| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | -100 |
| Intrinsic value (DCF) | 380.77 | 4369 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 8.60 | 1 |
Cresud Sociedad Anónima (NASDAQ: CRESY) is a diversified Argentine conglomerate with core operations in agriculture and real estate across Latin America, primarily Brazil. Established in 1936, Cresud operates through two key segments: Agricultural Business and Urban Properties & Investment Business. The agricultural division focuses on large-scale production of soybeans, corn, wheat, and cattle, while its urban segment develops and leases commercial properties, including shopping malls and offices. With a market cap of ~$723M, Cresud leverages Argentina’s fertile farmland and Brazil’s booming agribusiness sector, positioning itself as a regional player in food security and urban development. Despite macroeconomic volatility in Argentina, its dual-sector model provides revenue diversification. The company’s vertically integrated agribusiness—spanning farming, processing, and brokerage—enhances efficiency, while its real estate portfolio offers long-term asset appreciation. Cresud’s strategic land holdings and focus on high-demand commodities make it a unique investment proxy for Latin America’s agro-industrial growth.
Cresud presents a high-risk, high-reward opportunity tied to Latin America’s agricultural and real estate markets. Strengths include its diversified revenue streams, prime farmland assets, and exposure to Brazil’s robust agribusiness sector. However, risks are significant: Argentina’s hyperinflation (evidenced by a $902B debt load), currency controls, and political instability could erode margins. The stock’s low beta (0.59) suggests relative resilience, but diluted EPS of 1,118 (likely inflated by peso devaluation) warrants caution. Positive operating cash flow ($68.6B) and a dividend yield (~1.5%) add appeal, but capex ($-78.4B) reflects heavy reinvestment needs. Investors must weigh Cresud’s asset-rich balance sheet against macroeconomic headwinds.
Cresud’s competitive edge lies in its integrated agribusiness model and strategic land bank. Unlike pure-play agribusinesses, its dual focus on agriculture and urban real estate provides hedging against commodity cycles. In farming, Cresud benefits from scale (710K hectares owned/leased) and vertical integration (processing, cattle), reducing supply chain risks. However, it faces stiff competition from Brazilian giants like SLC Agrícola and Adecoagro, which have superior access to global capital markets. Cresud’s real estate segment, while niche, lacks the scale of regional players like IRSA (NYSE: IRS). Its reliance on Argentina exposes it to policy shifts, whereas competitors like Adecoagro (NYSE: AGRO) diversify across Mercosur. Cresud’s low-cost land acquisitions (historically undervalued due to Argentina’s crises) are a long-term advantage, but operational efficiency lags behind Brazilian peers. The company’s conglomerate structure dilutes focus but offers cross-sector synergies in volatile markets.