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Livestock Improvement Share Price: A 14% Yield and a P/E Under 7, So What's the Catch?

Livestock Improvement Share Price Today

The Livestock Improvement share price sits at about $1.21 NZD (NZX: LIC) in mid-June 2026, up roughly 27% over the past year. With a market cap near $172 million, LIC is a small-cap on the exchange but a giant in New Zealand agriculture. Founded in 1909, it is the farmer-aligned co-operative behind much of the country's dairy herd genetics.

Two numbers jump out and demand explanation: a price-to-earnings ratio under 7 and a gross dividend yield above 14%. On the surface that combination looks too cheap to be true. The reality is more nuanced, and it comes down to what kind of company LIC actually is.

What Livestock Improvement Does

LIC sells the science behind better dairy cows. Its business runs across several segments:

  • •NZ Markets (Genetics): bovine breeding material, primarily artificial breeding from elite bulls
  • •Testing: herd testing and DNA testing services that tell farmers which animals are most productive
  • •Agritech / Farm Software: herd-management software used across NZ dairy farms
  • •International: exporting genetics and expertise offshore

This makes LIC less a commodity play and more a data-and-genetics business embedded in the dairy supply chain. Its fortunes are tied to the health of the dairy sector, the same sector that drives [Fonterra](/stocks/fonterra) and rural services group [PGG Wrightson](/stocks/pgg-wrightson).

Recent Performance

Recent full-year figures showed revenue of around $304.7 million, gross profit near $126.1 million, and earnings of about $25.4 million, for EPS near $0.179. A strong dairy payout environment lifts farmer spending on genetics and testing, and that has flowed through to LIC's result and its share price over the past year.

Key Metrics

  • •Share price: ~$1.21 NZD
  • •Market cap: ~$172 million NZD
  • •52-week move: about +27%
  • •P/E ratio (trailing): ~6.8x
  • •EPS: ~$0.179
  • •Net tangible assets: ~$1.88 per share
  • •Gross dividend yield: ~14%

Now the catch. The low P/E and very high yield reflect LIC's character as a farmer co-operative, not a mispriced growth stock. LIC has historically returned a large share of profit to its shareholders, who are largely the dairy farmers it serves, and its earnings are seasonal and cyclical with the dairy payout. A 14% gross yield is unlikely to be a permanent feature; it reflects a strong recent year and generous distributions, not a sustainable run-rate to bank on. Notably, the shares also trade below their net tangible asset value of about $1.88.

What to Watch

  • •The dairy cycle: LIC's revenue rises and falls with the milk payout and farmer confidence. A downturn in dairy would hit genetics and testing spend directly.
  • •Dividend sustainability: The headline yield is a function of a good year. Watch the payout against normalised earnings, not the peak.
  • •International growth: The offshore segment is the long-term diversification story away from a single national dairy cycle.
  • •Co-operative dynamics: LIC's shareholder base and governance differ from an ordinary listed company, which can affect liquidity and how capital is returned.

The Bottom Line

Livestock Improvement is a high-quality, deeply entrenched agritech and genetics business trading on a low multiple with a fat yield. The bull case is a cheap, cash-generative monopoly-like position in NZ dairy genetics. The bear case is that both the cheap P/E and the 14% yield are flattered by a strong dairy year and a co-operative distribution model, and they will compress when the cycle turns. This is a stock for investors who understand the dairy cycle and want exposure to the science behind it, not a perpetual 14% income machine.

For how we treat cyclical earnings and unusually high yields, 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.*