ASX:CGC

Stock Analysis Report

Executive Summary

Costa Group Holdings Limited produces, packs, and markets fruits and vegetables to food retailers and FMCG companies in Australia.

Snowflake

Fundamentals

Reasonable growth potential and slightly overvalued.

Risks

  • Costa Group Holdings has significant price volatility in the past 3 months.

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


Market Performance


7 Day Return

-5.1%

ASX:CGC

-3.9%

AU Food

-2.5%

AU Market


1 Year Return

-58.2%

ASX:CGC

-20.1%

AU Food

-0.6%

AU Market

CGC underperformed the Food industry which returned -20.1% over the past year.

CGC underperformed the Market in Australia which returned -0.6% over the past year.


Share holder returns

CGCIndustryMarket
7 Day-5.1%-3.9%-2.5%
30 Day-13.8%-9.4%-4.4%
90 Day-30.0%-12.4%-1.1%
1 Year-57.3%-58.2%-18.0%-20.1%5.1%-0.6%
3 Year33.1%24.0%-12.2%-16.6%30.2%13.1%
5 Yearn/a22.9%12.0%36.5%5.9%

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

Valuation

Is Costa Group Holdings 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

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

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


Price Based on Earnings

Costa Group Holdings is overvalued based on earnings compared to the AU Food industry average.

Costa Group Holdings is overvalued based on earnings compared to the Australia market.


Price Based on Expected Growth

Costa Group Holdings is poor value based on expected growth next year.


Price Based on Value of Assets

Costa Group Holdings is overvalued based on assets compared to the AU Food industry average.


Next Steps

Future Growth

How is Costa Group Holdings expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

42.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Costa Group Holdings's revenue is expected to grow by 10% yearly, however this is not considered high growth (20% yearly).

Costa Group Holdings's earnings are expected to grow significantly at over 20% yearly.

Costa Group Holdings's revenue growth is expected to exceed the Australia market average.

Costa Group Holdings's earnings growth is expected to exceed the Australia market average.

Costa Group Holdings's earnings growth is expected to exceed the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

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


Next Steps

Past Performance

How has Costa Group Holdings performed over the past 5 years?

65.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Costa Group Holdings has delivered over 20% year on year earnings growth in the past 5 years.

Costa Group Holdings's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Costa Group Holdings's 1-year earnings growth is negative, it can't be compared to the AU Food industry average.


Return on Equity

Costa Group Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Costa Group Holdings used its assets less efficiently than the AU Food industry average last year based on Return on Assets.


Return on Capital Employed

Costa Group Holdings's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Costa Group Holdings's financial position?


Financial Position Analysis

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

Costa Group Holdings's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Costa Group Holdings's level of debt (62.8%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (109.4% vs 62.8% today).

Debt is not well covered by operating cash flow (15.1%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 1.3x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

4.30%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Costa Group Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.68%).

Costa Group Holdings's dividend is below the markets top 25% of dividend payers in Australia (5.9%).

Costa Group Holdings has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Dividend payments have increased, but Costa Group Holdings only paid a dividend in the past 3 years.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (0.3x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.6x coverage).


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?

6.8yrs

Average management tenure


CEO

Harry Debney 0

8.9yrs

Tenure

AU$1,276,498

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

Harry's remuneration is about average for companies of similar size in Australia.

Harry's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

6.8yrs

Average Tenure

The average tenure for the Costa Group Holdings management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

3.5yrs

Average Tenure

59yo

Average Age

The tenure for the Costa Group Holdings board of directors is about average.


Insider Trading

More shares have been bought than sold by Costa Group Holdings individual insiders in the past 3 months.


Recent Insider Transactions

SellAU$19,801,01314 Aug 19
Colonial First State Asset Management (Australia) Limited
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ASB Group Investments Ltd.
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Shares295,100
Max PriceAU$3.95
BuyAU$6,533,18214 Aug 19
Colonial First State Asset Management (Australia) Limited
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Shares1,600,026
Max PriceAU$4.20
BuyAU$802,98709 Aug 19
Pendal Group Limited
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Shares218,203
Max PriceAU$3.68
SellAU$72,12809 Aug 19
Pendal Group Limited
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Shares18,686
Max PriceAU$3.86
SellAU$988,71726 Jul 19
Pendal Group Limited
EntityCompany
Shares308,431
Max PriceAU$4.14
SellAU$17,018,77214 Jun 19
Pendal Group Limited
EntityCompany
Shares3,354,930
Max PriceAU$5.20
BuyAU$16,387,55114 Jun 19
Pendal Group Limited
EntityCompany
Shares4,021,399
Max PriceAU$4.14
BuyAU$28,826,77813 Jun 19
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares5,620,300
Max PriceAU$6.46
SellAU$50,541,00613 Jun 19
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares9,904,547
Max PriceAU$6.37
SellAU$2,737,52213 Jun 19
Realindex Investments Pty Limited
EntityCompany
Shares467,550
Max PriceAU$5.86
BuyAU$4,502,24913 Jun 19
Realindex Investments Pty Limited
EntityCompany
Shares725,929
Max PriceAU$6.20
BuyAU$637,47113 Jun 19
ASB Group Investments Ltd.
EntityCompany
Shares157,700
Max PriceAU$4.04
BuyAU$55,07310 Jun 19
Jane Wilson
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares15,000
Max PriceAU$3.67
BuyAU$76,69010 Jun 19
Timothy Goldsmith
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares20,000
Max PriceAU$3.83
BuyAU$25,07106 Jun 19
Janette Kendall
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares6,445
Max PriceAU$3.89
SellAU$43,958,60331 May 19
Bennelong Australian Equity Partners Pty Ltd
EntityCompany
Shares8,341,290
Max PriceAU$5.27
SellAU$903,99526 May 19
The Vanguard Group, Inc.
EntityCompany
Shares160,525
Max PriceAU$5.75
BuyAU$11,294,87226 May 19
The Vanguard Group, Inc.
EntityCompany
Shares1,933,514
Max PriceAU$5.86
SellAU$97,365,47917 May 19
Bennelong Australian Equity Partners Pty Ltd
EntityCompany
Shares12,760,875
Max PriceAU$7.63
BuyAU$19,84618 Mar 19
Janette Kendall
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares3,802
Max PriceAU$5.22
SellAU$1,101,49618 Mar 19
Harry Debney
EntityIndividual
Role
Chief Executive Officer
CEO, MD & Executive Director
Shares208,056
Max PriceAU$5.29
BuyAU$53,90014 Mar 19
Timothy Goldsmith
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares10,000
Max PriceAU$5.39
SellAU$10,024,54717 Jan 19
Pendal Group Limited
EntityCompany
Shares1,727,116
Max PriceAU$5.86
BuyAU$3,520,03917 Jan 19
Pendal Group Limited
EntityCompany
Shares585,632
Max PriceAU$6.02
BuyAU$25,04003 Dec 18
Janette Kendall
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares3,321
Max PriceAU$7.54
BuyAU$25,530,96412 Nov 18
Bennelong Australian Equity Partners Pty Ltd
EntityCompany
Shares3,738,062
Max PriceAU$6.83
BuyAU$59,442,75330 Oct 18
Pendal Group Limited
EntityCompany
Shares8,328,791
Max PriceAU$7.24
SellAU$8,527,60827 Sep 18
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares1,163,280
Max PriceAU$7.42
BuyAU$1,296,08727 Sep 18
Realindex Investments Pty Limited
EntityCompany
Shares189,122
Max PriceAU$6.85
BuyAU$27,760,13227 Sep 18
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares3,894,931
Max PriceAU$7.45
SellAU$46,18427 Sep 18
Realindex Investments Pty Limited
EntityCompany
Shares6,866
Max PriceAU$6.73
BuyAU$30,34028 Aug 18
Peter Margin
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares4,100
Max PriceAU$7.40
BuyAU$30,626,84323 Aug 18
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares3,755,289
Max PriceAU$8.17

Ownership Breakdown


Management Team

  • Harry Debney

    CEO, MD & Executive Director

    • Tenure: 8.9yrs
    • Compensation: AU$1.28m
  • Linda Kow

    Chief Financial Officer

    • Tenure: 6.9yrs
    • Compensation: AU$662.78k
  • Tony Di Paolo

    Chief Procurement Officer

    • Tenure: 6.8yrs
  • David Thomas

    General Counsel & Company Secretary

    • Tenure: 7.1yrs
  • Sean Hallahan

    Chief Operating Officer

    • Tenure: 1.8yrs
    • Compensation: AU$692.35k
  • Carl Phillips

    General Manager of HR

    • Tenure: 5.2yrs

Board Members

  • Peter Margin (59yo)

    Independent Non-Executive Director

    • Tenure: 4.2yrs
    • Compensation: AU$67.71k
  • Neil Chatfield (65yo)

    Chairman

    • Tenure: 4.2yrs
    • Compensation: AU$124.64k
  • Harry Debney

    CEO, MD & Executive Director

    • Tenure: 8.9yrs
    • Compensation: AU$1.28m
  • Janette Kendall

    Independent Non-Executive Director

    • Tenure: 2.8yrs
    • Compensation: AU$59.57k
  • Jane Wilson

    Independent Non-Executive Director

    • Tenure: 0.3yrs
  • Tim Goldsmith (56yo)

    Independent Non-Executive Director

    • Tenure: 0.9yrs
    • 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$1.144b
  • Shares outstanding: 320.55m
  • Website: https://www.costagroup.com.au

Number of Employees


Location

  • Costa Group Holdings Limited
  • 275 Robinsons Road
  • Unit 1
  • Ravenhall
  • Victoria
  • 3023
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CGCCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJul 2015
CGCASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJul 2015
CTTQ.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2015
3CHDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/19 10:36
End of Day Share Price2019/08/19 00:00
Earnings2018/12/30
Annual Earnings2018/12/30


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.