Daily Stock Analysis: Brasilagro - Cia Bras De Prop Agricolas

By Fredrik Arnold
Wednesday, August 17, 2022 4:01 AM EDT

Brasilagro - Via Bras de Prop Agricola with the ticker (LND), is a small-cap farm products company operating in the consumer defensive business sector. This is the third of five consumer candidates competing for the forty-sixth slot in my Viital folio. It is my first ever report on Brasilagro for my Viital portfolio, or any of my previous portfolios.

Brasilagro - Cia Bras de Prop Agricolas is a Brazil-based company, engaged in the acquisition, development, operation, and sale of rural properties suitable for agricultural activities.

Business activity of the firm is operated through the Real estate, Grains, Sugarcane, Cattle rising, Cotton, and Other segments.

The Grains segment is involved in the production and sale of soybean and corn.

The Sugarcane segment includes the sale of the raw product.

The Real Estate segment presents the P&L from operations carried out in the company's subsidiaries.

The Cattle Raising segment consists of producing and selling beef calves after weaning, which characterizes the activity as breeding.

Finally, the Other segment engages in other corporate activities.

The company has 17 farms in 6 Brazilian states and 1 farm in Paraguay with a total area of 223,551 hectares of owned lands and 51,747 hectares of leased lands.

It also imports and exports agricultural products and inputs; purchases, sells, and/or rents properties, land, buildings, and real estate in rural and/or urban areas; provides real estate brokerage services; and manages third-party assets.

The company was incorporated in 2005 and is headquartered in Sao Paulo, Brazil.

Three key data points gauge any dividend equity or fund such as Brasilagro - Cia Bras de Prop Agricolas:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

LND Price

Brasilagro’s price per share was $5.15 as of yesterday's market close.  One year ago it’s price was $5.01. Thus, Brasilagro’s share price increased $0.14 or about 2.8% in the past year.

If Brasilagro’s stock trades in the range of $4.00 to $8.00 this next year, its recent $5.15 share price might rise by $0.25 to reach $5.40 by next year. My $0.25 upside estimate is equal to the one-year average price increase per share of LND over the past 5 years.

LND Dividends

Brasilagro’s most recently declared variable annual dividend of $0.41 was paid May 9th, to shareholders on record as of April 14th.

Since January 21, 2014 Brasilagro has paid annual variable dividends.  The current forward looking annual dividend of $0.41 projects an annual yield of 7.92% as of yesterdays $5.15 share price.

LND Returns

Adding the $0.41 Brasilagro annual dividend to my estimated one-year price upside estimate of $0.25 shows a $0.66 potential gross gain, per share, to be reduced by any costs to trade Brasilagro shares.

At yesterday's $5.15 closing price, a little over $1000 would buy 194 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us $0.05 per share.

Subtract that maybe $0.05 brokerage cost from my estimated $0.66 gross gain estimate per share results in a net gain of $0.61 X 194

shares = $118.34, for a 11.8% net gain including a 7.92% forward looking annual dividend yield.

Over the next year our $1K investment in Brasilagro shares should generate $79.20 in cash dividends. Of course, a single share of Brasilagro stock bought at yesterday's $5.15 price is over 15 times LESS than the dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this prime time to pick up Brasilagro - Cia Bras de Prop Agricolas shares based on their forward looking dividends for the year 2022. The forecast annual dividend from $1K invested is 15.38 times greater than yesterday’s single share price. Consider yourself alerted. It's a sign. Now IS the time.

All of the estimates above are speculation based on the past history of Brasilagro - Cia Bras de Prop Agricolas. Only time and money invested in this stock will determine its market value.

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Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...

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