ASX:BUB

Stock Analysis Report

Executive Summary

Bubs Australia Limited produces and sells various infant nutrition products in Australia, China, and internationally.

Snowflake

Fundamentals

High growth potential with adequate balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

1.4%

BUB

1.7%

AU Food

0.7%

AU Market


1 Year Return

135.1%

BUB

-9.9%

AU Food

17.7%

AU Market

Return vs Industry: BUB exceeded the Australian Food industry which returned -9.9% over the past year.

Return vs Market: BUB exceeded the Australian Market which returned 17.7% over the past year.


Shareholder returns

BUBIndustryMarket
7 Day1.4%1.7%0.7%
30 Day-10.5%-0.9%2.0%
90 Day-1.8%3.6%4.9%
1 Year135.1%135.1%-6.5%-9.9%24.5%17.7%
3 Yearn/a7.0%-0.4%40.5%21.3%
5 Yearn/a34.8%23.0%57.1%22.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Bubs Australia undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BUB (A$1.11) is trading below our estimate of fair value (A$2.5)

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


Price To Earnings Ratio

PE vs Industry: BUB is unprofitable, so we can't compare its PE Ratio to the Food industry average.

PE vs Market: BUB is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate BUB's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: BUB is overvalued based on its PB Ratio (5.3x) compared to the AU Food industry average (1.4x).


Next Steps

Future Growth

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

61.9%

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 (2.3%).

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's is expected to become profitable in the next 3 years.

Revenue vs Market: BUB's revenue (32.9% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: BUB's revenue (32.9% 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 (14.5%).


Next Steps

Past Performance

How has Bubs Australia performed over the past 5 years?

-61.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BUB has high quality earnings.

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 -61.2% 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 (-26.2%).


Return on Equity

High ROE: BUB has a negative Return on Equity (-33.61%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Bubs Australia's financial position?


Financial Position Analysis

Short Term Liabilities: BUB's short term assets (A$57.0M) exceeds its short term liabilities (A$28.1M)

Long Term Liabilities: BUB's short term assets (A$57.0M) exceeds its long term liabilities (20.8M)


Debt to Equity History and Analysis

Debt Level: BUB's debt to equity ratio (1.9%) is considered satisfactory.

Reducing Debt: BUB's debt to equity ratio has reduced from 159.8% to 1.9% over the past 5 years.


Balance Sheet

Inventory Level: BUB has a low level of unsold assets or inventory.

Debt Coverage by Assets: BUB's debt is covered by short term assets (assets are 28.5x debt).


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 less than a year of cash runway 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.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%5.6%industryaverage3.3%forecastin3Years0%

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate BUB'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 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.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BUB's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

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

1.1yrs

Average management tenure


CEO

Kristy-Lee Carr 0

1.2yrs

Tenure

AU$1,706,874

Compensation

Ms. Kristy-Lee Newland Carr, BBus Founded Bubs Australia Limited in 2006 and has been its Chief Executive Officer since September 2018 and Executive Director since December 22, 2016. Ms. Carr served as Man ...


CEO Compensation Analysis

Compensation vs Market: Kristy-Lee's total compensation ($USD1.16M) is above average for companies of similar size in the Australian market ($USD707.53K).

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


Management Age and Tenure

1.1yrs

Average Tenure

Experienced Management: BUB's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Age and Tenure

2.6yrs

Average Tenure

Experienced Board: BUB's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellAU$5,920,00114 May 19
Kristy-Lee Carr
EntityIndividual
Role
Chief Executive Officer
Founder
Shares4,000,000
Max PriceAU$1.48

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 39.8%.


Management Team

  • Kristy-Lee Carr

    Founder

    • Tenure: 1.2yrs
    • Compensation: AU$1.71m
  • Dennis Lin

    Executive Chairman

    • Tenure: 2.3yrs
    • Compensation: AU$164.25k
  • Anthony Gualdi

    Co-Founder

    • Tenure: 14.8yrs
    • Compensation: AU$234.95k
  • Jay Stephenson

    Company Secretary

    • Tenure: 4.2yrs
  • Charles Li

    Chief Operating Officer of China

    • Tenure: 0yrs
  • Iris Ren

    Chief Financial Officer

    • Tenure: 1.1yrs
    • Compensation: AU$233.86k
  • Vivian Zurlo

    General Manager of Marketing

    • Tenure: 0.3yrs
  • David Orton

    General Manager of Commercial

    • Tenure: 1.1yrs
    • Compensation: AU$315.06k
  • Richard Paine

    General Manager of Dairy Operations

    • Tenure: 0.8yrs
    • Compensation: AU$264.72k

Board Members

  • Matthew Reynolds (49yo)

    Independent Non-Executive Director

    • Tenure: 2.9yrs
    • Compensation: AU$43.80k
  • Kristy-Lee Carr

    Founder

    • Tenure: 1.2yrs
    • Compensation: AU$1.71m
  • Dennis Lin

    Executive Chairman

    • Tenure: 2.3yrs
    • Compensation: AU$164.25k
  • Steve Lin

    Non-Executive Director

    • Tenure: 0.6yrs
    • Compensation: AU$8.00k

Company Information

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


Key Information

  • Name: Bubs Australia Limited
  • Ticker: BUB
  • Exchange: ASX
  • Founded: 2005
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: AU$568.048m
  • Shares outstanding: 514.07m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BUBASX (Australian Securities Exchange)YesNew Ordinary SharesAUAUDJan 2017
BUBCHIA (Chi-X Australia)YesNew Ordinary SharesAUAUDJan 2017
23ODB (Deutsche Boerse AG)YesNew Ordinary SharesDEEURJan 2017

Biography

Bubs Australia Limited produces and sells various infant nutrition products in Australia, China, and internationally. It offers organic baby food, goat milk infant formula, adult goat milk powder, and fres ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/19 10:43
End of Day Share Price2019/11/19 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.