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Rural Funds Group

ASX:RFF
Snowflake Description

Proven track record average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
RFF
ASX
A$601M
Market Cap
  1. Home
  2. AU
  3. Real Estate
Company description

RFF owns a diversified portfolio of high quality Australian agricultural assets. The last earnings update was 84 days ago. More info.


Add to Portfolio Compare Print
RFF Share Price and Events
7 Day Returns
5.5%
ASX:RFF
2.4%
AU REITs
0.9%
AU Market
1 Year Returns
-18.7%
ASX:RFF
22%
AU REITs
16.3%
AU Market
RFF Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Rural Funds Group (RFF) 5.5% 2.2% -9% -18.7% 14.7% 76%
AU REITs 2.4% 1.9% 1.7% 22% 35.2% 57.9%
AU Market 0.9% 1.9% 5.1% 16.3% 22.3% 22.5%
1 Year Return vs Industry and Market
  • RFF underperformed the REITs industry which returned 22% over the past year.
  • RFF underperformed the Market in Australia which returned 16.3% over the past year.
Price Volatility
RFF
Industry
5yr Volatility vs Market

RFF Value

 Is Rural Funds Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Rural Funds Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Rural Funds Group.

ASX:RFF Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity using Adjusted Funds From Operations
Levered Adjusted Funds From Operations Average of 3 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.1%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:RFF
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
REITs Unlevered Beta Simply Wall St/ S&P Global 0.47
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.467 (1 + (1- 30%) (53.11%))
0.623
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (0.8 * 5.96%)
7.08%

Discounted Cash Flow Calculation for ASX:RFF using 2 Stage Free Cash Flow to Equity using Adjusted Funds From Operations Model

ASX:RFF Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$2.67
Current discount Discount to share price of A$1.83
= -1 x (A$1.83 - A$2.67) / A$2.67
31.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Rural Funds Group is available for.
Intrinsic value
32%
Share price is A$1.83 vs Future cash flow value of A$2.67
Current Discount Checks
For Rural Funds Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Rural Funds Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Rural Funds Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Rural Funds Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Rural Funds Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:RFF PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in AUD A$0.10
ASX:RFF Share Price ** ASX (2019-11-18) in AUD A$1.83
Australia REITs Industry PE Ratio Median Figure of 35 Publicly-Listed REITs Companies 16.29x
Australia Market PE Ratio Median Figure of 519 Publicly-Listed Companies 18.63x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Rural Funds Group.

ASX:RFF PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:RFF Share Price ÷ EPS (both in AUD)

= 1.83 ÷ 0.10

18.43x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Rural Funds Group is overvalued based on earnings compared to the AU REITs industry average.
  • Rural Funds Group is good value based on earnings compared to the Australia market.
Price based on expected Growth
Does Rural Funds Group's expected growth come at a high price?
Raw Data
ASX:RFF PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 18.43x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
15%per year
Australia REITs Industry PEG Ratio Median Figure of 30 Publicly-Listed REITs Companies 1.17x
Australia Market PEG Ratio Median Figure of 347 Publicly-Listed Companies 1.58x

*Line of best fit is calculated by linear regression .

ASX:RFF PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 18.43x ÷ 15%

1.23x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Rural Funds Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Rural Funds Group's assets?
Raw Data
ASX:RFF PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in AUD A$1.55
ASX:RFF Share Price * ASX (2019-11-18) in AUD A$1.83
Australia REITs Industry PB Ratio Median Figure of 40 Publicly-Listed REITs Companies 1.18x
Australia Market PB Ratio Median Figure of 1,584 Publicly-Listed Companies 1.75x
ASX:RFF PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:RFF Share Price ÷ Book Value per Share (both in AUD)

= 1.83 ÷ 1.55

1.18x

* Primary Listing of Rural Funds Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Rural Funds Group is overvalued based on assets compared to the AU REITs industry average.
X
Value checks
We assess Rural Funds Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the REITs industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the REITs industry average (and greater than 0)? (1 check)
  5. Rural Funds Group has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

RFF Future Performance

 How is Rural Funds Group expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
15%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Rural Funds Group expected to grow at an attractive rate?
  • Rural Funds Group's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
  • Rural Funds Group's earnings growth is expected to exceed the Australia market average.
  • Rural Funds Group's revenue growth is expected to exceed the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:RFF Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:RFF Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts 15%
ASX:RFF Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts 3.9%
Australia REITs Industry Earnings Growth Rate Market Cap Weighted Average 3.9%
Australia REITs Industry Revenue Growth Rate Market Cap Weighted Average -3%
Australia Market Earnings Growth Rate Market Cap Weighted Average 9.7%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:RFF Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:RFF Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-06-30 78 46 57 3
2021-06-30 76 44 56 3
2020-06-30 74 46 55 3
2019-11-18
ASX:RFF Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2019-06-30 69 44 32
2019-03-31 65 42 31
2018-12-31 60 40 36
2018-09-30 56 35 36
2018-06-30 52 31 29
2018-03-31 49 30 36
2017-12-31 46 29 43
2017-09-30 44 28 43
2017-06-30 43 27 43
2017-03-31 39 28
2016-12-31 36 21 13
2016-09-30 31 18 6

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Rural Funds Group's earnings are expected to grow by 15% yearly, however this is not considered high growth (20% yearly).
  • Rural Funds Group's revenue is expected to grow by 3.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:RFF Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from Rural Funds Group Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:RFF Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-06-30 0.15 0.15 0.14 2.00
2021-06-30 0.14 0.15 0.13 2.00
2020-06-30 0.16 0.20 0.13 3.00
2019-11-18
ASX:RFF Past Financials Data
Date (Data in AUD Millions) EPS *
2019-06-30 0.10
2019-03-31 0.10
2018-12-31 0.13
2018-09-30 0.13
2018-06-30 0.11
2018-03-31 0.15
2017-12-31 0.18
2017-09-30 0.20
2017-06-30 0.21
2017-03-31 0.14
2016-12-31 0.06
2016-09-30 0.04

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Rural Funds Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Rural Funds Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Rural Funds Group has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

RFF Past Performance

  How has Rural Funds Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Rural Funds Group's growth in the last year to its industry (REITs).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Rural Funds Group's year on year earnings growth rate has been positive over the past 5 years.
  • Rural Funds Group's 1-year earnings growth is less than its 5-year average (11% vs 19.2%)
  • Rural Funds Group's earnings growth has exceeded the AU REITs industry average in the past year (11% vs -16.4%).
Earnings and Revenue History
Rural Funds Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Rural Funds Group Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:RFF Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 68.93 32.39
2019-03-31 64.64 31.17
2018-12-31 60.35 36.10
2018-09-30 56.31 35.70
2018-06-30 52.27 29.17
2018-03-31 48.99 35.98
2017-12-31 45.71 42.78
2017-09-30 44.33 43.00
2017-06-30 42.95 43.22
2017-03-31 39.28 28.20 -0.50
2016-12-31 35.61 13.18 -1.01
2016-09-30 31.15 6.35 -0.50
2016-06-30 26.69 -0.48
2016-03-31 25.39 21.54 2.09
2015-12-31 24.09 9.75 2.13
2015-09-30 23.25 9.95 2.19
2015-06-30 22.41 10.15 2.25
2015-03-31 22.52 19.08 2.86
2014-12-31 22.62 28.01 3.47
2014-09-30 19.97 24.07 3.19
2014-06-30 17.32 20.13 2.90
2014-03-31 13.57 8.61 2.02
2013-12-31 9.82 -2.90 1.14
2013-09-30 9.05 2.87 1.17
2013-06-30 8.28 8.64 1.21

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Rural Funds Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Rural Funds Group used its assets more efficiently than the AU REITs industry average last year based on Return on Assets.
  • Rural Funds Group has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Rural Funds Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the REITs industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Rural Funds Group has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

RFF Health

 How is Rural Funds Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Rural Funds Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Rural Funds Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Rural Funds Group's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Rural Funds Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Rural Funds Group Company Filings, last reported 4 months ago.

ASX:RFF Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 525.87 319.32 2.59
2019-03-31 525.87 319.32 2.59
2018-12-31 532.41 243.16 11.26
2018-09-30 532.41 243.16 11.26
2018-06-30 378.74 279.00 1.21
2018-03-31 378.74 279.00 1.21
2017-12-31 362.79 262.61 2.55
2017-09-30 362.79 262.61 2.55
2017-06-30 357.68 171.58 3.84
2017-03-31 357.68 171.58 3.84
2016-12-31 277.28 224.92 4.73
2016-09-30 277.28 224.92 4.73
2016-06-30 207.86 158.72 3.03
2016-03-31 207.86 158.72 3.03
2015-12-31 184.08 108.21 2.93
2015-09-30 184.08 108.21 2.93
2015-06-30 151.94 94.16 0.71
2015-03-31 151.94 94.16 0.71
2014-12-31 136.69 104.04 0.80
2014-09-30 136.69 104.04 0.80
2014-06-30 137.47 95.61 2.72
2014-03-31 137.47 95.61 2.72
2013-12-31 118.35 97.57 6.62
2013-09-30 118.35 97.57 6.62
2013-06-30 47.57 41.57 0.18
  • Rural Funds Group's level of debt (60.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (69.6% vs 60.7% today).
  • Debt is not well covered by operating cash flow (13.7%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 1.7x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Rural Funds Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Rural Funds Group has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

RFF Dividends

 What is Rural Funds Group's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5.93%
Current annual income from Rural Funds Group dividends. Estimated to be 6.16% next year.
If you bought A$2,000 of Rural Funds Group shares you are expected to receive A$119 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Rural Funds Group's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.37%).
  • Rural Funds Group's dividend is above the markets top 25% of dividend payers in Australia (5.56%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:RFF Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
Australia REITs Industry Average Dividend Yield Market Cap Weighted Average of 37 Stocks 4.4%
Australia Market Average Dividend Yield Market Cap Weighted Average of 390 Stocks 4%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.5%
Australia Bottom 25% Dividend Yield 25th Percentile 2.4%
Australia Top 25% Dividend Yield 75th Percentile 5.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:RFF Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2022-06-30 0.12 3.00
2021-06-30 0.11 3.00
2020-06-30 0.11 3.00
2019-11-18
ASX:RFF Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2019-09-02 0.108 6.008
2019-06-03 0.104 4.749
2019-02-28 0.104 4.618
2018-12-03 0.104 4.724
2018-09-03 0.104 4.794
2018-05-31 0.100 4.822
2018-02-28 0.100 4.659
2017-11-30 0.100 4.530
2017-08-30 0.100 4.566
2017-06-06 0.096 5.004
2016-12-01 0.096 5.502
2016-05-31 0.089 5.486
2016-03-01 0.089 5.926
2016-01-27 0.089 6.698
2015-09-01 0.089 7.015
2015-08-26 0.086 7.767
2014-08-29 0.092 8.681
2014-08-28 0.092 9.374
2014-06-02 0.085 8.924
2014-02-26 0.085 9.887

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Rural Funds Group has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Rural Funds Group only paid a dividend in the past 6 years.
Current Payout to shareholders
What portion of Rural Funds Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.2x coverage).
X
Income/ dividend checks
We assess Rural Funds Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.5%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Rural Funds Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Rural Funds Group has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

RFF Management

 What is the CEO of Rural Funds Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
John Bryant
CEO Bio

Mr. David Anthony Bryant, also known as John, serves as the Managing Director of Rural Funds Management Limited has been its Director since February 17, 1997. Mr. Bryant is responsible for leading the executive team, maintaining key commercial relationships and sourcing new business opportunities. He is responsible for over $300m in assets acquisitions across eight Australian agricultural regions, including negotiating the acquisition of more than 25 properties and over 60,000 megalitres of water entitlements. He holds a Diploma of Financial Planning from the Royal Melbourne Institute of Technology (RMIT) University and a Master of Agribusiness from The University of Melbourne.

CEO Compensation
  • Insufficient data for John to compare compensation growth.
  • Insufficient data for John to establish whether their remuneration is reasonable compared to companies of similar size in Australia.
Management Team

John Bryant

TITLE
MD & Director of Rural Funds Management Limited

Daniel Yap

TITLE
Financial Controller of Rural Funds Management Limited

Tim Sheridan

TITLE
Chief Operating Officer of Rural Funds Management Ltd.
TENURE
0.8 yrs

James Powell

TITLE
General Manager of Investor Relations & Marketing - Rural Funds Management Limited

Stuart Waight

TITLE
Joint Company Secretary & Executive Manager of Rural Funds Management Limited

Emma Spear

TITLE
Joint Company Secretary of Rural Funds Management Ltd
TENURE
1.3 yrs
Board of Directors Tenure

Average tenure of the Rural Funds Group board of directors in years:

9.6
Average Tenure
  • The tenure for the Rural Funds Group board of directors is about average.
Board of Directors

Leslie Paynter

TITLE
Independent Non-Executive Chairman of Rural Funds Management Limited
AGE
76

John Bryant

TITLE
MD & Director of Rural Funds Management Limited
TENURE
22.8 yrs

Mike Carroll

TITLE
Independent Non-Executive Director of Rural Funds Management Limited
TENURE
9.6 yrs

Julian Widdup

TITLE
Independent Non-Executive Director of Rural Funds Management Limited
TENURE
2.8 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Rural Funds Group individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
06. Nov 19 Buy Julian Widdup Individual 01. Nov 19 04. Nov 19 47,467 A$1.76 A$82,398
26. Sep 19 Sell Pendal Group Limited Company 04. Jul 19 18. Sep 19 1,074,107 A$-1.98 A$-2,211,917
26. Sep 19 Buy Pendal Group Limited Company 31. Jul 19 24. Sep 19 9,209,698 A$1.91 A$17,572,578
09. Sep 19 Buy Leslie Paynter Individual 06. Sep 19 06. Sep 19 100,000 A$1.95 A$195,000
06. Sep 19 Buy David Bryant Individual 06. Sep 19 06. Sep 19 252,418 A$1.97 A$497,263
06. Sep 19 Buy Sumitomo Mitsui DS Asset Management Company, Limited Company 28. Aug 19 04. Sep 19 337,659 A$2.16 A$708,921
30. Aug 19 Buy Daiwa Asset Management Co. Ltd. Company 19. Aug 19 19. Aug 19 65,000 A$2.03 A$131,859
30. Aug 19 Buy Sumitomo Mitsui DS Asset Management Company, Limited Company 06. May 19 26. Aug 19 3,194,000 A$2.39 A$6,072,968
13. Aug 19 Buy Michael Carroll Individual 12. Aug 19 12. Aug 19 38,105 A$1.84 A$69,923
08. Aug 19 Buy Leslie Paynter Individual 08. Aug 19 08. Aug 19 250,000 A$1.77 A$443,725
12. Aug 19 Buy David Bryant Individual 09. Aug 19 09. Aug 19 1,538 A$1.95 A$2,999
09. Aug 19 Buy David Bryant Individual 08. Aug 19 08. Aug 19 292,500 A$1.71 A$499,912
08. Aug 19 Buy Boskenna Pty Ltd Company 08. Aug 19 08. Aug 19 150,000 A$1.70 A$254,925
08. Aug 19 Buy Michael Carroll Individual 08. Aug 19 08. Aug 19 15,730 A$1.90 A$29,808
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Management checks
We assess Rural Funds Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Rural Funds Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

RFF News

Simply Wall St News

Will Rural Funds Group's (ASX:RFF) Earnings Grow Over The Next Year?

Based on Rural Funds Group's (ASX:RFF) earnings update on 30 June 2019, the consensus outlook from analysts appear fairly confident, with earnings expected to grow by 45% in the upcoming year relative to the past 5-year average growth rate of 19%. … To reduce the year-on-year volatility of analyst earnings forecast, I've inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line. … ASX:RFF Past and Future Earnings, August 28th 2019 This results in an annual growth rate of 18% based on the most recent earnings level of AU$32m to the final forecast of AU$52m by 2022.

Simply Wall St -

David Bryant Is The MD & Director of Rural Funds Management Limited of Rural Funds Group (ASX:RFF) And They Just Spent AU$500k On Shares

See our latest analysis for Rural Funds Group Rural Funds Group Insider Transactions Over The Last Year In fact, the recent purchase by David Bryant was the biggest purchase of Rural Funds Group shares made by an insider individual in the last twelve months, according to our records. … ASX:RFF Recent Insider Trading, August 12th 2019 Insider Ownership of Rural Funds Group Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. … We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Rural Funds Group insiders are expecting a bright future.

Simply Wall St -

How Much Of Rural Funds Group (ASX:RFF) Do Institutions Own?

Check out our latest analysis for Rural Funds Group ASX:RFF Ownership Summary, July 25th 2019 What Does The Institutional Ownership Tell Us About Rural Funds Group? … We can see that Rural Funds Group does have institutional investors; and they hold 26% of the stock. … Insider Ownership Of Rural Funds Group The definition of company insiders can be subjective, and does vary between jurisdictions.

Simply Wall St -

Investors Who Bought Rural Funds Group (ASX:RFF) Shares Five Years Ago Are Now Up 145%

Long term Rural Funds Group (ASX:RFF) shareholders would be well aware of this, since the stock is up 145% in five years. … There will continue to be wide discrepancies between price and value in the marketplace...' One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. … Indeed, the Rural Funds Group share price has gained 47% in three years.

Simply Wall St -

Consider This Before Buying Rural Funds Group (ASX:RFF) For The 4.6% Dividend

With a goodly-sized dividend yield despite a relatively short payment history, investors might be wondering if Rural Funds Group is a new dividend aristocrat in the making. … Looking at the data, we can see that Rural Funds Group has been paying a dividend for the past five years. … First, we think Rural Funds Group has an acceptable payout ratio, although its dividend was not well covered by cashflow.

Simply Wall St -

Should We Be Cautious About Rural Funds Group's (ASX:RFF) ROE Of 7.1%?

Check out our latest analysis for Rural Funds Group How Do You Calculate Return On Equity? … The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Rural Funds Group: 7.1% = AU$38m ÷ AU$532m (Based on the trailing twelve months to December 2018.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … Combining Rural Funds Group's Debt And Its 7.1% Return On Equity Although Rural Funds Group does use debt, its debt to equity ratio of 0.46 is still low.

Simply Wall St -

How To Look At Rural Funds Group (ASX:RFF)

Rural Funds Group is a AU$757m. … See our latest analysis for Rural Funds Group … This term is very common in the REIT investing world as it provides a cleaner look at its cash flow from daily operations by excluding impact of one-off activities or non-cash items such as depreciation

Simply Wall St -

Can We See Significant Institutional Ownership On The Rural Funds Group (ASX:RFF) Share Register?

Every investor in Rural Funds Group (ASX:RFF) should be aware of the most powerful shareholder groups. … Rural Funds Group is not a large company by global standards. … institutional investors have bought into the company.

Simply Wall St -

Does Rural Funds Group's (ASX:RFF) March Stock Price Reflect Its Future Growth?

Rural Funds Group (ASX:RFF) is a stock well-positioned for future growth, but many investors are wondering whether its last closing price of A$2.33 is based on unrealistic expectations. … Check out our latest analysis for Rural Funds Group? … If you are bullish about Rural Funds Group's growth potential then you are certainly not alone

Simply Wall St -

If You Had Bought Rural Funds Group Shares Five Years Ago You'd Have Made 155%

For example, the Rural Funds Group (ASX:RFF) share price has soared 155% in the last half decade. … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … During five years of share price growth, Rural Funds Group actually saw its EPS drop 13% per year.

Simply Wall St -

RFF Company Info

Description

RFF owns a diversified portfolio of high quality Australian agricultural assets. RFF’s investment objective is to generate a stable income stream derived from leasing its assets to suitable counterparts and capital growth through any appreciation in the value of those assets. RFF is a stapled security, incorporating Rural Funds Trust (ARSN 112 951 578) and RF Active (ARSN 168 740 805), trading under the ASX code ‘RFF’. Rural Funds Management Ltd (RFM) is the responsible entity of RFF.

Details
Name: Rural Funds Group
RFF
Exchange: ASX
Founded:
A$601,188,458
335,859,474
Website: http://ruralfunds.com.au/rural-funds-group/
Address: Rural Funds Group
2 King Street,
Level 2,
Deakin,
Australian Capital Territory, 2600,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX RFF Units Australian Securities Exchange AU AUD 14. Feb 2014
OTCPK RFND.F Units Pink Sheets LLC US USD 14. Feb 2014
CHIA RFF Units Chi-X Australia AU AUD 14. Feb 2014
Number of employees
Current staff
Staff numbers
0
Rural Funds Group employees.
Industry
Specialized REITs
Real Estate
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/18 10:38
End of day share price update: 2019/11/18 00:00
Last estimates confirmation: 2019/10/28
Last earnings filing: 2019/08/26
Last earnings reported: 2019/06/30
Last annual earnings reported: 2019/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.