ASX:CKF

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Limited growth with questionable track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: CKF has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-5.4%

CKF

0.8%

AU Hospitality

0.3%

AU Market


1 Year Return

-1.0%

CKF

-13.2%

AU Hospitality

-5.4%

AU Market

Return vs Industry: CKF exceeded the Australian Hospitality industry which returned -13.2% over the past year.

Return vs Market: CKF exceeded the Australian Market which returned -5.4% over the past year.


Shareholder returns

CKFIndustryMarket
7 Day-5.4%0.8%0.3%
30 Day0.5%6.2%6.3%
90 Day10.3%16.3%3.7%
1 Year1.2%-1.0%-10.1%-13.2%-2.1%-5.4%
3 Year93.1%78.7%-13.5%-20.8%18.3%3.3%
5 Year231.9%186.5%11.5%13.0%43.1%14.0%

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?

38.78x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CKF (A$10.4) is trading above our estimate of fair value (A$4.16)

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 (38.8x) compared to the AU Hospitality industry average (38.5x).

PE vs Market: CKF is poor value based on its PE Ratio (38.8x) compared to the Australian market (21x).


Price to Earnings Growth Ratio

PEG Ratio: CKF is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: CKF is overvalued based on its PB Ratio (3.4x) compared to the AU Hospitality industry average (1.8x).


Next Steps

Future Growth

How is Collins Foods forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

15.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CKF's forecast earnings growth (15.4% per year) is above the savings rate (2.3%).

Earnings vs Market: CKF's earnings (15.4% per year) are forecast to grow slower than the Australian market (17.4% per year).

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

Revenue vs Market: CKF's revenue (6.5% per year) is forecast to grow faster than the Australian market (4.6% per year).

High Growth Revenue: CKF's revenue (6.5% 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 (13.7%).


Next Steps

Past Performance

How has Collins Foods performed over the past 5 years?

17.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CKF has high quality earnings.

Growing Profit Margin: CKF's current net profit margins (3.2%) are lower than last year (4.3%).


Past Earnings Growth Analysis

Earnings Trend: CKF has become profitable over the past 5 years, growing earnings by 17.3% per year.

Accelerating Growth: CKF's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CKF had negative earnings growth (-20%) over the past year, making it difficult to compare to the Hospitality industry average (-2.1%).


Return on Equity

High ROE: CKF's Return on Equity (8.7%) is considered low.


Next Steps

Financial Health

How is Collins Foods's financial position?


Financial Position Analysis

Short Term Liabilities: CKF's short term assets (A$129.2M) do not cover its short term liabilities (A$133.1M).

Long Term Liabilities: CKF's short term assets (A$129.2M) do not cover its long term liabilities (A$691.9M).


Debt to Equity History and Analysis

Debt Level: CKF's debt to equity ratio (89.9%) is considered high.

Reducing Debt: CKF's debt to equity ratio has reduced from 98.6% to 89.9% over the past 5 years.

Debt Coverage: CKF's debt is well covered by operating cash flow (46.4%).

Interest Coverage: CKF's interest payments on its debt are not well covered by EBIT (2.6x coverage).


Balance Sheet


Next Steps

Dividend

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

1.92%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CKF's dividend (1.92%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.15%).

High Dividend: CKF's dividend (1.92%) is low compared to the top 25% of dividend payers in the Australian market (5.43%).


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 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (74.6%), 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 (56.6% payout ratio).


Next Steps

Management

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

3.4yrs

Average management tenure


CEO

Drew O’Malley

0.25

Tenure

AU$933,570

Compensation

Mr. Drew O’Malley serves as Chief Executive Officer at Collins Foods Limited since July 1, 2020. Mr. O’Malley served as Chief Operating Officer of Australia at Collins Foods Limited from November 14, 2017 ...


CEO Compensation Analysis

Compensation vs Market: Drew's total compensation ($USD664.49K) is about average for companies of similar size in the Australian market ($USD927.78K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Drew O’Malley
Chief Executive Officer0.25yrAU$933.57kno data
Nigel Williams
Group Chief Financial Officer5.42yrsAU$815.71k0.017%
A$ 209.5k
Dawn Linaker
Chief People Officer3.42yrsAU$561.58k0.013%
A$ 155.1k
Tony Van Ark
Chief Development Officer1.75yrsno datano data
Hans Miete
Chief Executive Officer of Europeno datano datano data
Frances Finucan
Company Secretary7.25yrsno datano data

3.4yrs

Average Tenure

Experienced Management: CKF's management team is considered experienced (3.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kevin William Perkins
Non Executive Director9.25yrsAU$127.40k6.28%
A$ 75.6m
Bronwyn Morris
Independent Non-Executive Director9.33yrsAU$137.60k0.012%
A$ 139.0k
Russell Tate
Independent Non-Executive Director9.33yrsAU$137.60k0.019%
A$ 225.4k
Newman Manion
Non-Independent Non-Executive Director9.33yrsAU$324.64k0.019%
A$ 225.4k
Robert Kaye
Independent Non-Executive Chairman5.58yrsAU$224.75k0.041%
A$ 494.5k
Christine Holman
Independent Non-Executive Director0.83yrAU$49.45k0.0086%
A$ 103.3k

9.3yrs

Average Tenure

68yo

Average Age

Experienced Board: CKF's board of directors are considered experienced (9.3 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 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

Collins Foods Limited's company bio, 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$1.204b
  • 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
CLLF.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDAug 2011

Biography

Collins Foods Limited engages in the operation, management, and administration of restaurants in Australia, Europe, and Asia. It operates through KFC Restaurants Australia and KFC Restaurants Europe segmen ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/22 10:44
End of Day Share Price2020/10/22 00:00
Earnings2020/05/03
Annual Earnings2020/05/03


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.