Latest news with #Nufarm
Yahoo
3 days ago
- Business
- Yahoo
Nufarm First Half 2025 Earnings: Misses Expectations
Revenue: AU$1.81b (up 3.0% from 1H 2024). Net income: AU$18.9m (down 52% from 1H 2024). Profit margin: 1.0% (down from 2.2% in 1H 2024). EPS: AU$0.049 (down from AU$0.10 in 1H 2024). We check all companies for important risks. See what we found for Nufarm in our free report. All figures shown in the chart above are for the trailing 12 month (TTM) period Revenue missed analyst estimates by 2.9%. Earnings per share (EPS) also missed analyst estimates by 76%. Looking ahead, revenue is forecast to grow 7.9% p.a. on average during the next 3 years, compared to a 9.2% growth forecast for the Chemicals industry in Australia. Performance of the Australian Chemicals industry. The company's shares are down 34% from a week ago. While earnings are important, another area to consider is the balance sheet. See our latest analysis on Nufarm's balance sheet health. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Sky News AU
22-05-2025
- Business
- Sky News AU
ASX 200 dives after poor US Treasury auction causes major indexes on Wall Street to record their worst day in a month
The ASX 200 has dived 0.6 per cent after a wipeout on Wall Street triggered by lacklustre demand for US assets, sparking major concerns over the world's largest economy. The drop follows the ASX 200 climbing more than six per cent over the past month as stocks continue to recover from the shock of Donald Trump's 'Liberation Day' announcement. The index is up about 14 per cent from its six-month low on April 7 but remains about 2.6 per cent off its record high in February. It fell 0.6 per cent in the first 30 minutes of trading with financial service company Zip falling 6.3 per cent, agricultural chemical company Nufarm down 5.3 per cent and tech company Block down 3.3 per cent. The drop follows a wipeout on Wall Street after a poor US Treasury auction sparked concern about the security of American assets. Major US indexes recorded their worst day in a month with the tech heavy Nasdaq diving 1.4 per cent, the S&P 500 plunging 1.6 per cent and the Dow Jones falling 1.9 per cent on Wednesday. It was a mixed bag in Europe as London's FTSE 250 Index sank 0.7 per cent while Germany's DAX rose 0.3 per cent and the EURO STOXX 50 Index finished flat. New Zealand's NZX 50 Index is down about 0.6 per cent since it began trading on Thursday while Japan's Nikkei 225 is down 0.8 per cent.
Yahoo
21-05-2025
- Business
- Yahoo
Nufarm Ltd (ASX:NUF) (Q2 2025) Earnings Call Highlights: Navigating Challenges with Strategic ...
Underlying EBIT: $103 million, a decrease of 15% year on year. Earnings Per Share (EPS) Before Material Items: $0.72. Leverage: 4.5 times underlying EBITDA. Revenue from Seed Technologies: $249 million. Underlying EBITDA: $206 million, a decrease of 6% year on year. Statutory Net Profit After Tax: $30 million. Net Debt: $1.362 billion, an increase of 12% on the prior year. Capital Expenditure for FY26: Expected to be around $200 million. Inventory Reduction: Achieved a 22-day year-on-year reduction, on track for a 25-day reduction by year-end. Net Working Capital to Sales: 39.2%, a substantial improvement from the prior year. Omega-3 Inventory Write-Down: Negative $28 million due to fish oil market conditions. Return on Funds Employed: 3.2% compared to 3.6% in the prior year. Revenue Growth: 3% increase year on year. Gross Profit Margin: Increased by 50 basis points year on year. Net Operating Cash Flow Movement: Outflow of $459 million due to seasonal net working capital build. Warning! GuruFocus has detected 4 Warning Signs with ASX:NUF. Release Date: May 21, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Nufarm Ltd (ASX:NUF) reported a strong recovery in profitability from crop protection, with underlying EBIT up 34% year on year. The company achieved a 22-day year-on-year reduction in inventory, on track for a 25-day reduction by the end of the financial year. Nufarm Ltd (ASX:NUF) is expanding its biofuels platform, planning a threefold increase in carinata planting area in 2025. The company has formed new agreements with BP and Unilever to develop biomass oil, targeting sustainable oil production for biofuels and FMCG applications. Nufarm Ltd (ASX:NUF) is exploring alternative capital structures for its Seed Technologies to accelerate growth and maximize value. The omega-3 platform negatively impacted results, leading to a $28 million write-down of omega-3 inventories. Nufarm Ltd (ASX:NUF) finished the period with a leverage of 4.5 times, reflecting increased debt levels. The company reported a decline in underlying EBITDA by 6% year on year, and underlying EBIT decreased by 15%. North America experienced a 10% year-on-year decline in EBIT due to pricing pressures and a delayed season. The fish oil market saw a significant reduction in pricing, impacting sales and profitability for the Aquaterra product. Q: Why is Nufarm exploring alternative structures for Seed Technologies now, especially with depressed fish oil prices? A: Gregory Hunt, CEO, explained that Seed Technologies requires more funding than Nufarm alone can provide as it moves to the next growth stage. Despite temporary oversupply affecting omega-3, the long-term demand is positive, and sophisticated investors may see the long-term value in the platform. Q: What is the outlook for Nufarm's Australian business given the dry conditions? A: Gregory Hunt, CEO, noted improved margins due to lower costs, but dry conditions have impacted trading since March. The rest of Asia remains stable, and Nufarm plans to prioritize the domestic market while exploring opportunities in North America. Q: Is the current poor market environment in North America temporary, or is there a structural issue? A: Gregory Hunt, CEO, stated that the market operates on a just-in-time basis, with uncertainty around tariffs causing cautious channel purchasing. However, with low channel inventories, Nufarm expects improved volumes in the second half. Q: Can you provide details on the supplier financing utilization? A: Brendan Ryan, CFO, confirmed that supplier financing was approximately AUD125 million, consistent with the previous year's position. Q: How does Nufarm plan to address the 4.5 times net debt to EBITDA leverage? A: Brendan Ryan, CFO, outlined actions to deleverage, including reducing CapEx, scaling back omega-3, achieving cost savings, and introducing new products. These actions are expected to bring leverage back to the target range of 1.5 to 2 times EBITDA by FY26. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
08-05-2025
- Business
- Yahoo
Nufarm Limited (ASX:NUF) is largely controlled by institutional shareholders who own 77% of the company
Significantly high institutional ownership implies Nufarm's stock price is sensitive to their trading actions 56% of the business is held by the top 6 shareholders Insiders have bought recently We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. If you want to know who really controls Nufarm Limited (ASX:NUF), then you'll have to look at the makeup of its share registry. With 77% stake, institutions possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn). Given the vast amount of money and research capacities at their disposal, institutional ownership tends to carry a lot of weight, especially with individual investors. Therefore, a good portion of institutional money invested in the company is usually a huge vote of confidence on its future. Let's delve deeper into each type of owner of Nufarm, beginning with the chart below. See our latest analysis for Nufarm Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing. We can see that Nufarm does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Nufarm's historic earnings and revenue below, but keep in mind there's always more to the story. Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. Nufarm is not owned by hedge funds. Orbis Investment Management Limited is currently the largest shareholder, with 18% of shares outstanding. In comparison, the second and third largest shareholders hold about 10% and 8.0% of the stock. We did some more digging and found that 6 of the top shareholders account for roughly 56% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat. Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too. The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves. Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances. Our most recent data indicates that insiders own less than 1% of Nufarm Limited. It has a market capitalization of just AU$1.5b, and the board has only AU$10m worth of shares in their own names. Many tend to prefer to see a board with bigger shareholdings. A good next step might be to take a look at this free summary of insider buying and selling. The general public, who are usually individual investors, hold a 14% stake in Nufarm. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies. With a stake of 8.0%, private equity firms could influence the Nufarm board. Sometimes we see private equity stick around for the long term, but generally speaking they have a shorter investment horizon and -- as the name suggests -- don't invest in public companies much. After some time they may look to sell and redeploy capital elsewhere. I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph. But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
21-02-2025
- Business
- Yahoo
Shareholders in Nufarm (ASX:NUF) are in the red if they invested a year ago
The simplest way to benefit from a rising market is to buy an index fund. Active investors aim to buy stocks that vastly outperform the market - but in the process, they risk under-performance. That downside risk was realized by Nufarm Limited (ASX:NUF) shareholders over the last year, as the share price declined 33%. That's well below the market return of 14%. Zooming out, the stock is down 30% in the last three years. Since shareholders are down over the longer term, lets look at the underlying fundamentals over the that time and see if they've been consistent with returns. View our latest analysis for Nufarm Nufarm wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Shareholders of unprofitable companies usually desire strong revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one would hope for good top-line growth to make up for the lack of earnings. In just one year Nufarm saw its revenue fall by 3.9%. That's not what investors generally want to see. Shareholders have seen the share price drop 33% in that time. That seems pretty reasonable given the lack of both profits and revenue growth. It's hard to escape the conclusion that buyers must envision either growth down the track, cost cutting, or both. You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values). We like that insiders have been buying shares in the last twelve months. Even so, future earnings will be far more important to whether current shareholders make money. You can see what analysts are predicting for Nufarm in this interactive graph of future profit estimates. While the broader market gained around 14% in the last year, Nufarm shareholders lost 32%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 5% over the last half decade. We realise that Baron Rothschild has said investors should "buy when there is blood on the streets", but we caution that investors should first be sure they are buying a high quality business. If you want to research this stock further, the data on insider buying is an obvious place to start. You can click here to see who has been buying shares - and the price they paid. Nufarm is not the only stock insiders are buying. So take a peek at this free list of small cap companies at attractive valuations which insiders have been buying. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Australian exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
