ASX:CKF

Stock Analysis Report

Executive Summary

Collins Foods Limited operates, manages, and administers restaurants in Australia, Europe, and Asia.

Snowflake

Fundamentals

Moderate growth potential with mediocre balance sheet.

Share Price & News

How has Collins Foods's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.9%

CKF

0.3%

AU Hospitality

-0.2%

AU Market


1 Year Return

59.1%

CKF

0.1%

AU Hospitality

10.5%

AU Market

Return vs Industry: CKF exceeded the Australian Hospitality industry which returned 0.1% over the past year.

Return vs Market: CKF exceeded the Australian Market which returned 10.5% over the past year.


Shareholder returns

CKFIndustryMarket
7 Day-0.9%0.3%-0.2%
30 Day3.4%1.1%-1.4%
90 Day22.7%4.5%-1.0%
1 Year63.2%59.1%3.8%0.1%16.9%10.5%
3 Year131.2%110.3%37.0%22.5%36.9%18.6%
5 Year468.9%380.2%93.6%55.9%50.2%16.2%

Price Volatility Vs. Market

How volatile is Collins Foods's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

30.32x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CKF (A$10.18) is trading above our estimate of fair value (A$8.11)

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


Price To Earnings Ratio

PE vs Industry: CKF is poor value based on its PE Ratio (30.3x) compared to the Hospitality industry average (24.5x).

PE vs Market: CKF is poor value based on its PE Ratio (30.3x) compared to the Australian market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: CKF is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: CKF is overvalued based on its PB Ratio (3.4x) compared to the AU Hospitality industry average (2.4x).


Next Steps

Future Growth

How is Collins Foods forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

14.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CKF's forecast earnings growth (14.6% per year) is above the savings rate (2.3%).

Earnings vs Market: CKF's earnings (14.6% per year) are forecast to grow faster than the Australian market (10.2% per year).

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

Revenue vs Market: CKF's revenue (9.1% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: CKF's revenue (9.1% 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 (14.9%).


Next Steps

Past Performance

How has Collins Foods performed over the past 5 years?

36.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CKF's earnings have grown significantly by 36% per year over the past 5 years.

Accelerating Growth: CKF's earnings growth over the past year (20.5%) is below its 5-year average (36% per year).

Earnings vs Industry: CKF earnings growth over the past year (20.5%) exceeded the Hospitality industry 16.5%.


Return on Equity

High ROE: CKF's Return on Equity (11.2%) is considered low.


Return on Assets

ROA vs Industry: CKF's Return on Assets is below or equal to the Hospitality industry average last year.


Return on Capital Employed

ROCE Improving: CKF's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Collins Foods's financial position?


Financial Position Analysis

Short Term Liabilities: CKF's short term assets (A$91.7M) do not cover its short term liabilities (A$102.2M)

Long Term Liabilities: CKF's short term assets (91.7M) do not cover its long term liabilities (299.5M)


Debt to Equity History and Analysis

Debt Level: CKF's debt to equity ratio (83.9%) is considered high

Reducing Debt: CKF's debt to equity ratio has reduced from 87% to 83.9% over the past 5 years.

Debt Coverage: CKF's debt is well covered by operating cash flow (33.1%).

Interest Coverage: CKF's interest payments on its debt are well covered by EBIT (6.4x coverage).


Balance Sheet

Inventory Level: CKF has a high level of physical assets or inventory.

Debt Coverage by Assets: CKF's debt is not covered by short term assets (assets are 0.3x debt).


Next Steps

Dividend

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

2.06%

Current Dividend Yield


Dividend Yield vs Market

company2.1%marketbottom25%2.4%markettop25%5.6%industryaverage3.1%forecastin3Years2.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: CKF's dividend (2.06%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.44%).

High Dividend: CKF's dividend (2.06%) is low compared to the top 25% of dividend payers in the Australian market (5.61%).

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 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (58.1%), 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 well covered by earnings (49.9% payout ratio).


Next Steps

Management

What is the CEO of Collins Foods's salary, the management and board of directors tenure and is there insider trading?

2.5yrs

Average management tenure


CEO

Graham Maxwell 0

5.1yrs

Tenure

AU$1,528,128

Compensation

Mr. Graham Maxwell has been the Chief Executive Officer of Collins Foods Limited since September 29, 2014 and has been its Managing Director since March 25, 2015. Mr. Maxwell is an experienced senior execu ...


CEO Compensation Analysis

Compensation vs. Market: Graham's total compensation ($USD1.05M) is about average for companies of similar size in the Australian market ($USD980.74K).

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


Management Age and Tenure

2.5yrs

Average Tenure

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


Board Age and Tenure

8.3yrs

Average Tenure

67yo

Average Age

Experienced Board: CKF's board of directors are considered experienced (8.3 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellAU$3,882,74705 Jul 19
Yarra Funds Management Limited
EntityCompany
Shares556,621
Max PriceAU$6.98
BuyAU$985,94005 Jul 19
Yarra Funds Management Limited
EntityCompany
Shares151,897
Max PriceAU$6.49
SellAU$989,37902 Jul 19
Graham Maxwell
EntityIndividual
Role
Chief Executive Officer
MD, CEO & Director
Shares120,000
Max PriceAU$8.24
SellAU$472,36618 Apr 19
Vinva Investment Management
EntityCompany
Shares67,719
Max PriceAU$6.98
BuyAU$287,35118 Apr 19
Vinva Investment Management
EntityCompany
Shares44,090
Max PriceAU$6.52
SellAU$266,91527 Dec 18
Graham Maxwell
EntityIndividual
Role
Chief Executive Officer
MD, CEO & Director
Shares42,234
Max PriceAU$6.32
SellAU$230,76618 Dec 18
Graham Maxwell
EntityIndividual
Role
Chief Executive Officer
MD, CEO & Director
Shares34,221
Max PriceAU$6.74
BuyAU$3,227,25914 Dec 18
Yarra Funds Management Limited
EntityCompany
Shares515,092
Max PriceAU$6.27
BuyAU$33,58213 Dec 18
Bronwyn Morris
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares5,000
Max PriceAU$6.72
SellAU$100,35804 Dec 18
Vinva Investment Management
EntityCompany
Shares14,990
Max PriceAU$6.69
BuyAU$31,336,67404 Dec 18
Vinva Investment Management
EntityCompany
Shares4,561,300
Max PriceAU$6.87
SellAU$500,50013 Nov 18
Pendal Group Limited
EntityCompany
Shares71,500
Max PriceAU$7.00
SellAU$12,068,82012 Nov 18
Pendal Group Limited
EntityCompany
Shares1,924,818
Max PriceAU$6.41

Ownership Breakdown


Management Team

  • Drew O’Malley

    Chief Operating Officer

    • Tenure: 1.9yrs
    • Compensation: AU$847.89k
  • Newman Manion

    Executive Director

    • Tenure: 8.3yrs
    • Compensation: AU$226.98k
  • Graham Maxwell

    MD, CEO & Director

    • Tenure: 5.1yrs
    • Compensation: AU$1.53m
  • Frances Finucan

    Company Secretary

    • Tenure: 6.3yrs
  • Dawn Linaker

    Chief People Officer

    • Tenure: 2.4yrs
    • Compensation: AU$589.94k
  • Nigel Williams

    Group Chief Financial Officer

    • Tenure: 4.4yrs
    • Compensation: AU$924.80k
  • Mark van 't Loo

    Chief Executive Officer – Collins Foods Europe

    • Tenure: 2.6yrs
    • Compensation: AU$509.59k
  • Tony Van Ark

    Chief Development Officer

    • Tenure: 0.8yrs

Board Members

  • Kevin William Perkins (67yo)

    Non Executive Director

    • Tenure: 8.3yrs
    • Compensation: AU$115.00k
  • Bronwyn Morris (64yo)

    Independent Non-Executive Director

    • Tenure: 8.3yrs
    • Compensation: AU$127.50k
  • Russell Tate (70yo)

    Independent Non-Executive Director

    • Tenure: 8.3yrs
    • Compensation: AU$116.55k
  • Newman Manion

    Executive Director

    • Tenure: 8.3yrs
    • Compensation: AU$226.98k
  • Robert Kaye

    Independent Non-Executive Chairman

    • Tenure: 4.6yrs
    • Compensation: AU$210.00k
  • Graham Maxwell

    MD, CEO & Director

    • Tenure: 5.1yrs
    • Compensation: AU$1.53m

Company Information

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


Key Information

  • Name: Collins Foods Limited
  • Ticker: CKF
  • Exchange: ASX
  • Founded: 1968
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: AU$1.170b
  • Shares outstanding: 116.58m
  • Website: https://www.collinsfoods.com

Number of Employees


Location

  • Collins Foods Limited
  • 485 Kingsford Smith Drive
  • Level 3
  • Hamilton
  • Queensland
  • 4007
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CKFASX (Australian Securities Exchange)YesOrdinary SharesAUAUDAug 2011
6CFDB (Deutsche Boerse AG)YesOrdinary SharesDEEURAug 2011
CKFCHIA (Chi-X Australia)YesOrdinary SharesAUAUDAug 2011

Biography

Collins Foods Limited operates, manages, and administers restaurants in Australia, Europe, and Asia. It operates through KFC Restaurants Australia, KFC Restaurants Europe, Sizzler Restaurants, and Other se ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 10:38
End of Day Share Price2019/10/22 00:00
Earnings2019/04/28
Annual Earnings2019/04/28


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.