustments to the asset and liability values in the next financial year.