Should I buy Scales Corporation stock in 2025?

What is Scales Corporation?

How much is the Scales Corporation stock?

The price of Scales Corporation stock is rising this week. As of today, the share trades at NZ$4.49, up 5.40% over the past 24 hours and showing a strong 32.06% gain over the week. The company’s market capitalisation stands at NZ$613.58 million, with an average three-month volume of 132,410 shares. Its current P/E ratio is 19.81, the dividend yield is 3.64%, and the stock’s beta of 0.57 suggests lower volatility than the broader market. This stable profile and recent growth may appeal to investors seeking both resilience and long-term potential in the NZX agribusiness sector.

Our full analysis of the Scales Corporation stock

After an in-depth review of Scales Corporation’s latest financial performance, together with a granular analysis of the group’s stock evolution over the past three years, our proprietary multi-factor models—integrating fundamental metrics, technical signals, industry trends, and sector peer comparisons—have generated a distinctly positive signal. Scales, a stalwart in New Zealand’s agribusiness landscape, stands at a compelling intersection of cyclical recovery and strategic transformation. So, why might Scales Corporation be poised to reemerge as a strategic entry point into the diversified agribusiness sector in 2025?

Recent Performance and Market Context

Over the past twelve months, Scales Corporation (NZX: SCL) has delivered a striking outperformance, appreciating by 32.06% to close at NZ$4.49 as of 30 May 2025—its highest level in over two years, and well above the NZ$3.22 low registered in the 52-week period. This momentum has accelerated of late; during the last trading session, the stock gained 5.4% intraday (+NZ$0.23), reflecting strong market conviction.

Several recent developments have provided tailwinds to SCL’s share price, including:

• Acquisitions and Capacity Growth: The 2024 acquisition of 240 hectares of planted orchards, featuring 110 hectares of high-margin Dazzle™ premium varieties, has materially expanded Scales’ horticultural footprint.
• European Expansion: The launch of Esro Petfood BV in Belgium (a 50% joint venture) marks a strategic entry into high-growth European pet food protein markets.
• Operational Resilience: Following the successful remediation of orchards impacted by Cyclone Gabrielle in 2023, Scales’ core operations have demonstrated both adaptability and reliability.

Macro drivers further reinforce the bullish context. New Zealand’s agribusiness sector continues to benefit from robust global demand, not only for fresh produce but also for premium food ingredients and pet nutrition solutions. Moreover, with the NZ dollar remaining relatively stable, local exporters such as Scales are well-positioned to capture ongoing international appetite.

Technical Analysis

The technical structure of Scales Corporation is constructive and exhibits multiple signals pointing to ongoing upside potential:

• Moving Averages: SCL is currently trading above all major moving averages—20-day (NZ$4.38), 50-day (NZ$4.27), 100-day (NZ$4.21), and 200-day (NZ$4.03)—which typically denotes an established bullish trend. Fourteen out of fifteen key moving average indicators now flash “buy.”
• Relative Strength Index (RSI): At 58.97, the 14-day RSI is neutral to mildly bullish, leaving room for further gains before entering overbought territory.
• MACD: While the short-term MACD (0.04) suggests a minor consolidation or pause after the recent surge, it does not point to a terminal reversal. Instead, the context remains constructive after the fast recovery from prior dips.
• Support and Resistance: The critical technical support at NZ$4.13 (pivot point) has held firmly through recent market volatility. With key resistance at NZ$4.52 and the current price only slightly below this level, a decisive breakout could trigger a new leg higher.
• Momentum Structure: The price action, now firmly above all major means, supports a scenario of positive short- and medium-term momentum—a highly attractive technical profile for new entry.

Fundamental Analysis

Scales Corporation’s most recent full-year results (FY2024) validate a clear operational and strategic inflection point:

• Revenue and Profitability: Total revenue rose 3% year-on-year to NZ$584.6 million, but operating leverage massively amplified bottom-line results: underlying EBITDA soared +36% to NZ$91.7 million, while underlying net profit surged +81% to NZ$34.3 million. Underlying EPS leaped 80% to 24.1 cents.
• Performance vs. Guidance: Results exceeded the upper end of management guidance, underscoring the quality of execution.
• Valuation: With a trailing P/E of 19.81—below the sector median for highly diversified agrifood businesses given its robust outlook—SCL appears attractively valued, especially relative to its earnings growth (PEG implied
• Structural Strengths: Scales’ leadership in New Zealand’s agribusiness is amplified by its geographic footprint (NZ, Australia, US, Europe), category diversification (from apples to logistics to global proteins), and proprietary premium brands—especially in the expanding Dazzle™ apple and pet protein markets.

In essence, Scales pairs disciplined execution with a portfolio that is both innovative and resilient, elevating its investment profile against domestic and international peers.

Volume and Liquidity

Liquidity fundamentals further accentuate SCL’s appeal to both institutional and retail investors:

• Average 3-Month Volume: At 132,410 shares/day, trading volumes have remained stable and supportive, pointing to a healthy, liquid market.
• Market Capitalisation and Float: With a market capitalisation of NZ$613.58 million and an exceptionally high free float (95.4%), SCL’s share register favours dynamic valuation, responsive pricing, and ready entry or exit for market participants.
• Institutional Ownership: At 19.09%, institutional involvement remains engaged, but still leaves substantial room for additional inflows as confidence builds.

Taken together, these metrics signal sustained market confidence and pipeline for positive order flow.

Catalysts and Positive Outlook

Looking ahead, Scales is positioned to benefit from several powerful growth catalysts:

• Pet Protein Market Growth: The launch and ramp-up of Esro Petfood BV in European markets taps into the booming global demand for sustainable animal protein pet foods.
• Premiumisation of Horticulture: The proportion of high-margin, premium apple varieties is set to increase from 64% (2023) to 80% by 2025, delivering material improvement in profitability per hectare.
• Geographic and Channel Expansion: Ongoing expansion in Europe, together with consolidation in Australia, unlocks further cross-border revenue streams.
• Robust Prospects: Management’s FY2025 outlook projects underlying net profit between NZ$35–NZ$40 million, suggesting further earnings progression.
• Innovation and ESG Focus: Ongoing investment in premium proprietary cultivars and sustainable agriculture reinforces both competitive moat and ESG credentials, increasingly valued by globally conscious investors.
• Sectoral Backdrop: The resilience of global food, logistics, and pet markets provides a highly supportive environment, mitigating the impact of isolated climatic risks and underscoring structural demand.

Consensus analyst price targets, clustered around NZ$4.93 (+9.8% upside from current levels), affirm a robust market-wide conviction in the stock’s positive trajectory.

Investment Strategies

On a technical and fundamental basis, the current setup seems to offer a rare combination of momentum and value for investors with varying time horizons:

• Short-Term: With price only slightly below short-term resistance, traders may monitor for a breakout beyond NZ$4.52, driven by potential positive news flow or bullish market sentiment. Should momentum persist, a run towards the consensus target appears plausible.
• Medium-Term: Investors may see value in accumulating at or just above the NZ$4.13 support, particularly ahead of potential catalysts such as expanded European sales or further M&A in the protein segment.
• Long-Term: With defined growth pillars—premiumisation, global protein, and ESG/sustainability—Scales’ three- to five-year outlook is supported by significant EBITDA growth objectives (NZ$70 million targeted for Global Proteins by 2027) and an attractive 12.5% ROCE target.

The stock’s low beta (0.57) suggests that it can provide smooth, lower-volatility exposure for core NZ or global diversified portfolios, while its high free float and dynamic growth underpin longer-duration upside potential.

Is It the Right Time to Buy Scales Corporation?

A careful synthesis of Scales Corporation’s current profile reveals an investment case built on robust fundamentals, proven operational resilience, attractive growth drivers, and technical confirmation of a bullish phase. The stock’s recent outperformance, coupled with disciplined, innovation-led execution and global market expansion, positions Scales as a uniquely compelling vehicle for exposure to the agribusiness and food innovation sectors—both domestically and abroad.

With strong momentum, rising margins, proven leadership, and consensus targets indicating further upside, the momentum behind Scales seems not only intact but poised to accelerate as 2025 unfolds. For investors seeking a blend of growth, income, and strategic diversification through a best-in-class New Zealand enterprise, Scales Corporation seems to represent an excellent opportunity for renewed attention and proactive positioning.

In a market where strategic clarity and operational discipline are increasingly rewarded, Scales Corporation stands out as an example of value creation ready to be unlocked by those attentive to quality, innovation, and global appetite for premium nutrition. The stage appears set for a new chapter of outperformance.

How to buy Scales Corporation stock in New Zealand?

Buying Scales Corporation Limited (SCL.NZ) shares online is now both simple and secure for New Zealand investors, thanks to reputable, NZ-regulated brokers. Investors have two main methods to choose from: traditional spot (cash) share purchasing, where you own the shares outright, and Contract for Difference (CFD) trading, which allows you to speculate on price movements without owning the shares. Each method has its own advantages, fees, and risk profiles. To help you identify the most suitable and cost-effective broker, be sure to check out our detailed broker comparison further down the page.

Spot (Cash) Buying

A cash purchase means you directly buy and own Scales Corporation shares on the NZX via a licensed broker. This approach is straightforward and is ideal for long-term investors seeking exposure to the company’s strong fundamentals, dividend payments, and potential capital gains. Most NZ brokers charge a fixed commission per order—typically around NZ$5 to NZ$15 per trade.

Example

If Scales Corporation’s current share price is NZ$4.49, a NZ$1,000 investment (with a NZ$5 brokerage fee) allows you to buy approximately 221 shares (NZ$995 / NZ$4.49 ≈ 221).

Gain scenario

If the share price rises by 10%, your holding is now worth NZ$1,100.
Result: +NZ$100 gross gain, or +10% on your invested amount.

Trading via CFDs

CFDs (Contracts for Difference) offer another way to gain exposure to Scales Corporation’s share price without actually owning the underlying shares. Instead, you trade on price movements, using leverage. CFD trading involves costs such as the spread (difference between buy/sell prices) and overnight financing fees if you hold the position for more than a day.

Example

You open a CFD position on Scales Corporation with a NZ$1,000 deposit, using 5x leverage. This gives you effective market exposure of NZ$5,000.

Gain scenario

If the share price climbs by 8%, your position gains 8% × 5 = 40%.
Result: +NZ$400 gain on your NZ$1,000 outlay (excluding fees).

Final Advice

Before you invest, it’s essential to compare brokers’ fees, trading platforms, and service conditions—these can vary widely across the NZ market. The most suitable method and broker depend on your investment goals, whether you’re seeking steady long-term growth (spot buying) or prefer to capture short-term price movements with enhanced exposure (CFDs). For detailed side-by-side comparisons tailored for Kiwi investors, see our broker comparison table below. Start your investment journey with confidence, knowing you’re making an informed and well-supported choice.

Our 7 tips for buying Scales Corporation stock

The latest news about Scales Corporation

Scales Corporation delivered robust FY2024 results, with net profit up 81% and revenue rising 3% year-on-year. This performance notably exceeded the higher end of company guidance, reflecting strong operational execution and resilient demand across its core agribusiness segments. The underlying profit per share surged by 80% to 24.1 cents, supporting both investor confidence and Scales' ability to sustain fully imputed dividends for New Zealand shareholders. This local dividend treatment remains attractive in the NZ market due to favorable tax implications.

The share price has advanced 32% over the past year and recently broke above all key moving averages, signaling a confirmed upward trend. Intraday, the stock jumped 5.4% to NZ$4.49, and technical signals are predominantly positive, with strong buy indications on 20, 50, 100, and 200-day moving averages. The consensus analyst target sits at NZ$4.93, implying nearly 10% further upside. With a low beta of 0.57 and a dividend yield at 3.64%, the stock displays relative stability and solid income appeal for NZ-based investors.

The company is rapidly expanding its premium apple portfolio, acquiring 240 hectares of orchards including 110 hectares dedicated to Dazzle™ apples. This expansion is central to boosting the proportion of high-value premium varieties from 64% in 2023 to a forecast 80% by 2025. The move reinforces Scales' position as a top producer in New Zealand horticulture, enhancing export potential and value-add across Asian and global markets, while providing significant growth momentum for the core Mr Apple brand—key for New Zealand’s horticultural exports in the current competitive landscape.

Scales has demonstrated effective post-cyclone recovery, remediating orchards impacted by Cyclone Gabrielle well ahead of initial expectations. The rapid restoration of productive capacity underlines both the resilience of Scales' horticultural operations in the Hawke’s Bay region and its capability to manage climate-related risks—a critical consideration for NZ agribusinesses. This operational agility has maintained volume output and product quality, ensuring continued supply and reputation in export markets.

Strategic international partnerships and diversification, including the launch of Esro Petfood BV in Belgium, are accelerating growth in high-margin markets. By building a 50% stake in this European venture, Scales is leveraging global protein trends while deepening its presence beyond New Zealand. These moves, alongside continued expansion in Australia and strong domestic leadership, position the company for diversified long-term growth, reduced volatility, and heightened relevance in global food value chains—directly benefitting New Zealand’s export sector and supply chain resilience.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.