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Brasilagro Cia Brasileira De Propriedades Agricolas ADR (LND)
:LND
RESEARCH TOOLSreports
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BrasilAgro Cia Brasileira de Propriedades Agricolas
(NYSE:LND)
Rating:71Outperform
Price Target:
$4.00
▲(6.95%Upside)
BrasilAgro Cia Brasileira de Propriedades Agricolas (LND) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$363.98M
Dividend Yield6.68%
Average Volume (3M)38.00K
Price to Earnings (P/E)6.3
Beta (1Y)0.13
Revenue Growth1.09%
EPS Growth21.46%
CountryUS
Employees342
SectorReal Estate
Sector Strength51
IndustryAgricultural Farm Products
Share Statistics
EPS (TTM)>-0.01
Shares Outstanding102,683,440
10 Day Avg. Volume32,076
30 Day Avg. Volume38,004
Financial Highlights & Ratios
PEG Ratio0.77
Price to Book (P/B)0.95
Price to Sales (P/S)0.00
P/FCF Ratio-68.55
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$4.50Price Target Upside20.32% Upside
Rating ConsensusModerate Buy
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 makes money primarily through the acquisition, development, and sale of agricultural properties. The company generates revenue from the sale of crops produced on its properties, including grains, sugarcane, and livestock. Additionally, BrasilAgro adds value to its land portfolio by making improvements and increasing the productivity of the land, ultimately leading to appreciation in land value. This appreciation allows the company to sell properties at a profit. Furthermore, BrasilAgro may engage in leasing agreements or partnerships that provide additional revenue streams. The company's financial performance is influenced by factors such as commodity prices, agricultural yields, and the strategic management of its land assets.
BrasilAgro Cia Brasileira de Propriedades Agricolas Earnings Call Summary
Earnings Call Date:May 13, 2025
(Q1-2025)
| % Change Since: 1.36%|
Next Earnings Date:Sep 03, 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.Q1-2025 Updates
Positive Updates
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.
Negative Updates
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.BrasilAgro Cia Brasileira de Propriedades Agricolas Financial Statement Overview
Summary
BrasilAgro displays strong profitability and operational efficiency, with high net profit and EBITDA margins. However, inconsistent revenue growth and declining cash reserves pose potential liquidity risks. The balance sheet is stable but cash flow challenges due to negative free cash flow growth and limited cash generation relative to earnings need attention.Income Statement
The company shows a solid performance with a high gross profit margin of 22.67% for TTM (Trailing-Twelve-Months), indicating efficient cost management. The net profit margin is robust at 24.79%, reflecting strong profitability. However, revenue growth has been inconsistent, with a decline of 7.47% from the previous annual period. EBIT and EBITDA margins are healthy at 32.91% and 35.73%, respectively, suggesting good operational efficiency.70
Positive
Balance Sheet
The balance sheet exhibits moderate leverage with a debt-to-equity ratio of 0.62 for TTM, which is manageable. The return on equity is impressive at 14.27%, indicating effective use of equity capital. However, the equity ratio stands at 54.64%, showing a moderate level of equity financing. The company's total assets have grown, but a decreasing trend in cash reserves may be a concern for liquidity.65
Positive
Cash Flow
The cash flow statement presents challenges, with negative free cash flow growth, highlighting potential liquidity issues. Operating cash flow to net income ratio is modest at 0.14, indicating limited cash generation relative to earnings. The free cash flow to net income ratio is negative, suggesting the company is not generating free cash flow in line with its net income, mainly due to capital expenditures.55
Neutral
| Breakdown | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.02B | 1.35B | 1.37B | 693.32M | 554.91M |
| Gross Profit | 311.89M | 393.74M | 775.92M | 491.52M | 221.39M |
| EBITDA | 338.91M | 343.40M | 787.98M | 436.83M | 219.03M |
| Net Income | 226.87M | 268.54M | 520.10M | 317.65M | 119.55M |
Balance Sheet | |||||
| Total Assets | 3.61B | 3.51B | 3.35B | 3.43B | 2.04B |
| Cash, Cash Equivalents and Short-Term Investments | 193.89M | 412.04M | 530.36M | 1.06B | 171.04M |
| Total Debt | 1.04B | 871.97M | 702.19M | 862.18M | 666.48M |
| Total Liabilities | 1.43B | 1.31B | 1.13B | 1.25B | 922.80M |
| Stockholders Equity | 2.18B | 2.20B | 2.22B | 2.18B | 1.12B |
Cash Flow | |||||
| Free Cash Flow | 11.02M | 94.95M | 154.34M | 132.52M | 43.94M |
| Operating Cash Flow | 79.42M | 155.73M | 205.18M | 151.23M | 69.02M |
| Investing Cash Flow | -27.85M | 55.04M | -89.73M | -214.01M | -29.30M |
| Financing Cash Flow | -265.80M | -261.06M | -737.80M | 954.86M | 18.45M |
BrasilAgro Cia Brasileira de Propriedades Agricolas Technical Analysis
Negative
3.74
Price Trends
3.82
Negative
3.81
Negative
3.85
Negative
Market Momentum
-0.02
Positive
41.63
Neutral
39.39
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LND, the sentiment is Negative. The current price of 3.74 is below the 20-day moving average (MA) of 3.77, below the 50-day MA of 3.82, and below the 200-day MA of 3.85, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 41.63 is Neutral, neither overbought nor oversold. The STOCH value of 39.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $363.98M | 6.30 | 15.25% | 6.68% | 1.09% | 21.46% | |
68 Neutral | $926.94M | 14.80 | 4.51% | 3.76% | 17.05% | -73.53% | |
63 Neutral | $6.78B | 14.59 | -1.87% | 7.22% | 3.95% | -36.33% | |
61 Neutral | $265.25M | 36.96 | -0.97% | 2.04% | -0.94% | 0.47% | |
53 Neutral | $246.69M | 32.96 | -70.02% | 0.62% | 23.36% | -451.44% | |
52 Neutral | $69.14M | ― | -2448.28% | ― | 41.44% | -1.20% |
* Real Estate Sector Average
Performance Comparison
LND
BrasilAgro Cia Brasileira de Propriedades Agricolas
3.71
-0.63
-14.52%
AGRO
Adecoagro SA
9.19
-0.05
-0.54%
ALCO
Alico
32.28
3.26
11.23%
LMNR
Limoneira Co
14.68
-6.37
-30.26%
LOCL
Local Bounti Corporation
3.18
0.44
16.06%
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.