ASX:BGA

Stock Analysis Report

Executive Summary

Bega Cheese Limited engages in receiving, processing, manufacturing, and distributing dairy and other food-related products primarily in Australia.

Snowflake

Fundamentals

Excellent balance sheet with reasonable growth potential.

Share Price & News

How has Bega Cheese's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.5%

BGA

0.6%

AU Food

0.4%

AU Market


1 Year Return

-29.1%

BGA

-10.2%

AU Food

9.8%

AU Market

Return vs Industry: BGA underperformed the Australian Food industry which returned -10.2% over the past year.

Return vs Market: BGA underperformed the Australian Market which returned 9.8% over the past year.


Shareholder returns

BGAIndustryMarket
7 Day0.5%0.6%0.4%
30 Day-3.7%-1.4%-1.1%
90 Day-0.9%-3.8%-0.6%
1 Year-27.4%-29.1%-7.7%-10.2%16.1%9.8%
3 Year-27.2%-31.2%-1.9%-6.7%36.1%17.9%
5 Year-5.2%-13.4%38.7%27.4%49.4%15.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

45.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: BGA (A$4.45) is trading below our estimate of fair value (A$8.15)

Significantly Undervalued: BGA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BGA is poor value based on its PE Ratio (78x) compared to the Food industry average (25.3x).

PE vs Market: BGA is poor value based on its PE Ratio (78x) compared to the Australian market (18.2x).


Price to Earnings Growth Ratio

Low PEG Ratio: BGA is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: BGA is good value based on its PB Ratio (1.2x) compared to the AU Food industry average (1.2x).


Next Steps

Future Growth

How is Bega Cheese forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

30.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BGA's forecast earnings growth (30.2% per year) is above the savings rate (2.3%).

Earnings vs Market: BGA's earnings (30.2% per year) are forecast to grow faster than the Australian market (10.3% per year).

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

Revenue vs Market: BGA's revenue (6.4% per year) is forecast to grow faster than the Australian market (3.6% per year).

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


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Bega Cheese performed over the past 5 years?

2.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BGA's earnings have grown by 2% per year over the past 5 years.

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

Earnings vs Industry: BGA had negative earnings growth (-58.9%) over the past year, making it difficult to compare to the Food industry average (-28.6%).


Return on Equity

High ROE: BGA's Return on Equity (1.4%) is considered low.


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is Bega Cheese's financial position?


Financial Position Analysis

Short Term Liabilities: BGA's short term assets (A$489.6M) exceeds its short term liabilities (A$315.1M)

Long Term Liabilities: BGA's short term assets (489.6M) exceeds its long term liabilities (347.6M)


Debt to Equity History and Analysis

Debt Level: BGA's debt to equity ratio (38.3%) is considered satisfactory

Reducing Debt: BGA's debt to equity ratio has increased from 6.8% to 38.3% over the past 5 years.

Debt Coverage: BGA's debt is well covered by operating cash flow (31.7%).

Interest Coverage: BGA's interest payments on its debt are well covered by EBIT (3.8x coverage).


Balance Sheet

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

Debt Coverage by Assets: BGA's debt is covered by short term assets (assets are 1.549040x debt).


Next Steps

Dividend

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

2.47%

Current Dividend Yield


Dividend Yield vs Market

company2.5%marketbottom25%2.4%markettop25%5.6%industryaverage3.1%forecastin3Years3.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: BGA's dividend (2.47%) is higher than the bottom 25% of dividend payers in the Australian market (2.44%).

High Dividend: BGA's dividend (2.47%) is low compared to the top 25% of dividend payers in the Australian market (5.59%).

Stable Dividend: Whilst dividend payments have been stable, BGA has been paying a dividend for less than 10 years.

Growing Dividend: BGA's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (192.9%), BGA's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BGA's dividends in 3 years are forecast to be well covered by earnings (49.4% payout ratio).


Next Steps

Management

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

2.9yrs

Average management tenure


CEO

Paul van Heerwaarden 0

2.7yrs

Tenure

AU$964,188

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 ($USD660.09K) is about average for companies of similar size in the Australian market ($USD992.67K).

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


Management Age and Tenure

2.9yrs

Average Tenure

Experienced Management: BGA's management team is considered experienced (2.9 years average tenure).


Board Age and Tenure

2.1yrs

Average Tenure

Experienced Board: BGA's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: BGA insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyAU$2,677,53016 Oct 19
The Vanguard Group, Inc.
EntityCompany
Shares530,204
Max PriceAU$5.05
SellAU$205,32416 Oct 19
The Vanguard Group, Inc.
EntityCompany
Shares41,193
Max PriceAU$4.98
SellAU$34,12401 Oct 19
The Vanguard Group, Inc.
EntityCompany
Shares7,467
Max PriceAU$4.57
BuyAU$27,01301 Oct 19
The Vanguard Group, Inc.
EntityCompany
Shares5,937
Max PriceAU$4.55
BuyAU$1,575,47729 Sep 19
The Vanguard Group, Inc.
EntityCompany
Shares309,524
Max PriceAU$5.09
SellAU$49,89829 Sep 19
The Vanguard Group, Inc.
EntityCompany
Shares9,888
Max PriceAU$5.05
BuyAU$11,52003 Sep 19
Terrence O’Brien
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,880
Max PriceAU$4.00
BuyAU$13,776,31103 Sep 19
Ethical Partners Management Fund Managment Pty Ltd
EntityCompany
Shares3,340,231
Max PriceAU$4.12
SellAU$15,805,83702 Sep 19
Perpetual Limited
EntityCompany
Shares3,422,741
Max PriceAU$4.62
BuyAU$37,466,07102 Sep 19
Perpetual Limited
EntityCompany
Shares8,931,131
Max PriceAU$4.19
SellAU$14,097,67729 Aug 19
Cooper Investors Pty Limited
EntityCompany
Shares3,517,594
Max PriceAU$4.31
SellAU$9,913,52205 Aug 19
Cooper Investors Pty Limited
EntityCompany
Shares2,158,279
Max PriceAU$4.64
BuyAU$10,851,21822 Jul 19
Ethical Partners Management Fund Managment Pty Ltd
EntityCompany
Shares2,385,014
Max PriceAU$4.90
SellAU$10,217,56716 Jul 19
Cooper Investors Pty Limited
EntityCompany
Shares2,223,737
Max PriceAU$4.81
SellAU$25,446,15102 Jul 19
Cooper Investors Pty Limited
EntityCompany
Shares5,109,905
Max PriceAU$7.08
BuyAU$16,372,13402 Jul 19
Cooper Investors Pty Limited
EntityCompany
Shares2,859,078
Max PriceAU$7.27
BuyAU$37,591,03726 Jun 19
Ethical Partners Management Fund Managment Pty Ltd
EntityCompany
Shares7,669,545
Max PriceAU$4.90
SellAU$27,333,57105 Apr 19
Perpetual Limited
EntityCompany
Shares5,508,757
Max PriceAU$4.96
BuyAU$10,729,45505 Apr 19
Perpetual Limited
EntityCompany
Shares2,278,117
Max PriceAU$4.71
BuyAU$9,65406 Mar 19
Terrence O’Brien
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,143
Max PriceAU$4.51
SellAU$16,563,87111 Feb 19
Perpetual Limited
EntityCompany
Shares3,304,637
Max PriceAU$5.01
BuyAU$487,25211 Feb 19
Perpetual Limited
EntityCompany
Shares88,884
Max PriceAU$5.48
BuyAU$17,511,28123 Nov 18
Perpetual Limited
EntityCompany
Shares2,876,901
Max PriceAU$6.09
SellAU$4,274,21723 Nov 18
Perpetual Limited
EntityCompany
Shares672,425
Max PriceAU$6.36

Ownership Breakdown


Management Team

  • Barry Irvin

    Executive Chairman (Leave of Absence)

    • Tenure: 0yrs
    • Compensation: AU$728.67k
  • Colin Griffin

    CFO & Company Secretary

    • Tenure: 0yrs
    • Compensation: AU$637.71k
  • Brett Kelly

    Company Secretary

    • Tenure: 17.8yrs
  • Paul van Heerwaarden

    Chief Executive Officer

    • Tenure: 2.7yrs
    • Compensation: AU$964.19k
  • David McKinnon

    Executive General Manager of Human Resources

    • Tenure: 0yrs
  • Adam McNamara

    Executive General Manager of Bega Foods

    • Tenure: 2yrs
  • Hamish Reid

    Executive General Manager of Nutritionals

    • Tenure: 3.3yrs
  • Mark McDonald

    Executive General Manager of Dairy Ingredients

    • Tenure: 3.2yrs
  • Antonietta Timms

    Executive General Manager of Operational Excellence

    • Tenure: 1.8yrs
  • Stephen Rae

    Executive General Manager of Strategy

    • Tenure: 0yrs

Board Members

  • Raelene Murphy (59yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: AU$109.21k
  • Rick Cross

    Non-Executive Director

    • Tenure: 7.8yrs
    • Compensation: AU$97.83k
  • Richard Parbery

    Non-Executive Director

    • Tenure: 31.1yrs
    • Compensation: AU$99.21k
  • Max Roberts

    Chairman of the Board

    • Tenure: 0.4yrs
    • Compensation: AU$116.17k
  • Jeff Odgers

    Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: AU$99.21k
  • Terry O’Brien

    Independent Director

    • Tenure: 2.1yrs
    • Compensation: AU$105.32k
  • Patria Mann

    Non-Executive Director

    • Tenure: 0.08yrs

Company Information

Bega Cheese Limited's company bio, 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$953.390m
  • Shares outstanding: 214.24m
  • Website: https://www.begacheese.com.au

Number of Employees


Location

  • Bega Cheese Limited
  • 23-45 Ridge Street
  • Bega
  • New South Wales
  • 2550
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BGAASX (Australian Securities Exchange)YesOrdinary SharesAUAUDAug 2011
B6GDB (Deutsche Boerse AG)YesOrdinary SharesDEEURAug 2011
BGACHIA (Chi-X Australia)YesOrdinary SharesAUAUDAug 2011

Biography

Bega Cheese Limited engages in receiving, processing, manufacturing, and distributing dairy and other food-related products primarily in Australia. The company operates in two segments, Bega Cheese and Tat ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 10:34
End of Day Share Price2019/10/18 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.