ASX:CGC

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Costa Group Holdings Limited produces, packs, and markets fruits and vegetables to food retailers. More Details


Snowflake Analysis

Reasonable growth potential with mediocre balance sheet.

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 is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: CGC's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

0.8%

CGC

-1.2%

AU Food

1.7%

AU Market


1 Year Return

53.1%

CGC

9.6%

AU Food

-1.6%

AU Market

Return vs Industry: CGC exceeded the Australian Food industry which returned 9.6% over the past year.

Return vs Market: CGC exceeded the Australian Market which returned -1.6% over the past year.


Shareholder returns

CGCIndustryMarket
7 Day0.8%-1.2%1.7%
30 Day10.2%4.3%9.5%
90 Day20.2%4.7%9.2%
1 Year55.9%53.1%12.3%9.6%1.8%-1.6%
3 Year-29.8%-36.3%-14.6%-21.3%24.8%9.2%
5 Year71.8%48.0%10.4%-4.0%56.1%25.0%

Long-Term 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 compared to its fair value and its price relative to the market?

2.71x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: CGC (A$3.98) is trading above our estimate of fair value (A$3.24)

Significantly Below Fair Value: CGC is trading above our estimate of fair value.


Price To Earnings Ratio

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

PE vs Market: CGC 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 CGC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CGC is overvalued based on its PB Ratio (2.7x) compared to the AU Food industry average (1.4x).


Next Steps

Future Growth

How is Costa Group Holdings forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

24.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CGC is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.3%).

Earnings vs Market: CGC is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: CGC's is expected to become profitable in the next 3 years.

Revenue vs Market: CGC's revenue (8.2% per year) is forecast to grow faster than the Australian market (5% per year).

High Growth Revenue: CGC's revenue (8.2% 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 (12.2%).


Next Steps

Past Performance

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

-6.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CGC is currently unprofitable.

Growing Profit Margin: CGC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CGC is unprofitable, and losses have increased over the past 5 years at a rate of 6.9% per year.

Accelerating Growth: Unable to compare CGC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CGC is unprofitable, making it difficult to compare its past year earnings growth to the Food industry (-13.2%).


Return on Equity

High ROE: CGC has a negative Return on Equity (-4.23%), as it is currently unprofitable.


Next Steps

Financial Health

How is Costa Group Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: CGC's short term assets (A$309.3M) exceed its short term liabilities (A$200.1M).

Long Term Liabilities: CGC's short term assets (A$309.3M) do not cover its long term liabilities (A$578.5M).


Debt to Equity History and Analysis

Debt Level: CGC's debt to equity ratio (43.1%) is considered high.

Reducing Debt: CGC's debt to equity ratio has reduced from 116.9% to 43.1% over the past 5 years.

Debt Coverage: CGC's debt is well covered by operating cash flow (47.9%).

Interest Coverage: CGC is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

What is Costa Group Holdings's current dividend yield, its reliability and sustainability?

1.51%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CGC's dividend (1.51%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.06%).

High Dividend: CGC's dividend (1.51%) is low compared to the top 25% of dividend payers in the Australian market (5.1%).


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 has only been paying a dividend for 5 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: CGC is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: CGC's dividends in 3 years are forecast to be covered by earnings (61.7% payout ratio).


Next Steps

Management

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

4.8yrs

Average management tenure


CEO

Harry Debney

10.17yrs

Tenure

AU$1,163,933

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 ($USD856.72K) is about average for companies of similar size in the Australian market ($USD944.21K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Harry Debney
CEO, MD & Executive Director10.17yrsAU$1.16m0.18%
A$ 2.9m
Sean Hallahan
Chief Operating Officer3.08yrsAU$889.15k0.0027%
A$ 43.6k
Wayne Johnston
Chief Financial Officer0.42yrno datano data
David Thomas
General Counsel & Company Secretary8.33yrsno datano data
Carl Phillips
General Manager of HR6.42yrsno datano data
Amin Ikram
Deputy Chief Financial Officer0.33yrno datano data
Michael Toby
Corporate Affairs Managerno datano datano data

4.8yrs

Average Tenure

Experienced Management: CGC's management team is considered experienced (4.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Harry Debney
CEO, MD & Executive Director10.17yrsAU$1.16m0.18%
A$ 2.9m
Peter Margin
Independent Non-Executive Director5.42yrsAU$135.42k0.017%
A$ 262.6k
Neil Chatfield
Independent Chairman5.42yrsAU$249.92k0.094%
A$ 1.5m
Elizabeth Wilson
Independent Non-Executive Director1.58yrsAU$85.19k0.0094%
A$ 148.9k
Janette Kendall
Independent Non-Executive Director4.08yrsAU$119.14k0.0092%
A$ 146.1k
Timothy Goldsmith
Independent Non-Executive Director2.17yrsAU$129.99k0.0094%
A$ 148.9k

4.8yrs

Average Tenure

60.5yo

Average Age

Experienced Board: CGC's board of directors are considered experienced (4.8 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 not been meaningfully diluted in the past year.


Top Shareholders

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$1.591b
  • Shares outstanding: 400.83m
  • 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. The company operates through three segments: Produce, Costa Farms & Logistics, and International. It offer...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/27 07:05
End of Day Share Price2020/11/27 00:00
Earnings2020/06/28
Annual Earnings2019/12/29


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.