(LND) Brasilagro - Ratings and Ratios

BrasilAgro - Companhia Brasileira de Propriedades Agrícolas operates as a diversified agricultural company with a focus on large-scale farming, livestock, and real estate management. Headquartered in São Paulo, Brazil, the company was established in 2005 and has expanded its operations across Brazil, Paraguay, and Bolivia. Its business is segmented into six core areas: Real Estate, Grains, Sarcane, Cattle Raising, Cotton, and Other. The firm specializes in the cultivation of crops such as soybeans, corn, sugarcane, sesame, sorghum, beans, and cotton, as well as cattle raising for beef production. Additionally, it engages in forestry activities, rural and urban real estate transactions, and asset management services.

The company’s agricultural operations are supported by a network of farms, both owned and leased, which are utilized for crop production and livestock. BrasilAgro also participates in the exploration, import, and export of agricultural products, further diversifying its revenue streams. Its real estate segment involves the acquisition, sale, and rental of properties, as well as brokerage services, positioning it as a key player in the rural and urban property markets in its regions of operation.

From a financial perspective, BrasilAgro’s market capitalization stands at $363.60 million USD, with a trailing P/E ratio of 7.60 and a forward P/E of 16.37, indicating expectations for future growth. The company’s price-to-book ratio of 0.94 suggests that its stock is trading at a slight discount to its book value. The price-to-sales ratio of 0.31 highlights its low valuation relative to revenue, while the return on equity of 12.74% reflects its profitability.

3-Month Forecast: Based on the provided and , the following outlook is derived:

Technical Outlook: The stock is currently trading at $3.50, below its 20-day SMA of $3.74 and 50-day SMA of $3.72, with a 200-day SMA of $4.20. This indicates a bearish trend in the near term, with potential resistance levels at $3.74 and $4.20. The Average True Range (ATR) of 0.09 suggests low volatility, which may limit significant price swings in the short term. However, the bearish crossover of the 20-day SMA below the 50-day SMA signals potential downward pressure, with support levels at $3.50 and $3.00.

Fundamental Outlook: The company’s attractive valuation metrics, including a low P/S ratio of 0.31 and a P/B ratio of 0.94, suggest undervaluation relative to its peers. The healthy return on equity of 12.74% indicates efficient profitability. However, the forward P/E of 16.37 reflects elevated expectations for future earnings, which may pose a risk if growth does not materialize as anticipated. The diversified business model, spanning multiple agricultural segments and real estate, provides stability but may also limit upside potential if commodity prices remain subdued.