Costa Group Holdings
Market Cap
AU$849.7m
Last Updated
2019/11/14 10:43 UTC
Data Sources
Company Financials +
Executive Summary
Costa Group Holdings Limited produces, packs, and markets fruits and vegetables to food retailers and FMCG companies in Australia.
Snowflake
Reasonable growth potential and slightly overvalued.
Rewards
Risk Analysis
+ 1 more risk
Share Price & News
How has Costa Group Holdings's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: CGC's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-5.0%
CGC
1.3%
AU Food
0.4%
AU Market
1 Year Return
-57.0%
CGC
-10.0%
AU Food
14.8%
AU Market
Return vs Industry: CGC underperformed the Australian Food industry which returned -10% over the past year.
Return vs Market: CGC underperformed the Australian Market which returned 14.8% over the past year.
Shareholder returns
| CGC | Industry | Market | |
|---|---|---|---|
| 7 Day | -5.0% | 1.3% | 0.4% |
| 30 Day | -26.6% | -2.1% | 0.4% |
| 90 Day | -25.8% | 3.1% | 4.6% |
| 1 Year | -54.3%-57.0% | -6.7%-10.0% | 21.4%14.8% |
| 3 Year | -5.7%-14.8% | 6.6%-0.7% | 40.2%21.4% |
| 5 Year | n/a | 33.3%21.6% | 54.5%19.5% |
Price Volatility Vs. Market
How volatile is Costa Group Holdings's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Such Is Life: How Costa Group Holdings (ASX:CGC) Shareholders Saw Their Shares Drop 57%3 weeks ago | Simply Wall St
Should You Worry About Costa Group Holdings Limited's (ASX:CGC) CEO Pay Cheque?1 month ago | Simply Wall St
Should You Worry About Costa Group Holdings Limited’s (ASX:CGC) ROCE?Valuation
Is Costa Group Holdings 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: CGC (A$2.65) is trading below our estimate of fair value (A$14.57)
Significantly Below Fair Value: CGC is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: CGC is poor value based on its PE Ratio (93.7x) compared to the Food industry average (27.2x).
PE vs Market: CGC is poor value based on its PE Ratio (93.7x) compared to the Australian market (18.6x).
Price to Earnings Growth Ratio
PEG Ratio: CGC is poor value based on its PEG Ratio (1.7x)
Price to Book Ratio
PB vs Industry: CGC is overvalued based on its PB Ratio (1.8x) compared to the AU Food industry average (1.3x).
Next Steps
Future Growth
How is Costa Group Holdings forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
56.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CGC's forecast earnings growth (56.7% per year) is above the savings rate (2.3%).
Earnings vs Market: CGC's earnings (56.7% per year) are forecast to grow faster than the Australian market (9.8% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: CGC's revenue (10.1% per year) is forecast to grow faster than the Australian market (3.6% per year).
High Growth Revenue: CGC's revenue (10.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: CGC's Return on Equity is forecast to be low in 3 years time (9.5%).
Next Steps
Past Performance
How has Costa Group Holdings performed over the past 5 years?
41.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CGC has a high level of non-cash earnings.
Growing Profit Margin: CGC's current net profit margins (0.9%) are lower than last year (11.5%).
Past Earnings Growth Analysis
Earnings Trend: CGC has become profitable over the past 5 years, growing earnings by 41.1% per year.
Accelerating Growth: CGC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: CGC had negative earnings growth (-92.1%) over the past year, making it difficult to compare to the Food industry average (-28.6%).
Return on Equity
High ROE: CGC's Return on Equity (1.5%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Costa Group Holdings's financial position?
Financial Position Analysis
Short Term Liabilities: CGC's short term assets (A$280.2M) exceeds its short term liabilities (A$222.8M)
Long Term Liabilities: CGC's short term assets (280.2M) do not cover its long term liabilities (612.5M)
Debt to Equity History and Analysis
Debt Level: CGC's debt to equity ratio (71.9%) is considered high
Reducing Debt: CGC's debt to equity ratio has reduced from 111.8% to 71.9% over the past 5 years.
Debt Coverage: CGC's debt is not well covered by operating cash flow (2%).
Interest Coverage: CGC's interest payments on its debt are not well covered by EBIT (1x coverage).
Balance Sheet
Inventory Level: CGC has a high level of physical assets or inventory.
Debt Coverage by Assets: CGC's debt is not covered by short term assets (assets are 0.8x debt).
Next Steps
Dividend
What is Costa Group Holdings's current dividend yield, its reliability and sustainability?
3.21%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: CGC's dividend (3.21%) is higher than the bottom 25% of dividend payers in the Australian market (2.35%).
High Dividend: CGC's dividend (3.21%) is low compared to the top 25% of dividend payers in the Australian market (5.62%).
Stability and Growth of Payments
Stable Dividend: CGC has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: CGC's dividend payments have increased, but the company has only paid a dividend for 4 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (176.8%), CGC's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: CGC's dividends in 3 years are forecast to be covered by earnings (59% payout ratio).
Next Steps
Management
What is the CEO of Costa Group Holdings's salary, the management and board of directors tenure and is there insider trading?
7.1yrs
Average management tenure
CEO
Harry Debney 0
9.2yrs
Tenure
AU$1,806,536
Compensation
Mr. Harry George Debney, BAppSc (Hons) has been the Chief Executive Officer of Costa Group Holdings Limited since September 2010 and also its Managing Director since July 24, 2015. Mr. Debney is responsibl ...
CEO Compensation Analysis
Compensation vs Market: Harry's total compensation ($USD1.23M) is above average for companies of similar size in the Australian market ($USD717.43K).
Compensation vs Earnings: Harry's compensation has been consistent with company performance over the past year.
Management Age and Tenure
7.1yrs
Average Tenure
Experienced Management: CGC's management team is seasoned and experienced (7.1 years average tenure).
Board Age and Tenure
3.8yrs
Average Tenure
59.5yo
Average Age
Experienced Board: CGC's board of directors are considered experienced (3.8 years average tenure).
Insider Trading
Insider Buying: CGC insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Company |
| Shares | 6,597,600 |
| Max Price | AU$3.70 |
| Entity | Company |
| Shares | 416,875 |
| Max Price | AU$3.67 |
| Entity | Company |
| Shares | 18,600,905 |
| Max Price | AU$3.65 |
| Entity | Company |
| Shares | 3,004,092 |
| Max Price | AU$4.32 |
| Entity | Company |
| Shares | 18,170,188 |
| Max Price | AU$3.84 |
| Entity | Company |
| Shares | 3,590,718 |
| Max Price | AU$3.62 |
| Entity | Company |
| Shares | 17,803,347 |
| Max Price | AU$5.19 |
| Entity | Company |
| Shares | 14,714 |
| Max Price | AU$3.85 |
| Entity | Company |
| Shares | 16,056,871 |
| Max Price | AU$4.57 |
| Entity | Individual |
| Role | Chairman of the Board Independent Chairman |
| Shares | 40,000 |
| Max Price | AU$2.99 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Non-Executive Director |
| Shares | 10,000 |
| Max Price | AU$2.99 |
| Entity | Company |
| Shares | 66,541 |
| Max Price | AU$3.61 |
| Entity | Company |
| Shares | 295,100 |
| Max Price | AU$3.95 |
| Entity | Company |
| Shares | 5,080,149 |
| Max Price | AU$3.93 |
| Entity | Company |
| Shares | 1,600,026 |
| Max Price | AU$4.20 |
| Entity | Company |
| Shares | 218,919 |
| Max Price | AU$3.84 |
| Entity | Company |
| Shares | 179,122 |
| Max Price | AU$3.88 |
| Entity | Company |
| Shares | 218,203 |
| Max Price | AU$3.68 |
| Entity | Company |
| Shares | 18,686 |
| Max Price | AU$3.86 |
| Entity | Company |
| Shares | 308,431 |
| Max Price | AU$4.14 |
| Entity | Company |
| Shares | 3,354,930 |
| Max Price | AU$5.20 |
| Entity | Company |
| Shares | 4,021,399 |
| Max Price | AU$4.14 |
| Entity | Company |
| Shares | 9,904,547 |
| Max Price | AU$6.37 |
| Entity | Company |
| Shares | 157,700 |
| Max Price | AU$4.04 |
| Entity | Company |
| Shares | 467,550 |
| Max Price | AU$5.86 |
| Entity | Company |
| Shares | 725,929 |
| Max Price | AU$6.20 |
| Entity | Company |
| Shares | 5,620,300 |
| Max Price | AU$6.46 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Non-Executive Director |
| Shares | 15,000 |
| Max Price | AU$3.67 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Non-Executive Director |
| Shares | 20,000 |
| Max Price | AU$3.83 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Non-Executive Director |
| Shares | 6,445 |
| Max Price | AU$3.89 |
| Entity | Company |
| Shares | 8,341,290 |
| Max Price | AU$5.27 |
| Entity | Company |
| Shares | 160,525 |
| Max Price | AU$5.75 |
| Entity | Company |
| Shares | 1,933,514 |
| Max Price | AU$5.86 |
| Entity | Company |
| Shares | 12,760,875 |
| Max Price | AU$7.63 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Non-Executive Director |
| Shares | 3,802 |
| Max Price | AU$5.22 |
| Entity | Individual |
| Role | Chief Executive Officer CEO, MD & Executive Director |
| Shares | 208,056 |
| Max Price | AU$5.29 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Non-Executive Director |
| Shares | 10,000 |
| Max Price | AU$5.39 |
| Entity | Company |
| Shares | 585,632 |
| Max Price | AU$6.02 |
| Entity | Company |
| Shares | 1,727,116 |
| Max Price | AU$5.86 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Non-Executive Director |
| Shares | 3,321 |
| Max Price | AU$7.54 |
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
Harry Debney
CEO, MD & Executive Director
- Tenure: 9.2yrs
- Compensation: AU$1.81m
Linda Kow
Chief Financial Officer
- Tenure: 7.2yrs
- Compensation: AU$883.69k
Tony Di Paolo
Chief Procurement Officer
- Tenure: 7yrs
David Thomas
General Counsel & Company Secretary
- Tenure: 7.3yrs
Sean Hallahan
Chief Operating Officer
- Tenure: 2.1yrs
- Compensation: AU$851.82k
Carl Phillips
General Manager of HR
- Tenure: 5.4yrs
Board Members
Peter Margin (59yo)
Independent Non-Executive Director
- Tenure: 4.4yrs
- Compensation: AU$67.71k
Neil Chatfield (65yo)
Independent Chairman
- Tenure: 4.4yrs
- Compensation: AU$124.64k
Harry Debney
CEO, MD & Executive Director
- Tenure: 9.2yrs
- Compensation: AU$1.81m
Elizabeth Wilson (60yo)
Independent Non-Executive Director
- Tenure: 0.6yrs
Janette Kendall
Independent Non-Executive Director
- Tenure: 3.1yrs
- Compensation: AU$59.57k
Tim Goldsmith (56yo)
Independent Non-Executive Director
- Tenure: 1.2yrs
- Compensation: AU$43.33k
Company Information
Costa Group Holdings Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Costa Group Holdings Limited
- Ticker: CGC
- Exchange: ASX
- Founded: 1888
- Industry: Agricultural Products
- Sector: Food, Beverage & Tobacco
- Market Cap: AU$849.669m
- Shares outstanding: 320.63m
- Website: https://www.costagroup.com.au
Number of Employees
Location
- Costa Group Holdings Limited
- 275 Robinsons Road
- Unit 1
- Ravenhall
- Victoria
- 3023
- Australia
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CGCN | ASX (Australian Securities Exchange) | NPV DFD 27/11/19(EX-RIGHTS) | AU | AUD | No data | |
| CGC | CHIA (Chi-X Australia) | Yes | Ordinary Shares | AU | AUD | Jul 2015 |
| CGC | ASX (Australian Securities Exchange) | Yes | Ordinary Shares | AU | AUD | Jul 2015 |
| CTTQ.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jul 2015 |
| 3CH | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jul 2015 |
Biography
Costa Group Holdings Limited produces, packs, and markets fruits and vegetables to food retailers and FMCG companies in Australia. The company operates through three segments: Produce, Costa Farms & Logist ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/11/14 10:43 |
| End of Day Share Price | 2019/11/14 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/30 |
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.