CGC

Costa Group HoldingsASX:CGC Stock Report

Market Cap

AU$1.5b

7D

0%

1Y

-3.9%

Updated

21 Sep, 2021

Data

Company Financials +
CGC fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance2/6
Financial Health3/6
Dividends3/6

CGC Overview

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

Price History & Performance

Summary of all time highs, changes and price drops for Costa Group Holdings
Historical stock prices
Current Share PriceAU$3.19
52 Week HighAU$3.04
52 Week LowAU$4.89
Beta0.36
1 Month Change-1.85%
3 Month Change-6.18%
1 Year Change-3.92%
3 Year Change-53.29%
5 Year Change5.98%
Change since IPO47.69%

Recent News & Updates

Shareholder Returns

CGCAU FoodAU Market
7D0%-1.1%-2.7%
1Y-3.9%6.4%26.0%

Return vs Industry: CGC underperformed the Australian Food industry which returned 6.4% over the past year.

Return vs Market: CGC underperformed the Australian Market which returned 26% over the past year.

Price Volatility

Is CGC's price volatile compared to industry and market?
CGC volatility
CGC Beta0.36
Industry Beta0.54
Market Beta1

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.

About the Company

FoundedEmployeesCEOWebsite
1888n/aSean Hallahanhttps://www.costagroup.com.au

Costa Group Holdings Limited produces, packs, and markets fruits and vegetables to food retailers. It operates through three segments: Produce, Costa Farms & Logistics, and International. The company offers mushrooms, raspberries, strawberries, blackberries, tomatoes, citrus, avocados, bananas, grapes, and other fruits.

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$3.19) is trading below our estimate of fair value (A$7.46)

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 (27x) compared to the Australian Food industry average (18.5x).

PE vs Market: CGC is poor value based on its PE Ratio (27x) compared to the Australian market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: CGC is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: CGC is overvalued based on its PB Ratio (2.4x) compared to the AU Food industry average (1.5x).


Future Growth

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

21.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CGC's forecast earnings growth (21.3% per year) is above the savings rate (1.9%).

Earnings vs Market: CGC's earnings (21.3% per year) are forecast to grow faster than the Australian market (11.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CGC's revenue (8.7% per year) is forecast to grow faster than the Australian market (5.4% per year).

High Growth Revenue: CGC's revenue (8.7% 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 (13.3%).


Past Performance

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

-15.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CGC has high quality earnings.

Growing Profit Margin: CGC became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: CGC's earnings have declined by 15.4% per year over the past 5 years.

Accelerating Growth: CGC has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: CGC has become profitable in the last year, making it difficult to compare its past year earnings growth to the Food industry (45.2%).


Return on Equity

High ROE: CGC's Return on Equity (9.9%) is considered low.


Financial Health

How is Costa Group Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: CGC's short term assets (A$330.7M) exceed its short term liabilities (A$218.3M).

Long Term Liabilities: CGC's short term assets (A$330.7M) do not cover its long term liabilities (A$593.6M).


Debt to Equity History and Analysis

Debt Level: CGC's debt to equity ratio (46.9%) is considered high.

Reducing Debt: CGC's debt to equity ratio has increased from 26.2% to 46.9% over the past 5 years.

Debt Coverage: CGC's debt is well covered by operating cash flow (56.5%).

Interest Coverage: CGC's interest payments on its debt are well covered by EBIT (4.1x coverage).


Balance Sheet


Dividend

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

2.82%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CGC's dividend (2.82%) is higher than the bottom 25% of dividend payers in the Australian market (2.36%).

High Dividend: CGC's dividend (2.82%) is low compared to the top 25% of dividend payers in the Australian market (5.46%).


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 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (65.8%), CGC's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CGC's dividends in 3 years are forecast to be covered by earnings (56.6% payout ratio).


Next Steps

Management

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

1.2yrs

Average management tenure


CEO

Sean Hallahan

0.50

Tenure

AU$752,998

Compensation

Mr. Sean Hallahan has been Chief Executive Officer and Managing Director at Costa Group Holdings Limited since March 31, 2021. He was Chief Operating Officer of Costa Group Holdings Limited since October 2...


CEO Compensation Analysis

Compensation vs Market: Sean's total compensation ($USD546.52K) is below average for companies of similar size in the Australian market ($USD945.08K).

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


Leadership Team

Experienced Management: CGC's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

Experienced Board: CGC's board of directors are considered experienced (3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CGC 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 15.9%.


Top Shareholders

Company Information

Costa Group Holdings Limited's 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$1.505b
  • Shares outstanding: 464.38m
  • Website: https://www.costagroup.com.au

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/21 08:06
End of Day Share Price2021/09/21 00:00
Earnings2021/06/27
Annual Earnings2020/12/27


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.