市场见解

How did the Graincorp (ASX:GNC) share price double in 2021?

Shareholders harvested market-beating returns from Graincorp in 2021. Here’s a closer look…
The post How did the Graincorp (ASX:GNC) share price double in 2021? appeared first on The Motley Fool Australia. –

It was a year to remember for the Graincorp Ltd (ASX: GNC) share price in 2021. While the S&P/ASX 200 Index (ASX: XJO) returned 13%, the integrated grain company yielded a mindboggling 97.1% gain for shareholders.

The market-beating rally follows several years of largely sideways movement in Graincorp shares. Prior to 2021, investors were grappling with an investment that was often range-bound between $3.50 and $4.75.

During this time Graincorp’s profitability waved like leaves in the wind — going from $26 million in 2016 to $112 million in 2017, and back down to $70 million in 2018. Meanwhile, the company’s revenue was trending downwards, creating uncertainty for shareholders.

However, those that have stuck it out with the Graincorp share price were rewarded in 2021. But what exactly were some of the key drivers behind this renewed momentum? Let’s take a look.

Grains align for a bumper season

Much like many other commodities last year, grains enjoyed a major strengthening in price due to attractive supply and demand dynamics. Graincorp benefited from this through its supply chain, origination, and processing activities.

While historically it has often been the case that high grain prices have been concurrent with low yields across Australia, this was not the case last year. Instead, Aussie crop growers relished in above-average levels of grain production.

This positive environment was still prevalent last month, as grains analyst Malcolm Bartholomaeus noted:

In South Australia we have the highest ever prices for both wheat and canola and it is even getting close to records in NSW, where we had those really high prices during the 2018-19 drought when there was very little grain about.

We’ve averaged $407 [per tonne] for the early part of December, compared to a previous high of $390 per tonne.

According to its full-year result, the company witnessed strong global demand for Australian grain, oilseeds, and vegetable oils during the financial year. In turn, revenue rose 50% to $5,491.5 million from the prior corresponding period.

Perhaps most important for shareholders was the substantial increase in net profits. For the full year ended September 2021, Graincorp delivered net earnings of $139.3 million, up nearly fourfold from $35.2 million in 2020.

Rain and shine expected for Graincorp share price

Although the wet weather might have put a dampener on your holidays, it has the opposite impact on grain projections. For instance, analysts at RBC highlighted rain forecasts to be a catalyst for the Graincorp share price looking forward.

With the Bureau of Meteorology expecting high rainfall across Australia into early autumn 2022, RBC sees a good year for Graincorp’s Agribusiness segment.

Specifically, the broker has forecast $294 million in FY22 earnings before interest, tax, depreciation, and amortisation (EBITDA). This would suggest a 7% increase in the company’s Agribusiness EBITDA from FY21.

The post How did the Graincorp (ASX:GNC) share price double in 2021? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Graincorp right now?

Before you consider Graincorp, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Graincorp wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

These were the 5 best performing ASX 200 shares in 2021

These were the best performing ASX 200 shares in December

Top brokers name 3 ASX shares to sell

Drinking, banking, and EVs: 3 value ASX shares I’d buy right now

Why the Graincorp (ASX:GNC) share price is harvesting some stellar gains this week

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 Bruce Jackson.

随时随地,交易世界!

移动APP平台,拥有 12 个市场的 50,000 多种全球上市证券(全球市值超过 70%),直接在您的 Android 或 iOS 设备上即可操作。

与独有的交易理念和投资分析工具相结合,帮助您在我们 12 个全球市场中的几乎所有金融工具上找到可操作的见解,从而帮助您优化交易策略。

推荐给您的朋友

向您的朋友推荐Monex并赠予他们免费使用我们交易工具的机会

我们尊重您的隐私,只会向您的朋友发送一封邮件 

与您的朋友分享

Share on facebook
Share on twitter
Share on linkedin

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 indefinitely, 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.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!