ArborGen Holdings


Market CapNZD$125.4m

Last Close NZD$0.25

ArborGen Holdings (formerly Rubicon) is an NZX-listed investment company. Its subsidiary ArborGen is the world’s largest integrated developer, commercial manufacturer and supplier of advanced forestry seedlings with operations in the United States, Brazil and Australasia.

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Investment summary

ArborGen’s FY21 results were US$1m ahead of our expectations at the US GAAP EBITDA level after central costs) but slightly lower at the PBT level including lower R&D and other adjustments. The United States in particular showed some COVID-19 revenue impact but underlying operations strengthened through investment, self-help actions and growing availability of higher value seeds which are expected to facilitate a ramp-up in seedling sales and revenue in future periods. Updated market guidance (28 October) pointed to an adjusted US GAAP EBITDA range (pre central costs) of US$12.0–12.4m, slightly down from the ASM. Conditions for the intended sale of the company’s New Zealand and Australia operations have been met and the transaction is expected to complete on 30 November. The previously announced strategic review is ongoing.

Y/E Mar
Revenue (US$m)
PBT (US$m)
EPS (c)
P/E (x)
P/CF (x)
2020A 56.9 7.7 6.0 1.4 12.1 17.6
2021A 52.7 8.1 8.9 1.9 8.9 8.6
2022E 62.1 12.0 12.1 2.4 7.1 6.5
2023E 69.3 13.4 12.9 2.6 6.5 6.4
Industry outlook

Prior to the COVID-19 outbreak, the economic growth outlook in each of its core countries, the US, Brazil, New Zealand and Australia, was either good or improving, according to OECD data. At this point, the primary end-markets served by its plantation forestry customer base (ie construction and the pulp and paper industries) were in a positive cyclical phase.

Last updated on 14/01/2022
Content on ArborGen Holdings
ArborGen Holdings – Favourable balance of risk
Industrials | Update | 23 June 2021
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Share price graph
Balance sheet
Forecast net debt (US$m) 23.1
Forecast gearing ratio (%) 15
Price performance
Actual 0.0 (13.8) 51.5
Relative* 1.1 (11.7) 59.3
52-week high/low NZ$0.3/NZ$0.2
*% relative to local index
Key management
Andrew Baum CEO
Alex Brown CFO
Sharon Ludher-Chandra Business Development Executive