Spotlight on Nufarm
Nufarm (ASX: NUF) is an undervalued agricultural crop protection company that has strong global exposure with 97% of earnings originating from outside Australia. We invested in NUF as we believed the market was incorrectly assuming that poor drought conditions in Australia and Europe would continue indefinitely. Furthermore, the share price did not include any value for NUF's exciting investment into Omega3, with regulatory approvals imminent over the course of this year.
On Wednesday, NUF delivered its FY2019 half-year result, with earnings before interest, tax, depreciation and amortisation (EBITDA) of $121 million. While the result was in line with the market’s expectations, a poor outlook statement largely related to extended drought conditions and supply disruptions, contributed to lower-than-expected full year EBITDA guidance and elevated levels of working capital.
We believe that NUF's assets are undervalued by the market and see a significant earnings upside, should a return to normal weather conditions occur. We continue to hold NUF as a research-driven investment within WAM Capital and WAM Leaders.
Never miss an update
Wilson Asset Management takes advantage of short-term mispricing opportunities in the Australian equity market, providing investors with diversified exposure to a portfolio of undervalued growth companies.
Stay up to date with the latest news from WAM by hitting the 'follow' button below and you'll be notified every time I post a wire, or hit the 'contact' button to get in touch with us.
Welcome to Livewire, Australia’s most trusted source of investment insights and analysis.
To continue reading this wire and get unlimited access to Livewire, join for free now and become a more informed and confident investor.
1 stock mentioned
1 contributor mentioned
Oscar has more than 14 years’ experience in financial markets. Before joining Wilson Asset Management, Oscar worked as a sell-side Analyst at CLSA and three years’ at Grant Thornton working in transaction advisory services.
Please sign in to comment on this wire.