Elders Limited (EDESY)
OTHER OTC:EDESY
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Elders Limited
(OTC:EDESY)
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Rating:65Neutral
Price Target:
$21.50
â–¼(-12.42% Downside)
Action:Reiterated
Date:05/19/26
The score reflects solid underlying financial/cash-flow strength and a supportive income-oriented valuation (high dividend yield), reinforced by an upbeat earnings call and strong H1 performance. These positives are meaningfully offset by weak technicals (downtrend and negative momentum) and profitability/revenue pressure noted in the financial statement analysis, alongside temporary but material cost and leverage headwinds discussed on the call.
Positive Factors
Cash generation
Elders reported $67m operating cash inflow and 176.6% cash conversion, reflecting robust free cash flow generation. Durable cash conversion supports funding working-capital swings, dividends and debt reduction without reliance on external equity, improving financial flexibility over months.
Negative Factors
Declining revenue and margin pressure
Financial statements show a multi-period decline in revenue and shrinking net profit margins. Persistent top-line weakness undermines operating leverage, constrains reinvestment and dividend capacity, and requires either structural revenue recovery or margin restoration to sustain long-term returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Elders reported $67m operating cash inflow and 176.6% cash conversion, reflecting robust free cash flow generation. Durable cash conversion supports funding working-capital swings, dividends and debt reduction without reliance on external equity, improving financial flexibility over months.
Read all positive factors
Elders Limited (EDESY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$903.68M
Dividend Yield5.78%
Average Volume (3M)0.00
Price to Earnings (P/E)7.8
Beta (1Y)0.60
Revenue Growth12.31%
EPS Growth-29.41%
CountryUS
Employees2,884
SectorConsumer Defensive
Sector Strength42
IndustryAgricultural Farm Products
Share Statistics
EPS (TTM)1.33
Shares Outstanding42,895,750
10 Day Avg. Volume0
30 Day Avg. Volume0
Financial Highlights & Ratios
PEG Ratio-6.14
Price to Book (P/B)1.02
Price to Sales (P/S)0.35
P/FCF Ratio13.02
Enterprise Value/Market Cap2.20
Enterprise Value/Revenue0.57
Enterprise Value/Gross Profit2.76
Enterprise Value/Ebitda8.82
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 Description
Elders 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 inp...
How the Company Makes Money
Elders makes money primarily by earning fees, commissions, and trading margins from services and products it delivers to agricultural clients. Key revenue streams include: (1) Agency and brokerage commissions from facilitating livestock transactio...
Elders Limited Earnings Call Summary
Earnings Call Date:May 17, 2026
(Q2-2026)
| Next Earnings Date:Nov 16, 2026
Earnings Call Sentiment Positive
The call reported strong underlying operating performance: sales rose 32%, underlying EBIT grew 33% to $76.6m, gross margin expanded 27%, and cash conversion was exceptionally strong at 176.6%. Integration of Delta Ag is progressing and safety and systems milestones (new livestock system live, SysMod waves on track) were highlighted. Offsetting these positives are elevated transformation and corporate costs (including $13.5m SysMod spend), a $147m working capital build, elevated normalized leverage (~2.6x) pending Killara proceeds, seasonal and volume weaknesses in some livestock areas, and geopolitical supply risks that could pressure margins. Management positioned many of the cost and balance-sheet issues as temporary or weighted to H2/FY27 recoveries (Killara sale, Delta synergies, SysMod completion), and the tone was optimistic about returning to targeted leverage and extracting transformational benefits.Positive Updates
Strong Revenue Growth
Sales revenue increased by $426.4 million, up 32% year-on-year, supported by improved seasonal conditions in southern states and five months of Delta Ag sales.
Negative Updates
Elevated Transformation Costs (SysMod)
Transformation costs of $13.5 million ran through the period (SysMod program) and contributed to higher underlying operating costs; significant IT and dual-running system costs are expected to persist into late 2026/early 2027 until legacy AS400 systems are retired.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Revenue Growth
Sales revenue increased by $426.4 million, up 32% year-on-year, supported by improved seasonal conditions in southern states and five months of Delta Ag sales.
Read all positive updates
Company Guidance
Management reiterated a positive FY26 outlook while flagging seasonality and project timing: H1 underlying EBIT was $76.6m (+33% YoY) on sales up $426.4m (+32%) with gross margin $396.6m (+27% / +$83.1m), operating cash inflow $67m and cash conversion 176.6%; dividend 18c/share was declared. They expect Delta Ag (five‑month contribution: $10.4m EBIT, $45.8m gross margin) to deliver fast‑track synergies of $8m in year one (versus a $12m three‑year target) and noted Delta earnings are up to 75% weighted to H2; Killara Feedlot divestment is expected June–July with proceeds to reduce net debt (post‑Killara net debt $425.8m, core debt $210m ex‑receivables) and normalized leverage of 2.6x (targeting a return to 1.5–2.0x in FY26). Other guidance: working capital up $147m, underlying cost growth $12m (4.7%), normalized ROC ~12% (down 0.3ppt), third‑party client lending limits >$75m (drawn $35m), SysMod Waves 3–4 remain on track for calendar‑2026 completion with expected >15% ROIC and material IT cost relief by early 2027, company tax payments to recommence June 2026, and management warned fertilizer and crop‑protection pricing/volumes remain uncertain.Elders Limited Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
72
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.51B | 3.19B | 3.12B | 3.32B | 3.43B | 2.54B |
| Gross Profit | 720.10M | 654.17M | 610.76M | 604.84M | 628.37M | 508.29M |
| EBITDA | 225.30M | 177.91M | 170.81M | 216.13M | 290.83M | 205.02M |
| Net Income | 55.00M | 50.29M | 45.08M | 100.84M | 162.87M | 149.78M |
Balance Sheet | ||||||
| Total Assets | 3.57B | 2.54B | 2.33B | 2.07B | 2.02B | 1.80B |
| Cash, Cash Equivalents and Short-Term Investments | 87.08M | 46.73M | 40.21M | 21.48M | 17.84M | 48.06M |
| Total Debt | 983.28M | 594.13M | 730.72M | 484.79M | 302.75M | 264.94M |
| Total Liabilities | 2.33B | 1.45B | 1.48B | 1.21B | 1.16B | 1.02B |
| Stockholders Equity | 1.24B | 1.08B | 840.72M | 862.48M | 854.86M | 775.42M |
Cash Flow | ||||||
| Free Cash Flow | 134.15M | 84.67M | 35.59M | 121.48M | 184.94M | 133.93M |
| Operating Cash Flow | 151.01M | 117.89M | 82.95M | 169.24M | 210.11M | 142.16M |
| Investing Cash Flow | -346.09M | -77.94M | -150.94M | -132.15M | -45.14M | -35.49M |
| Financing Cash Flow | 241.47M | -33.43M | 86.72M | -33.45M | -98.75M | -109.34M |
Elders Limited Technical Analysis
Negative
24.55
Price Trends
24.97
Negative
25.01
Negative
24.33
Negative
Market Momentum
-1.37
Positive
32.18
Neutral
8.02
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EDESY, the sentiment is Negative. The current price of 24.55 is above the 20-day moving average (MA) of 24.24, below the 50-day MA of 24.97, and above the 200-day MA of 24.33, indicating a bearish trend. The MACD of -1.37 indicates Positive momentum. The RSI at 32.18 is Neutral, neither overbought nor oversold. The STOCH value of 8.02 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
65 Neutral | $903.68M | 7.76 | 4.83% | 5.78% | 12.31% | -29.41% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
58 Neutral | $1.85B | 66.81 | 0.89% | 4.40% | -5.30% | -109.16% | |
58 Neutral | $306.37M | 6.98 | -18.22% | 0.55% | -66.78% | 86.61% | |
57 Neutral | $1.58B | 45.63 | 3.43% | 3.34% | 0.22% | -52.50% | |
57 Neutral | $1.37B | 10.86 | 3.18% | 2.23% | 11.38% | -38.18% | |
49 Neutral | $369.79M | -38.14 | -0.70% | 3.39% | 0.76% | -105.51% |
* Consumer Defensive Sector Average
EDESY
Elders Limited
20.96
0.55
2.70%
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LND
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DOLE
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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.