SLC Agricola SA (SLCJY) AI Stock Analysis

• Market Cap: $1.32B
• Dividend Yield: 3%
• Average Volume (3M): 243.00
• Price to Earnings (P/E): 11.9
• Beta (1Y): 0.35
• Revenue Growth: 14.51%
• EPS Growth: 45.06%
• Country: US
• Employees: 5,757
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Agricultural Farm Products
• EPS (TTM): >-0.01
• Shares Outstanding: 886,659,400
• 10 Day Avg. Volume: 730
• 30 Day Avg. Volume: 243
• PEG Ratio: -0.34
• Price to Book (P/B): 1.90
• Price to Sales (P/S): 0.98
• P/FCF Ratio: 11.49
• Enterprise Value/Market Cap: 2.35
• Enterprise Value/Revenue: 0.33
• Enterprise Value/Gross Profit: 1.07
• Enterprise Value/Ebitda: 1.05
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: $3.50 ▲(14.38% Upside)

SLC Agricola SA's stock score is driven by strong financial performance and strategic initiatives highlighted in the earnings call. However, concerns about high leverage, cash flow challenges, and mixed technical indicators temper the overall outlook. The valuation appears fair, with a reasonable P/E ratio and attractive dividend yield.

Positive Factors

Revenue Growth

The consistent revenue growth indicates a positive trajectory and suggests that the company is effectively expanding its market presence and product adoption.

Operational Efficiency

The reduction in unit costs reflects improved operational efficiency, which can enhance profitability and provide a competitive edge in the agricultural sector.

Strategic Investments

Expanding irrigation projects can lead to more stable and higher yields, supporting long-term growth and resilience against climate variability.

Negative Factors

High Leverage

High leverage can pose financial risks, limiting the company's flexibility to invest in growth opportunities and increasing vulnerability to economic downturns.

Negative Free Cash Flow

Negative free cash flow indicates potential liquidity issues, which could hinder the company's ability to fund operations and strategic initiatives without additional financing.

Increased Debt

The increase in debt due to strategic investments raises concerns about the company's financial stability and its ability to manage debt effectively over the long term.

SLC Agricola SA Business Overview & Revenue Model

Company Description

SLC Agricola SA (SLCJY) is a Brazilian agricultural company primarily engaged in the production and commercialization of grains, including soybeans, corn, and cotton. As one of the largest agribusinesses in Brazil, SLC Agricola operates extensive farmland across various regions, focusing on sustainable agricultural practices and innovative technologies to enhance productivity. The company also ventures into livestock production and has a growing presence in the bioenergy sector, further diversifying its agricultural portfolio.

How the Company Makes Money

SLC Agricola generates revenue primarily through the sale of agricultural commodities such as soybeans, corn, and cotton. The company's revenue model is built on a combination of direct sales to domestic and international markets, as well as contracts with major food and beverage companies. Key revenue streams include the sale of harvested crops, leasing of farmland, and providing agricultural services. The company benefits from strategic partnerships with agricultural input suppliers and distributors, which enhance its supply chain efficiency and market reach. Additionally, SLC Agricola invests in technology and sustainable practices, which help reduce costs and improve yield, contributing positively to its overall profitability.

SLC Agricola SA Financial Statement Overview

Summary

SLC Agricola SA shows strong revenue growth and profitability, with a gross profit margin of 31.67% and an EBIT margin of 24.71%. However, challenges include a high debt-to-equity ratio of 1.45 and negative free cash flow, indicating potential liquidity issues.

Income Statement

SLC Agricola SA demonstrates strong revenue growth with an 11.46% increase in the TTM period, indicating a positive trajectory. The company maintains solid profitability with a gross profit margin of 31.67% and an EBIT margin of 24.71%. However, the net profit margin is relatively lower at 8.64%, suggesting room for improvement in cost management or operational efficiency.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 1.45, indicating significant leverage, which could pose risks if not managed carefully. However, the return on equity is healthy at 14.59%, reflecting effective use of equity to generate profits. The equity ratio stands at 29.41%, suggesting a moderate level of equity financing relative to total assets.

Cash Flow

The cash flow statement reveals challenges with free cash flow, which is negative in the TTM period, indicating potential liquidity issues. The operating cash flow to net income ratio is 0.24, suggesting that cash generation from operations is not fully covering net income. This could impact the company's ability to fund operations and growth without additional financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.51B	7.80B	7.23B	9.59B	6.32B	4.40B
Gross Profit	2.91B	2.31B	2.62B	3.13B	2.25B	1.60B
EBITDA	2.94B	1.96B	2.53B	2.95B	2.18B	1.03B
Net Income	576.74M	509.41M	895.60M	1.27B	1.06B	488.67M
Balance Sheet
Total Assets	20.53B	17.57B	15.86B	14.87B	12.87B	8.59B
Cash, Cash Equivalents and Short-Term Investments	1.72B	1.98B	1.61B	1.24B	139.78M	1.60B
Total Debt	11.70B	8.67B	7.69B	6.72B	5.94B	3.36B
Total Liabilities	15.19B	13.47B	10.61B	9.97B	9.09B	5.44B
Stockholders Equity	5.27B	4.00B	4.93B	4.60B	3.52B	2.94B
Cash Flow
Free Cash Flow	430.28M	662.07M	1.03B	1.51B	-1.31M	573.08M
Operating Cash Flow	1.84B	1.48B	1.85B	1.99B	435.09M	784.86M
Investing Cash Flow	-1.70B	-843.11M	-856.41M	-485.81M	-476.19M	-169.85M
Financing Cash Flow	-148.47M	-271.15M	-618.48M	-409.97M	-1.42B	159.61M

SLC Agricola SA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.06
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SLCJY, the sentiment is Negative. The current price of 3.06 is below the 20-day moving average (MA) of 3.10, above the 50-day MA of 3.02, and below the 200-day MA of 3.19, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 49.36 is Neutral, neither overbought nor oversold. The STOCH value of 83.41 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SLCJY.

SLC Agricola SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BG	69 Neutral	$18.10B	10.06	10.24%	3.03%	10.29%	17.32%
FDP	69 Neutral	$1.77B	22.66	3.95%	3.23%	1.11%	414.23%
SLCJY	66 Neutral	$1.32B	11.90	12.27%	3.00%	14.51%	45.06%
DOLE	63 Neutral	$1.42B	48.84	8.75%	2.26%	7.09%	-83.75%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
AGRO	52 Neutral	$823.94M	35.29	1.69%	4.25%	-7.37%	-84.53%
LND	48 Neutral	$369.05M	-82.42	-1.12%	3.33%	-3.22%	-108.24%

SLC Agricola SA Corporate Events

SLC Agricola’s Earnings Call: Record Yields Amid Challenges

The recent earnings call for SLC Agricola presented a mixed sentiment, highlighting both strong operational achievements and notable challenges. The company reported record yields and revenue growth, driven by strategic investments and operational efficiency. However, decreased net income, rising debt levels, and pressure on commodity prices underscored the hurdles faced by the company. Despite these challenges, SLC Agricola’s forward-looking strategies, including hedging and land acquisitions, reflect a proactive approach to risk management and market opportunities.