ASX:BGA

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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


Snowflake Analysis

Excellent balance sheet with proven track record.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.5%

BGA

1.5%

AU Food

1.2%

AU Market


1 Year Return

14.9%

BGA

-7.9%

AU Food

-10.3%

AU Market

Return vs Industry: BGA exceeded the Australian Food industry which returned -7.9% over the past year.

Return vs Market: BGA exceeded the Australian Market which returned -10.3% over the past year.


Shareholder returns

BGAIndustryMarket
7 Day-1.5%1.5%1.2%
30 Day1.6%2.2%-2.6%
90 Day18.9%5.7%3.0%
1 Year17.3%14.9%-5.5%-7.9%-7.1%-10.3%
3 Year-18.6%-23.4%-10.5%-17.4%18.6%3.3%
5 Year18.0%7.6%17.8%2.9%46.1%15.4%

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?

38.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BGA (A$5.23) is trading below our estimate of fair value (A$8.43)

Significantly Below Fair Value: 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 (52.7x) compared to the AU Food industry average (24.8x).

PE vs Market: BGA is poor value based on its PE Ratio (52.7x) compared to the Australian market (20.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: BGA is overvalued based on its PB Ratio (1.4x) 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 8 analysts?

21.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BGA's forecast earnings growth (21% per year) is above the savings rate (2.3%).

Earnings vs Market: BGA's earnings (21% per year) are forecast to grow faster than the Australian market (17.9% per year).

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

Revenue vs Market: BGA's revenue (4.8% per year) is forecast to grow faster than the Australian market (4.4% per year).

High Growth Revenue: BGA's revenue (4.8% 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 (7.4%).


Next Steps

  • Explore growth companies in the Food, Beverage & Tobacco industry.

Past Performance

How has Bega Cheese performed over the past 5 years?

-10.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BGA has high quality earnings.

Growing Profit Margin: BGA's current net profit margins (1.4%) are higher than last year (0.3%).


Past Earnings Growth Analysis

Earnings Trend: BGA's earnings have declined by 10% per year over the past 5 years.

Accelerating Growth: BGA's earnings growth over the past year (367.7%) exceeds its 5-year average (-10% per year).

Earnings vs Industry: BGA earnings growth over the past year (367.7%) exceeded the Food industry -9.4%.


Return on Equity

High ROE: BGA's Return on Equity (2.6%) is considered low.


Next Steps

Financial Health

How is Bega Cheese's financial position?


Financial Position Analysis

Short Term Liabilities: BGA's short term assets (A$409.7M) exceed its short term liabilities (A$306.0M).

Long Term Liabilities: BGA's short term assets (A$409.7M) exceed its long term liabilities (A$303.4M).


Debt to Equity History and Analysis

Debt Level: BGA's debt to equity ratio (30.4%) is considered satisfactory.

Reducing Debt: BGA's debt to equity ratio has increased from 22.2% to 30.4% over the past 5 years.

Debt Coverage: BGA's debt is well covered by operating cash flow (55.7%).

Interest Coverage: BGA's interest payments on its debt are well covered by EBIT (4.4x coverage).


Balance Sheet


Next Steps

Dividend

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

1.91%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BGA's dividend (1.91%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.38%).

High Dividend: BGA's dividend (1.91%) is low compared to the top 25% of dividend payers in the Australian market (5.61%).


Stability and Growth of Payments

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 9 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (100.7%), 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 covered by earnings (54.1% payout ratio).


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Paul van Heerwaarden

3.58yrs

Tenure

AU$857,200

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 ($USD601.33K) is below average for companies of similar size in the Australian market ($USD938.18K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Barry Irvin
Executive Chairman20.67yrsAU$644.52kno data
Paul van Heerwaarden
Chief Executive Officer3.58yrsAU$857.20k0.022%
A$ 250.3k
Pete Findlay
Chief Financial Officer0.83yrAU$751.68kno data
Colin Griffin
Executive GM of Contract Manufacturing & Company Secretary27.67yrsAU$475.28k0.068%
A$ 767.1k
Antonietta Timms
Executive General Manager of Operational Excellence2.67yrsno datano data
David McKinnon
Executive General Manager of Human Resourcesno datano datano data
Hamish Reid
Executive General Manager of Nutritionals4.17yrsno datano data
Mark McDonald
Executive General Manager of Dairy Ingredients4.08yrsno datano data
Adam McNamara
Executive General Manager of Bega Foods2.92yrsno datano data
Stephen Re
Executive General Manager Strategyno datano datano data
Brett Kelly
Company Secretary18.67yrsno datano data

3.8yrs

Average Tenure

Experienced Management: BGA's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Barry Irvin
Executive Chairman20.67yrsAU$644.52kno data
Peter Margin
Independent Directorno dataAU$67.69kno data
Raelene Murphy
Independent Director5.25yrsAU$117.88k0.0042%
A$ 46.9k
Richard Cross
Non-Executive Director8.75yrsAU$102.58k0.088%
A$ 993.7k
Richard Parbery
Non-Executive Director32yrsAU$101.50kno data
Terrence O'Brien
Independent Director3yrsAU$119.00k0.0062%
A$ 69.7k
Patria Mann
Independent Non Executive Director1yrAU$83.17k0.0093%
A$ 104.6k

7.0yrs

Average Tenure

Experienced Board: BGA's board of directors are considered experienced (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 not been meaningfully diluted in the past year.


Top Shareholders

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$1.125b
  • Shares outstanding: 215.01m
  • 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 in Australia. The company operates in two segments, Branded and Bulk. The Branded ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/27 19:03
End of Day Share Price2020/09/25 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.