Common Stock: Agricola San Felipe
Current Market Price: $ 480 COP
Market Capitalization: $ 29 billion COP
*All values in this article are expressed in Colombia Pesos (COP) unless otherwise noted.
**The bulk of this analysis is based on the company’s most recent audited financial report, which can be found by following this link.
Agricola San Felipe Stock – Summary of the Company
Agricola San Felipe is a Colombian agriculture company focused on the production and sale of sugar cane. The company was founded in 1976 and is headquartered in the Valle del Cauca region of western Colombia.
Revenue and Cost Analysis
Agricola San Felipe had revenue of $ 4.5 billion in 2019, a significant decrease compared to $ 6.4 billion the previous year. Their COGS was $1.9 billion in 2019, representing a gross margin of 57%, a significant improvement compared to 29% the previous year.
The company was profitable in each of the last two years. In 2019 Agricola San Felipe had net income of $ 2.2 billion, representing a profit margin of 50%, a decrease compared to 58% in 2018.
Balance Sheet Analysis
The company has a sound balance sheet. They have a good base of long term assets, sufficient liquidity, and low liability and leverage levels.
Agricola San Felipe – Debt Analysis
As of year-end 2019 the company does not have any debt outstanding.
Agricola San Felipe Stock – Share Dynamics and Capital Structure
As of year-end 2019 the company has 60 million common shares outstanding.
Agricola San Felipe Stock – Dividends
The company paid total dividends of $ 22.71 per share in 2019. At the current market price this implies a dividend yield of 4.7%.
Agricola San Felipe Stock – 3 Metrics to Consider
Debt to Equity Ratio
Total Liabilities/Total Share Holder Equity
$ 5.2 billion / $75.8 billion = .07
A debt to equity ratio of .07 indicates that Agricola San Felipe uses almost no debt in its capital structure and relies almost entirely on equity financing to fund itself.
Working Capital Ratio
Current Assets/Current Liabilities
$ 1.8 billion / $ 1 billion = 1.8
A working capital ratio of 1.8 indicates a sufficient liquidity position. Agricola San Felipe should not have problems meeting its near term obligations.
Price to Book Ratio
Current Share Price/Book Value per Share.
$ 480 / $ 1,263 = .38
Agricola San Felipe has a book value per share of $ 1,263. At the current market price this implies a price to book ratio of .38, meaning the company’s stock currently trades at a significant discount to the book value of the company.
Agricola San Felipe Stock – Summary and Conclusions
Agricola San Felipe is a decent company. They are financially healthy and own a solid base of assets, mostly land and equipment. However the company is simply too small and too thinly traded to be investable. Investors can consider larger Agriculture companies focused on sugar cane, such as the Brazilian company São Martinho.
Disclaimer
This is not investment advice. Nothing in this analysis should be construed as a recommendation to buy, sell, or otherwise take action related to the security discussed. If I own a position in the security discussed, I will clearly state it.
This is not intended to be a comprehensive analysis and you should not make an investment decision based solely on the information in this analysis. I hope this serves as a useful starting point for a more comprehensive analysis, and hopefully draws attention to aspects of the company that were overlooked or merit further investigation. This is by no means intended to be a complete analysis. Again, this is not investment advice, do your own research.
