ASX:BUB

Stock Analysis Report

Executive Summary

Bubs Australia Limited produces and sells organic baby food and goat milk infant formula products in Australia, China, and internationally.

Snowflake

Fundamentals

High growth potential with adequate balance sheet.

Risks

  • Bubs Australia is covered by less than 3 analysts.

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


Market Performance


7 Day Return

-2.9%

ASX:BUB

0.2%

AU Food

0.5%

AU Market


1 Year Return

74.6%

ASX:BUB

-16.8%

AU Food

6.3%

AU Market

BUB outperformed the Food industry which returned -16.8% over the past year.

BUB outperformed the Market in Australia which returned 6.3% over the past year.


Share holder returns

BUBIndustryMarket
7 Day-2.9%0.2%0.5%
30 Day3.1%2.3%4.4%
90 Day11.4%-4.6%2.1%
1 Year74.6%74.6%-14.8%-16.8%12.4%6.3%
3 Yearn/a-2.9%-7.8%41.3%22.3%
5 Yearn/a34.5%23.0%47.8%14.7%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Bubs Australia's share price is below the future cash flow value, and at a moderate discount (> 20%).

Bubs Australia's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Bubs Australia is loss making, we can't compare its value to the AU Food industry average.

Bubs Australia is loss making, we can't compare the value of its earnings to the Australia market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Bubs Australia, we can't assess if its growth is good value.


Price Based on Value of Assets

Bubs Australia is overvalued based on assets compared to the AU Food industry average.


Next Steps

Future Growth

How is Bubs Australia expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

63.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Bubs Australia's revenue is expected to grow significantly at over 20% yearly.

Bubs Australia's earnings are expected to grow significantly at over 20% yearly.

Bubs Australia's revenue growth is expected to exceed the Australia market average.

Bubs Australia's earnings growth is expected to exceed the Australia market average.

Bubs Australia's earnings growth is expected to exceed the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

Bubs Australia is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Bubs Australia performed over the past 5 years?

-61.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Bubs Australia does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Bubs Australia's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Bubs Australia's 1-year growth to the AU Food industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Bubs Australia has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Bubs Australia has efficiently used its assets last year compared to the AU Food industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Bubs Australia improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Bubs Australia's financial position?


Financial Position Analysis

Bubs Australia is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Bubs Australia's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Bubs Australia's level of debt (1.9%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (159.8% vs 1.9% today).


Balance Sheet

Low level of unsold assets.

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.

Bubs Australia has less than a year of cash runway based on current free cash flow.

Unable to confirm if Bubs Australia has at least 1 year of cash runway based on growing free cash flows without relevant data.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Bubs Australia's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Bubs Australia's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Bubs Australia has not reported any payouts.

Unable to verify if Bubs Australia's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Bubs Australia has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

0.9yrs

Average management tenure


CEO

Kristy-Lee Carr 0

1yrs

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

Kristy-Lee's remuneration is higher than average for companies of similar size in Australia.

Kristy-Lee's compensation has increased whilst company is loss making.


Management Age and Tenure

0.9yrs

Average Tenure

The average tenure for the Bubs Australia management team is less than 2 years, this suggests a new team.


Board Age and Tenure

2.4yrs

Average Tenure

The average tenure for the Bubs Australia board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


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


Management Team

  • Kristy-Lee Carr

    Founder

    • Tenure: 1yrs
    • Compensation: AU$1.71m
  • Anthony Gualdi

    Co-Founder

    • Tenure: 14.7yrs
    • Compensation: AU$234.95k
  • Jay Stephenson

    Company Secretary

    • Tenure: 4yrs
  • Charles Li

    Chief Operating Officer of China

    • Tenure: 0yrs
  • Iris Ren

    Chief Financial Officer

    • Tenure: 0.9yrs
    • Compensation: AU$233.86k
  • Vivian Zurlo

    General Manager of Marketing

    • Tenure: 0.2yrs
  • David Orton

    General Manager of Commercial

    • Tenure: 0.9yrs
    • Compensation: AU$315.06k
  • Richard Paine

    General Manager of Dairy Operations

    • Tenure: 0.6yrs
    • Compensation: AU$264.72k

Board Members

  • Matthew Reynolds (49yo)

    Non-Executive Director

    • Tenure: 2.8yrs
    • Compensation: AU$43.80k
  • Kristy-Lee Carr

    Founder

    • Tenure: 1yrs
    • Compensation: AU$1.71m
  • Dennis Lin

    Non-Executive Chairman

    • Tenure: 2.1yrs
    • Compensation: AU$164.25k
  • Steve Lin

    Non-Executive Director

    • Tenure: 0.4yrs
    • 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$601.148m
  • Shares outstanding: 513.80m
  • Website: https://www.investor.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 organic baby food and goat milk infant formula products in Australia, China, and internationally. It also offers fresh dairy products, such as powder, yoghurt, and ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/15 10:41
End of Day Share Price2019/09/13 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.