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CYG

Coventry GroupASX:CYG Stock Report

Market Cap

AU$168.2m

7D

11.5%

1Y

116.5%

Updated

20 Oct, 2021

Data

Company Financials +
CYG fundamental analysis
Snowflake Score
Valuation4/6
Future Growth4/6
Past Performance2/6
Financial Health4/6
Dividends2/6

CYG Overview

Coventry Group Ltd primarily distributes industrial products in Australia and New Zealand.

Price History & Performance

Summary of all time highs, changes and price drops for Coventry Group
Historical stock prices
Current Share PriceAU$1.84
52 Week HighAU$0.84
52 Week LowAU$1.85
Beta1.11
1 Month Change18.71%
3 Month Change26.46%
1 Year Change116.47%
3 Year Change55.93%
5 Year Change100.00%
Change since IPO-70.32%

Recent News & Updates

Oct 15
Shareholders Would Not Be Objecting To Coventry Group Ltd's (ASX:CYG) CEO Compensation And Here's Why

Shareholders Would Not Be Objecting To Coventry Group Ltd's (ASX:CYG) CEO Compensation And Here's Why

It would be hard to discount the role that CEO Robert Bulluss has played in delivering the impressive results at...

Mar 15
Is Coventry Group (ASX:CYG) A Risky Investment?

Is Coventry Group (ASX:CYG) A Risky Investment?

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Shareholder Returns

CYGAU Trade DistributorsAU Market
7D11.5%2.0%1.7%
1Y116.5%15.9%20.2%

Return vs Industry: CYG exceeded the Australian Trade Distributors industry which returned 14.2% over the past year.

Return vs Market: CYG exceeded the Australian Market which returned 20.3% over the past year.

Price Volatility

Is CYG's price volatile compared to industry and market?
CYG volatility
CYG Beta1.11
Industry Beta0.83
Market Beta1

Stable Share Price: CYG is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: CYG's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1936n/aRobert Bullusshttps://www.cgl.com.au

Coventry Group Ltd primarily distributes industrial products in Australia and New Zealand. It operates through Trade Distribution and Fluids Systems segments. The Trade Distribution segment imports, distributes, and markets industrial fasteners, stainless steel fasteners, industrial hardware, construction fasteners, specialized fastener products and systems, and associated industrial tools and consumables.

Coventry Group Fundamentals Summary

How do Coventry Group's earnings and revenue compare to its market cap?
CYG fundamental statistics
Market CapAU$168.23m
Earnings (TTM)AU$7.25m
Revenue (TTM)AU$288.52m

23.2x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CYG income statement (TTM)
RevenueAU$288.52m
Cost of RevenueAU$178.37m
Gross ProfitAU$110.16m
ExpensesAU$102.91m
EarningsAU$7.25m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.079
Gross Margin38.18%
Net Profit Margin2.51%
Debt/Equity Ratio22.3%

How did CYG perform over the long term?

See historical performance and comparison

Dividends

1.6%

Current Dividend Yield

37%

Payout Ratio

Valuation

Is Coventry Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CYG (A$1.84) is trading below our estimate of fair value (A$4.15)

Significantly Below Fair Value: CYG is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CYG is good value based on its PE Ratio (23.2x) compared to the Australian Trade Distributors industry average (28.7x).

PE vs Market: CYG is poor value based on its PE Ratio (23.2x) compared to the Australian market (19.9x).


Price to Earnings Growth Ratio

PEG Ratio: CYG is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: CYG's PB Ratio (1.5x) is in line with the AU Trade Distributors industry average.


Future Growth

How is Coventry Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

27.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CYG's forecast earnings growth (27.9% per year) is above the savings rate (1.9%).

Earnings vs Market: CYG's earnings (27.9% per year) are forecast to grow faster than the Australian market (11.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CYG's revenue (5.8% per year) is forecast to grow faster than the Australian market (5.4% per year).

High Growth Revenue: CYG's revenue (5.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CYG's Return on Equity is forecast to be low in 3 years time (12.7%).


Past Performance

How has Coventry Group performed over the past 5 years?

59.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CYG has a large one-off loss of A$2.3M impacting its June 30 2021 financial results.

Growing Profit Margin: CYG became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: CYG has become profitable over the past 5 years, growing earnings by 59.9% per year.

Accelerating Growth: CYG has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: CYG has become profitable in the last year, making it difficult to compare its past year earnings growth to the Trade Distributors industry (28.1%).


Return on Equity

High ROE: CYG's Return on Equity (6.6%) is considered low.


Financial Health

How is Coventry Group's financial position?


Financial Position Analysis

Short Term Liabilities: CYG's short term assets (A$123.2M) exceed its short term liabilities (A$89.7M).

Long Term Liabilities: CYG's short term assets (A$123.2M) exceed its long term liabilities (A$49.2M).


Debt to Equity History and Analysis

Debt Level: CYG's debt to equity ratio (22.3%) is considered satisfactory.

Reducing Debt: CYG's debt to equity ratio has increased from 0.07% to 22.3% over the past 5 years.

Debt Coverage: CYG's debt is well covered by operating cash flow (28.4%).

Interest Coverage: CYG's interest payments on its debt are not well covered by EBIT (1.8x coverage).


Balance Sheet


Dividend

What is Coventry Group current dividend yield, its reliability and sustainability?

1.63%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CYG's dividend (1.63%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.27%).

High Dividend: CYG's dividend (1.63%) is low compared to the top 25% of dividend payers in the Australian market (5.28%).


Stability and Growth of Payments

Stable Dividend: CYG's dividend payments have been volatile in the past 10 years.

Growing Dividend: CYG's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (37.2%), CYG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CYG's dividends in 3 years are forecast to be well covered by earnings (46.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.1yrs

Average management tenure


CEO

Robert Bulluss

4.42yrs

Tenure

AU$749,464

Compensation

Mr. Robert James Bulluss, FCPA, GAICD, B BUS (Acc) has been Chief Executive Officer of Coventry Group Ltd since May 3, 2017 and its Managing Director since August 29, 2017 and served as its Chief Financial...


CEO Compensation Analysis

Compensation vs Market: Robert's total compensation ($USD555.45K) is above average for companies of similar size in the Australian market ($USD301.95K).

Compensation vs Earnings: Robert's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: CYG's management team is considered experienced (4.1 years average tenure).


Board Members

Experienced Board: CYG's board of directors are considered experienced (4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Coventry Group Ltd's employee growth, exchange listings and data sources


Key Information

  • Name: Coventry Group Ltd
  • Ticker: CYG
  • Exchange: ASX
  • Founded: 1936
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: AU$168.232m
  • Shares outstanding: 91.43m
  • Website: https://www.cgl.com.au

Number of Employees


Location

  • Coventry Group Ltd
  • 235 Settlement Road
  • Thomastown
  • Victoria
  • 3074
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/20 07:03
End of Day Share Price2021/10/18 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.