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Slc Agricola (SLCJY)
:SLCJY
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SLC Agricola SA
(OTC:SLCJY)
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Rating:66Neutral
Price Target:
$3.50
▲(18.24% Upside)
SLC Agricola SA's overall score reflects strong financial performance and strategic planning, tempered by high leverage and liquidity concerns. The company's valuation is reasonable, and while technical indicators are neutral, the earnings call provides a mixed outlook with both opportunities and challenges.
SLC Agricola SA (SLCJY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.30B
Dividend Yield3.09%
Average Volume (3M)805.00
Price to Earnings (P/E)11.3
Beta (1Y)0.40
Revenue Growth7.39%
EPS Growth3.27%
CountryUS
Employees5,757
SectorConsumer Defensive
Sector Strength42
IndustryAgricultural Farm Products
Share Statistics
EPS (TTM)0.07
Shares Outstanding886,659,400
10 Day Avg. Volume799
30 Day Avg. Volume805
Financial Highlights & Ratios
PEG Ratio-0.34
Price to Book (P/B)1.90
Price to Sales (P/S)0.98
P/FCF Ratio11.49
Enterprise Value/Market Cap2.31
Enterprise Value/Revenue0.34
Enterprise Value/Gross Profit1.17
Enterprise Value/Ebitda1.16
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
SLC Agricola SA Business Overview & Revenue Model
Company DescriptionSLC Agrícola S.A. produces and sells agricultural products in Brazil and internationally. The company's products include soybean, corn, and cotton crops, as well as soybean seeds, brachiaria seeds, mung beans, popcorn, seed corn, wheat, stylis, and permanent livestock. It also focuses on acquiring and developing land for agriculture. In addition, the company is involved in the cattle raising business; production and marketing of seeds and seedlings; property rental; and agro-industrial activities of industrialization of sugar cane, alcohol, and related derivatives, as well as provides reception, cleaning, drying, and storing of cereals. Further, it offers services with agricultural machinery and implements to third parties; and trades in, imports, and exports its agricultural products. The company was founded in 1977 and is headquartered in Porto Alegre, Brazil. SLC Agrícola S.A. is a subsidiary of SLC Participações S.A.
How the Company Makes MoneySLC Agricola generates revenue through the cultivation, processing, and sale of various agricultural products. The company's primary revenue streams include the sale of soybeans, corn, and cotton, which are sold both domestically and internationally. SLC Agricola also engages in crop leasing and provides agricultural services, contributing additional income. The company benefits from strategic partnerships with suppliers and distributors, which help optimize its supply chain and enhance market access. Additionally, favorable agricultural policies and demand for food products drive the company’s earnings potential.
SLC Agricola SA Earnings Call Summary
Earnings Call Date:Aug 13, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with strong operational performance and strategic investments leading to record yields and revenue growth. However, decreased net income, increased debt levels, and pressure on commodity prices highlighted challenges. The company's forward-looking strategies, including hedging and land acquisitions, indicate a proactive approach to mitigating risk and capitalizing on market opportunities.Q2-2025 Updates
Positive Updates
Record Soybean and Corn Yields
Soybean yields reached 3,960 kg/ha, 21% higher than last year and 11% above the national average. Second crop corn yields hit a record high of 8,274 kg/ha, 16.7% higher than last year and 35.6% above the national average.
Strong Financial Performance
Net revenue for the second quarter was BRL 1.9 billion, up 37.8% compared to the same period last year. Adjusted EBITDA reached BRL 556.6 million, with a margin of 29.9%, and net income for the semester was BRL 650.6 million, an 18.2% increase compared to the same quarter last year.
Strategic Land Acquisitions
The company made strategic investments in land, including the Paysandu farm, Paladino farm, and Unaí farm, with total disbursements reaching BRL 361 million and BRL 95 million, respectively. The land valuation increased by 15.6% to BRL 13.4 billion.
Forward Planning and Hedging
The company has advanced in hedging positions with 95% of soybean, 70% of corn, and 56.2% of cotton production committed for the '24-'25 season.
Negative Updates
Decreased Net Income
Net income for the quarter was BRL 139.9 million, down 56.5% compared to the previous quarter, due to a lower posting of biologic exits and the cycle of development for certain crops.
Increased Debt Levels
Adjusted net debt rose to BRL 6 billion, up BRL 2.3 billion compared to 2024, largely due to payments for crop season investments and land acquisitions.
Pressure on Corn and Cotton Prices
Corn and cotton prices faced downward pressure due to increased supply and geopolitical instability, with concerns about market dynamics affecting future pricing.
Company Guidance
During the earnings call for the second quarter of 2025, SLC Agricola provided several key metrics and insights regarding their performance and future expectations. The company reported a net revenue of BRL 1.9 billion, marking a 37.8% increase compared to the previous year, driven by higher billings of soybean and corn. For the semester, net revenue reached BRL 4.2 billion, a 26.7% growth. Adjusted EBITDA stood at BRL 556.6 million, with a margin of 29.9%, while the semester's EBITDA reached BRL 1.5 billion with a 35.8% margin. Net income was BRL 139.9 million, down 56.5% from the previous quarter due to lower postings of biological assets. The company harvested soybeans reaching 3,960 kg per hectare, 21% higher than last year, while cotton and corn yields were also above budget and national averages. SLC Agricola's adjusted net debt closed the first semester at BRL 6 billion, with a net debt to adjusted EBITDA ratio of 2.3x. The company also discussed their hedging positions, with 95% of soybean, 70% of corn, and 56.2% of cotton production committed. For the 2025-2026 season, they plan to plant around 830,000 hectares, a 12.9% increase from the previous season, and emphasized ongoing investments in irrigation to mitigate climate risks.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.78
Positive
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.65
Positive
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.55
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.79B | 7.80B | 7.23B | 9.59B | 6.32B | 4.40B |
| Gross Profit | 2.56B | 2.31B | 2.62B | 3.13B | 2.25B | 1.60B |
| EBITDA | 2.59B | 1.96B | 2.53B | 2.95B | 2.18B | 1.03B |
| Net Income | 588.58M | 509.41M | 895.60M | 1.27B | 1.06B | 488.67M |
Balance Sheet | ||||||
| Total Assets | 17.61B | 17.57B | 15.86B | 14.87B | 12.87B | 8.59B |
| Cash, Cash Equivalents and Short-Term Investments | 1.15B | 1.98B | 1.61B | 1.24B | 139.78M | 1.60B |
| Total Debt | 10.06B | 8.67B | 7.69B | 6.72B | 5.94B | 3.36B |
| Total Liabilities | 12.36B | 13.47B | 10.61B | 9.97B | 9.09B | 5.44B |
| Stockholders Equity | 5.18B | 4.00B | 4.93B | 4.60B | 3.52B | 2.94B |
Cash Flow | ||||||
| Free Cash Flow | -245.14M | 662.07M | 1.03B | 1.51B | -1.31M | 573.08M |
| Operating Cash Flow | 1.32B | 1.48B | 1.85B | 1.99B | 435.09M | 784.86M |
| Investing Cash Flow | -1.61B | -843.11M | -856.41M | -485.81M | -476.19M | -169.85M |
| Financing Cash Flow | 334.59M | -271.15M | -618.48M | -409.97M | -1.42B | 159.61M |
SLC Agricola SA Technical Analysis
Negative
2.96
Price Trends
3.07
Negative
3.17
Negative
3.18
Negative
Market Momentum
-0.04
Negative
45.51
Neutral
95.33
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 2.96 is above the 20-day moving average (MA) of 2.94, below the 50-day MA of 3.07, and below the 200-day MA of 3.18, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 45.51 is Neutral, neither overbought nor oversold. The STOCH value of 95.33 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
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | $19.28B | 9.63 | 13.20% | 2.86% | -8.87% | 13.21% | |
| ― | $1.65B | 11.00 | 7.49% | 3.35% | 1.41% | ― | |
| ― | $1.30B | 11.30 | 12.98% | 3.09% | 7.39% | 3.27% | |
| ― | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
| ― | $1.23B | 51.66 | 8.29% | 2.54% | 4.75% | -88.74% | |
| ― | $836.94M | 23.42 | 2.63% | 4.47% | 19.45% | -82.38% | |
| ― | $363.42M | 15.37 | 6.28% | 3.27% | 0.32% | -42.97% |
* Consumer Defensive Sector Average
SLCJY
SLC Agricola SA
2.96
0.03
1.02%
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BG
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96.37
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FDP
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34.36
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22.23%
LND
BrasilAgro Cia Brasileira de Propriedades Agricolas
3.72
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-7.23%
DOLE
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-17.11%
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.