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
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.
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.
*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.*