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CKF

Collins FoodsASX:CKF Stock Report

Market Cap

AU$1.5b

7D

-2.7%

1Y

27.1%

Updated

26 Oct, 2021

Data

Company Financials +
CKF fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance5/6
Financial Health3/6
Dividends2/6

CKF Overview

Collins Foods Limited engages in the operation, management, and administration of restaurants in Australia, Europe, and Asia.

Price History & Performance

Summary of all time highs, changes and price drops for Collins Foods
Historical stock prices
Current Share PriceAU$12.74
52 Week HighAU$9.01
52 Week LowAU$13.66
Beta0.76
1 Month Change10.59%
3 Month Change18.07%
1 Year Change27.15%
3 Year Change100.00%
5 Year Change155.31%
Change since IPO453.91%

Recent News & Updates

Sep 20
Collins Foods (ASX:CKF) May Have Issues Allocating Its Capital

Collins Foods (ASX:CKF) May Have Issues Allocating Its Capital

There are a few key trends to look for if we want to identify the next multi-bagger. In a perfect world, we'd like to...

Aug 20
We Think Collins Foods (ASX:CKF) Can Stay On Top Of Its Debt

We Think Collins Foods (ASX:CKF) Can Stay On Top Of Its Debt

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Shareholder Returns

CKFAU HospitalityAU Market
7D-2.7%-0.1%0.8%
1Y27.1%44.6%24.4%

Return vs Industry: CKF underperformed the Australian Hospitality industry which returned 44.6% over the past year.

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

Price Volatility

Is CKF's price volatile compared to industry and market?
CKF volatility
CKF Beta0.76
Industry Beta1.23
Market Beta1

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

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

About the Company

FoundedEmployeesCEOWebsite
196915,000Drew O’Malleyhttps://www.collinsfoods.com

Collins Foods Limited engages in the operation, management, and administration of restaurants in Australia, Europe, and Asia. The company operates restaurants under the KFC, Taco Bell, and Sizzler brands. It also operates 251 franchised KFC restaurants in Australia, as well as 17 restaurants in Germany, and 29 in the Netherlands.

Collins Foods Fundamentals Summary

How do Collins Foods's earnings and revenue compare to its market cap?
CKF fundamental statistics
Market CapAU$1.50b
Earnings (TTM)AU$37.61m
Revenue (TTM)AU$1.07b

39.5x

P/E Ratio

1.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CKF income statement (TTM)
RevenueAU$1.07b
Cost of RevenueAU$506.00m
Gross ProfitAU$559.91m
ExpensesAU$522.30m
EarningsAU$37.61m

Last Reported Earnings

May 02, 2021

Next Earnings Date

Nov 30, 2021

Earnings per share (EPS)0.32
Gross Margin52.53%
Net Profit Margin3.53%
Debt/Equity Ratio75.5%

How did CKF perform over the long term?

See historical performance and comparison

Dividends

2.0%

Current Dividend Yield

71%

Payout Ratio

Valuation

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

39.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CKF (A$12.74) is trading below our estimate of fair value (A$21.02)

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


Price To Earnings Ratio

PE vs Industry: CKF is poor value based on its PE Ratio (39.5x) compared to the Australian Hospitality industry average (37.4x).

PE vs Market: CKF is poor value based on its PE Ratio (39.5x) compared to the Australian market (20x).


Price to Earnings Growth Ratio

PEG Ratio: CKF is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: CKF is overvalued based on its PB Ratio (4.1x) compared to the AU Hospitality industry average (3.8x).


Future Growth

How is Collins Foods forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

14.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CKF's forecast earnings growth (14.5% per year) is above the savings rate (1.9%).

Earnings vs Market: CKF's earnings (14.5% per year) are forecast to grow faster than the Australian market (12.4% per year).

High Growth Earnings: CKF's earnings are forecast to grow, but not significantly.

Revenue vs Market: CKF's revenue (8.3% per year) is forecast to grow faster than the Australian market (5.3% per year).

High Growth Revenue: CKF's revenue (8.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CKF's Return on Equity is forecast to be low in 3 years time (16%).


Past Performance

How has Collins Foods performed over the past 5 years?

4.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CKF has high quality earnings.

Growing Profit Margin: CKF's current net profit margins (3.5%) are higher than last year (3.4%).


Past Earnings Growth Analysis

Earnings Trend: CKF's earnings have grown by 4% per year over the past 5 years.

Accelerating Growth: CKF's earnings growth over the past year (16.7%) exceeds its 5-year average (4% per year).

Earnings vs Industry: CKF earnings growth over the past year (16.7%) exceeded the Hospitality industry 4.2%.


Return on Equity

High ROE: CKF's Return on Equity (10.4%) is considered low.


Financial Health

How is Collins Foods's financial position?


Financial Position Analysis

Short Term Liabilities: CKF's short term assets (A$110.8M) do not cover its short term liabilities (A$143.4M).

Long Term Liabilities: CKF's short term assets (A$110.8M) do not cover its long term liabilities (A$647.5M).


Debt to Equity History and Analysis

Debt Level: CKF's debt to equity ratio (75.5%) is considered high.

Reducing Debt: CKF's debt to equity ratio has reduced from 88.7% to 75.5% over the past 5 years.

Debt Coverage: CKF's debt is well covered by operating cash flow (54.1%).

Interest Coverage: CKF's interest payments on its debt are well covered by EBIT (3.1x coverage).


Balance Sheet


Dividend

What is Collins Foods's current dividend yield, its reliability and sustainability?

1.96%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CKF's dividend (1.96%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.23%).

High Dividend: CKF's dividend (1.96%) is low compared to the top 25% of dividend payers in the Australian market (5.32%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, CKF has been paying a dividend for less than 10 years.

Growing Dividend: CKF's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (71.3%), CKF's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CKF's dividends in 3 years are forecast to be covered by earnings (62.4% payout ratio).


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Drew O’Malley

1.25yrs

Tenure

AU$1,515,685

Compensation

Mr. Drew O’Malley serves as Chief Executive Officer at Collins Foods Limited since July 1, 2020 and serves as its Managing Director since June 29, 2021. He is Director of Collins Foods Limited since June 2...


CEO Compensation Analysis

Compensation vs Market: Drew's total compensation ($USD1.14M) is about average for companies of similar size in the Australian market ($USD991.03K).

Compensation vs Earnings: Drew's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: CKF's management team is considered experienced (2 years average tenure).


Board Members

Experienced Board: CKF's board of directors are considered experienced (8.4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: CKF insiders have bought and sold the same number of shares 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

Collins Foods Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Collins Foods Limited
  • Ticker: CKF
  • Exchange: ASX
  • Founded: 1969
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: AU$1.500b
  • Shares outstanding: 116.70m
  • Website: https://www.collinsfoods.com

Number of Employees


Location

  • Collins Foods Limited
  • 485 Kingsford Smith Drive
  • Level 3
  • Hamilton
  • Queensland
  • 4007
  • 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
Earnings2021/05/02
Annual Earnings2021/05/02


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.