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ArborGen Holdings

NZ: ARB

Market CapNZD$105m

Last Close NZD$0.23

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 delivered solid FY22 sales growth across continuing operations, with revenues up 11% to US$47.6m. Record US advanced genetic seedling sales, up 32% y-o-y, reflect the company’s focus on advanced genetics. Management also completed its strategic review, shifting focus to the high-growth US South and Brazilian markets, divesting the Australian and New Zealand business, exploring opportunities in using trees to offset carbon emissions and strategically expanding in its core markets. ArborGen is well positioned to deliver on its new strategy; we are reviewing our estimates and will update them in the near future.

Y/E Mar
Revenue (US$m)
EBITDA (US$m)
PBT (US$m)
EPS (c)
P/E (x)
P/CF (x)
2020A 56.9 7.7 6.0 1.4 9.6 13.9
2021A 52.7 8.1 8.9 1.9 7.0 6.8
2022E 62.1 12.0 12.1 2.4 5.6 5.1
2023E 69.3 13.4 12.9 2.6 5.2 5.1
Industry outlook

Prior to the COVID-19 outbreak, the economic growth outlook in each of its core countries, the United States, 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 29/06/2022
Content on ArborGen Holdings
ArborGen Holdings – Shifting focus to US South and Brazil
Industrials | research Update | 30 June 2022
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ArborGen Holdings – Favourable balance of risk
Industrials | research Update | 23 June 2021
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ArborGen Holdings – US sales slow in H221, positive outlook remains
Industrials | research Update | 21 January 2021
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Share price graph
Balance sheet
Forecast net debt (US$m) 23.1
Forecast gearing ratio (%) 15
Price performance
%
1m
3m
12m
Actual (16) (12.5) (20.8)
Relative* (12.3) (2) (5.3)
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

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