Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria (CRESW) Stock Analysis

Company Overview

Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria is an agricultural enterprise focused on the production of commodities across Brazil and other Latin American nations, utilizing operations that span agricultural business and urban property investments. The company operates within the agricultural and real estate sectors, which typically involve significant capital expenditure in land acquisition, crop cultivation, and asset development. Specific data regarding the company's market capitalization, annual revenue, and total employee count is not disclosed in the available financial records, preventing a direct quantification of its current market size or workforce scale. Despite the absence of explicit market cap and revenue figures in the provided dataset, the reported revenue of $1.02T and net income of $195.70B suggest a massive operational footprint, implying that the entity functions on a macroeconomic scale comparable to a major global conglomerate rather than a typical mid-cap agricultural firm.

Financial Health

The financial performance metrics for Cresud indicate a revenue stream of $1.02T with a corresponding net income of $195.70B and EBITDA of $205.69B, revealing a cost structure where operating expenses and taxes absorb approximately 80.8% of total revenue. The company reports a free cash flow of $-180,016,742,400, which indicates a significant outflow of cash from operations and investing activities, suggesting that capital expenditures or acquisitions are currently exceeding the cash generated by the business. Profitability analysis shows a gross margin of 41.4%, an operating margin of 24.3%, and a profit margin of 19.2%, indicating that for every dollar of revenue, the company retains roughly 19 cents as net profit after all costs and losses. On the balance sheet, the company holds $720.09B in cash against a total debt load of $2.05T, resulting in a debt-to-equity ratio of 78.53, which characterizes a highly leveraged financial structure typical of capital-intensive industries. Liquidity is assessed through a current ratio of 1.43, meaning current assets are 1.43 times current liabilities, providing a moderate buffer against short-term obligations. Return on equity stands at 21.0% while return on assets is 2.3%, revealing a high return generated on shareholders' capital but a lower efficiency relative to the total asset base, which often occurs when a large portion of assets are financed by debt.

Valuation Assessment

Valuation multiples for Cresud include a price-to-book ratio of 0.03, while trailing P/E, forward P/E, and price-to-sales ratios are not available in the provided data. The price-to-book ratio of 0.03 indicates that the market values the company's equity at significantly less than its book value, suggesting either deep undervaluation, potential market skepticism regarding asset quality, or that the book value does not accurately reflect the company's true economic worth. Alternative valuation metrics such as EV/EBITDA and price-to-sales are not disclosed, limiting the ability to benchmark the stock against peers using these specific ratios. The 52-week trading range is defined by a high of $0.03 and a low of $0.00, placing the current trading price at the very top end of this historical range based on the provided high figure. The stock exhibits a beta of 0.20, which signifies that the stock price is highly volatile in the opposite direction of the broader market or possesses significantly lower volatility than the market, moving only 20% as much as a benchmark index during periods of market fluctuation.

Growth & Income

Cresud demonstrates robust expansion with a revenue growth rate of 20.3% year-over-year and an earnings growth rate of 182.3% year-over-year. The disparity between these two figures indicates that earnings are growing at a pace nearly ten times faster than revenue, which implies that the company is benefiting from significant operational leverage, cost efficiencies, or a one-time gain that is disproportionately boosting profitability relative to sales volume. As dividend yield and payout ratio data are not available in the provided facts, the company's approach to capital allocation cannot be quantified regarding dividend distributions, though the massive earnings growth suggests a potential capacity to return capital to shareholders or reinvest aggressively. The overall growth and income profile presents a scenario of exceptional earnings acceleration that outpaces top-line growth, highlighting a period of intense profitability improvement within the agricultural commodity production and urban property investment sectors.