| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 0.70 | -83 |
| Intrinsic value (DCF) | 1.65 | -59 |
| Graham-Dodd Method | 1.00 | -75 |
| Graham Formula | 3.00 | -25 |
BrasilAgro - Companhia Brasileira de Propriedades Agrícolas (NYSE: LND) is a leading Brazilian agricultural company specializing in the acquisition, development, and sale of rural properties for farming. Operating across six key segments—Real Estate, Grains, Sugarcane, Cattle Raising, Cotton, and Other—BrasilAgro manages over 275,000 hectares of land (owned and leased) in Brazil and Paraguay. The company cultivates high-value crops like soybeans, corn, sorghum, cotton, and sugarcane while also engaging in cattle raising and real estate services. With a vertically integrated model, BrasilAgro enhances productivity through sustainable land management and strategic leasing. Headquartered in São Paulo, the company benefits from Brazil's vast agricultural potential, positioning itself as a key player in global agribusiness. Its diversified operations mitigate sector-specific risks, making it a resilient investment in the Consumer Defensive sector.
BrasilAgro presents a compelling investment case due to its diversified agricultural portfolio, strong land asset base, and exposure to Brazil's thriving agribusiness sector. The company's low beta (0.32) suggests relative stability compared to broader market volatility. However, risks include high leverage (total debt of ~$1.04B vs. cash reserves of $171M) and sensitivity to commodity price swings. Positive factors include consistent profitability (net income of $226.9M in FY2023) and a dividend yield (~1.2% based on $0.28/share). Investors should monitor Brazil's regulatory environment and global crop demand trends.
BrasilAgro's competitive advantage lies in its large-scale land holdings (223,551 hectares owned) and operational diversification across crops and cattle. Unlike pure-play crop producers, its real estate segment adds value through land appreciation and development opportunities. The company's focus on productivity optimization (e.g., sugarcane yield improvements) enhances margins. However, it faces stiff competition from Brazilian agro-industrial giants like SLC Agrícola and JBS, which have greater scale and processing capabilities. BrasilAgro's niche is its asset-light leasing model (51,747 hectares leased), reducing capital intensity. Its geographic spread across six Brazilian states mitigates regional climate risks. The main challenge is competing with vertically integrated peers who control more of the supply chain. BrasilAgro's export-oriented crops (soy, cotton) benefit from global demand but expose it to trade policy risks.