New Risk • Jul 03
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 2.3% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Minor Risks Large one-off items impacting financial results. Shareholders have been diluted in the past year (2.3% increase in shares outstanding). Upcoming Dividend • Jun 14
Upcoming dividend of AU$0.12 per share Eligible shareholders must have bought the stock before 21 June 2024. Payment date: 01 July 2024. The company last paid an ordinary dividend in May 2014. The average dividend yield among industry peers is 2.3%. Annonce • May 29
CSR Limited Determines to Pay A Fully Franked CSR Permitted Dividend, Payable on 1 July 2024 CSR Limited determined to pay a fully franked CSR Permitted Dividend of $0.12 cash per CSR Share prior to implementation of the Scheme, conditional on the Scheme becoming Effective. CSR Permitted Dividend Ex-Dividend Date is 21 June 2024. CSR Permitted Dividend Record Date is 24 June 2024. CSR Permitted Dividend Payment Date is 1 July 2024. Price Target Changed • May 17
Price target increased by 7.8% to AU$8.28 Up from AU$7.69, the current price target is an average from 11 analysts. New target price is 6.9% below last closing price of AU$8.90. Stock is up 65% over the past year. The company is forecast to post earnings per share of AU$0.43 for next year compared to AU$0.48 last year. New Risk • May 16
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 35% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. This is currently the only risk that has been identified for the company. Reported Earnings • May 15
Full year 2024 earnings released: EPS: AU$0.48 (vs AU$0.46 in FY 2023) Full year 2024 results: EPS: AU$0.48 (up from AU$0.46 in FY 2023). Revenue: AU$2.63b (flat on FY 2023). Net income: AU$231.0m (up 5.7% from FY 2023). Profit margin: 8.8% (up from 8.4% in FY 2023). Revenue is forecast to grow 3.8% p.a. on average during the next 3 years, compared to a 6.3% growth forecast for the Basic Materials industry in Australia. Over the last 3 years on average, earnings per share has increased by 3% per year but the company’s share price has increased by 14% per year, which means it is tracking significantly ahead of earnings growth. Price Target Changed • Feb 27
Price target increased by 14% to AU$7.20 Up from AU$6.31, the current price target is an average from 12 analysts. New target price is 18% below last closing price of AU$8.80. Stock is up 73% over the past year. The company is forecast to post earnings per share of AU$0.47 for next year compared to AU$0.46 last year. Buy Or Sell Opportunity • Feb 27
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 50% to AU$8.80. The fair value is estimated to be AU$7.27, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 9.1% over the last 3 years. Earnings per share has grown by 14%. For the next 3 years, revenue is forecast to grow by 2.5% per annum. Earnings are also forecast to grow by 4.9% per annum over the same time period. Annonce • Feb 23
Saint Gobain in Talks to Buy Australia's CSR French building materials producer Compagnie de Saint-Gobain S.A. (ENXTPA:SGO) is exploring a potential acquisition of CSR Limited (ASX:CSR), people familiar with the matter said, sending shares of the Australian company up the most in nearly 32 years. The two companies have held initial talks and are working with advisers to reach a deal, said the people, who asked not to be identified because the matter is private. Paris-based St. Gobain has lined up financing for a potential transaction, the people said. Valuation Update With 7 Day Price Move • Feb 21
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to AU$7.95, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 18x in the Basic Materials industry in Australia. Total returns to shareholders of 80% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at AU$7.80 per share. Annonce • Feb 10
CSR Limited, Annual General Meeting, Jun 27, 2024 CSR Limited, Annual General Meeting, Jun 27, 2024. Buying Opportunity • Nov 17
Now 20% undervalued Over the last 90 days, the stock is up 3.1%. The fair value is estimated to be AU$7.41, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 9.1% over the last 3 years. Earnings per share has grown by 14%. For the next 3 years, revenue is forecast to grow by 1.5% per annum. Earnings is also forecast to grow by 4.7% per annum over the same time period. Annonce • Nov 03
CSR Limited Announces Interim Dividend for the Fiscal Year Ending March 31, 2024, Payable on 7 December 2023 CSR Limited announced interim dividend of 15.0 cents for the fiscal year ending March 31, 2024 against 16.5 cents a year ago. Record date for determining entitlements to interim dividends is 8 November 2023 and Interim dividend payment date is 7 December 2023. Ex Date is November 7, 2023. Reported Earnings • Nov 03
First half 2024 earnings released: EPS: AU$0.19 (vs AU$0.21 in 1H 2023) First half 2024 results: EPS: AU$0.19 (down from AU$0.21 in 1H 2023). Revenue: AU$1.37b (up 5.4% from 1H 2023). Net income: AU$91.5m (down 12% from 1H 2023). Profit margin: 6.7% (down from 8.0% in 1H 2023). Revenue is forecast to grow 1.4% p.a. on average during the next 3 years, compared to a 4.2% growth forecast for the Basic Materials industry in Australia. Over the last 3 years on average, earnings per share has increased by 14% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Board Change • Sep 06
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Non-Executive Director Nigel Garrard was the last independent director to join the board, commencing their role in 2020. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Annonce • Sep 02
CSR Limited (ASX:CSR) completed the acquisition of Woven Image Pty Ltd. CSR Limited (ASX:CSR) entered into an agreement to acquire Woven Image Pty Ltd for AUD 43 million on July 4, 2023. The acquisition is subject to conditions and will be earnings accretive following completion in the next few months.CSR Limited (ASX:CSR) completed the acquisition of Woven Image Pty Ltd on September 1, 2023. Buying Opportunity • Jul 18
Now 20% undervalued Over the last 90 days, the stock is up 4.4%. The fair value is estimated to be AU$6.90, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 6.6% over the last 3 years. Earnings per share has grown by 25%. For the next 3 years, revenue is forecast to grow by 0.7% per annum. Earnings is also forecast to grow by 0.9% per annum over the same time period. Annonce • Jul 06
CSR Limited (ASX:CSR) entered into an agreement to acquire Woven Image Pty Ltd for AUD 43 million. CSR Limited (ASX:CSR) entered into an agreement to acquire Woven Image Pty Ltd for AUD 43 million on July 4, 2023. The acquisition is subject to conditions and will be earnings accretive following completion in the next few months. Annonce • Jun 14
CSR Limited Announces the Appointment of Sara Lom as Chief Financial Officer CSR Limited announced the appointment of Sara Lom as Chief Financial Officer (CFO). Ms Lom is currently Group Financial Controller at CSR having joined the company in 2015. Her experience at CSR includes leading the company's financial and management reporting teams as well as tax, internal audit and insurance. Her previous roles include ASX-listed company experience as General Manager Group Finance at Helloworld Travel Limited. She has also held audit and transaction advisory roles with a number of ASX-listed companies during her 10 years' experience at PWC. This appointment follows the announcement in March 2023, that current CSR CFO and EGM Property and Aluminium David Fallu will be leaving the company in September 2023 to take on the CFO role at another ASX-listed company. Sara will begin the transition process with outgoing CFO David Fallu over the next three months before taking over the CFO role in September 2023. As part of the transition process, CSR's teams in the Property business and Aluminium investment will return to reporting directly to Julie Coates. Recent Insider Transactions • Jun 06
CEO, MD & Executive Director recently sold AU$556k worth of stock On the 30th of May, Julie Coates sold around 110k shares on-market at roughly AU$5.05 per share. This transaction amounted to 14% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Julie has been a net seller over the last 12 months, reducing personal holdings by AU$551k. Recent Insider Transactions Derivative • Jun 01
CEO, MD & Executive Director exercised options to buy AU$2.4m worth of stock. On the 24th of May, Julie Coates exercised options to buy 480k shares at a strike price of around AU$2.59, costing a total of AU$1.2m. This transaction amounted to 146% of their direct individual holding at the time of the trade. Since June 2022, Julie's direct individual holding has increased from 220.59k shares to 438.38k. Company insiders have collectively bought AU$2.0m more than they sold, via options and on-market transactions, in the last 12 months. Annonce • May 11
CSR Limited Announces Dividend for the Period of Six Months Ended 31 March 2023, Payable on 3 July 2023 CSR Limited announced dividend of AUD 0.20000000 per share for the period of six months ended 31 March 2023. Scheduled dates are as follows: Ex Date 26 May 2023, Record Date 29 May 2023 and Payment Date 3 July 2023.