SLC Agricola SA (SLCJY) AI Stock Analysis

• Market Cap: $1.75B
• Dividend Yield: 7.56%
• Average Volume (3M): 9.40K
• Price to Earnings (P/E): 13.8
• Beta (1Y): 0.33
• 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): -0.02
• Shares Outstanding: 498,745,940
• 10 Day Avg. Volume: 8,744
• 30 Day Avg. Volume: 9,399
• PEG Ratio: -0.94
• Price to Book (P/B): 1.50
• Price to Sales (P/S): 0.92
• P/FCF Ratio: 25.98
• Enterprise Value/Market Cap: 10.00
• Enterprise Value/Revenue: 1.81
• Enterprise Value/Gross Profit: 5.70
• Enterprise Value/Ebitda: 5.54
• 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: 59 Neutral
• Price Target: $3.50 ▲(14.38% Upside)
• Action: Reiterated Date: 03/17/26
• Date: Action: Reiterated 03/17/26

The score is held back primarily by weakening financial quality (shrinking revenue, higher leverage, and softer cash conversion/FCF). Offsetting factors include supportive technical momentum (price above key moving averages with positive MACD), a high dividend yield, and a cautiously constructive earnings-call outlook featuring strong hedging, irrigation expansion, and a share repurchase program despite debt and operating-cost pressures.

Positive Factors

Strong hedging coverage

Near-complete hedging of soybean and corn production materially reduces short-to-medium-term commodity price risk, stabilizing expected cash flows. This allows management to plan investments (irrigation, buybacks) and debt repayments with less sensitivity to spot price swings across a 2–6 month horizon.

Irrigation expansion to improve yield stability

A sizable expansion of irrigated area addresses weather-driven volatility by improving drought resilience and reducing yield variance. Over multiple seasons, irrigation investments should increase predictable output per hectare, support margin stability, and make capital allocation (capex vs. debt paydown) more predictable.

Scale-driven cost improvements & record corn yields

Record corn yields and sharp unit-cost declines demonstrate operational scale and efficiency gains. Persistent cost advantage and higher per-hectare output support sustainable operating margins across commodity cycles, improving resilience to price downturns and enabling reinvestment or shareholder returns.

Negative Factors

High and rising leverage

Capital structure has become significantly more debt-heavy, reducing balance-sheet flexibility. Higher leverage raises refinancing and interest-rate vulnerability and constrains the firm's ability to absorb a bad crop year or fund further capex without increasing default or dilution risk over the medium term.

Weakened cash generation / falling FCF

A sharp drop in free cash flow and weak operating-cash-to-income conversion reduce internal funding for capex, irrigation projects, and debt servicing. Persistent weak cash conversion can force external financing or cutbacks in investments and shareholder returns, undermining long-term growth plans.

Revenue decline and crop-specific yield risk

A material revenue contraction and drought-driven shortfalls in cotton highlight exposure to commodity cycles and weather. Persistent crop-specific volatility can depress revenues and margins over multiple seasons, complicating forecasting and increasing the chance that leverage and cash strains persist.

SLC Agricola SA Business Overview & Revenue Model

Company Description

SLC 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 Money

SLC Agrícola makes money primarily by producing and selling agricultural commodities grown on its farms. Its main revenue streams are (1) sales of soybeans, (2) sales of corn (often as a second crop in the same agricultural year), and (3) sales of cotton (including cotton lint and, where applicable, related byproducts from processing/handling). Revenue is generally driven by a combination of planted area, crop yields, and realized commodity prices, with sales typically made into domestic Brazilian markets and export-linked channels depending on the commodity and market conditions. The company’s earnings are also influenced by agricultural cycles and commercialization strategies, which may include forward sales/contracting and risk management practices tied to commodity prices and foreign exchange exposure; specific counterparties or partnership arrangements are not available (null).

SLC Agricola SA Financial Statement Overview

Summary

Profitability remains positive, but fundamentals are under pressure: revenue contracted in 2025 (-14.2%), leverage is high and rising (debt-to-equity ~2.22x), and cash conversion/free cash flow weakened materially (FCF down ~32.7% YoY; low OCF and FCF vs net income).

Income Statement

Profitability remains solid in 2025 (gross margin ~32%, EBITDA margin ~29%, net margin ~6.7%), but earnings power has clearly cooled versus the strong 2021–2023 period when net margins were much higher. Revenue contracted in 2025 (-14.2%) after modest growth in 2024, signaling a less favorable pricing/volume cycle. Overall: still profitable with decent operating margins, but the trend is negative and more cyclical/volatile than it appeared a few years ago.

Balance Sheet

Leverage is the key concern: debt-to-equity is high and rising (about 2.22x in 2025 vs ~1.46–1.56x in 2022–2023), while returns on equity have fallen (about 10.8% in 2025 vs ~18% in 2023 and ~27.6% in 2022). Asset growth has been accompanied by a meaningful increase in debt, which reduces balance-sheet flexibility if farm economics weaken. Strength: equity base is sizeable, but the capital structure is increasingly debt-heavy.

Cash Flow

Cash generation has weakened materially: free cash flow fell to ~289.5M in 2025 (down ~32.7% YoY) and is well below the 2022–2023 run-rate. Operating cash flow covers only a small portion of net income in 2025 (~32%), and free cash flow is a low share of net income (~16%), indicating profit is not translating into cash as well as before. Positive: operating cash flow is still positive, but cash conversion and free cash flow momentum are currently soft.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	8.16B	7.80B	7.23B	9.59B	6.32B
Gross Profit	2.63B	2.31B	2.62B	3.13B	2.25B
EBITDA	2.33B	1.96B	2.53B	2.95B	2.18B
Net Income	544.66M	509.41M	895.60M	1.27B	1.06B
Balance Sheet
Total Assets	21.33B	17.57B	15.86B	14.87B	12.87B
Cash, Cash Equivalents and Short-Term Investments	2.65B	1.98B	1.61B	1.24B	139.78M
Total Debt	11.14B	8.67B	7.69B	6.72B	5.94B
Total Liabilities	15.68B	13.47B	10.61B	9.97B	9.09B
Stockholders Equity	5.03B	4.00B	4.93B	4.60B	3.52B
Cash Flow
Free Cash Flow	289.52M	662.07M	1.03B	1.51B	-1.31M
Operating Cash Flow	1.77B	1.48B	1.85B	1.99B	435.09M
Investing Cash Flow	-2.20B	-843.11M	-856.41M	-485.81M	-476.19M
Financing Cash Flow	1.08B	-271.15M	-618.48M	-409.97M	-1.42B

SLC Agricola SA Technical Analysis

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

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 below the 20-day moving average (MA) of 3.22, above the 50-day MA of 3.05, and above the 200-day MA of 2.76, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 72.81 is Negative, neither overbought nor oversold. The STOCH value of 100.02 is Negative, 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	70 Outperform	$1.96B	18.92	4.53%	3.34%	1.11%	414.23%
BG	64 Neutral	$24.37B	18.12	5.98%	3.14%	10.29%	17.32%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
SLCJY	59 Neutral	$1.75B	13.81	10.05%	7.56%	14.51%	45.06%
DOLE	59 Neutral	$1.39B	27.79	3.76%	2.23%	7.09%	-83.75%
AGRO	52 Neutral	$1.76B	150.51	1.70%	4.40%	-7.37%	-84.53%
LND	49 Neutral	$424.75M	191.55	-0.07%	3.39%	-3.22%	-108.24%