SLC Agricola SA (SLCJY) AI Stock Analysis

• Market Cap: $1.34B
• Dividend Yield: 7.56%
• Average Volume (3M): 9.40K
• Price to Earnings (P/E): 13.3
• Beta (1Y): 0.34
• 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: 997,491,900
• 10 Day Avg. Volume: 8,744
• 30 Day Avg. Volume: 9,399
• 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: 13.22
• Enterprise Value/Revenue: 1.86
• Enterprise Value/Gross Profit: 6.10
• Enterprise Value/Ebitda: 6.03
• 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)

The score is driven primarily by solid operating performance but tempered by leverage and weak cash-flow conversion. Valuation is supportive (moderate P/E and high dividend yield), while technicals indicate only modest trend support with mixed momentum. Earnings-call guidance is constructive (yields, hedging, expansion, buyback) but carries notable risks from higher debt and cotton/drought impacts.

Positive Factors

Revenue & Margin Strength

Consistent top-line growth and robust gross/EBIT margins indicate durable operational efficiency and scale in crop production. These margins support reinvestment in acreage and technology, cushioning profitability through commodity cycles and enabling sustained operating cash generation over multiple seasons.

Hedging & Yield Improvements

Extensive hedging of soybean and corn output materially reduces price volatility risk, stabilizing revenue realization. Coupled with record corn yields, this enhances predictable free cash flow and unit economics, strengthening the firm's ability to fund growth and service obligations across crop cycles.

Irrigation Expansion & Farmland Monetization

Expanding irrigation increases yield resilience and lowers weather-driven volatility, while monetizing farmland via BTG Pactual can free capital and improve return on assets. Together these strategic moves bolster long-term productivity and balance-sheet flexibility for targeted investments.

Negative Factors

High Financial Leverage

Elevated leverage limits financial flexibility and raises refinancing and interest-rate risks, especially in a cyclical agribusiness. Higher debt constrains capital allocation, increasing vulnerability to poor harvests or commodity price shocks and slowing the pace of deleveraging over the medium term.

Weak Cash Conversion

Low OCF-to-income and negative FCF growth indicate earnings are not translating into cash, limiting the company's ability to reduce debt, sustain buybacks or fund capex without external financing. Over time, weak cash conversion undermines balance-sheet repair and increases funding risk.

Climate & Crop Concentration Risk

Material weather-related shortfalls in cotton demonstrate sensitivity to regional climate events. Persistent exposure to drought and concentrated growing regions can drive earnings volatility, pressure margins and require continued capital spending (e.g., irrigation) to stabilize output, stressing finances.

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

Strong revenue growth (8.28% TTM) and healthy gross/EBIT margins (33.54%/25.24%) are positives, but the low net margin (6.66%), high leverage (debt-to-equity 2.22), and weak cash conversion (OCF to net income 0.32) constrain the score.

Income Statement

SLC Agricola SA shows a solid revenue growth rate of 8.28% in the TTM, indicating a positive growth trajectory. The gross profit margin of 33.54% and EBIT margin of 25.24% reflect strong operational efficiency. However, the net profit margin is relatively low at 6.66%, suggesting potential cost management issues.

Balance Sheet

The company has a high debt-to-equity ratio of 2.22, indicating significant leverage, which could pose a risk if not managed properly. The return on equity is moderate at 10.95%, showing decent profitability. The equity ratio of 25.65% suggests a balanced capital structure but highlights the reliance on debt.

Cash Flow

The free cash flow growth rate is negative, indicating challenges in generating free cash flow. The operating cash flow to net income ratio of 0.32 suggests that cash generation is not fully aligned with reported earnings. However, the free cash flow to net income ratio of 0.23 shows some ability to convert earnings into cash.

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SLCJY, the sentiment is Positive. The current price of 3.06 is above the 20-day moving average (MA) of 2.59, above the 50-day MA of 2.59, and above the 200-day MA of 2.70, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 58.02 is Neutral, neither overbought nor oversold. The STOCH value of 64.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SLCJY.

SLC Agricola SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FDP	69 Neutral	$1.66B	21.21	3.95%	3.34%	1.11%	414.23%
SLCJY	66 Neutral	$1.34B	13.34	12.27%	7.56%	14.51%	45.06%
BG	66 Neutral	$18.06B	10.03	10.24%	3.14%	10.29%	17.32%
DOLE	63 Neutral	$1.34B	46.08	8.75%	2.23%	7.09%	-83.75%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
AGRO	52 Neutral	$1.13B	34.09	1.69%	4.40%	-7.37%	-84.53%
LND	48 Neutral	$364.32M	-79.78	-1.12%	3.39%	-3.22%	-108.24%