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BGA

Bega CheeseASX:BGA Stock Report

Market Cap

AU$1.6b

7D

0%

1Y

4.3%

Updated

26 Oct, 2021

Data

Company Financials +
BGA fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance3/6
Financial Health5/6
Dividends4/6

BGA Overview

Bega Cheese Limited receives, processes, manufactures, and distributes dairy and other food-related products in Australia.

Price History & Performance

Summary of all time highs, changes and price drops for Bega Cheese
Historical stock prices
Current Share PriceAU$5.34
52 Week HighAU$4.93
52 Week LowAU$6.60
Beta0.49
1 Month Change-0.19%
3 Month Change2.50%
1 Year Change4.30%
3 Year Change-10.40%
5 Year Change11.72%
Change since IPO190.22%

Recent News & Updates

May 16
Is Bega Cheese (ASX:BGA) A Risky Investment?

Is Bega Cheese (ASX:BGA) A Risky Investment?

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Apr 28
Is Bega Cheese Limited (ASX:BGA) Trading At A 27% Discount?

Is Bega Cheese Limited (ASX:BGA) Trading At A 27% Discount?

In this article we are going to estimate the intrinsic value of Bega Cheese Limited ( ASX:BGA ) by taking the forecast...

Apr 09
Is Bega Cheese Limited (ASX:BGA) A Smart Pick For Income Investors?

Is Bega Cheese Limited (ASX:BGA) A Smart Pick For Income Investors?

Could Bega Cheese Limited ( ASX:BGA ) be an attractive dividend share to own for the long haul? Investors are often...

Shareholder Returns

BGAAU FoodAU Market
7D0%0.9%0.8%
1Y4.3%5.6%24.4%

Return vs Industry: BGA underperformed the Australian Food industry which returned 5.6% over the past year.

Return vs Market: BGA underperformed the Australian Market which returned 24.4% over the past year.

Price Volatility

Is BGA's price volatile compared to industry and market?
BGA volatility
BGA Beta0.49
Industry Beta0.55
Market Beta1

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

Volatility Over Time: BGA's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
18991,800Paul van Heerwaardenhttps://www.begacheese.com.au

Bega Cheese Limited receives, processes, manufactures, and distributes dairy and other food-related products in Australia. The company operates in two segments, Branded and Bulk. The Branded segment manufactures value added consumer products for owned and externally owned brands.

Bega Cheese Fundamentals Summary


Earnings & Revenue

Key profitability statistics from the latest earnings report
BGA income statement (TTM)
RevenueAU$2.07b
Cost of RevenueAU$1.61b
Gross ProfitAU$465.20m
ExpensesAU$393.00m
EarningsAU$72.20m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.24
Gross Margin22.44%
Net Profit Margin3.48%
Debt/Equity Ratio31.1%

How did BGA perform over the long term?

See historical performance and comparison

Dividends

1.9%

Current Dividend Yield

37%

Payout Ratio

Valuation

Is Bega Cheese undervalued compared to its fair value and its price relative to the market?

13.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BGA (A$5.34) is trading below our estimate of fair value (A$6.2)

Significantly Below Fair Value: BGA is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: BGA is poor value based on its PE Ratio (22.4x) compared to the Australian Food industry average (21.3x).

PE vs Market: BGA is poor value based on its PE Ratio (22.4x) compared to the Australian market (20x).


Price to Earnings Growth Ratio

PEG Ratio: BGA is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: BGA is good value based on its PB Ratio (1.3x) compared to the AU Food industry average (1.7x).


Future Growth

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

13.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BGA's forecast earnings growth (13.1% per year) is above the savings rate (1.9%).

Earnings vs Market: BGA's earnings (13.1% per year) are forecast to grow faster than the Australian market (12.4% per year).

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

Revenue vs Market: BGA's revenue (11.8% per year) is forecast to grow faster than the Australian market (5.3% per year).

High Growth Revenue: BGA's revenue (11.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BGA's Return on Equity is forecast to be low in 3 years time (7.7%).


Past Performance

How has Bega Cheese performed over the past 5 years?

-20.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BGA has a large one-off gain of A$30.8M impacting its June 30 2021 financial results.

Growing Profit Margin: BGA's current net profit margins (3.5%) are higher than last year (1.4%).


Past Earnings Growth Analysis

Earnings Trend: BGA's earnings have declined by 20.6% per year over the past 5 years.

Accelerating Growth: BGA's earnings growth over the past year (239%) exceeds its 5-year average (-20.6% per year).

Earnings vs Industry: BGA earnings growth over the past year (239%) exceeded the Food industry 45.2%.


Return on Equity

High ROE: BGA's Return on Equity (5.7%) is considered low.


Financial Health

How is Bega Cheese's financial position?


Financial Position Analysis

Short Term Liabilities: BGA's short term assets (A$833.4M) exceed its short term liabilities (A$684.9M).

Long Term Liabilities: BGA's short term assets (A$833.4M) exceed its long term liabilities (A$540.5M).


Debt to Equity History and Analysis

Debt Level: BGA's debt to equity ratio (31.1%) is considered satisfactory.

Reducing Debt: BGA's debt to equity ratio has increased from 19.2% to 31.1% over the past 5 years.

Debt Coverage: BGA's debt is well covered by operating cash flow (28.4%).

Interest Coverage: BGA's interest payments on its debt are well covered by EBIT (11x coverage).


Balance Sheet


Dividend

What is Bega Cheese current dividend yield, its reliability and sustainability?

1.87%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BGA's dividend (1.87%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.23%).

High Dividend: BGA's dividend (1.87%) is low compared to the top 25% of dividend payers in the Australian market (5.32%).


Stability and Growth of Payments

Stable Dividend: BGA's dividends per share have been stable in the past 10 years.

Growing Dividend: BGA's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36.6%), BGA's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BGA's dividends in 3 years are forecast to be covered by earnings (51.4% payout ratio).


Next Steps

Management

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

4.0yrs

Average management tenure


CEO

Paul van Heerwaarden

4.67yrs

Tenure

AU$1,597,831

Compensation

Mr. Paul van Heerwaarden, MBA, CPA, BBus (Acct), has been Chief Executive Officer of Bega Cheese Limited since February 1, 2017. Mr. van Heerwaarden served as Chief Operating Officer at Bega Cheese Limited...


CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD1.20M) is about average for companies of similar size in the Australian market ($USD1.40M).

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


Leadership Team

Experienced Management: BGA's management team is considered experienced (4 years average tenure).


Board Members

Experienced Board: BGA's board of directors are considered experienced (4.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: BGA 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 40.8%.


Top Shareholders

Company Information

Bega Cheese Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Bega Cheese Limited
  • Ticker: BGA
  • Exchange: ASX
  • Founded: 1899
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: AU$1.615b
  • Shares outstanding: 302.99m
  • Website: https://www.begacheese.com.au

Number of Employees


Location

  • Bega Cheese Limited
  • 23-45 Ridge Street
  • Bega
  • New South Wales
  • 2550
  • 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
Earnings2021/06/30
Annual Earnings2021/06/30


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.