ASX:BAL

Stock Analysis Report

Executive Summary

As of December 23, 2019, Bellamy's Australia Limited operates as a subsidiary of China Mengniu Dairy Company Limited.


Snowflake Analysis

Flawless balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has Bellamy's Australia's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

BAL

3.3%

AU Food

5.3%

AU Market


1 Year Return

94.3%

BAL

-18.6%

AU Food

-17.6%

AU Market

Return vs Industry: BAL exceeded the Australian Food industry which returned -4.2% over the past year.

Return vs Market: BAL exceeded the Australian Market which returned 19.4% over the past year.


Shareholder returns

BALIndustryMarket
7 Day0%3.3%5.3%
30 Day0.3%-7.9%-18.2%
90 Day2.4%-10.9%-22.6%
1 Year103.5%94.3%-9.5%-18.6%-13.9%-17.6%
3 Year111.8%98.1%5.1%-10.3%-0.4%-14.1%
5 Year769.2%701.8%31.1%4.4%10.7%-14.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Bellamy's Australia undervalued compared to its fair value and its price relative to the market?

67.82x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BAL (A$13.23) is trading above our estimate of fair value (A$3.98)

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


Price To Earnings Ratio

PE vs Industry: BAL is poor value based on its PE Ratio (67.8x) compared to the Food industry average (21.9x).

PE vs Market: BAL is poor value based on its PE Ratio (67.8x) compared to the Australian market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: BAL is poor value based on its PEG Ratio (3.4x)


Price to Book Ratio

PB vs Industry: BAL is overvalued based on its PB Ratio (6.4x) compared to the AU Food industry average (1.3x).


Next Steps

Future Growth

How is Bellamy's Australia forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

20.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BAL's forecast earnings growth (20% per year) is above the savings rate (1.1%).

Earnings vs Market: BAL's earnings (20% per year) are forecast to grow faster than the Australian market (9.6% per year).

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

Revenue vs Market: BAL's revenue (9.8% per year) is forecast to grow faster than the Australian market (3.8% per year).

High Growth Revenue: BAL's revenue (9.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BAL's Return on Equity is forecast to be low in 3 years time (14%).


Next Steps

Past Performance

How has Bellamy's Australia performed over the past 5 years?

24.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BAL has high quality earnings.

Growing Profit Margin: BAL's current net profit margins (8.3%) are lower than last year (13.2%).


Past Earnings Growth Analysis

Earnings Trend: BAL's earnings have grown significantly by 24.7% per year over the past 5 years.

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

Earnings vs Industry: BAL had negative earnings growth (-48.9%) over the past year, making it difficult to compare to the Food industry average (-7.1%).


Return on Equity

High ROE: BAL's Return on Equity (9.3%) is considered low.


Next Steps

Financial Health

How is Bellamy's Australia's financial position?


Financial Position Analysis

Short Term Liabilities: BAL's short term assets (A$257.0M) exceed its short term liabilities (A$77.3M).

Long Term Liabilities: BAL's short term assets (A$257.0M) exceed its long term liabilities (A$67.0K).


Debt to Equity History and Analysis

Debt Level: BAL's debt to equity ratio (0.03%) is considered satisfactory.

Reducing Debt: BAL's debt to equity ratio has reduced from 2.5% to 0.03% over the past 5 years.

Debt Coverage: BAL's debt is well covered by operating cash flow (48744.6%).

Interest Coverage: BAL earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: BAL's debt is covered by short term assets (assets are 3954x debt).


Next Steps

Dividend

What is Bellamy's Australia's current dividend yield, its reliability and sustainability?

0.45%

Forecast Dividend Yield


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BAL'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?

2.7yrs

Average management tenure


CEO

Andrew Cohen

2.67s

Tenure

AU$2,113,871

Compensation

Mr. Andrew Cohen has been the Chief Executive Officer of Bellamy's Australia Limited since April 2017 and its Director since December 23, 2019. Mr. Cohen served as an Acting Chief Executive Officer of Bell ...


CEO Compensation Analysis

Compensation vs Market: Andrew's total compensation ($USD1.46M) is above average for companies of similar size in the Australian market ($USD959.05K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Andrew Cohen
CEO & Director2.67yrsAU$2.11m0.044% A$679.0k
Nigel Underwood
Chief Financial Officer2.67yrsAU$746.39kno data
Peter Fridell
Director of Operations2.83yrsAU$646.07kno data
Melinda Harrison
General Counsel2.58yrsAU$485.19k0.0045% A$69.3k
David Jedynak
Director of Sales & Marketingno dataAU$665.32k0.012% A$177.3k
Shona Ollington
Director of Finance & Peopleno dataAU$233.12kno data

2.7yrs

Average Tenure

Experienced Management: BAL's management team is considered experienced (2.7 years average tenure).


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 been diluted in the past year, with total shares outstanding growing by 3.8%.


Top Shareholders

Company Information

Bellamy's Australia Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Bellamy's Australia Limited
  • Ticker: BAL
  • Exchange: ASX
  • Founded: 2004
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: AU$1.539b
  • Shares outstanding: 116.35m
  • Website: https://bellamysorganic.com.au

Number of Employees


Location

  • Bellamy's Australia Limited
  • 115 Cimitiere Street
  • PO Box 96
  • Launceston
  • Tasmania
  • 7250
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BALASX (Australian Securities Exchange)YesOrdinary SharesAUAUDAug 2014
BALCHIA (Chi-X Australia)YesOrdinary SharesAUAUDAug 2014
BLLM.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDAug 2014
5B0DB (Deutsche Boerse AG)YesOrdinary SharesDEEURAug 2014

Biography

As of December 23, 2019, Bellamy's Australia Limited operates as a subsidiary of China Mengniu Dairy Company Limited.  


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/25 10:37
End of Day Share Price2019/12/10 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.