Breaking Down Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria (CRESY) Financial Health: Key Insights for Investors

You're looking at Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria (CRESY) and trying to figure out if the massive land bank is worth the volatility of the Argentine market, and honestly, the latest numbers show a deeply mixed picture. For Fiscal Year 2025, the company reported a strong net income of ARS 224,366 million, a significant jump from the prior year, but that headline number is heavily reliant on non-cash fair value gains from its urban properties segment (IRSA investment properties), not core operations. In fact, the more telling near-term signal is the Q1 FY2026 Adjusted EBITDA, which dropped sharply by 39.7%, indicating a real operational headwind in the agribusiness segment despite planting roughly 300,000 hectares. Still, the stock's recent annual dividend declaration of about $0.63 per share is hard to ignore, and the government's temporary reduction of export duties on key crops like soybeans (from 33% down to 26%) creates a clear, near-term opportunity for better margins. This is defintely a classic conglomerate story where you have to look past the surface-level profit to find the true cash-generating health.

Revenue Analysis

You're looking at Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria (CRESY), and the first thing to understand is that it's a dual-engine company: part agricultural powerhouse, part real estate investor. Your takeaway is simple: the financial health in fiscal year (FY) 2025 was driven by a strong recovery in the core agricultural business, plus the significant, albeit volatile, contribution from its urban properties and investments segment.

The company's revenue streams are cleanly split between its Agricultural Business and its Urban Properties and Investments segment, primarily through its controlling stake in IRSA Inversiones y Representaciones Sociedad Anónima. For the first half of FY 2025 (ending December 31, 2024), the Agricultural Business generated ARS 238,715 million in revenue, while Urban Properties brought in ARS 170,141 million. This shows the capital-intensive, dual nature of the business model, which is key to understanding its overall risk profile.

Here's the quick math on recent growth: Sales for the first quarter of FY 2026 (ending September 30, 2025) hit ARS 318,529 million, a substantial increase from the ARS 269,701 million recorded in the same quarter a year prior. That translates to an approximate 18.1% year-over-year growth in sales, which is a solid near-term indicator. Still, you must look at the full fiscal year for context.

The most telling metric for segment contribution is often Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), as it strips out some of the accounting noise. For the nine-month period of FY 2025 (ending March 31, 2025), the Urban Properties and Investments business contributed a massive ARS 156,380 million in Adjusted EBITDA, completely dwarfing the ARS 31,072 million from the core agricultural business. This highlights how much of the company's operating performance is tied to its real estate holdings and fair value gains, which can swing wildly.

A significant change in the revenue landscape for FY 2025 was the Argentine government's temporary reduction in export duties on major crops like soybeans, wheat, and corn, which ran until June 30, 2025. This policy shift provided a positive impact on available and future grain prices, improving margins and defintely boosting the outlook for the agricultural segment. Plus, the company continues to monetize its vast land holdings, as seen by the sale of a portion of the 'Los Pozos' farm in Argentina for USD 2.2 million and its subsidiary BrasilAgro selling a part of 'Alto Taquari' farm for BRL 189.4 million during the nine-month period.

• Agricultural revenue is stable, but real estate drives big swings.
• Urban properties' fair value gains are a major, non-cash revenue source.
• Government policy changes directly impact agricultural segment profitability.

To fully grasp the strategic direction behind these numbers, you should review the Mission Statement, Vision, & Core Values of Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria (CRESY).

Here is a snapshot of the segment performance for the first half of FY 2025:

What this estimate hides is the impact of hyperinflationary accounting in Argentina, which means the reported Argentine Peso (ARS) figures are adjusted, making direct comparisons to US-based companies tricky. Your action item is to always look at the underlying volume and commodity price trends, not just the top-line ARS number.

Profitability Metrics

You need to look past the top-line revenue numbers and drill into the margins-that's where the real story of operational efficiency and risk is hiding. For Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria (CRESY), the Fiscal Year (FY) 2025 results show a significant turnaround in core profitability, largely driven by a strong rebound in its operating segments.

The headline is clear: CRESY moved from a consolidated operating loss in the previous year to a substantial profit in FY 2025. Specifically, the company reported a consolidated Net Income of ARS 224,366 million for the fiscal year ended June 30, 2025, a solid increase from the prior year. [cite: 8, 9, 1 in step 1]

Here's the quick math on the key consolidated profitability ratios, using the reported financials in thousands of U.S. Dollars (USD) for the full fiscal year:

The Gross Profit Margin of 39.16% is strong, reflecting the company's ability to control its cost of goods sold (COGS) across its diversified portfolio. This is defintely a good starting point. [cite: 10 in step 1]

Operational Efficiency and Profitability Trends

The shift in operational efficiency is the most compelling trend. Consolidated Operating Income for FY 2025 soared to ARS 220,945 million, a dramatic improvement from the ARS 172,748 million loss reported in the prior fiscal year. This massive swing is largely due to two things: a stronger Agribusiness segment and favorable government policy changes.

• Agribusiness segment operating income hit ARS 49,166 million in FY 2025.
• Livestock activity saw strong margins, fueled by firm cattle prices and lower feeding costs.
• Government measures, like the temporary reduction in export taxes on major grains until June 30, 2025, provided a positive margin boost. [cite: 5 in step 1, 9]

The Net Profit Margin of 23.83% is high, especially for a company in the primary sector, but it's crucial to remember that CRESY's results are heavily influenced by non-cash fair value adjustments from its urban properties and investments (through IRSA), which can inflate the net result. The operating margin of 23.57% is a cleaner look at core business performance.

Industry Comparison: A Diversified Edge

Comparing CRESY's margins to a single industry average is tricky because it's a hybrid of Agribusiness and Real Estate. In the highly competitive Latin American Agribusiness sector, strong financial performance for value-chain-linked projects often shows financial internal rates of return (IRR) in the 18% to 25% range. CRESY's 23.83% Net Profit Margin is competitive with the high end of these returns, even before considering the real estate component. [cite: 7 in step 2]

For the Latin American Real Estate market, while construction cost inflation of 3-4% is pressing margins, rental yields on residential property can average 9-15% in attractive markets. [cite: 2 in step 2] CRESY's exposure to real estate through its stake in IRSA, which includes urban properties, provides a valuable, albeit complex, diversification layer that contributes to the high overall gross margin. The real estate segment also generated very strong results from the sale of a portion of the Los Pozos farm in Argentina and the entire Preferencia farm in Brazil during the fiscal year. This mix is the company's strategic strength, but it also means volatility. You should review the full Mission Statement, Vision, & Core Values of Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria (CRESY). to understand their long-term focus.

The key takeaway is that the operational side is healthy, but future profitability hinges on the continuation of favorable commodity prices and, critically, the stability of Argentine government policy regarding export taxes and foreign exchange liberalization. Finance: monitor the Q1 FY2026 margin reports for a sustained trend.

Debt vs. Equity Structure

You need to know how Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria (CRESY) funds its operations, and the good news is the company's core leverage profile is well-managed. The key takeaway for the 2025 fiscal year is that the company is leaning on debt for targeted, short-term refinancing and growth, but its overall net debt is stable and its credit rating has improved.

As of the end of the 2025 fiscal year, Cresud's total standalone debt (excluding its FyO subsidiary) stood at approximately $396.8 million, with a cash balance of $47.9 million, which puts the total net debt for the core entity at about $348.9 million. That's a very manageable number for a company with vast land and real estate assets. The net debt remains stable around the $354 million level, which shows a defintely conservative approach to capital structure. You can see how this breaks down:

• Total Cresud Debt (excl. FyO): $396.8 million
• Cash and Equivalents: $47.9 million
• Net Debt (Cresud only): $348.9 million
• Brasilagro Net Debt: $120.6 million

The debt-to-equity (D/E) ratio is your quick measure of financial leverage (how much debt a company uses to fund its assets relative to shareholder equity). For Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria, the D/E ratio is currently sitting at a conservative 0.36 as of November 2025.. This is significantly lower than many peers in the diversified agricultural and real estate conglomerate space, suggesting a preference for equity financing and retained earnings over high leverage. To be fair, you might see other, higher figures like 1.51, but those often reflect a fully consolidated view that includes all the debt from its major subsidiary, IRSA Inversiones y Representaciones S.A., which is a separate entity with its own substantial real estate portfolio and corresponding debt.

Here's the quick math on the debt structure: The company's debt is well-laddered, with a mix of short- and long-term notes. They've been active in the debt markets in 2025, but mostly for refinancing and working capital. For instance, Cresud issued a $43.7 million note with an 8.00% interest rate maturing in July 2028, and a $31.3 million note at 7.25% interest maturing in September 2027 to cover near-term amortizations. This is smart treasury management; they are refinancing upcoming maturities to smooth out the amortization schedule.

The market has recognized this prudent management. In March 2025, the company's long-term issuer local credit rating was upgraded to AAA(arg) with a Stable Outlook by FIX SCR S.A., an affiliate of Fitch Ratings, with the short-term rating confirmed at A1+ (arg). This top-tier local credit rating helps keep their borrowing costs down. Cresud balances debt financing and equity funding by using debt for specific, often shorter-term, operational needs and strategic acquisitions, while relying on the underlying value appreciation of its vast land and real estate holdings-the equity side of the balance sheet-as the primary engine for long-term growth. If you want to dive deeper into who is buying the stock, you can check out Exploring Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria (CRESY) Investor Profile: Who's Buying and Why?

Liquidity and Solvency

You need to know if Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria (CRESY) has the short-term cash to meet its obligations, and the quick answer is: its liquidity position is tight but manageable, largely due to the nature of its assets, but the working capital trend is a clear warning sign.

The company's liquidity ratios for the 2025 fiscal year (FY 2025) paint a picture that requires a deeper look, especially for a diversified agribusiness and real estate firm. The standard Current Ratio-current assets divided by current liabilities (short-term obligations)-stands at a seemingly healthy 1.24. This suggests CRESY has $1.24 in current assets for every $1.00 in current liabilities.

However, the Quick Ratio (or acid-test ratio), which strips out inventory (assets that are harder to convert to cash quickly), is a more telling figure at 0.93. This number, below the 1.0 benchmark, indicates CRESY might struggle to cover its immediate debts if it couldn't sell its entire inventory of crops and livestock (which stood at ARS 41,235 million as of March 31, 2025). That's defintely a point of pressure.

Working Capital and Near-Term Risk

The trend in net working capital (Current Assets minus Current Liabilities) shows a clear deterioration in the first nine months of FY 2025, which is the real near-term risk. As of June 30, 2024, the working capital deficit was approximately -ARS 97,887 million (in millions of Argentine Pesos). By March 31, 2025, this deficit had widened to roughly -ARS 128,135 million.

Here's the quick math on the key components as of March 31, 2025:

• Total Current Assets: ARS 147,243 million
• Total Current Liabilities: ARS 275,378 million
• Net Working Capital: -ARS 128,135 million (a deficit)

This negative working capital isn't necessarily a death knell for a real estate-heavy company like CRESY, but the trend is moving in the wrong direction. The primary driver of this pressure is the short-term debt (Préstamos), which increased from ARS 172,195 million to ARS 212,178 million over that same nine-month period. This reliance on short-term financing to fund operations and long-term assets is a classic liquidity concern.

Cash Flow Statements Overview

While the company reported a strong net income of ARS 224,366 million for the full FY 2025, much of this is often driven by non-cash items, specifically the fair value gains on its investment properties through its subsidiary, IRSA. This is why you must look past net income to the cash flow statement, which shows the actual cash in and out of the business.

The cash flow trends for FY 2025 show a business that is actively managing its capital structure and asset base:

• Operating Cash Flow (CFO) Trend: The widening working capital deficit suggests that cash generated from core operations (CFO) is likely being absorbed by changes in operating assets and liabilities, or is not sufficient to cover working capital needs, forcing reliance on financing.
• Investing Cash Flow (CFI) Trend: CRESY continues its strategy of monetizing agricultural land. Notable inflows included the sale of a portion of the Los Pozos farm for USD 2.2 million and the Alto Taquari farm for BRL 189.4 million in the first half of the year. This is a critical source of cash, but it's non-recurring and reduces the asset base.
• Financing Cash Flow (CFF) Trend: The increase in short-term loans is a significant cash inflow from financing, but it's debt. On the outflow side, the company distributed a substantial cash dividend of ARS 45,000 million in October 2024. This dividend payout, while rewarding shareholders, further pressures the already low cash and equivalents balance, which dropped to just ARS 1,271 million by March 31, 2025.

The overall picture is one of a company with significant long-term assets but very low cash on hand, relying on asset sales and short-term debt to meet obligations and fund shareholder distributions. This is a high-wire act, particularly in the volatile Argentine economic environment. You can find a more detailed analysis on this dynamic at Breaking Down Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria (CRESY) Financial Health: Key Insights for Investors.

Valuation Analysis

You are looking at Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria (CRESY) and wondering if the market is missing something. Honestly, the valuation metrics suggest the stock is defintely undervalued relative to its book assets, but the earnings multiple is getting stretched, pointing to a mixed signal.

Based on the latest fiscal year 2025 data, the company's core valuation ratios point to a deep discount on its underlying assets, which is common for companies with significant real estate and farmland holdings. The market is pricing in substantial risk, which is why you see such a low Price-to-Book (P/B) ratio.

Is Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria Overvalued or Undervalued?

The short answer is: undervalued on assets, but trading at a reasonable multiple on earnings. Here's the quick math on the key valuation multiples for the fiscal year 2025:

• Price-to-Book (P/B): The FY2025 P/B ratio stands at just 0.36, or 0.33. This is a massive discount to book value, meaning the stock trades for less than 40 cents for every dollar of its net assets. This is a classic sign of a potentially undervalued stock, especially for a company with hard assets like farmland.
• Price-to-Earnings (P/E): The P/E ratio is a bit more complex. The trailing twelve months (TTM) P/E as of late 2025 is around 4.69, which is very low and suggests undervaluation. However, other recent data shows a P/E of 10.37, or a FY2025 P/E of 8.22. This range is still relatively low compared to the broader US market, but the variance shows how volatile the earnings (the 'E') can be.
• Enterprise Value-to-EBITDA (EV/EBITDA): This metric, which is capital structure neutral, is at 17.00x for FY2025. This is a higher multiple than the P/E suggests and is significantly above the Consumer Staples Sector average of 9.9x, indicating that the company's debt load (Enterprise Value) is substantial relative to its operating cash flow (EBITDA).

What this estimate hides is the impact of non-cash fair value adjustments on its real estate holdings through its subsidiary, IRSA. That's why the P/B looks so compelling, but the EV/EBITDA tells a story of higher relative valuation on operations.

Stock Performance and Dividend Profile

The stock price trend over the past 12 months has been positive, but volatile. The stock price as of November 2025 is around $11.92, and it has a 52-week trading range between a low of $8.39 and a high of $14.23. Overall, the stock has risen by 3.59% over the last 12 months.

For income-focused investors, the dividend profile is attractive. Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria recently announced an annual dividend of $0.6293 per share. This translates to a strong dividend yield of approximately 5.30%. The dividend payout ratio is currently conservative at 25.88%, which suggests the dividend is well-covered by earnings and sustainable, even with the inherent volatility of the agribusiness sector.

The analyst community is split on the near-term outlook, which is typical for a complex conglomerate like this. The consensus rating is currently a Hold, with one analyst specifically issuing a hold rating. However, another firm has a Strong Buy rating with an average 12-month price target of $15.20, suggesting an upside potential of over 27% from the current price. This divergence underscores the need for your own due diligence, especially regarding the value of the non-agricultural real estate portfolio. You can read more about this in our full analysis: Breaking Down Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria (CRESY) Financial Health: Key Insights for Investors.

Risk Factors

You need to understand that Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria (CRESY) is a conglomerate, so its risk profile is complex, blending macroeconomic volatility in Argentina with the inherent unpredictability of the agricultural sector. The direct takeaway is that while the full fiscal year 2025 showed a strong turnaround, with net income hitting ARS 224,366 million, the early-year financial challenges-specifically high leverage and illiquidity-remain key concerns for a realist investor.

The company's consolidated financials often mask the underlying struggles in its core farming operations. Honestly, the standalone Argentinian agricultural business has been unprofitable in recent periods, struggling with low commodity prices, high operating costs, and a strong local currency that hurts exports, as seen in the first half of fiscal year 2025. This is a classic operational risk in the sector: you can't control the weather or global prices.

Here are the near-term risks you should map to your investment thesis:

• Financial Leverage: The company still faces high leverage and liquidity challenges, which is a constant financial risk for a company with a net debt of around $354 million.
• Real Estate Valuation Volatility: A major strategic risk is the reliance on its investment in IRSA. The net loss of ARS 64,391 million in the first half of FY 2025 was largely explained by a loss due to changes in the fair value of IRSA investment properties. This shows how much a non-cash accounting adjustment can swing the P&L.
• Regulatory and Political Exposure: As an Argentine company, CRESY is highly exposed to external, governmental risks. Favorable measures, like the temporary reduction in crop export taxes (soybean from 33% to 26% and wheat/corn from 12% to 9.5% until June 30, 2025), are great, but they can be reversed just as quickly. Political shifts defintely change the cost structure overnight.

To be fair, management is not sitting still; they are actively mitigating these risks through strategic asset management. They've been unlocking value by selling non-core properties, which enhances liquidity. For example, in the first half of FY 2025, they sold a fraction of the Los Pozos farm in Argentina for USD 2.2 million and their subsidiary BrasilAgro sold a fraction of its Alto Taquari farm for BRL 189.4 million.

They are also proactively managing their debt schedule. In fiscal year 2025, they issued new notes to finance part of the FY 2026 amortization, including a $43.7 million bond at 8% for three years and a $31.3 million note at 7.25% for two years. This shows a clear focus on strengthening the balance sheet and managing interest rate exposure.

For a deeper dive into the company's long-term vision that informs these strategic moves, you might want to review their Mission Statement, Vision, & Core Values of Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria (CRESY).

The table below summarizes the key financial risk indicators for the period:

Your action here is to monitor the debt-to-equity ratio and the fair value movements of the IRSA stake very closely; those two factors will drive the near-term stock performance more than the grain harvest itself.

Growth Opportunities

You're looking at Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria (CRESY) and wondering if the recent financial turnaround is a one-off or a sustainable trend. Honestly, the data from the 2025 fiscal year suggests a clear path for continued growth, largely driven by a favorable policy shift and a focused strategy on core assets. The direct takeaway is that a combination of agricultural expansion and strategic asset monetization is setting the stage for significant upside.

Here's the quick math: Cresud reported a net income of ARS 224,366 million for fiscal year 2025, a substantial jump from the ARS 163,826 million in 2024. That's a defintely strong signal. Consolidated operating income also saw a dramatic recovery, hitting ARS 220,945 million, a stark turnaround from the prior year's loss. Wall Street analysts see this momentum continuing, setting an average one-year price target of $15.50, which implies a nearly 60% upside from recent trading levels. That's a serious growth projection.

Key Growth Drivers and Strategic Levers

The company's future revenue growth isn't just a bet on better weather; it's grounded in operational scale and a supportive macroeconomic environment in Argentina. The Agribusiness segment, which contributed ARS 49,166 million to the 2025 consolidated operating income, is expanding its footprint. For the 2025 campaign, Cresud increased its planted area to 303,000 hectares, a 9% increase over the previous season. This expansion is expected to translate into a higher yield, with projected grain production of approximately 867,000 tons, a 23% increase from the prior campaign.

Plus, the Argentine government's policy changes are a massive tailwind. The foreign exchange liberalization and the temporary reduction in export taxes on key crops-like cutting the soybean tax from 33% to 26% and corn/wheat from 12% to 9.5% until June 30, 2025-immediately boosted spot and future crop prices by about 5%. This kind of regulatory relief directly increases profitability, and the livestock sector is also benefiting from strong margins due to firm cattle prices.

• Increase planted area by 9% for 2025 campaign.
• Target 867,000 tons in grain production.
• Benefit from reduced crop export taxes.

Competitive Edge and Asset Monetization

Cresud's competitive advantage lies in its unique, diversified business model. As one of Latin America's largest landowners, the company blends crop and livestock production with real estate investment, positioning it to capitalize on both global food demand and domestic urban development. This diversification acts as a natural hedge, smoothing out the volatility inherent in pure agricultural plays.

A core part of the strategy is the disciplined monetization of non-core assets. This isn't just selling land; it's a capital recycling program. In the first nine months of the 2025 fiscal year, the company sold a fraction of the Los Pozos farm in Argentina for USD 2.2 million, and its subsidiary BrasilAgro sold a fraction of the Alto Taquari farm for BRL 189.4 million. These sales unlock the inherent value of the company's vast land bank, providing capital for debt reduction or reinvestment into higher-return opportunities. If you want to dive deeper into the long-term vision, you should read their Mission Statement, Vision, & Core Values of Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria (CRESY).

The table below summarizes the key performance indicators that underpin these growth prospects:

The next step is to monitor the continuation of the Argentine government's favorable policies past the June 30, 2025, deadline, as this is a material factor in their near-term profitability.