Lavoro Limited (LVROF) AI Stock Analysis

• Market Cap: $8.59M
• Dividend Yield: N/A
• Average Volume (3M): 6.71K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.37
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 3,767
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Agricultural Inputs
• EPS (TTM): N/A
• Shares Outstanding: 114,595,436
• 10 Day Avg. Volume: 8,789
• 30 Day Avg. Volume: 6,715
• PEG Ratio: 0.01
• Price to Book (P/B): -0.88
• Price to Sales (P/S): 0.22
• P/FCF Ratio: -1.51
• Enterprise Value/Market Cap: 37.35
• Enterprise Value/Revenue: 0.04
• Enterprise Value/Gross Profit: 0.24
• Enterprise Value/Ebitda: 0.83
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -0.42
• Revenue Forecast (FY): $1.37B

• Rating: 41 Neutral
• Price Target: $0.07 ▼(-93.45% Downside)
• Action: Reiterated Date: 03/19/26
• Date: Action: Reiterated 03/19/26

The score is driven down primarily by very weak recent financial performance (sharp revenue drop, large losses, negative equity, and cash burn). Technicals also remain bearish with the stock far below key moving averages and a negative MACD, while valuation offers limited support due to losses (negative P/E) and no dividend yield.

Positive Factors

Distribution Footprint

Lavoro’s retail and distribution network across Latin America provides durable customer access and inventory reach. A physical footprint supports recurring product sales, agronomic service cross-sell, local market knowledge and logistical advantages that help sustain revenues and customer loyalty over time.

Historical Cash Generation

The business has demonstrated the ability to generate positive operating and free cash flow in prior years (2024 and 2021), indicating the underlying retail/distribution model can be cash-generative when scale and margins normalize. This historical cash generation supports a credible path to recovery under improved conditions.

Deleveraging Progress

Reported material reduction in total debt versus the prior year suggests meaningful deleveraging. Lower nominal debt reduces interest burden and eases refinancing pressure, improving near-term liquidity flexibility and giving management more room to prioritize operational fixes or targeted investments without as much strain from legacy leverage.

Negative Factors

Severe Revenue Contraction

A collapse in revenue from ~9.39B to ~1.14B represents a dramatic loss of scale that weakens supplier negotiating power, reduces fixed-cost absorption and diminishes retail assortment economics. Restoring volume is essential for long-term margin recovery and to preserve the distribution infrastructure's profitability.

Negative Equity

Stockholders’ equity turned meaningfully negative (~-283M), signaling capital impairment. Negative equity constrains access to traditional financing, risks covenant breaches, and limits the company’s capacity to invest or absorb further shocks, likely forcing strategic restructuring or external recapitalization unless corrected.

Ongoing Cash Burn and Deep Losses

Current operating cash flow and free cash flow are deeply negative alongside steep operating losses, indicating persistent cash burn. Continued negative cash generation erodes liquidity, pressures supplier terms and capital spending, and will require new financing or significant structural cost and revenue remediation to stabilize the business.

Lavoro Limited Business Overview & Revenue Model

Company Description

Lavoro Limited operates as an agricultural inputs retailer. The company operates through Brazil Ag Retail, Latam Ag Retail, and Crop Care segments. It distributes agricultural inputs, such as crop protection, seeds, fertilizers, foliar fertilizers, biologicals, adjuvants, organominerals, and others for the agricultural industry. In addition, the company produces specialty fertilizers, crop protection products, and agricultural crop inputs. Lavoro Limited operates in Brazil, Colombia, Ecuador, Peru, Chile, Paraguay, and Uruguay. The company sells its products through its physical stores and digital channel. The company was founded in 2017 and is headquartered in São Paulo, Brazil.

How the Company Makes Money

Lavoro Limited makes money primarily by selling agricultural inputs and related solutions to farmers through its retail and distribution footprint. The core revenue stream is product revenue generated from the sale of crop inputs (e.g., categories such as seed, crop protection products, fertilizers, and other farm supplies); specific product-category mix and percentages are null. The company’s earnings are generally driven by (1) volume of inputs sold tied to planted acreage and farmer demand, (2) pricing and gross margin dynamics for agricultural inputs, and (3) the breadth and density of its retail footprint and logistics/distribution reach that enable customer service and product availability. Additional monetization can come from value-added or complementary services offered alongside input sales (such as agronomic support, commercial services, or other programs), but the exact service lines and their materiality are null. Information on significant partnerships, supplier agreements, or named strategic relationships contributing to earnings is null.

Lavoro Limited Financial Statement Overview

Summary

Financial quality is very weak: the latest year shows a severe revenue contraction, deeply negative profitability, negative operating/free cash flow, and negative equity, indicating elevated execution and financing risk despite stronger results in some earlier years.

Income Statement

Profitability has deteriorated sharply in the latest annual period: revenue fell to ~1.14B (vs. ~9.39B prior year), while margins are deeply negative (net margin ~-41% and EBIT margin ~-32%). The business has a track record of stronger results earlier in the period (2021–2022 showed positive net income and healthier operating margins), but the most recent year reflects a severe step-down in scale and significant operating losses, which overwhelms the earlier progress.

Balance Sheet

Financial risk is elevated due to negative equity in the latest year (stockholders’ equity ~-283M), which makes leverage structurally strained even though total debt is lower (~380M vs. ~1.85B prior year). Total assets also contracted materially (~788M vs. ~8.35B), indicating a significantly smaller balance sheet and reduced cushion against volatility. Prior years showed positive equity and manageable-to-high leverage, but the latest shift to negative equity is the key weakness.

Cash Flow

Cash generation weakened meaningfully in the latest year, with operating cash flow of about -160M and free cash flow of about -165M, pointing to ongoing cash burn. That said, cash flow performance has been mixed historically (positive operating and free cash flow in 2024 and 2021, but negative in 2022 and 2020), suggesting volatility rather than a stable cash-producing profile. The current direction is the main concern.

Breakdown	TTM	Jun 2025	Sep 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	9.08B	1.14B	9.35B	7.75B	5.10B	2.71B
Gross Profit	1.37B	158.37M	1.73B	1.33B	735.89M	322.20M
EBITDA	387.04M	-337.88M	594.52M	853.01M	165.21M	-68.12M
Net Income	-944.45M	-466.09M	-260.71M	78.17M	38.39M	-108.70M
Balance Sheet
Total Assets	9.06B	787.77M	7.52B	5.69B	4.40B	2.66B
Cash, Cash Equivalents and Short-Term Investments	510.86M	94.29M	564.29M	254.41M	459.46M	158.50M
Total Debt	1.87B	380.33M	1.15B	865.80M	317.54M	210.18M
Total Liabilities	7.97B	1.07B	5.41B	4.02B	2.93B	1.81B
Stockholders Equity	870.12M	-283.29M	1.86B	1.45B	1.35B	787.71M
Cash Flow
Free Cash Flow	-75.47M	-165.16M	42.69M	-292.26M	18.88M	-45.27M
Operating Cash Flow	20.48M	-160.30M	108.07M	-244.56M	53.82M	-11.43M
Investing Cash Flow	-218.57M	12.59M	-220.73M	-293.95M	-393.36M	-280.43M
Financing Cash Flow	145.53M	73.15M	448.73M	333.47M	640.50M	381.00M

Lavoro Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LVROF, the sentiment is Negative. The current price of 1.1 is above the 20-day moving average (MA) of 0.17, above the 50-day MA of 0.70, and below the 200-day MA of 1.39, indicating a bearish trend. The MACD of -0.17 indicates Negative momentum. The RSI at 28.68 is Positive, neither overbought nor oversold. The STOCH value of 40.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LVROF.

Lavoro Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IPI	73 Outperform	$536.95M	-212.04	2.30%	―	8.88%	-349.99%
UAN	67 Neutral	$1.40B	10.98	32.82%	12.33%	16.52%	141.96%
SMG	62 Neutral	$3.74B	―	-27.23%	4.52%	-3.93%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
BIOX	46 Neutral	$23.43M	-3.05	-18.69%	―	-27.90%	-4194.67%
AVD	44 Neutral	$86.19M	―	-22.89%	―	-4.29%	-276.74%
LVROF	41 Neutral	$8.59M	-0.53	-111.06%	―	―	―