Nufarm Ltd
NUF: XASX (AUS)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
A$9.90 | Txkf | Nsqthnqs |
Nufarm: Updated Guidance Disappoints, but the Longer-Term Outlook Remains Sound
Our AUD 7.70 fair value estimate for no-moat Nufarm stands, despite the Australian agricultural innovator announcing it expects fiscal 2023 underlying EBITDA to be within a range of AUD 430 million to AUD 440 million—about 14% below our prior forecast on a like-for-like basis. That is a disappointing decline on fiscal 2022’s AUD 447 million, despite the company previously guiding for modest underlying earnings growth, assuming normal seasonal conditions. But one season does not a company make.