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GNC

GrainCorpASX:GNC Stock Report

Market Cap

AU$1.4b

7D

-0.2%

1Y

76.9%

Updated

26 Oct, 2021

Data

Company Financials +
GNC fundamental analysis
Snowflake Score
Valuation1/6
Future Growth0/6
Past Performance1/6
Financial Health2/6
Dividends2/6

GNC Overview

GrainCorp Limited operates as a food ingredients and agribusiness company in Australasia, Asia, North America, Europe, the Middle East, North Africa, and internationally.

GrainCorp Competitors

Bunge

NYSE:BG

US$12.5b

Price History & Performance

Summary of all time highs, changes and price drops for GrainCorp
Historical stock prices
Current Share PriceAU$6.35
52 Week HighAU$3.44
52 Week LowAU$6.77
Beta1.35
1 Month Change0.16%
3 Month Change21.88%
1 Year Change76.88%
3 Year Change-21.41%
5 Year Change-23.49%
Change since IPO-29.93%

Recent News & Updates

May 27
Is GrainCorp (ASX:GNC) Using Too Much Debt?

Is GrainCorp (ASX:GNC) Using Too Much Debt?

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' So it seems the smart money knows that...

Shareholder Returns

GNCAU Consumer RetailingAU Market
7D-0.2%1.0%0.8%
1Y76.9%7.5%24.4%

Return vs Industry: GNC exceeded the Australian Consumer Retailing industry which returned 7.5% over the past year.

Return vs Market: GNC exceeded the Australian Market which returned 24.4% over the past year.

Price Volatility

Is GNC's price volatile compared to industry and market?
GNC volatility
GNC Beta1.35
Industry Beta0.56
Market Beta1

Stable Share Price: GNC is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: GNC's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19162,000Robert Spurwayhttps://www.graincorp.com.au

GrainCorp Limited operates as a food ingredients and agribusiness company in Australasia, Asia, North America, Europe, the Middle East, North Africa, and internationally. It operates through three segments: Grains, Malt, and Oils. The Grains segment receives, transports, tests, stores, and imports grains comprising wheat, barley, canola, and sorghum, as well as other bulk commodities.

GrainCorp Fundamentals Summary

How do GrainCorp's earnings and revenue compare to its market cap?
GNC fundamental statistics
Market CapAU$1.43b
Earnings (TTM)AU$7.90m
Revenue (TTM)AU$4.27b

184.0x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GNC income statement (TTM)
RevenueAU$4.27b
Cost of RevenueAU$3.84b
Gross ProfitAU$427.20m
ExpensesAU$419.30m
EarningsAU$7.90m

Last Reported Earnings

Mar 31, 2021

Next Earnings Date

Nov 11, 2021

Earnings per share (EPS)0.035
Gross Margin10.02%
Net Profit Margin0.19%
Debt/Equity Ratio135.9%

How did GNC perform over the long term?

See historical performance and comparison

Dividends

2.5%

Current Dividend Yield

434%

Payout Ratio

Valuation

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

184x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GNC (A$6.35) is trading above our estimate of fair value (A$5.98)

Significantly Below Fair Value: GNC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: GNC is poor value based on its PE Ratio (184x) compared to the Australian Consumer Retailing industry average (27.4x).

PE vs Market: GNC is poor value based on its PE Ratio (184x) compared to the Australian market (20x).


Price to Earnings Growth Ratio

PEG Ratio: GNC's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: GNC is good value based on its PB Ratio (1.3x) compared to the AU Consumer Retailing industry average (4.5x).


Future Growth

How is GrainCorp forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

-12.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GNC's earnings are forecast to decline over the next 3 years (-12.6% per year).

Earnings vs Market: GNC's earnings are forecast to decline over the next 3 years (-12.6% per year).

High Growth Earnings: GNC's earnings are forecast to decline over the next 3 years.

Revenue vs Market: GNC's revenue is expected to decline over the next 3 years (-7.3% per year).

High Growth Revenue: GNC's revenue is forecast to decline over the next 3 years (-7.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GNC's Return on Equity is forecast to be low in 3 years time (6.7%).


Past Performance

How has GrainCorp performed over the past 5 years?

-37.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GNC has a large one-off gain of A$12.4M impacting its March 31 2021 financial results.

Growing Profit Margin: GNC became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: GNC's earnings have declined by 37.2% per year over the past 5 years.

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

Earnings vs Industry: GNC has become profitable in the last year, making it difficult to compare its past year earnings growth to the Consumer Retailing industry (13.2%).


Return on Equity

High ROE: GNC's Return on Equity (0.7%) is considered low.


Financial Health

How is GrainCorp's financial position?


Financial Position Analysis

Short Term Liabilities: GNC's short term assets (A$2.2B) exceed its short term liabilities (A$1.9B).

Long Term Liabilities: GNC's short term assets (A$2.2B) exceed its long term liabilities (A$376.5M).


Debt to Equity History and Analysis

Debt Level: GNC's debt to equity ratio (135.9%) is considered high.

Reducing Debt: GNC's debt to equity ratio has increased from 87.9% to 135.9% over the past 5 years.

Debt Coverage: GNC's debt is not well covered by operating cash flow (4.3%).

Interest Coverage: Insufficient data to determine if GNC's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

What is GrainCorp current dividend yield, its reliability and sustainability?

2.52%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GNC's dividend (2.52%) is higher than the bottom 25% of dividend payers in the Australian market (2.23%).

High Dividend: GNC's dividend (2.52%) is low compared to the top 25% of dividend payers in the Australian market (5.32%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (434.2%), GNC's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GNC's dividends in 3 years are forecast to be covered by earnings (60.8% payout ratio).


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

Robert Spurway

1.58yrs

Tenure

AU$1,245,368

Compensation

Mr. Robert Spurway serves as Chief Executive Officer and Managing Director at GrainCorp Limited since March 23, 2020 and also serves as it's Director. Mr. Spurway served as the Chief Operating Officer of G...


CEO Compensation Analysis

Compensation vs Market: Robert's total compensation ($USD933.56K) is about average for companies of similar size in the Australian market ($USD991.03K).

Compensation vs Earnings: Insufficient data to compare Robert's compensation with company performance.


Leadership Team

Experienced Management: GNC's management team is considered experienced (2.5 years average tenure).


Board Members

Experienced Board: GNC's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


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

GrainCorp Limited's employee growth, exchange listings and data sources


Key Information

  • Name: GrainCorp Limited
  • Ticker: GNC
  • Exchange: ASX
  • Founded: 1916
  • Industry: Food Distributors
  • Sector: Consumer Retailing
  • Market Cap: AU$1.433b
  • Shares outstanding: 228.86m
  • Website: https://www.graincorp.com.au

Number of Employees


Location

  • GrainCorp Limited
  • 175 Liverpool Street
  • Level 28
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/26 07:01
End of Day Share Price2021/10/26 00:00
Earnings2021/03/31
Annual Earnings2020/09/30


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.