Cresud Sociedad (CRESY) AI Stock Analysis

• Market Cap: $676.04M
• Dividend Yield: 8.09%
• Average Volume (3M): 169.32K
• Price to Earnings (P/E): 6.4
• Beta (1Y): 0.35
• Revenue Growth: -3.07%
• EPS Growth: -18.57%
• Country: US
• Employees: 2,760
• Sector: Industrials
• Sector Strength: 86
• Industry: Conglomerates
• EPS (TTM): 1.59
• Shares Outstanding: 61,407,430
• 10 Day Avg. Volume: 148,582
• 30 Day Avg. Volume: 169,324
• PEG Ratio: 0.04
• Price to Book (P/B): 0.97
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -17.19
• 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: $11.50
• Price Target Upside: 0.26% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 61 Neutral
• Price Target: $12.00 ▲(4.62%Upside)

Cresud Sociedad's overall stock score of 61 reflects a balance of attractive valuation with strong dividend yield and low P/E ratio, offset by financial and liquidity challenges due to high leverage and cash flow issues. Technical indicators suggest stable momentum without clear bullish or bearish signals.

Cresud Sociedad Business Overview & Revenue Model

Company Description

Cresud Sociedad Anónima Comercial, Inmobiliaria, Financiera y Agropecuaria, an agricultural company, produces basic agricultural commodities in Brazil and other Latin American countries. It operates through Agricultural Business, and Urban Properties and Investment Business segments. The Agricultural Business segment is involved in the planting, harvesting, and sale of crops, such as wheat, corn, soybeans, cotton, and sunflower, as well as sugarcane; sale of grain derivatives, including flour and oil; breeding, purchasing, and/or fattening of cattle for sale to meat processors and local livestock auction markets; provision of agricultural services; leasing of farms to third parties; disposal and development of farmlands; and brokerage activities. The Urban Properties and Investment Business segment leases, rents, and services commercial and other spaces in shopping malls; leases offices and other rental spaces; develops, maintains, and sells undeveloped parcels of land and/or trading properties; and operates hotels, as well as engages in the entertainment activities. The company was incorporated in 1936 and is headquartered in Buenos Aires, Argentina.

How the Company Makes Money

Cresud 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's financial performance is mixed. The income statement shows improved profitability with a solid gross profit margin, but historical volatility and inconsistent revenue growth present risks. The balance sheet is moderately healthy but high leverage is a concern. Cash flow management is challenging with negative free cash flow growth, indicating potential liquidity issues.

Income Statement

Cresud Sociedad's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) gross profit margin is solid at 35.88%, and the net profit margin is 9.74%, indicating a reasonable level of profitability. However, revenue growth has been somewhat inconsistent, with a significant rise in the latest TTM period compared to the previous annual period. The company’s EBIT margin improved significantly in the TTM period, showing a return to operating profitability. Overall, the income statement reflects moderate revenue growth and improved profitability, but historical volatility in EBIT and net income could pose risks.

Balance Sheet

The balance sheet reveals moderate financial health. The debt-to-equity ratio is 1.69, suggesting a relatively high level of leverage, which could pose risks if earnings do not sufficiently cover debt obligations. The equity ratio stands at 18.29%, indicating a lower proportion of equity financing compared to total assets. Return on equity (ROE) is decent at 10.27% for the TTM period, reflecting moderate profitability relative to shareholder investment. While Cresud Sociedad is managing to generate returns, the high leverage remains a concern for financial stability.

Cash Flow

Cresud Sociedad's cash flow statement indicates challenges in cash flow management. The free cash flow has significantly deteriorated in the TTM period, showing negative growth due to high capital expenditures. The operating cash flow to net income ratio is low at 0.11, suggesting limited cash generation from operational activities compared to net income. This raises concerns over the company's ability to reinvest in the business or cover financial obligations without external financing. Overall, the cash flow statement highlights potential liquidity challenges.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	711.37B	707.41B	767.70B	149.93B	82.24B
Gross Profit	291.55B	269.60B	340.10B	79.39B	35.00B
EBITDA	103.58B	113.72B	54.11B	92.86B	104.03B
Net Income	78.46B	162.99B	297.05B	-44.43B	9.68B
Balance Sheet
Total Assets	3.47T	3.97T	1.14T	556.18B	1.03T
Cash, Cash Equivalents and Short-Term Investments	260.74B	307.47B	116.39B	47.46B	183.99B
Total Debt	902.31B	1.06T	325.05B	204.69B	660.37B
Total Liabilities	1.91T	2.18T	695.11B	382.54B	848.31B
Stockholders Equity	696.24B	779.00B	177.43B	53.20B	37.79B
Cash Flow
Free Cash Flow	-11.93B	64.67B	141.53B	23.97B	84.39B
Operating Cash Flow	68.61B	133.65B	174.66B	31.42B	88.01B
Investing Cash Flow	92.57B	55.42B	103.27B	258.54B	111.46B
Financing Cash Flow	-208.53B	-337.14B	-296.48B	-189.64B	-191.05B

Cresud Sociedad Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.47
• 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 CRESY, the sentiment is Positive. The current price of 11.47 is above the 20-day moving average (MA) of 11.01, above the 50-day MA of 11.21, and above the 200-day MA of 11.27, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 56.85 is Neutral, neither overbought nor oversold. The STOCH value of 79.95 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SEB	72 Outperform	$3.09B	22.23	2.92%	0.28%	4.70%	-44.60%
Sector *	71 Outperform	¥269.60B	14.19	8.47%	2.85%	6.33%	12.37%
IRS	68 Neutral	$1.21B	8.78	11.71%	6.47%	-0.52%	―
CRESY	61 Neutral	$676.04M	6.37	12.81%	8.09%	-3.07%	-18.57%
TRC	51 Neutral	$501.60M	226.73	0.46%	―	7.04%	268.20%