ASX:BUB

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Excellent balance sheet with high growth potential.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.3%

BUB

-2.6%

AU Food

-1.4%

AU Market


1 Year Return

-37.7%

BUB

3.5%

AU Food

-7.1%

AU Market

Return vs Industry: BUB underperformed the Australian Food industry which returned -3.2% over the past year.

Return vs Market: BUB underperformed the Australian Market which returned -6.9% over the past year.


Shareholder returns

BUBIndustryMarket
7 Day-5.3%-2.6%-1.4%
30 Day-5.9%1.5%3.4%
90 Day-24.2%6.2%3.8%
1 Year-37.7%-37.7%6.6%3.5%-3.7%-7.1%
3 Year-11.7%-11.7%-13.1%-20.0%16.9%2.1%
5 Yearn/a14.7%-0.4%46.0%15.6%

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$0.72) is trading below our estimate of fair value (A$1.8)

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 AU 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 (3.1x) 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?

55.1%

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 (32.5% per year) is forecast to grow faster than the Australian market (4.6% per year).

High Growth Revenue: BUB's revenue (32.5% 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 (5.6%).


Next Steps

Past Performance

How has Bubs Australia performed over the past 5 years?

-35.9%

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 35.9% 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 (-9.4%).


Return on Equity

High ROE: BUB has a negative Return on Equity (-5.89%), as it is currently unprofitable.


Next Steps

Financial Health

How is Bubs Australia's financial position?


Financial Position Analysis

Short Term Liabilities: BUB's short term assets (A$65.9M) exceed its short term liabilities (A$19.6M).

Long Term Liabilities: BUB's short term assets (A$65.9M) exceed its long term liabilities (A$10.0M).


Debt to Equity History and Analysis

Debt Level: BUB's debt to equity ratio (1.5%) is considered satisfactory.

Reducing Debt: BUB's debt to equity ratio has reduced from 486.2% to 1.5% 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 a year 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 current dividend yield, its reliability and sustainability?


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.


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

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

2.0yrs

Average management tenure


CEO

Kristy-Lee Carr

2.08yrs

Tenure

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 ($USD192.02K) is below average for companies of similar size in the Australian market ($USD693.56K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Dennis Lin
Executive Chairman3.17yrsAU$1.42mno data
Kristy-Lee Carr
Founder2.08yrsno data2.22%
A$ 10.0m
Iris Ren
Chief Financial Officer2yrsAU$267.47kno data
David Orton
GM of Commercial & Operationsno dataAU$261.70kno data
Vivian Zurlo
General Manager of Marketing1.25yrsAU$219.18kno data
Richard Paine
General Manager of Dairy Operations1.67yrsAU$281.82k0.00024%
A$ 1.1k
Jay Stephenson
Company Secretary5.08yrsno datano data
Charles Li
Chief Operating Officer of Chinano datano datano data

2.0yrs

Average Tenure

Experienced Management: BUB's management team is considered experienced (2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Dennis Lin
Executive Chairman3.17yrsAU$1.42mno data
Kristy-Lee Carr
Founder2.08yrsno data2.22%
A$ 10.0m
Matthew Reynolds
Independent Non-Executive Director3.83yrsAU$43.80kno data
Steve Lin
Non-Executive Director1.5yrsAU$40.00kno data

3.5yrs

Average Tenure

Experienced Board: BUB's board of directors are considered experienced (3.5 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 19.2%.


Top Shareholders

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: 1993
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: AU$450.390m
  • Shares outstanding: 612.78m
  • Website: https://www.bubsaustralia.com

Number of Employees


Location

  • Bubs Australia Limited
  • 23 Nina Link
  • Dandenong South
  • Victoria
  • 3175
  • 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, 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 m ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/26 10:45
End of Day Share Price2020/10/26 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.