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BUB

Bubs Australia ASX:BUB Stock Report

Last Price

AU$0.63

Market Cap

AU$455.1m

7D

7.8%

1Y

52.4%

Updated

09 Aug, 2022

Data

Company Financials +
BUB fundamental analysis
Snowflake Score
Valuation2/6
Future Growth5/6
Past Performance0/6
Financial Health4/6
Dividends0/6

BUB Stock Overview

Bubs Australia Limited, together with its subsidiaries, engages in the production and sale of various infant nutrition products in Australia, China, and internationally.

Bubs Australia Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Bubs Australia
Historical stock prices
Current Share PriceAU$0.63
52 Week HighAU$0.86
52 Week LowAU$0.34
Beta0.84
1 Month Change12.61%
3 Month Change68.92%
1 Year Change52.44%
3 Year Change-48.77%
5 Year Change-8.76%
Change since IPO362.96%

Recent News & Updates

Shareholder Returns

BUBAU FoodAU Market
7D7.8%3.8%0.7%
1Y52.4%-12.3%-8.0%

Return vs Industry: BUB exceeded the Australian Food industry which returned -12.3% over the past year.

Return vs Market: BUB exceeded the Australian Market which returned -8% over the past year.

Price Volatility

Is BUB's price volatile compared to industry and market?
BUB volatility
BUB Average Weekly Movement15.4%
Food Industry Average Movement6.6%
Market Average Movement10.5%
10% most volatile stocks in AU Market17.6%
10% least volatile stocks in AU Market4.6%

Stable Share Price: BUB is more volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 15% a week.

Volatility Over Time: BUB's weekly volatility (15%) has been stable over the past year, but is still higher than 75% of Australian stocks.

About the Company

FoundedEmployeesCEOWebsite
199341Kristy-Lee Carrhttps://www.bubsaustralia.com

Bubs Australia Limited, together with its subsidiaries, engages in the production and sale of various infant nutrition products in Australia, China, and internationally. It offers organic baby food, goat milk and organic cow’s milk infant formula, adult goat milk powder, and fresh dairy products, as well as pouches, cereals, and snacks under the Bubs and CapriLac brands. The company also provides children’s vitamin and mineral supplement products under the Vita Bubs name; canning services for nutritional dairy products; and holds IP and trademarks.

Bubs Australia Fundamentals Summary

How do Bubs Australia's earnings and revenue compare to its market cap?
BUB fundamental statistics
Market CapAU$455.06m
Earnings (TTM)-AU$62.44m
Revenue (TTM)AU$54.65m

8.4x

P/S Ratio

-7.3x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
BUB income statement (TTM)
RevenueAU$54.65m
Cost of RevenueAU$47.69m
Gross ProfitAU$6.97m
Other ExpensesAU$69.41m
Earnings-AU$62.44m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.085
Gross Margin12.75%
Net Profit Margin-114.25%
Debt/Equity Ratio2.3%

How did BUB perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is BUB undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for BUB?

Other financial metrics that can be useful for relative valuation.

BUB key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue7.8x
Enterprise Value/EBITDA-32.5x
PEG Ration/a

Price to Sales Ratio vs Peers

How does BUB's PS Ratio compare to its peers?

BUB PS Ratio vs Peers
The above table shows the PS ratio for BUB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average1.7x
SGLLV Ricegrowers
0.3x5.3%AU$455.8m
CBO Cobram Estate Olives
4.2x14.5%AU$565.8m
UMG United Malt Group
0.7x3.2%AU$954.9m
TGR Tassal Group
1.5x0.8%AU$1.1b
BUB Bubs Australia
8.4x31.3%AU$455.1m

Price-To-Sales vs Peers: BUB is expensive based on its Price-To-Sales Ratio (8.4x) compared to the peer average (1.7x).


Price to Earnings Ratio vs Industry

How does BUB's PE Ratio compare vs other companies in the AU Food Industry?

Price-To-Sales vs Industry: BUB is expensive based on its Price-To-Sales Ratio (8.4x) compared to the Australian Food industry average (1.6x)


Price to Sales Ratio vs Fair Ratio

What is BUB's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

BUB PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio8.4x
Fair PS Ratio2.2x

Price-To-Sales vs Fair Ratio: BUB is expensive based on its Price-To-Sales Ratio (8.4x) compared to the estimated Fair Price-To-Sales Ratio (2.2x).


Share Price vs Fair Value

What is the Fair Price of BUB when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BUB (A$0.63) is trading below our estimate of fair value (A$3.01)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Future Growth

How is Bubs Australia forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


59.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BUB is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.8%).

Earnings vs Market: BUB is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: BUB is expected to become profitable in the next 3 years.

Revenue vs Market: BUB's revenue (31.3% per year) is forecast to grow faster than the Australian market (5.6% per year).

High Growth Revenue: BUB's revenue (31.3% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BUB's Return on Equity is forecast to be low in 3 years time (10.4%).


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Past Performance

How has Bubs Australia performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-21.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BUB is currently unprofitable.

Growing Profit Margin: BUB is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: BUB is unprofitable, and losses have increased over the past 5 years at a rate of 21.9% per year.

Accelerating Growth: Unable to compare BUB's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: BUB is unprofitable, making it difficult to compare its past year earnings growth to the Food industry (82.3%).


Return on Equity

High ROE: BUB has a negative Return on Equity (-72.34%), as it is currently unprofitable.


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Financial Health

How is Bubs Australia's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: BUB's short term assets (A$62.7M) exceed its short term liabilities (A$20.8M).

Long Term Liabilities: BUB's short term assets (A$62.7M) exceed its long term liabilities (A$1.7M).


Debt to Equity History and Analysis

Debt Level: BUB has more cash than its total debt.

Reducing Debt: BUB's debt to equity ratio has increased from 0.4% to 2.3% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: BUB has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if BUB has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


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Dividend

What is Bubs Australia current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

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

High Dividend: Unable to evaluate BUB'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 BUB's dividends per share have been stable in the past.

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


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as BUB has not reported any payouts.


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Management

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

3.8yrs

Average management tenure


CEO

Kristy-Lee Carr

17.58yrs

Tenure

AU$633,058

Compensation

Ms. Kristy-Lee Newland Carr, BBus, founded Bubs Australia Limited in 2005 and has been its Chief Executive Officer since September 03, 2018, Executive Director since December 22, 2016 and Managing Director...


CEO Compensation Analysis

Compensation vs Market: Kristy-Lee's total compensation ($USD443.13K) is below average for companies of similar size in the Australian market ($USD797.23K).

Compensation vs Earnings: Kristy-Lee's compensation has increased whilst the company is unprofitable.


Leadership Team

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


Board Members

Experienced Board: BUB's board of directors are considered experienced (4.5 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 19.8%.


Top Shareholders

Company Information

Bubs Australia Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Bubs Australia Limited
  • Ticker: BUB
  • Exchange: ASX
  • Founded: 1993
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Implied Market Cap: AU$455.061m
  • Shares outstanding: 733.97m
  • Website: https://www.bubsaustralia.com

Number of Employees


Location

  • Bubs Australia Limited
  • 2-4/6 Tilley Lane
  • Frenchs Forest
  • New South Wales
  • 2086
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/09 00:00
End of Day Share Price2022/08/09 00:00
Earnings2021/12/31
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.