Cresud Sociedad Anónima

Financial Performance

5Y price score: 161

10Y return: (13.7)%

DATE RANGE:

US$ Per
Share

By default your notes are visible only to you.

8.3

52-week range

14.2

11.3

Your model inputs

Required return / cost of capital

FCFF terminal growth rate

Your fair value & Margin of safety

To calculate fair value based on cost of capital and terminal growth assumptions above, please select free cash flow forecast.

Forecast:

Valuation

Free Cash Flow Yield

(7.5) %

Dividend Yield TTM

5.8 %

Market cap $

$ 733.1

Price / Earnings TTM

5.8

Price / Book TTM

0.4

PEG TTM

(0.1)

Earnings growth and return

LTM

5YR

10YR

Total return (price & dividends)

14.1 %

148 %

(13.7) %

Free cash flow per share growth

(3,044,653.9) %

(99.9) %

(80.7) %

Earnings per share growth

(57.8) %

(98.2) %

(91) %

Founded: 1,936

Employees: 2,760

Business Summary:Cresud Sociedad Anónima Comercial, Inmobiliaria, Financiera y Agropecuaria, an agricultural company, produces basic agricultural commodities in Brazil and other Latin American countries. It operates through Agricultural Business, and Urban Properties and Investment Business segments. The Agricultural Business segment is involved in the planting, harvesting, and sale of crops, such as wheat, corn, soybeans, cotton, and sunflower, as well as sugarcane; sale of grain derivatives, including flour and oil; breeding, purchasing, and/or fattening of cattle for sale to meat processors and local livestock auction markets; provision of agricultural services; leasing of farms to third parties; disposal and development of farmlands; and brokerage activities. The Urban Properties and Investment Business segment leases, rents, and services commercial and other spaces in shopping malls; leases offices and other rental spaces; develops, maintains, and sells undeveloped parcels of land and/or trading properties; and operates hotels, as well as engages in the entertainment activities. The company was incorporated in 1936 and is headquartered in Buenos Aires, Argentina.

Fair Value Reference Estimate

Latest Earnings Call Takeaways

2025 Q3 (May 12, 2025)

1) Strategic Overview and Leadership Insights
- CEO Alejandro Elsztain highlighted a larger agricultural campaign compared to last year, driven by increased planted areas in Argentina and Brazil.
- The company is optimistic about continued growth in leasing activities for the upcoming year.
- The removal of capital controls in Argentina is expected to positively impact future results.
- Cresud is focusing on leveraging its agricultural and real estate segments, with a strong emphasis on the synergies between its farming and real estate operations.

2) Financial Performance and Segment Results
- Cresud reported a significant drop in operating results, with an 83% decline attributed to inflation-adjusted figures and lower productivity in certain segments.
- The net income for the first nine months was ARS 57.9 million, a recovery from a loss of ARS 39.9 billion in the previous year.
- The brokerage segment (FyO) experienced a loss of ARS 19.9 billion, down from ARS 29.8 billion, due to seasonality and lower transaction volumes.
- Sugarcane and cattle segments showed positive performance with higher prices and productivity, while grain results were mixed, particularly in soybeans and corn.

3) Challenges and Headwinds
- Adverse weather conditions, including droughts in northern Argentina and Paraguay, negatively impacted yields, particularly for summer crops.
- The agricultural season is not meeting expectations, with forecasts indicating a mixed performance across different crops.
- The hotel segment faced challenges due to reduced tourism inflows, impacting occupancy rates.

4) Operational Plans and Future Outlook
- The company anticipates a 23% increase in yields across the region, despite mixed results in specific crops.
- Cresud is optimistic about the rebound in commodity prices, particularly soybeans and corn, influenced by recent tariff reductions and global market conditions.
- The company is exploring opportunities for farmland acquisitions in Argentina, driven by favorable macroeconomic conditions and potential price increases in farmland.
- Cresud plans to manage its debt strategically, focusing on local capital markets for refinancing and leveraging upcoming warrant inflows.

5) Guidance and Investor Considerations
- The management will decide on dividend distributions in October, with no current plans disclosed.
- Future capital allocation will focus on balancing debt reduction, share buybacks, and investments in agricultural productivity.
- The outlook remains cautiously optimistic, with expectations for improved agricultural performance and commodity price recovery in the coming quarters.

Bottom line: Cresud is navigating a challenging agricultural landscape with mixed crop yields and external pressures, but strategic adjustments and favorable macroeconomic changes position the company for potential recovery and growth, making it a watchful opportunity for investors.

No data