Company DescriptionElders Limited provides agricultural products and services to rural and regional customers primarily in Australia. The company operates through Branch Network, Wholesale Products, and Feed and Processing Services segments. It offers rural farm inputs, such as fertilizers, seeds, agricultural chemicals, animal health products, and general rural merchandise, as well as professional production and cropping advisory services; and provides retail services through corporate owned stores and through the Tucker Pet and Produce brand to independently owned member stores. The company also provides on-farm sales to third parties, regular physical, and online public livestock auctions, as well as directly sells through its owned and third-party feedlots and livestock exporters; agency services for the sale of greasy wool; and brokering services for wool growers. In addition, it offers farms, stations, and lifestyle estates marketing; residential real estate agency and property management; and water and home loan broking services. Further, the company provides a range of banking and insurance products and services; and operates AuctionsPlus, an online livestock auction platform. Additionally, it operates a beef cattle feedlot; and imports, processes, and distributes Australian meat in China. The company was founded in 1839 and is headquartered in Adelaide, Australia.

How the Company Makes Money

Elders Limited Financial Statement Overview

Summary

Elders Limited is facing a challenging financial environment with declining revenues and profitability, reflected in its financial statements. While the company maintains a relatively stable equity position, increased leverage and declining cash flow generation pose risks for future financial stability. Strategic improvements are needed to enhance revenue growth and operational efficiency.

Income Statement

Positive

Elders Limited has shown resilience in its income statement metrics. The gross profit margin stood at 19.58%, which is relatively stable over the years. However, the net profit margin decreased to 1.44% from the previous year's 3.04%, indicating pressure on net earnings. Revenue growth is negative at -6.10%, reflecting a decline in sales. The absence of EBIT coupled with a decreased EBITDA margin of 5.48% highlights operational challenges.

Balance Sheet

Positive

The balance sheet of Elders Limited presents a mixed picture. The debt-to-equity ratio increased to 0.87, suggesting higher leverage and potential risk if interest rates rise. On the positive side, the equity ratio remains healthy at 36.14%, and ROE is positive at 5.36%, though it has decreased compared to previous years, indicating a dip in profitability.

Cash Flow

Neutral

Cash flow analysis shows a decline in performance. Free cash flow growth rate is negative, emphasizing reduced cash available for expansion or debt repayment. The operating cash flow to net income ratio is 1.84, indicating a stable ability to convert earnings into cash flow. However, the free cash flow to net income ratio dropped to 0.79, revealing less efficient cash generation.

Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Breakdown
Income Statement		Total Revenue
3.12B	3.32B	3.43B	2.54B	2.09B
	Gross Profit
610.76M	604.84M	628.37M	508.29M	430.25M
	EBIT
20.12M	156.68M	250.57M	164.09M	106.11M
	EBITDA
157.94M	204.55M	280.19M	195.46M	146.40M
	Net Income Common Stockholders
45.08M	100.84M	162.87M	149.78M	122.95M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
40.21M	21.48M	17.84M	48.06M	50.74M
	Total Assets
2.33B	2.07B	2.02B	1.80B	1.55B
	Total Debt
730.72M	484.79M	302.75M	264.94M	288.19M
	Net Debt
690.51M	463.31M	284.91M	216.88M	237.45M
	Total Liabilities
1.48B	1.21B	1.16B	1.02B	881.74M
	Stockholders Equity
840.72M	862.48M	854.86M	775.42M	671.00M
Cash Flow		Free Cash Flow
35.59M	121.48M	184.94M	133.93M	134.96M
	Operating Cash Flow
82.95M	169.24M	210.11M	142.16M	142.34M
	Investing Cash Flow
-150.94M	-132.15M	-45.14M	-35.49M	-123.15M
	Financing Cash Flow
86.72M	-33.45M	-98.75M	-109.34M	24.23M

Elders Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (65)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FTZ		€664.11M	14.16	7.21%	6.35%	―	―
Sector *	65 Neutral	$8.89B	15.01	4.75%	203.76%	3.54%	-2.49%
ASAGF		$537.59M	24.83	-0.01%	―	―	―
GRCLF		$1.12B	23.69	4.61%	3.26%	―	―
IH1		€794.13M	14.42	38.76%	5.47%	―	―
SGLLV	76 Outperform	AU$714.32M	11.16	11.41%	5.00%	―	―
DBF	54 Neutral	AU$51.04M	74.70	0.65%	8.06%	89.65%	―

* Consumer Defensive Sector Average

Performance Comparison

DE:FTZ

Elders Limited

3.42

-1.34

-28.15%

ASAGF

Australian Agricultural Company

0.91

-0.05

-5.21%

GRCLF

Graincorp Limited Class A

4.84

-1.28

-20.92%

DE:IH1

Inghams Group Ltd.

2.12

0.07

3.41%

AU:DBF

Duxton Farms Limited

1.24

-0.14

-10.14%

AU:SGLLV

Ricegrowers Ltd. Class B

11.00

4.34

65.17%

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

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