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CGC

Costa Group Holdings ASX:CGC Stock Report

Last Price

AU$2.27

Market Cap

AU$1.0b

7D

2.7%

1Y

-26.5%

Updated

05 Oct, 2022

Data

Company Financials +
CGC fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance0/6
Financial Health4/6
Dividends1/6

CGC Stock Overview

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

Costa Group Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Costa Group Holdings
Historical stock prices
Current Share PriceAU$2.27
52 Week HighAU$3.46
52 Week LowAU$2.13
Beta0.30
1 Month Change-13.03%
3 Month Change-21.18%
1 Year Change-26.54%
3 Year Change-33.04%
5 Year Change-60.04%
Change since IPO5.09%

Recent News & Updates

Aug 29
Costa Group Holdings (ASX:CGC) Will Pay A Dividend Of A$0.04

Costa Group Holdings (ASX:CGC) Will Pay A Dividend Of A$0.04

The board of Costa Group Holdings Limited ( ASX:CGC ) has announced that it will pay a dividend on the 6th of October...

Shareholder Returns

CGCAU FoodAU Market
7D2.7%1.2%3.6%
1Y-26.5%-15.7%-8.0%

Return vs Industry: CGC underperformed the Australian Food industry which returned -15.7% over the past year.

Return vs Market: CGC underperformed the Australian Market which returned -8% over the past year.

Price Volatility

Is CGC's price volatile compared to industry and market?
CGC volatility
CGC Average Weekly Movement6.1%
Food Industry Average Movement6.3%
Market Average Movement9.4%
10% most volatile stocks in AU Market16.5%
10% least volatile stocks in AU Market4.2%

Stable Share Price: CGC is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: CGC's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1888n/aHarry Debneyhttps://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 and Logistics, and International. The company offers mushrooms, raspberries, strawberries, blackberries, tomatoes, citrus, avocados, bananas, grapes, and other fruits.

Costa Group Holdings Fundamentals Summary

How do Costa Group Holdings's earnings and revenue compare to its market cap?
CGC fundamental statistics
Market CapAU$1.04b
Earnings (TTM)AU$41.82m
Revenue (TTM)AU$1.32b

25.2x

P/E Ratio

0.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CGC income statement (TTM)
RevenueAU$1.32b
Cost of RevenueAU$448.37m
Gross ProfitAU$868.46m
Other ExpensesAU$826.63m
EarningsAU$41.82m

Last Reported Earnings

Jul 03, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.09
Gross Margin65.95%
Net Profit Margin3.18%
Debt/Equity Ratio55.1%

How did CGC perform over the long term?

See historical performance and comparison

Dividends

4.0%

Current Dividend Yield

101%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is CGC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CGC?

Other financial metrics that can be useful for relative valuation.

CGC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.5x
Enterprise Value/EBITDA11.2x
PEG Ratio1.5x

Price to Earnings Ratio vs Peers

How does CGC's PE Ratio compare to its peers?

CGC PE Ratio vs Peers
The above table shows the PE ratio for CGC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average16.8x
RIC Ridley
15.5x5.0%AU$667.7m
SHV Select Harvests
24.2x29.8%AU$630.2m
ELD Elders
11.2x-2.1%AU$1.9b
LGL Lynch Group Holdings
16.9x15.9%AU$314.9m
CGC Costa Group Holdings
25.2x16.4%AU$1.0b

Price-To-Earnings vs Peers: CGC is expensive based on its Price-To-Earnings Ratio (25.2x) compared to the peer average (16.8x).


Price to Earnings Ratio vs Industry

How does CGC's PE Ratio compare vs other companies in the Oceanian Food Industry?

Price-To-Earnings vs Industry: CGC is expensive based on its Price-To-Earnings Ratio (25.2x) compared to the Oceanic Food industry average (17.1x)


Price to Earnings Ratio vs Fair Ratio

What is CGC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CGC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio25.2x
Fair PE Ratio23.1x

Price-To-Earnings vs Fair Ratio: CGC is expensive based on its Price-To-Earnings Ratio (25.2x) compared to the estimated Fair Price-To-Earnings Ratio (23.1x).


Share Price vs Fair Value

What is the Fair Price of CGC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CGC (A$2.27) is trading below our estimate of fair value (A$8.31)

Significantly Below Fair Value: CGC is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

How is Costa Group Holdings forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


16.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CGC's forecast earnings growth (16.4% per year) is above the savings rate (1.8%).

Earnings vs Market: CGC's earnings (16.4% per year) are forecast to grow faster than the Australian market (6.5% per year).

High Growth Earnings: CGC's earnings are forecast to grow, but not significantly.

Revenue vs Market: CGC's revenue (5.7% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: CGC's revenue (5.7% 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 (11.3%).


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Past Performance

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

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-19.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CGC has a large one-off loss of A$16.3M impacting its July 3 2022 financial results.

Growing Profit Margin: CGC's current net profit margins (3.2%) are lower than last year (4.7%).


Past Earnings Growth Analysis

Earnings Trend: CGC's earnings have declined by 19.8% per year over the past 5 years.

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 (-23.1%) over the past year, making it difficult to compare to the Food industry average (9%).


Return on Equity

High ROE: CGC's Return on Equity (6.3%) is considered low.


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Financial Health

How is Costa Group Holdings's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: CGC's short term assets (A$423.1M) exceed its short term liabilities (A$233.4M).

Long Term Liabilities: CGC's short term assets (A$423.1M) do not cover its long term liabilities (A$1.0B).


Debt to Equity History and Analysis

Debt Level: CGC's net debt to equity ratio (38.7%) is considered satisfactory.

Reducing Debt: CGC's debt to equity ratio has increased from 29.2% to 55.1% over the past 5 years.

Debt Coverage: CGC's debt is well covered by operating cash flow (31.9%).

Interest Coverage: CGC's interest payments on its debt are well covered by EBIT (3x coverage).


Balance Sheet


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Dividend

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

Dividend Score

1/6

Dividend Score 1/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


3.96%

Current Dividend Yield

Dividend Yield vs Market

Costa Group Holdings Dividend Yield vs Market
How does Costa Group Holdings dividend yield compare to the market?
SegmentDividend Yield
Company (Costa Group Holdings)4.0%
Market Bottom 25% (AU)2.8%
Market Top 25% (AU)7.0%
Industry Average (Food)3.4%
Analyst forecast in 3 Years (Costa Group Holdings)5.0%

Notable Dividend: CGC's dividend (3.96%) is higher than the bottom 25% of dividend payers in the Australian market (2.79%).

High Dividend: CGC's dividend (3.96%) is low compared to the top 25% of dividend payers in the Australian market (6.98%).


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 7 years.


Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (100.9%), CGC's dividend payments are not well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (209.4%), CGC's dividend payments are not well covered by cash flows.


Discover strong dividend paying companies

Management

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

1.8yrs

Average management tenure


CEO

Harry Debney

1.25yrs

Tenure

AU$257,023

Compensation

Mr. Harry George Debney, BAppSc (Hons) serves as Non-Executive Director at Costa Group Holdings Limited from July 2021 and serves as its Interim Chief Executive Officer from September 26, 2022. He serves a...


CEO Compensation Analysis

Harry Debney's Compensation vs Costa Group Holdings Earnings
How has Harry Debney's remuneration changed compared to Costa Group Holdings's earnings?
DateTotal Comp.SalaryCompany Earnings
Jul 03 2022n/an/a

AU$42m

Apr 03 2022n/an/a

AU$42m

Dec 26 2021AU$257kn/a

AU$41m

Sep 26 2021n/an/a

AU$48m

Jun 27 2021n/an/a

AU$55m

Mar 27 2021n/an/a

AU$58m

Dec 27 2020AU$1mAU$1m

AU$61m

Sep 27 2020n/an/a

AU$14m

Jun 28 2020n/an/a

-AU$33m

Mar 28 2020n/an/a

-AU$35m

Dec 29 2019AU$1mAU$1m

-AU$36m

Jun 30 2019n/an/a

AU$45m

Mar 31 2019n/an/a

AU$45m

Dec 30 2018n/an/a

AU$45m

Jul 01 2018AU$2mAU$977k

AU$115m

Apr 01 2018n/an/a

AU$112m

Dec 31 2017n/an/a

AU$108m

Sep 30 2017n/an/a

AU$83m

Jun 25 2017AU$2mAU$953k

AU$58m

Mar 25 2017n/an/a

AU$49m

Dec 25 2016n/an/a

AU$41m

Sep 25 2016n/an/a

AU$33m

Jun 26 2016AU$2mAU$931k

AU$25m

Compensation vs Market: Harry's total compensation ($USD167.01K) is below average for companies of similar size in the Australian market ($USD1.08M).

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


Leadership Team

Experienced Management: CGC's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: CGC's board of directors are considered experienced (5 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

ASX:CGC Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
16 Sep 22BuyAU$993,326State Street Global Advisors, Inc.Company388,018AU$2.56
09 Sep 22SellAU$26,380State Street Global Advisors, Inc.Company10,146AU$2.60
29 Jul 22BuyAU$1,181,396State Street Global Advisors, Inc.Company459,687AU$2.57
12 Jul 22BuyAU$3,435State Street Global Advisors, Inc.Company1,321AU$2.60
07 Jul 22BuyAU$9,416State Street Global Advisors, Inc.Company3,281AU$2.87
30 Jun 22BuyAU$34,540State Street Global Advisors, Inc.Company12,077AU$2.86
28 Jun 22SellAU$666,777State Street Global Advisors, Inc.Company223,707AU$2.99
23 Jun 22BuyAU$157,131State Street Global Advisors, Inc.Company53,446AU$2.94
17 Jun 22BuyAU$1,680,461State Street Global Advisors, Inc.Company551,098AU$3.05
17 Jun 22SellAU$469,078State Street Global Advisors, Inc.Company153,796AU$3.05
14 Jun 22BuyAU$170,829State Street Global Advisors, Inc.Company57,908AU$2.95
10 Jun 22SellAU$146,667State Street Global Advisors, Inc.Company47,619AU$3.08
31 May 22BuyAU$28,064State Street Global Advisors, Inc.Company8,853AU$3.17
20 Apr 22SellAU$24,091,135Perpetual LimitedCompany7,621,267AU$3.44
30 Mar 22BuyAU$6,538,815State Street Global Advisors, Inc.Company2,049,124AU$3.19
28 Mar 22BuyAU$8,371,689Perpetual LimitedCompany2,946,561AU$3.14
24 Feb 22BuyAU$21,967Peter MarginIndividual7,735AU$2.84
02 Dec 21BuyAU$27,600Neil ChatfieldIndividual10,000AU$2.76
02 Dec 21BuyAU$22,682,227Perpetual LimitedCompany7,981,402AU$2.96
30 Nov 21BuyAU$57,400Timothy GoldsmithIndividual20,000AU$2.87
30 Nov 21BuyAU$50,086Sean HallahanIndividual17,391AU$2.88
30 Nov 21SellAU$2,702,040Lazard Asset Management LLCCompany939,469AU$2.88
30 Nov 21SellAU$4,393,119Perpetual LimitedCompany1,530,703AU$2.87
29 Nov 21SellAU$24,012,237Lazard Asset Management LLCCompany7,850,708AU$3.06
25 Nov 21BuyAU$15,814,178Perpetual LimitedCompany4,865,900AU$3.25
05 Nov 21BuyAU$11,545,638Lazard Asset Management LLCCompany3,844,406AU$3.00
03 Nov 21BuyAU$29,400Neil ChatfieldIndividual10,000AU$2.94
07 Oct 21BuyAU$30,900Neil ChatfieldIndividual10,000AU$3.09
07 Oct 21BuyAU$30,600Timothy GoldsmithIndividual10,000AU$3.06

Ownership Breakdown

What is the ownership structure of CGC?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders5,286,9421.1%
Private Companies8,889,4691.9%
Institutions190,860,01041.1%
General Public259,510,04555.9%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 43.23% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
13.58%
Perpetual Limited
63,096,994A$143.2m-6.9%2.4%
5.08%
State Street Global Advisors, Inc.
23,618,441A$53.6m6.4%no data
4.83%
Lazard Asset Management LLC
22,459,502A$51.0m0%0.03%
4.56%
The Vanguard Group, Inc.
21,190,145A$48.1m0%no data
4.06%
ECP Asset Management Pty Ltd
18,840,492A$42.8m0%19.46%
1.7%
Dimensional Fund Advisors LP
7,879,289A$17.9m11.24%no data
1.62%
BlackRock, Inc.
7,536,788A$17.1m-3.39%no data
1.08%
Hoxton Pty Ltd
5,004,721A$11.4m0%no data
0.97%
3rd Wave Investors Ltd
4,500,000A$10.2m0%16.73%
0.84%
Ec Poly & Co Pty Ltd
3,884,748A$8.8m0%no data
0.71%
Norges Bank Investment Management
3,286,609A$7.5m0%no data
0.68%
Elaine Costa
3,138,162A$7.1m0%no data
0.57%
First Samuel Limited
2,640,031A$6.0m0%4.98%
0.51%
BetaShares Capital Limited
2,352,085A$5.3m4.65%0.04%
0.49%
Charles Schwab Investment Management, Inc.
2,275,222A$5.2m-0.08%no data
0.31%
Janus Henderson Group plc
1,427,945A$3.2m-3.31%no data
0.29%
Netwealth Investments Ltd.
1,368,906A$3.1m0%0.04%
0.26%
Lord, Abbett & Co. LLC
1,209,756A$2.7m14.57%0.01%
0.22%
John Paterson
1,000,000A$2.3m0%no data
0.2%
Raiffeisen Kapitalanlage-Gesellschaft m.b.H.
950,000A$2.2m0%0.02%
0.16%
Angel Japan Asset Management Ltd.
754,322A$1.7m-18.5%0.3%
0.16%
American Century Investment Management Inc
726,215A$1.6m17.32%no data
0.14%
WisdomTree Asset Management, Inc.
650,147A$1.5m1.07%0.01%
0.12%
Teachers Insurance and Annuity Association-College Retirement Equities Fund
541,675A$1.2m-1.65%no data
0.11%
EC. Pohl & Company
500,000A$1.1m0%1.78%

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
  • Implied Market Cap: AU$1.041b
  • Shares outstanding: 464.55m
  • 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

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/05 00:00
End of Day Share Price2022/10/05 00:00
Earnings2022/07/03
Annual Earnings2021/12/26


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.