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Cresud S.A.C.I.F. Y A. (CRESY)
:CRESY

Cresud Sociedad (CRESY) AI Stock Analysis

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Cresud Sociedad

(NASDAQ:CRESY)

Rating:48Neutral
Price Target:
$11.50
▼( -4.72% Downside)
Cresud Sociedad's stock is hindered by significant financial challenges, including high leverage and declining profitability. While technical analysis provides mixed signals and valuation offers a high dividend yield, these do not fully offset the financial risks. The overall score reflects the need for the company to address its operational inefficiencies and improve financial health for better future prospects.

Cresud Sociedad (CRESY) vs. SPDR S&P 500 ETF (SPY)

Cresud Sociedad Business Overview & Revenue Model

Company DescriptionCresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria (CRESY) is a leading agricultural company based in Argentina. The company is primarily engaged in the production of basic agricultural commodities, including grains, sugarcane, meat, and milk. In addition, Cresud is involved in land transformation and development, focusing on enhancing the productivity of its agricultural lands. Its operations span several countries in Latin America, including Argentina, Brazil, Bolivia, and Paraguay.
How the Company Makes MoneyCresud generates revenue through a diversified portfolio of agricultural operations. The primary revenue streams include the cultivation and sale of crops such as corn, wheat, soybeans, and sugarcane. Additionally, Cresud derives income from its cattle-raising activities, which include the production and sale of beef and milk. The company's real estate segment, which involves the acquisition, development, and sale of agricultural land, contributes significantly to its earnings. Cresud also benefits from its strategic investments in related agricultural businesses and partnerships that enhance its operational efficiency and market reach.

Cresud Sociedad Financial Statement Overview

Summary
Cresud Sociedad exhibits strong revenue growth but is hindered by declining profitability and high leverage. The negative margins and cash flow challenges suggest operational inefficiencies and liquidity risks. While the balance sheet provides some stability through equity, the overall financial health is pressured by risk factors that need addressing for future resilience.
Income Statement
45
Neutral
Cresud Sociedad's revenue has shown a strong growth trajectory, with a significant increase in the TTM (Trailing-Twelve-Months) period. However, the company is facing declining profitability, as indicated by the negative EBIT and EBITDA margins in the TTM, which reflect operational challenges and cost pressures. The net profit margin is also negative, indicating a loss-making position in the latest period.
Balance Sheet
50
Neutral
The balance sheet shows a high level of debt relative to equity, with a debt-to-equity ratio that indicates significant leverage, presenting potential financial risk. The equity ratio suggests moderate shareholder equity in relation to total assets, providing some stability. However, the declining ROE reflects challenges in generating returns for shareholders.
Cash Flow
40
Negative
Cash flow analysis reveals negative free cash flow growth, indicating pressures on liquidity. The operating cash flow to net income ratio is unfavorable, highlighting difficulties in converting earnings into cash. Despite a strong historical operating cash position, recent declines pose concerns.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
831.91B711.37B190.41B206.63B149.93B82.24B
Gross Profit
289.06B291.55B71.27B91.54B79.39B35.00B
EBIT
-570.91B-136.24B-20.39B93.19B35.08B107.95B
EBITDA
-241.87B103.58B113.72B54.11B40.12B104.03B
Net Income Common Stockholders
-53.90B78.46B43.87B79.95B-44.43B9.68B
Balance SheetCash, Cash Equivalents and Short-Term Investments
311.18B260.74B82.76B116.39B47.46B183.99B
Total Assets
3.96T3.47T1.07T1.14T556.18B1.03T
Total Debt
1.11T902.31B285.71B325.05B204.69B660.37B
Net Debt
1.01T787.68B246.78B249.79B159.55B508.78B
Total Liabilities
2.30T1.91T586.33B695.11B382.54B848.31B
Stockholders Equity
739.25B696.24B209.67B177.43B53.20B37.79B
Cash FlowFree Cash Flow
-68.94B-11.93B17.41B38.09B23.97B84.39B
Operating Cash Flow
-528.00M68.61B35.97B47.01B31.42B88.01B
Investing Cash Flow
-23.99B92.57B14.92B27.80B258.54B111.46B
Financing Cash Flow
-55.70B-208.53B-90.74B-79.80B-189.64B-191.05B

Cresud Sociedad Technical Analysis

Technical Analysis Sentiment
Positive
Last Price12.07
Price Trends
50DMA
11.22
Positive
100DMA
11.55
Positive
200DMA
10.58
Positive
Market Momentum
MACD
0.19
Negative
RSI
61.55
Neutral
STOCH
72.29
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRESY, the sentiment is Positive. The current price of 12.07 is above the 20-day moving average (MA) of 11.34, above the 50-day MA of 11.22, and above the 200-day MA of 10.58, indicating a bullish trend. The MACD of 0.19 indicates Negative momentum. The RSI at 61.55 is Neutral, neither overbought nor oversold. The STOCH value of 72.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CRESY.

Cresud Sociedad Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
$4.41B12.065.22%249.80%4.09%-12.16%
IRIRS
65
Neutral
$1.18B8.3711.71%6.22%-0.52%
SESEB
54
Neutral
$2.49B25.432.09%0.35%-0.31%-58.07%
TRTRC
49
Neutral
$438.43M204.640.46%7.04%268.20%
48
Neutral
$736.14M6.9012.81%7.89%-3.07%-18.57%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CRESY
Cresud Sociedad
12.07
3.28
37.32%
IRS
Irsa Inversiones Y Representaciones SA
15.50
6.20
66.67%
SEB
Seaboard
2,566.00
-706.72
-21.59%
TRC
Tejon Ranch Company
16.31
-1.72
-9.54%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.