Insights

Why is the Graincorp share price sprouting on Tuesday?

Investors are reminded of Graincorp’s enviable position during bumper seasons.
The post Why is the Graincorp share price sprouting on Tuesday? appeared first on The Motley Fool Australia. –

The Graincorp Ltd (ASX: GNC) share price is firmly in the green after releasing an investor presentation.

In early trading, shares in the integrated grains company are getting a boost. At the time of writing, the share price is 3.3% higher at $9.39. For context, the S&P/ASX 200 Index (ASX: XJO) is also up a lively 1.11% this morning.

Benefitting from a positive reaction to the contents of its latest presentation, Graincorp is leading the consumer staples sector out of the gates on Tuesday.

What’s growing the Graincorp share price today?

The grain logistics and storage company is getting extra attention on the ASX today. Typically, an investor presentation covers information already known by the market. However, today’s presentation has been marked as price-sensitive, indicating there are likely some important details hidden within it.

Before we dive deeper, here are a few main points that could be influencing the Graincorp share price:

Reaffirmed prior FY22 full-year guidance of $590 million to $670 million in underlying EBITDA
Dividend payout ratio target of 50% to 70% with “optionality to pay special dividends in years” ahead
Well-positioned amid global supply chain disruptions
Potential for third consecutive bumper crop across Australian east coast

Possibly the biggest takeaway from Graincorp’s presentation to shareholders is its insulation from some of the strongest pressures faced by other companies at the moment. For example, it touted its end-to-end supply chain along the east coast. This includes seven bulk grain port terminals and approximately 160 storage sites.

At a time when grain prices are at multi-year highs, the ability to deliver the product to ports and get it shipped is enabling the company to capitalise on the situation.

What else?

Importantly, the retained EBITDA guidance indicates Graincorp remains largely unaffected by the conflict in Ukraine. This is despite Europe and Ukraine exports making up 85 million tonnes of global exports.

Notably, the company highlighted its global footprint which has given the company some optionality. For example, Graincorp earmarked Canada as a “key part” of its multi-origin strategy.

More than anything, the presentation has likely provided reassurance to the Graincorp share price today. The company currently holds a market capitalisation of $2.14 billion.

The post Why is the Graincorp share price sprouting on Tuesday? appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

See The 5 Stocks
*Returns as of January 12th 2022

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

ASX 200 midday update: BHP and Rio Tinto rebound, Westpac rated as a buy
3 ASX 200 shares stretching higher on Wednesday
These were the best performing ASX 200 shares last week
Why is the GrainCorp share price racing higher today?
Why GrainCorp, New Hope, Tabcorp, and Woodside shares are pushing higher

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

  • This field is for validation purposes and should be left unchanged.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Free Share Allocation Reward Levels

STARTER

Class
$ 2,500 Deposit & Trade
  • REWARD^
  • 1 x Marathon Oil Corporation (NYSE:MRO)

ECONOMY

Basic
$ 5,000 Deposit & Trade
  • REWARD^
  • 1 x Pfizer Inc (NASDAQ:PFE)

ECONOMY

Standard
$ 10,000 Deposit & Trade
  • REWARD^
  • 1 x Amazon.com Inc (NASDAQ:AMZN)

ECONOMY

Plus
$ 25,000 Deposit & Trade
  • REWARD^
  • 2 x Apple Inc (NASDAQ:AAPL)
POPULAR

BUSINESS

Class
$ 50,000 Deposit & Trade
  • REWARD^
  • 4 x Apple Inc (NASDAQ:AAPL)

FIRST

Class
$ 150,000 Deposit & Trade
  • REWARD CHOICES^
  • 12 x Apple Inc (NASDAQ:AAPL)
  • 2 x Tesla (NASDAQ:TSLA)
^Please refer to the Free Share Promotion Terms and Conditions for details.

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex Securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

FREE AAPL, TSLA, AMZN, PFE or MRO Share(s)
REGISTER TO BE ELIGIBLE FOR FREE SHARES
TRAVEL ACROSS THE FINANCIAL WORLD
Act Fast - Promotion Ends In
Click Here To Get Started
FREE AAPL, TSLA, AMZN, PFE or MRO Share(s)
REGISTER TO BE ELIGIBLE FOR FREE SHARES
TRAVEL ACROSS THE FINANCIAL WORLD
Act Fast - Promotion Ends In
Click Here For More Info