Graincorp Ltd Class A

GNC: XASX (AUS)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	A$1.80	Kstn	Dsyytvhqg

GrainCorp's Fortunes Hinge on a Normalized Crop

Angus Hewitt

Sep 24, 2024

Business Strategy and Outlook

GrainCorp enjoys significant market shares in grain storage, handling, and port elevation services along the eastern seaboard of Australia. Earnings are heavily affected by seasonal conditions, but the diversification into oilseed crushing and refining reduces earnings volatility and provides growth opportunities. We don't believe the firm has carved an economic moat, though, and forecast returns on invested capital to trail the cost of capital over the long term.

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