Data is provided for informational purposes only and does not constitute investment advice. Past performance is not indicative of future results.
Cresud S.A. operates primarily in the agribusiness sector, focusing on the production and commercialization of agricultural products across Argentina and Brazil. Its competitive position is bolstered by a diversified portfolio that includes crop production, cattle ranching, and real estate operations, allowing it to leverage synergies across its business lines.
IndustrialsConglomerateshigh - the company benefits from economies of scale in production and distribution, allowing it to maintain margins despite fluctuations in commodity prices.
Business Overview
01Agricultural production (60%)
02Livestock (25%)
03Real estate and land leasing (15%)
Cresud generates revenue through the cultivation of soybeans, corn, and wheat, alongside livestock production. The company's competitive advantages include its extensive land holdings in fertile regions, advanced agricultural technology, and established distribution networks, which enhance its pricing power and operational efficiency.
What Moves the Stock
Commodity prices for soybeans and corn, which directly impact revenue and margins
Changes in agricultural policy in Argentina and Brazil that could affect land use and subsidies
Currency fluctuations, particularly the USD/ARS exchange rate, impacting export revenues
Weather patterns affecting crop yields
Watch on Earnings
Revenue from agricultural productionOperating marginNet income growth
Risk Factors
Climate change impacting agricultural productivity and crop yields
Regulatory changes affecting land use and agricultural practices
Increased competition from local and international agribusiness firms
Technological advancements by competitors that could reduce Cresud's market share
High debt-to-equity ratio (1.49) may limit financial flexibility
Potential liquidity issues due to fluctuating cash flows from agricultural cycles
StructuralCompetitiveBalance Sheet
Macro Sensitivity
Economic Cycle
moderate - Cresud's performance is linked to agricultural demand, which can be cyclical based on global economic conditions and consumer spending.
Interest Rates
Higher interest rates could increase financing costs for land acquisition and operational expansion, potentially compressing margins.
Credit
minimal - the company's operations are not heavily reliant on credit markets, but debt levels may affect financial flexibility.
Live Conditions
Russell 2000 FuturesDow Jones FuturesS&P 500 Futures
Profile
growth - investors seeking exposure to the agribusiness sector with potential for high returns driven by commodity price fluctuations.
high - the stock has exhibited significant volatility, reflected in its recent performance metrics.
Key Metrics to Watch
Soybean and corn futures prices
USD/ARS exchange rate
Operating cash flow
Debt levels
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria(CRESW)