company background image
RFG

Retail Food GroupASX:RFG Stock Report

Market Cap

AU$167.8m

7D

-1.3%

1Y

-10.2%

Updated

22 Oct, 2021

Data

Company Financials +
RFG fundamental analysis
Snowflake Score
Valuation5/6
Future Growth4/6
Past Performance1/6
Financial Health5/6
Dividends0/6

RFG Overview

Retail Food Group Limited, a food and beverage company, engages in the management of a multi-brand retail food franchise in Australia and internationally.

Price History & Performance

Summary of all time highs, changes and price drops for Retail Food Group
Historical stock prices
Current Share PriceAU$0.079
52 Week HighAU$0.065
52 Week LowAU$0.10
Beta1.31
1 Month Change-1.25%
3 Month Change-9.20%
1 Year Change-10.23%
3 Year Change-80.96%
5 Year Change-98.82%
Change since IPO-91.37%

Recent News & Updates

Mar 18
Is Retail Food Group (ASX:RFG) A Risky Investment?

Is Retail Food Group (ASX:RFG) A Risky Investment?

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

Jan 24
Here's Why We Don't Think Retail Food Group's (ASX:RFG) Statutory Earnings Reflect Its Underlying Earnings Potential

Here's Why We Don't Think Retail Food Group's (ASX:RFG) Statutory Earnings Reflect Its Underlying Earnings Potential

As a general rule, we think profitable companies are less risky than companies that lose money. Having said that...

Nov 30
Does Retail Food Group (ASX:RFG) Have A Healthy Balance Sheet?

Does Retail Food Group (ASX:RFG) Have A Healthy Balance Sheet?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

RFGAU HospitalityAU Market
7D-1.3%-1.1%0.7%
1Y-10.2%38.2%21.4%

Return vs Industry: RFG underperformed the Australian Hospitality industry which returned 39.2% over the past year.

Return vs Market: RFG underperformed the Australian Market which returned 21.1% over the past year.

Price Volatility

Is RFG's price volatile compared to industry and market?
RFG volatility
RFG Beta1.31
Industry Beta1.23
Market Beta1

Stable Share Price: RFG is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: RFG's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1989n/aPeter Georgehttps://www.rfg.com.au

Retail Food Group Limited, a food and beverage company, engages in the management of a multi-brand retail food franchise in Australia and internationally. The company operates through Bakery/Café, QSR, Coffee Retail, Di Bella Coffee, and Manufacturing and Distribution segments. It is also involved in the ownership of the intellectual property; development and management of coffee roasting facilities; and the wholesale supply of coffee and allied products.

Retail Food Group Fundamentals Summary

How do Retail Food Group's earnings and revenue compare to its market cap?
RFG fundamental statistics
Market CapAU$167.80m
Earnings (TTM)AU$7.44m
Revenue (TTM)AU$109.10m

22.6x

P/E Ratio

1.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RFG income statement (TTM)
RevenueAU$109.10m
Cost of RevenueAU$31.77m
Gross ProfitAU$77.33m
ExpensesAU$69.89m
EarningsAU$7.44m

Last Reported Earnings

Jul 02, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.0035
Gross Margin70.88%
Net Profit Margin6.82%
Debt/Equity Ratio25.0%

How did RFG perform over the long term?

See historical performance and comparison

Valuation

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

42.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RFG (A$0.08) is trading below our estimate of fair value (A$0.14)

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


Price To Earnings Ratio

PE vs Industry: RFG is good value based on its PE Ratio (22.6x) compared to the Australian Hospitality industry average (36.8x).

PE vs Market: RFG is poor value based on its PE Ratio (22.6x) compared to the Australian market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: RFG is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: RFG is good value based on its PB Ratio (0.9x) compared to the AU Hospitality industry average (3.8x).


Future Growth

How is Retail Food Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

30.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RFG's forecast earnings growth (30.3% per year) is above the savings rate (1.9%).

Earnings vs Market: RFG's earnings (30.3% per year) are forecast to grow faster than the Australian market (11.6% per year).

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

Revenue vs Market: RFG's revenue (6.4% per year) is forecast to grow faster than the Australian market (5.4% per year).

High Growth Revenue: RFG's revenue (6.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RFG's Return on Equity is forecast to be low in 3 years time (10.7%).


Past Performance

How has Retail Food Group performed over the past 5 years?

-5.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RFG has a large one-off loss of A$6.3M impacting its July 2 2021 financial results.

Growing Profit Margin: RFG's current net profit margins (6.8%) are lower than last year (13.4%).


Past Earnings Growth Analysis

Earnings Trend: RFG has become profitable over the past 5 years, growing earnings by -5.8% per year.

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

Earnings vs Industry: RFG had negative earnings growth (-56.6%) over the past year, making it difficult to compare to the Hospitality industry average (4.2%).


Return on Equity

High ROE: RFG's Return on Equity (4.2%) is considered low.


Financial Health

How is Retail Food Group's financial position?


Financial Position Analysis

Short Term Liabilities: RFG's short term assets (A$76.9M) exceed its short term liabilities (A$75.5M).

Long Term Liabilities: RFG's short term assets (A$76.9M) do not cover its long term liabilities (A$116.4M).


Debt to Equity History and Analysis

Debt Level: RFG's debt to equity ratio (25%) is considered satisfactory.

Reducing Debt: RFG's debt to equity ratio has reduced from 54.4% to 25% over the past 5 years.

Debt Coverage: RFG's debt is well covered by operating cash flow (24.8%).

Interest Coverage: RFG's interest payments on its debt are well covered by EBIT (5.5x coverage).


Balance Sheet


Dividend

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

5.49%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate RFG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate RFG's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if RFG's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if RFG's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: RFG is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RFG's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

Peter George (68 yo)

2.83yrs

Tenure

AU$1,085,877

Compensation

Mr. Peter George, B.Com., LLB has been Executive Chairman and Executive Director of Retail Food Group Limited since November 7, 2018 and serves as Chief Executive Officer since December 3, 2018. Mr. George...


CEO Compensation Analysis

Compensation vs Market: Peter's total compensation ($USD813.21K) is above average for companies of similar size in the Australian market ($USD303.55K).

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


Leadership Team

Experienced Management: RFG's management team is considered experienced (3.5 years average tenure).


Board Members

Experienced Board: RFG's board of directors are considered experienced (3.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: RFG 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

Retail Food Group Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Retail Food Group Limited
  • Ticker: RFG
  • Exchange: ASX
  • Founded: 1989
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: AU$167.800m
  • Shares outstanding: 2.12b
  • Website: https://www.rfg.com.au

Location

  • Retail Food Group Limited
  • 35 Robina Town Centre Drive
  • Level 4
  • Robina
  • Queensland
  • 4226
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/22 07:05
End of Day Share Price2021/10/22 00:00
Earnings2021/07/02
Annual Earnings2021/07/02


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.