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Elders Limited Unsponsored ADR (EDESY)
:EDESY
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Elders Limited
(OTC:EDESY)
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Select Model
Rating:60Neutral
Price Target:
$24.50
â–²(0.57% Upside)
Elders Limited's overall stock score is primarily influenced by its moderate financial performance and bearish technical indicators. While the valuation is reasonable with an attractive dividend yield, the company's financial challenges and weak market momentum weigh heavily on the score.
Positive Factors
Stable Revenue and Gross Profit Margins
Stable revenue and gross profit margins indicate consistent business performance and effective cost management, supporting long-term financial health.
Market Position in Agribusiness
Strong market position in agribusiness provides a competitive edge, leveraging expertise and established relationships in a crucial industry.
Diverse Revenue Streams
Diverse revenue streams from multiple sectors reduce dependency on a single market, enhancing resilience and growth potential.
Negative Factors
Increasing Leverage
Rising leverage can increase financial risk and limit flexibility, potentially impacting long-term stability and investment capacity.
Profitability Challenges
Profitability challenges may hinder reinvestment and growth, affecting the company's ability to sustain competitive advantages over time.
Volatile Cash Flow
Volatile cash flow can complicate financial planning and investment, posing risks to operational stability and strategic initiatives.
Elders Limited (EDESY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.01B
Dividend Yield5.72%
Average Volume (3M)0.00
Price to Earnings (P/E)26.9
Beta (1Y)0.69
Revenue Growth-0.17%
EPS Growth-5.25%
CountryUS
Employees2,884
SectorConsumer Defensive
Sector Strength42
IndustryAgricultural Farm Products
Share Statistics
EPS (TTM)0.28
Shares Outstanding42,702,350
10 Day Avg. Volume0
30 Day Avg. Volume0
Financial Highlights & Ratios
PEG Ratio-0.55
Price to Book (P/B)1.64
Price to Sales (P/S)0.44
P/FCF Ratio38.68
Enterprise Value/Market Cap1.30
Enterprise Value/Revenue0.41
Enterprise Value/Gross Profit1.98
Enterprise Value/Ebitda8.32
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Elders Limited Business Overview & Revenue Model
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 MoneyElders Limited generates revenue primarily through its various segments, including livestock and rural services, agronomy, and real estate. The company earns money by facilitating the sale of livestock, providing agricultural products and services to farmers, and offering real estate services for rural properties. Key revenue streams include commissions from livestock sales, sales of agricultural inputs such as fertilizers and chemicals, and fees from real estate transactions. Additionally, Elders benefits from partnerships with suppliers and other stakeholders in the agricultural sector, which enhance its service offerings and market reach.
Elders Limited Earnings Call Summary
Earnings Call Date:Nov 16, 2025
(Q4-2025)
| Next Earnings Date:May 18, 2026
Earnings Call Sentiment Positive
Elders Limited delivered solid results with significant EBIT growth and strategic acquisitions positioning the company for future success. While challenges from dry conditions and operational setbacks were noted, the overall outlook for FY '26 remains positive, supported by early trading results and strategic initiatives.Q4-2025 Updates
Positive Updates
EBIT Growth
Elders Limited reported a 12% increase in EBIT, demonstrating solid operational and financial resilience despite mixed seasonal conditions.
Delta Agribusiness Acquisition
Completed on November 3, the acquisition is expected to provide significant growth, enhance technical and AgTech expertise, and improve geographical diversification.
Positive Outlook for FY '26
Optimistic outlook for Australian agriculture with expectations of average conditions and strong demand for livestock. Early trading for FY '26 is tracking 30% up compared to the previous year.
Transformational Projects Progress
Good progress on Wave 2 of the SysMod project, with other components advancing on time, indicating a strong future platform.
Record Profitability in Feed and Processing
Achieved due to investments in feed mill, center-pivot irrigation, and other productivity enhancements.
Negative Updates
Challenges from Dry Seasonal Conditions
Faced limitations in rural products due to very dry conditions in Southern and Western Australia, impacting sales and margins.
Increase in Lost Time Injuries
Reported six lost time injuries, an increase from the previous year, predominantly in the livestock area.
Impairment of Goodwill
Faced goodwill impairments in certain business areas due to loss of agents and transition challenges post earnout.
Margin Compression in Crop Protection
Experienced a decline in crop protection gross profit by 9% due to market and seasonal pressures.
Company Guidance
In the Elders Limited FY '25 Results Investor Briefing, CEO Mark Allison highlighted several key financial metrics and strategic initiatives. The company reported a 12% increase in EBIT compared to the previous year, demonstrating solid operational and financial resilience. Return on capital remained stable at 11.3%, and the company maintained strong cash conversion. The investor briefing also noted strong activity in livestock and real estate sectors. Elders completed the acquisition of Delta Agribusiness, which is expected to enhance earnings per share (EPS) and contribute $12 million in synergies at the EBIT level over a three-year period. Looking ahead to FY '26, Elders anticipates a positive outlook for Australian agriculture, with livestock prices expected to be supported by strong international demand. Early trading in FY '26 showed a 30% increase compared to the previous year, indicating a promising start. The company continues to focus on its transformational SysMod project, with significant investments aimed at modernizing its systems and processes. Despite challenges, including a slight increase in lost time injuries, Elders remains committed to safety, sustainability, and community engagement. The company also plans to explore potential divestment of its feed and processing division to optimize capital allocation, though this is not essential for achieving target leverage.Elders Limited Financial Statement Overview
Summary
Elders Limited demonstrates stable revenue and gross profit margins, but faces challenges with profitability and cash flow management. The balance sheet reflects increasing leverage, which may pose financial risks. Overall, the company maintains a moderate financial position with areas needing improvement.Income Statement
Elders Limited shows moderate revenue growth with fluctuations in net income, indicating potential instability. Gross profit margin is stable, but net profit margin has decreased over recent years. EBITDA margin is reasonable, but the absence of EBIT suggests operational challenges.65
Positive
Balance Sheet
The company's debt-to-equity ratio has risen, indicating increased leverage. However, stockholders' equity is well-maintained. The equity ratio remains stable, suggesting a balanced asset structure, but increased liabilities pose a risk.72
Positive
Cash Flow
Free cash flow has been volatile, with recent declines, indicating liquidity management challenges. Operating cash flow has seen fluctuations, with a negative growth trend. The free cash flow to net income ratio suggests adequate conversion of income to cash flow.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.20B | 3.12B | 3.32B | 3.43B | 2.54B | 2.09B |
| Gross Profit | 661.92M | 610.76M | 604.84M | 628.37M | 508.29M | 430.25M |
| EBITDA | 157.44M | 170.81M | 216.13M | 290.83M | 205.02M | 152.56M |
| Net Income | 67.11M | 45.08M | 100.84M | 162.87M | 149.78M | 122.95M |
Balance Sheet | ||||||
| Total Assets | 2.51B | 2.33B | 2.07B | 2.02B | 1.80B | 1.55B |
| Cash, Cash Equivalents and Short-Term Investments | 40.22M | 40.21M | 21.48M | 17.84M | 48.06M | 50.74M |
| Total Debt | 569.84M | 730.72M | 484.79M | 302.75M | 264.94M | 288.19M |
| Total Liabilities | 1.41B | 1.48B | 1.21B | 1.16B | 1.02B | 881.74M |
| Stockholders Equity | 1.09B | 840.72M | 862.48M | 854.86M | 775.42M | 671.00M |
Cash Flow | ||||||
| Free Cash Flow | 40.16M | 35.59M | 121.48M | 184.94M | 133.93M | 134.96M |
| Operating Cash Flow | 65.43M | 82.95M | 169.24M | 210.11M | 142.16M | 142.34M |
| Investing Cash Flow | -115.16M | -150.94M | -132.15M | -45.14M | -35.49M | -123.15M |
| Financing Cash Flow | 51.89M | 86.72M | -33.45M | -98.75M | -109.34M | 24.23M |
Elders Limited Technical Analysis
Positive
24.36
Price Trends
23.34
Positive
23.56
Negative
21.75
Positive
Market Momentum
0.23
Negative
51.74
Neutral
50.72
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EDESY, the sentiment is Positive. The current price of 24.36 is above the 20-day moving average (MA) of 23.14, above the 50-day MA of 23.34, and above the 200-day MA of 21.75, indicating a bullish trend. The MACD of 0.23 indicates Negative momentum. The RSI at 51.74 is Neutral, neither overbought nor oversold. The STOCH value of 50.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EDESY.
Elders Limited Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $1.77B | 22.66 | 3.95% | 3.23% | 1.11% | 414.23% | |
63 Neutral | $1.42B | 48.84 | 8.75% | 2.21% | 7.09% | -83.75% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
60 Neutral | $1.01B | 26.87 | 4.97% | 5.72% | -0.17% | -5.25% | |
52 Neutral | $823.94M | 35.29 | 1.69% | 4.25% | -7.37% | -84.53% | |
50 Neutral | $283.22M | -1.92 | -83.19% | 0.54% | -5.52% | -2194.72% | |
48 Neutral | $369.05M | -82.42 | -1.12% | 3.24% | -3.22% | -108.24% |
* Consumer Defensive Sector Average
EDESY
Elders Limited
23.54
1.01
4.48%
AGRO
Adecoagro SA
8.24
-2.15
-20.69%
ALCO
Alico
36.99
10.29
38.54%
FDP
Fresh Del Monte Produce
37.14
4.87
15.09%
LND
BrasilAgro Cia Brasileira de Propriedades Agricolas
3.75
0.03
0.81%
DOLE
Dole
14.90
0.56
3.91%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.