Is Under the Rada Cobram Estates Olives (ASX: CBO) a BUY?

• Cobram Estates Olives began business in 1998, listing on the ASX in 2021.
• The company produces 71% of the olive oil crop in Australia.
• Cobram Estates now has growing and milling operations in the United States.

Cobram Estates grows and processes olives into five branded products using the company’s proprietary growing system — Oliv.iQ®.  The company dominates the Australian market and is investing in growing its US operations.

The company’s financial performance over the last four fiscal years is decidedly mixed.

Cobram Estates Olives Financial Performance

Source: ASX

The company’s Half Year 2024 financial results showed strong revenue growth – up 42.3% — and a posted loss of $7.2 million dollars, improving on the half year 2023 result of a $9.9 million dollar loss. Management expressed confidence in the company’s outlook, citing “robust demand for olive oil and strong trading conditions.”

Cobram Estates Olives’ ninety-day trading volume is 176,098 shares traded per day.  The company’s market cap is $709 million. In comparison, ASX listed almond grower Select Harvest (ASX: SHV) with a market cap of $529 million has a ninety-day average of 537,021 shares per day.

The share price is down 12.75% since listing but year over year the price is up 36.3%, outperforming Select Harvest’s 6.2% increase.

Source: ASX

Cobram began paying dividends in FY 2023 — $0.03 per share for a yield of 1.89%.

An analyst at Tradethestructure has a BUY recommendation on  Cobram Estate Olives, citing the company’s Half Year 2024 financial results, concluding “the company appears poised to test $2 before potentially moving higher.”

Marketscreener.com has an analyst consensus recommendation of BUY on CBO shares, with three of the four analysts reporting at BUY, and one at HOLD.

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