Graincorp Ltd Class A
GNC: XASX (AUS)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| A$6.30 | Htnz | Qsvlqpjf |
GrainCorp's Prospects Hinge on a Normalized Cropping Year
Business Strategy and Outlook
GrainCorp enjoys significant market shares in grain storage, handling, and port elevation services along the eastern seaboard of Australia. Earnings are heavily affected by seasonal conditions, but the diversification into oilseed crushing and refining reduces earnings volatility and provides growth opportunities. However, we don't believe the firm has carved an economic moat, and forecast returns on invested capital to trail the firm's cost of capital over the long term.