Allied Farmers Share Price: A P/E of 3.5 on a Livestock and Rural Play
Allied Farmers Share Price Today
The Allied Farmers share price sits at about $0.645 NZD (NZX: ALF) in mid-June 2026, down roughly 12% over the past year. With a market cap near $19 million, Allied Farmers is a small-cap rural-services company with a long and colourful history on the NZX. Today it is a focused agricultural business trading on a strikingly low earnings multiple.
The headline number is a trailing P/E of about 3.5, which on the surface looks extremely cheap. As always, the question is whether that reflects a bargain or risks the market is pricing in.
What Allied Farmers Does
Allied Farmers operates in the rural economy through a few key interests:
- •A 67% stake in NZ Farmers Livestock, providing livestock agency and trading services to farmers
- •Calf procurement and processing, a seasonal operation tied to the dairy cycle
- •Livestock financing, lending to farmers
- •A stake in NZ Rural Land Management, the manager associated with farmland owner [NZ Rural Land Company](/stocks/nz-rural-land)
This makes Allied Farmers a play on rural activity and the livestock trade, with earnings that move with farmgate confidence, stock numbers, and the broader agricultural cycle that also drives [PGG Wrightson](/stocks/pgg-wrightson).
Recent Performance
For the year to 30 June 2025, Allied Farmers reported net profit after tax attributable to shareholders of about $2.87 million, down from $5.21 million the year before. The fall was largely because the prior year included a one-off $4.2 million book-value gain. Stripping that out, underlying profit of about $3.84 million was actually higher than the prior year's adjusted figure of $2.69 million, so the underlying business improved even as the headline number fell.
That nuance matters: the reported decline overstates any deterioration, and the underlying trend was positive.
Key Metrics
- •Share price: ~$0.645 NZD
- •Market cap: ~$19 million NZD
- •52-week move: about -12%
- •P/E ratio (trailing): ~3.5x
- •EPS: ~$0.182
- •Net tangible assets: ~$0.698 per share
- •Gross dividend yield: 0% (no dividend)
The combination of a 3.5x P/E and shares trading near net tangible assets of about $0.70 looks cheap. But Allied Farmers has never paid a dividend and has no plans to, so investors are not paid to wait and rely entirely on capital growth and the underlying businesses compounding.
What to Watch
- •The agricultural cycle: Livestock volumes, calf processing, and farmer confidence drive earnings. A strong rural economy helps directly.
- •One-off items: As FY24 and FY25 showed, book-value gains and similar items can distort the headline. Focus on underlying profit.
- •Capital allocation: With no dividend, what management does with cash, reinvest, acquire, or build the rural land management business, determines shareholder returns.
- •Liquidity: At a $19 million market cap the stock is thinly traded and can move on small volumes.
The Bottom Line
Allied Farmers is a cheap-looking, asset-backed rural-services small-cap with improving underlying earnings and a low multiple. The bull case is a 3.5x P/E business trading near asset value with real exposure to the livestock trade and a stake in the rural land management story. The bear case is the absence of any dividend, lumpy one-off-affected earnings, thin liquidity, and full exposure to the agricultural cycle. This suits value-oriented investors comfortable with an illiquid micro-cap and content to be paid only through capital growth.
For how we treat low-multiple, no-dividend stocks, see our [methodology](/methodology).
*Disclaimer: This article is for educational and informational purposes only. It does not constitute financial advice. Stock data may not be real-time. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.*