Risk factor
Strong & resilient to price shocks
Profitability factor
Greatly overvalued vs peers
About
Cobram Estate Olives Limited functions as an integrated food and agricultural enterprise, primarily focused on the cultivation and processing of olives. The company maintains extensive operations across both Australia and the United States, overseeing everything from groves to milling facilities. Its acclaimed olive oil product lines include the Cobram Estate and Red Island brands. Within Australia, the firm boasts substantial freehold olive orchards in Victoria, encompassing 6,584 hectares planted with approximately 2.4 million olive trees. In the United States, specifically California, it cultivates 207,500 olive trees across 358 hectares, a combination of owned and long-term leased properties. Complementing its farming activities, the company also operates an olive tree nursery, three dedicated olive mills, two state-of-the-art bottling and storage facilities for olive oil, and a specialized Olives laboratory. Their high-quality olive products are distributed internationally, reaching markets in 16 different countries. Established in 1998, Cobram Estate Olives Limited's corporate headquarters are situated in Lara, Australia.
Company Valuation
Based on key historical and expected multiples, the stock is greatly overvalued relative to its peers. Specifically, the stock is 'expensive' on P/E, overvalued on EV/EBI
Target Price
The average target price of CBO.AX is 3.8 and suggests 5% downside potential. Usually, this means a SELL recommendation among investment firms, or a recommendation to dec