Elders' (ASX:ELD) Solid Profits Have Weak Fundamentals
Elders Limited (ASX:ELD) reported strong earnings, boosting its share price. However, shareholder dilution and AU$42m in unusual items have impacted profits. Over the last year, shares increased by 35%, reducing profit per share. Net profit grew 12% in the past year but dropped 69% annually over three years. EPS fell 5% last year, highlighting dilution's impact. Unusual items suppressed profits, but if not repeated, profits may rise. Despite these issues, Elders' statutory profits aren't overly harsh. Investors should consider risks, including three warning signs, before buying shares.
Simplywall·
