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BrasilAgro Cia Brasileira de Propriedades Agricolas (LND)
NYSE:LND
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BrasilAgro Cia Brasileira de Propriedades Agricolas
(NYSE:LND)
66Neutral
BrasilAgro Cia Brasileira de Propriedades Agricolas (LND) vs. S&P 500 (SPY)
Market Cap
$399.55M
Dividend Yield6.39%
Average Volume (3M)38.27K
Price to Earnings (P/E)7.5
Beta (1Y)0.33
Revenue Growth-8.21%
EPS Growth-1.83%
CountryUS
Employees342
SectorReal Estate
Sector Strength65
IndustryAgricultural Farm Products
Share Statistics
EPS (TTM)0.53
Shares Outstanding102,683,440
10 Day Avg. Volume31,064
30 Day Avg. Volume38,272
Financial Highlights & Ratios
PEG Ratio1.46
Price to Book (P/B)N/A
Price to Sales (P/S)2.12
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
BrasilAgro Cia Brasileira de Propriedades Agricolas Business Overview & Revenue Model
Company DescriptionBrasilAgro - Companhia Brasileira de Propriedades Agrícolas engages in the acquisition, development, exploration, and sale of rural properties suitable for agricultural activities in Brazil. The company operates through six segments: Real Estate, Grains, Sugarcane, Cattle Raising, Cotton, and Other. It is involved in the cultivation of soybean, corn, sorghum, and cotton, as well as sugarcane; and production and sale of beef calves after weaning. The company has 17 farms in 6 Brazilian states and 1 farm in Paraguay with a total area of 223,551 hectares of own lands and 51,747 hectares of leased lands. It also imports and exports agricultural products and inputs; purchases, sells, and/or rents properties, land, buildings, and real estate in rural and/or urban areas; provides real estate brokerage services; and manages third-party assets. The company was incorporated in 2005 and is headquartered in Sao Paulo, Brazil.
How the Company Makes MoneyBrasilAgro generates revenue primarily through the sale of agricultural commodities produced on its properties, including soybeans, corn, sugarcane, and cattle. The company's revenue model is centered on optimizing the use of its land assets to produce high-yield crops and livestock, which are then sold in domestic and international markets. Additionally, BrasilAgro increases its earnings by selling improved and developed rural properties at a premium, capitalizing on the appreciation in land value resulting from enhanced agricultural productivity. The company may also engage in strategic partnerships and joint ventures to leverage expertise and expand its operational capacity, further contributing to its revenue streams.
BrasilAgro Cia Brasileira de Propriedades Agricolas Financial Statement Overview
Summary
Overall, BrasilAgro demonstrates strong profitability and cash flow management but faces headwinds in revenue growth. The balance sheet is solid with a healthy equity position and controlled leverage. Despite revenue challenges, operational efficiency and cash flow strength provide a stable financial foundation.Income Statement
The income statement shows moderate performance with a current TTM gross profit margin of approximately 27.1% and a net profit margin of 29.6%. While the gross margin has decreased compared to previous years, the net profit margin is strong due to an increase in net income. Revenue has been declining, with a notable decrease from previous periods, reflecting challenges in growth. Despite this, the company maintains a healthy EBIT margin of 6.5% and EBITDA margin of 16.6%, indicating operational efficiency.65
Positive
Balance Sheet
The balance sheet indicates a solid equity position, with a debt-to-equity ratio of 0.57, suggesting manageable leverage. The equity ratio is 55.9%, reflecting a strong balance of equity financing. Return on equity stands at 12.7%, showing satisfactory profitability relative to shareholder equity. The company's financial stability is underlined by a strong equity base and controlled debt levels, although there has been an increase in total debt.70
Positive
Cash Flow
The cash flow statement shows robust cash management, with a significant increase in free cash flow. The operating cash flow to net income ratio is 0.52, indicating effective conversion of income to cash. The free cash flow to net income ratio is 0.75, showing strong cash generation relative to net income. The company has improved its cash flow from operations, bolstering its ability to support operations and investments.75
Positive
| Breakdown | |||||
| TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 948.62M | 1.02B | 1.35B | 1.37B | 693.32M | 554.91M | Gross Profit |
| 257.08M | 311.89M | 393.74M | 775.92M | 491.52M | 221.39M | EBIT |
| 61.67M | 185.81M | 254.91M | 690.18M | 394.12M | 164.28M | EBITDA |
| 157.63M | 338.91M | 343.40M | 787.98M | 436.83M | 219.03M | Net Income Common Stockholders |
| 280.54M | 226.87M | 268.54M | 520.10M | 317.65M | 119.55M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 219.60M | 193.89M | 412.04M | 530.36M | 1.06B | 171.04M | Total Assets |
| 727.70M | 3.61B | 3.51B | 3.35B | 3.43B | 2.04B | Total Debt |
| 59.77M | 1.04B | 871.97M | 702.19M | 862.18M | 666.48M | Net Debt |
| -159.83M | 873.04M | 488.13M | 266.70M | -196.93M | 495.43M | Total Liabilities |
| 145.39M | 1.43B | 1.31B | 1.13B | 1.25B | 922.80M | Stockholders Equity |
| 575.98M | 2.18B | 2.20B | 2.22B | 2.18B | 1.12B |
| Cash Flow | Free Cash Flow | ||||
| 211.60M | 11.02M | 94.95M | 154.34M | 132.52M | 43.94M | Operating Cash Flow |
| 145.16M | 79.42M | 155.73M | 205.18M | 151.23M | 69.02M | Investing Cash Flow |
| -41.11M | -27.85M | 55.04M | -89.73M | -214.01M | -29.30M | Financing Cash Flow |
| -214.05M | -265.80M | -261.06M | -737.80M | 954.86M | 18.45M |
BrasilAgro Cia Brasileira de Propriedades Agricolas Technical Analysis
Positive
3.94
Price Trends
3.79
Positive
3.82
Positive
4.11
Negative
Market Momentum
0.06
Negative
63.91
Neutral
85.18
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LND, the sentiment is Positive. The current price of 3.94 is above the 20-day moving average (MA) of 3.83, above the 50-day MA of 3.79, and below the 200-day MA of 4.11, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 63.91 is Neutral, neither overbought nor oversold. The STOCH value of 85.18 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LND.
BrasilAgro Cia Brasileira de Propriedades Agricolas Risk Analysis
BrasilAgro Cia Brasileira de Propriedades Agricolas disclosed 54 risk factors in its most recent earnings report. BrasilAgro Cia Brasileira de Propriedades Agricolas reported the most risks in the “Macro & Political” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
BrasilAgro Cia Brasileira de Propriedades Agricolas Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $525.74M | 11.05 | 11.91% | 2.15% | 1.32% | 108.94% | |
71 Outperform | $1.14B | 12.61 | 7.09% | 3.01% | 16.84% | -57.63% | |
66 Neutral | $399.55M | 7.53 | 13.83% | 6.39% | -8.21% | -1.83% | |
61 Neutral | $4.72B | 17.64 | -3.07% | 10.89% | 5.99% | -21.86% | |
58 Neutral | $375.60M | ― | 1.89% | 5.39% | -5.73% | -5.33% | |
55 Neutral | $224.39M | 32.96 | -17.05% | 0.68% | 14.59% | -194.05% | |
53 Neutral | $829.06M | ― | -8.05% | 8.37% | -3.06% | -124.82% |
* Real Estate Sector Average
Performance Comparison
LND
BrasilAgro Cia Brasileira de Propriedades Agricolas
4.01
-0.63
-13.58%
AGRO
Adecoagro SA
11.42
0.70
6.53%
ALCO
Alico
29.93
0.73
2.50%
CRESY
Cresud Sociedad
11.27
2.84
33.69%
LAND
Gladstone Land
10.51
-1.93
-15.51%
FPI
Farmland
10.88
1.39
14.65%
BrasilAgro Cia Brasileira de Propriedades Agricolas Earnings Call Summary
Earnings Call Date: Feb 6, 2025 | % Change Since: 2.07% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a mixed outlook with strong financial performance and strategic achievements offset by climate-related challenges and commodity price volatility. While operational resilience was emphasized, ongoing challenges in planting and cost management were significant concerns.Highlights
Net Income and Adjusted EBITDA
The company reported a net income of BRL 97.5 million and adjusted EBITDA from operational revenues, including significant contributions from the Alto Taquari Farm.
Operational Achievements
1.6 million tonnes harvested in the quarter, with positive performances in soy and sugarcane contributing significantly to revenues.
Commodity Price Recovery
Increase in sugarcane prices by 21%, soy by 3%, and corn by 5%, reflecting a recovery in commodity markets.
Strong Sugarcane Productivity
Sugarcane productivity exceeded budgeted expectations with a tonnage of 85 TCH, contributing to strong company performance.
Strategic Sales and Revenue
Land sales including the Taquari Farm generated BRL 199 million in revenue, contributing to a gross result significantly.
Lowlights
Challenges in Crop Planting
Delayed start in soy plantations in Mato Grosso due to weather, affecting potential yields and operational timelines.
Corn Planting and Margins
Reduced corn planting area due to previously low expected margins, though recent price recoveries are noted.
Cotton Price Decline
Significant drop in cotton prices, impacting revenue from cotton sales.
Climate Impact on Sugarcane
Sugarcane productivity impacted by regional droughts, with future harvests potentially affected by climatic uncertainties.
High Cost of Capital
Increased cost of capital posing challenges for expansion and investment in new areas.
Company Guidance
During the AGRO3.SA earnings call for Q1 2025, various guidance metrics were discussed by the executives. The company's net income was reported at BRL 97.5 million, with an adjusted EBITDA stemming partly from the Phase 2 sale of the Alto Taquari Farm, generating BRL 525 million at a price of BRL 1,100 per hectare for a total of 2,694 hectares. Operationally, BrasilAgro harvested 1.6 million tonnes, with a significant focus on soy and sugarcane. The company is projected to finish the harvest with approximately 180,000 hectares planted. Sugarcane yields averaged 85 tons per hectare, exceeding budget expectations. The company sold approximately 40% of its soy at $11.46 and maintained a hedge strategy with 31% ethanol sales at BRL 2,600. The total receivables were BRL 900 million, reflecting strong financial management. The executives also highlighted a reduction in the cost per ton of soy and sugarcane, attributing it to lower input prices and improved logistics. Moreover, dividends of BRL 1.96 per share were announced, emphasizing a consistent return to shareholders. Overall, the call underlined BrasilAgro's strategic resilience and effective management amid agricultural and market challenges.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.