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1. Company Snapshot

1.a. Company Description

Origin Enterprises plc operates as an agri-services company in Ireland, the United Kingdom, Belgium, Brazil, Poland, Romania, Ukraine, and Latin America.The company provides integrated agronomy and on-farm services comprising specialty agronomy, technology and strategic advisory, and agronomy advisory services.It also wholesales agricultural products, such as seeds, chemicals, fencing wires, feed supplements, granulated lime products, and farm plastics, as well as supply of specialized cement products for the building industry; manufactures and distributes blended and straight fertilizers, and granulated lime; and develops and markets value added crop nutrition and specialty inputs, as well as provides digital agronomy applications and agri-tech services to producers, input manufacturers, and agri-service companies.


In addition, the company manufactures and sells amenity paints; supplies line marking paints, as well as machines and accessories; and offers various products and services for installation, management, and maintenance of the natural grass and synthetic sporting, amenity, and landscaped surfaces.Further, it is involved in the manufacturing and supplying turf management products, including fertilizers, plant protection products, bio stimulants, and wetting agents; and identification, selection, and use of soil bacteria, fungi, and the organisms found in healthy soil to optimize plant growth and strength.Additionally, the company retails and manufactures animal feeds for the ruminant, pig, and poultry markets; and imports and supplies raw material ingredients to the animal feed manufacturing and flour milling industries.


The company is also involved in the grain and feed trading; silo operation; manufacture and distribution of landscaping, and forestry and grounds maintenance equipment; property trading; and IT implementation, maintaining, and licensing of software.Origin Enterprises plc was incorporated in 2006 and is based in Dublin, Ireland.

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1.b. Last Insights on OIZ

Origin Enterprises' recent performance was bolstered by a robust first-half performance, with significant profit growth driven by strategic expansion plans. The company's robust growth was a testament to its ability to navigate market challenges, including currency fluctuations. Notably, Origin Enterprises' expansion plans are expected to yield long-term benefits, underscoring the company's commitment to strategic development.

1.c. Company Highlights

2. Origin Enterprises Reports Strong 2025 Results with Revenue and EPS Growth

Origin Enterprises plc reported a 2.7% increase in revenue to EUR 2.1 billion, driven by a 2.3% volume growth and 0.9% benefit from acquisitions. The company's operating profit grew by 8.7% to EUR 90 million, with both Agriculture and Living Landscapes businesses contributing to the growth. The operating margin increased to 4.3%, and the overall EPS was EUR 0.5421, up 12.8% or 14.4% on a constant currency basis. The company's financial performance was highlighted by Colm Purcell, CFO, who noted that the growth was driven by a strong recovery in the Ireland and UK businesses.

Publication Date: Oct -28

📋 Highlights
  • Revenue Growth:: Revenue increased 2.7% to EUR 2.1 billion, driven by 2.3% volume growth and 0.9% from acquisitions.
  • Operating Profit Expansion:: Operating profit rose 8.7% to EUR 90 million, with a 4.3% operating margin and 12.8% EPS growth (EUR 0.5421).
  • Living Landscapes Momentum:: Grew 40%, contributing 18.4% of group operating profit (EUR 16.6 million) with 90-basis-point margin improvement.
  • Capital Allocation:: Returned EUR 162 million to shareholders via buybacks (EUR 80 million) and dividends, representing 40% of market cap.
  • ESG Progress:: Reduced Scope 1 and 2 emissions by 26% since 2019, investing EUR 102 million in organic growth and EUR 93 million in diversification.

Business Segment Performance

The Agriculture business grew by 2.5% in the period, driven by a strong recovery in the Ireland and UK businesses. The Living Landscapes business grew by almost 40%, with 1/3 from organic growth and 2/3 from acquisitions. TJ Kelly, Divisional Managing Director of Living Landscapes, highlighted the business's strong growth, contributing 18.4% of group operating profit at EUR 16.6 million. The company improved its margins by 90 basis points to 8.9%, driven by an improved mix of higher-margin Environmental businesses.

Valuation and Dividend

With a P/E Ratio of 7.67 and a Dividend Yield of 4.42%, the company's valuation appears reasonable. The company's ROE of 12.72% and ROIC of 9.04% indicate a strong return on equity and invested capital. The proposed final dividend of EUR 0.1415 brings the full year dividend to EUR 0.173, a 3% increase on FY '24. The company's disciplined approach to capital allocation and focus on driving shareholder returns are expected to continue.

Outlook and Growth Prospects

The company aims for 20-21% organic growth in 2026, with a 30% annualized exit rate. M&A opportunities are being explored, with a focus on acquiring assets with the right strategic fit and management capability. Analysts estimate next year's revenue growth at 2.0%. The company's working capital is a significant driver of its net debt, but opportunities for improvement are seen in less capital-intensive companies like Living Landscapes and in markets like Brazil and Romania.

Challenges and Risks

The company's exposure to the Brazilian market poses some risks, with the market experiencing a period of flux and some players going through reorganization and debt cramming. However, the company has insurance on about 50% of its debtor book and guarantees from another 45%, allowing for controlled debt collection. The company's focus on optimizing agriculture businesses and maintaining financial discipline around working capital and return on capital employed is expected to mitigate these risks.

3. NewsRoom

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Origin Enterprises PLC (ORENF) (H1 2025) Earnings Call Highlights: Strong Growth Amidst Market ...

Mar -06

Source:

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Origin Enterprises PLC (ORENF) (Q4 2024) Earnings Call Transcript Highlights: Strong ...

Sep -25

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.43%)

6. Segments

Integrated Agronomy and On-Farm Services

Expected Growth: 7.43%

Strong demand for sustainable farming practices, increasing adoption of precision agriculture, and expansion into new geographies drive growth in Integrated Agronomy and On-Farm Services. Origin Enterprises' expertise in crop management, soil science, and digital farming solutions position it for success in this high-growth market.

Business-to-Business Agri-Inputs

Expected Growth: 4.83%

Strong demand for sustainable farming practices, increasing adoption of precision agriculture, and expansion into new geographic markets drive growth in Business-to-Business Agri-Inputs for Origin Enterprises plc, with a 4.83% growth rate. Additionally, strategic partnerships and investments in research and development further support this growth.

Amenity,Environmental and Ecology Solutions

Expected Growth: 8.74%

Origin Enterprises plc's 8.74% growth in Amenity, Environmental and Ecology Solutions is driven by increasing demand for sustainable practices, government regulations promoting eco-friendly initiatives, and rising consumer awareness of environmental issues. Additionally, the company's diversified product portfolio, strategic partnerships, and investments in R&D have contributed to its growth momentum.

7. Detailed Products

Crop Inputs

Origin Enterprises plc provides a range of crop inputs including seeds, fertilizers, and crop protection products to farmers and growers.

Agronomy Services

The company offers agronomy services, including crop scouting, soil testing, and fertilizer planning, to help farmers make informed decisions.

Precision Farming

Origin Enterprises plc provides precision farming solutions, including precision planting, spraying, and harvesting, to improve farming efficiency and reduce waste.

Machinery and Equipment

The company offers a range of machinery and equipment, including tractors, combines, and balers, to support farming operations.

Environmental Services

Origin Enterprises plc provides environmental services, including soil testing, water testing, and waste management, to help farmers manage environmental risks.

8. Origin Enterprises plc's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Origin Enterprises plc is moderate due to the availability of alternative products and services in the agricultural industry.

Bargaining Power Of Customers

The bargaining power of customers is low for Origin Enterprises plc due to the company's strong brand reputation and diversified customer base.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate for Origin Enterprises plc due to the company's dependence on a few large suppliers for raw materials.

Threat Of New Entrants

The threat of new entrants is low for Origin Enterprises plc due to the high barriers to entry in the agricultural industry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry is high for Origin Enterprises plc due to the competitive nature of the agricultural industry, with many established players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 27.14%
Debt Cost 7.55%
Equity Weight 72.86%
Equity Cost 7.55%
WACC 7.55%
Leverage 37.26%

11. Quality Control: Origin Enterprises plc passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
ForFarmers

A-Score: 7.0/10

Value: 9.2

Growth: 4.6

Quality: 5.1

Yield: 8.1

Momentum: 8.5

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
Anglo-Eastern Plantations

A-Score: 6.8/10

Value: 7.9

Growth: 5.2

Quality: 7.5

Yield: 5.0

Momentum: 10.0

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
Origin

A-Score: 6.1/10

Value: 8.9

Growth: 4.6

Quality: 4.2

Yield: 3.8

Momentum: 8.5

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
KWS SAAT

A-Score: 5.5/10

Value: 7.0

Growth: 3.9

Quality: 7.8

Yield: 2.5

Momentum: 5.0

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
Grieg Seafood

A-Score: 4.4/10

Value: 8.4

Growth: 3.0

Quality: 3.2

Yield: 2.5

Momentum: 6.5

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
Måsøval

A-Score: 3.7/10

Value: 6.2

Growth: 4.6

Quality: 1.2

Yield: 6.2

Momentum: 1.5

Volatility: 2.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

3.86$

Current Price

3.87$

Potential

-0.00%

Expected Cash-Flows