One-glance verdict
Within fair range
$7.50 our estimate vs market $12.02
Wall Street consensus: $14.93 (98.9% higher than our fair-value estimate)
60% above our estimate
Fundamentals snapshot
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria
CRESY · NMS · Industrials · Conglomerates
Current price
$12.02
52-week range
$8.45 - $14.21
Market cap
$852.52M
Balance sheet
Stretched
2.30x Stretched
Net debt $922.32M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Returns 12.2% on equity, ahead of 80% of its peers.
- Reward Free cash flow was positive in 3/10 years.
- Risk Stock trades 173393.0% above its 5-year average P/E.
- Risk Forward P/E (74.2x) is higher than trailing (6.5x) - earnings are expected to drop.
What this company does
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria
Cresud is an Argentinian company that makes money from both farming and real estate across Latin America. The company grows and sells major crops like soybeans and corn and raises cattle for meat, while also owning and leasing out properties like shopping malls and office buildings. This means its financial success is tied to two different areas: the prices of agricultural goods and the health of the urban real estate market.
How the company got here
Cresud was founded in 1936 in Argentina, originally to manage land for a Belgian financial company. [4, 6] In the 1960s, it shifted its focus entirely to farming and agriculture. [6] A major turning point came in 1994 when new leadership took over, backed by prominent investors, and began to significantly expand its land holdings. [6] The company started trading its shares on the American NASDAQ stock exchange in 1997, and in the 2000s, it expanded beyond Argentina into other South American countries like Brazil, Bolivia, and Paraguay. [4, 12]
What it actually does
Cresud is mainly a large-scale farming company that operates in several South American countries. [3, 4] It grows crops like soybeans and corn, raises cattle for beef, and produces sugarcane. [2] Think of them as a massive farm operator that also acts as a real estate investor for farmland, buying, improving, and sometimes selling large properties. [3] Separately, through a company it controls, Cresud also owns and manages city properties like shopping malls, office buildings, and hotels. [1, 2]
Agricultural Business
This is Cresud's main business, making up the majority of its sales. [23] It involves growing crops and raising cattle on hundreds of thousands of acres of land the company owns or leases in Argentina, Brazil, Bolivia, and Paraguay. [1, 26] The company makes money by selling these products, like grains and meat, to food producers and on the global commodity markets (markets where raw materials are bought and sold). [3] A key part of this segment is also buying large farms, making them more productive, and then sometimes selling the land itself for a profit. [7]
Urban Properties and Investments
This part of the company operates through Cresud's majority ownership in another company, IRSA, which is a major real estate player in Argentina. [4, 10] This business owns and manages properties you would recognize in a city, such as shopping malls, office towers, and hotels. [5] It earns money by collecting rent from stores in its malls and companies in its office buildings, as well as from hotel guest stays. [10] This segment provides a different and generally steadier stream of income than the more cyclical farming business. [9]
What management is betting on now
Management's strategy focuses on balancing its two different businesses to better withstand economic ups and downs. [9] They are continuing to expand their agricultural operations across South America, which helps in diversifying risk (reducing the negative effect if one region has bad weather or a poor harvest). [13] A core belief is that farmland is a valuable long-term asset, so they focus on improving their properties to increase their value over time. [3] The company also aims to manage its debt carefully and provide returns to its shareholders (the owners of the company's stock) through dividends (a portion of the company's profits paid out to investors). [3, 23]
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $7.50 vs current price $12.02
Wall Street consensus is the average analyst price target: $14.93 (98.9% higher than our fair-value estimate).
Our most-likely fair value is $7.50 a share — about 37.6% away from today's price of $12.02, so the stock currently looks fairly priced.
Is it drowning in debt?
Stretched
Net debt $922.3M. Interest coverage 2.3x.
Net debt
$922.32M
Interest coverage
2.30x
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria's profit covers its interest bill about 2.3 times over. which is stronger than most peers shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Stretched
Worse cushion
Baseline
Better cushion
CRESY
BASELINE
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria
Total debt $1.44B Interest coverage 2.30x This is the baseline the peer rows are being compared against.
Total debt $2.33B Interest coverage 0.60x -74% vs CRESY Carries about 3.8x less debt cushion than CRESY.
Total debt $278.06M Interest coverage -0.45x -100% vs CRESY This peer has almost no interest-payment cushion compared with CRESY.
Total debt $224.31M Interest coverage 2.39x +4% vs CRESY Has roughly the same debt cushion as CRESY.
Total debt $486.76M Interest coverage 1.23x -47% vs CRESY Carries about 1.9x less debt cushion than CRESY.
What you should know
The case for and against CRESY
3 Rewards
3 Risks
Rewards
-
Returns 12.2% on equity, ahead of 80% of its peers.
-
Free cash flow was positive in 3/10 years.
-
Trades at 6.5x P/E vs peer median 25.9x (75.0% cheaper).
Risks
-
Stock trades 173393.0% above its 5-year average P/E.
-
Forward P/E (74.2x) is higher than trailing (6.5x) - earnings are expected to drop.
-
Insider ownership is only 0.5% (peer median: 6.9%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
6.46x
Forward P/E
74.20x
P/B
0.88x
P/S
0.00x
EV/EBITDA
12.72x
PEG ratio
—
Profitability
How much profit each dollar creates
Gross margin
40.6%
Operating margin
16.9%
Net margin
12.9%
ROE
12.2%
ROA
2.0%
Health
Liquidity and balance-sheet strength
Debt / equity
0.69x
Current ratio
1.47x
Quick ratio
1.12x
Total debt
$1.44B
Total cash
$522.08M
Growth
How the business has been compounding
Revenue TTM
$912.28M
Revenue 5Y CAGR
11.8%
EPS TTM
1.86
EPS 5Y CAGR
-30.8%
Cash flow
How much cash the business throws off
Operating CF TTM
$76.35M
Free CF TTM
$2.09M
FCF margin
0.2%
Dividend
Shareholder payout
Yield
5.3%
Payout ratio
31.4%
Last ex-div date
2025-11-28