ASX:ELD

Stock Analysis Report

Executive Summary

Elders Limited provides livestock, real estate, and wool agency services to rural and regional customers primarily in Australia.

Snowflake

Fundamentals

Adequate balance sheet and fair value.

Share Price & News

How has Elders's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-4.2%

ELD

0.6%

AU Food

0.1%

AU Market


1 Year Return

-18.3%

ELD

-8.8%

AU Food

11.9%

AU Market

Return vs Industry: ELD underperformed the Australian Food industry which returned -8.8% over the past year.

Return vs Market: ELD underperformed the Australian Market which returned 11.9% over the past year.


Shareholder returns

ELDIndustryMarket
7 Day-4.2%0.6%0.1%
30 Day-6.0%-1.1%-1.1%
90 Day-17.8%-5.0%-1.4%
1 Year-13.5%-18.3%-6.1%-8.8%18.5%11.9%
3 Year67.1%52.4%1.3%-3.6%36.4%18.1%
5 Year299.7%252.4%36.8%25.6%50.9%16.7%

Price Volatility Vs. Market

How volatile is Elders's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Elders undervalued compared to its fair value and its price relative to the market?

11.64x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ELD (A$5.99) is trading above our estimate of fair value (A$4.54)

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


Price To Earnings Ratio

PE vs Industry: ELD is good value based on its PE Ratio (11.6x) compared to the Food industry average (27.2x).

PE vs Market: ELD is good value based on its PE Ratio (11.6x) compared to the Australian market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: ELD is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: ELD is overvalued based on its PB Ratio (2.2x) compared to the AU Food industry average (1.3x).


Next Steps

Future Growth

How is Elders forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

16.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ELD's forecast earnings growth (16.7% per year) is above the savings rate (2.3%).

Earnings vs Market: ELD's earnings (16.7% per year) are forecast to grow faster than the Australian market (10.2% per year).

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

Revenue vs Market: ELD's revenue (5.3% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: ELD's revenue (5.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ELD's Return on Equity is forecast to be low in 3 years time (16.6%).


Next Steps

Past Performance

How has Elders performed over the past 5 years?

43.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ELD has become profitable over the past 5 years, growing earnings by 43.5% per year.

Accelerating Growth: ELD's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ELD had negative earnings growth (-50%) over the past year, making it difficult to compare to the Food industry average (-32.4%).


Return on Equity

High ROE: ELD's Return on Equity (19%) is considered low.


Return on Assets

ROA vs Industry: ELD has a higher Return on Assets than the Food industry average last year.


Return on Capital Employed

ROCE Improving: ELD's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Elders's financial position?


Financial Position Analysis

Short Term Liabilities: ELD's short term assets (A$661.5M) exceeds its short term liabilities (A$617.2M)

Long Term Liabilities: ELD's short term assets (661.5M) exceeds its long term liabilities (17.3M)


Debt to Equity History and Analysis

Debt Level: ELD's debt to equity ratio (63%) is considered high

Reducing Debt: ELD's debt to equity ratio has reduced from 633.7% to 63% over the past 5 years.

Debt Coverage: ELD's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: ELD's interest payments on its debt are well covered by EBIT (7x coverage).


Balance Sheet

Inventory Level: ELD has a high level of physical assets or inventory.

Debt Coverage by Assets: ELD's debt is covered by short term assets (assets are 3.225760x debt).


Next Steps

Dividend

What is Elders's current dividend yield, its reliability and sustainability?

3.01%

Current Dividend Yield


Dividend Yield vs Market

company3.0%marketbottom25%2.4%markettop25%5.6%industryaverage3.1%forecastin3Years3.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: ELD's dividend (3.01%) is higher than the bottom 25% of dividend payers in the Australian market (2.44%).

High Dividend: ELD's dividend (3.01%) is low compared to the top 25% of dividend payers in the Australian market (5.58%).

Stable Dividend: Whilst dividend payments have been stable, ELD has been paying a dividend for less than 10 years.

Growing Dividend: ELD's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (35%), ELD's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ELD's dividends in 3 years are forecast to be well covered by earnings (34.2% payout ratio).


Next Steps

Management

What is the CEO of Elders's salary, the management and board of directors tenure and is there insider trading?

6.1yrs

Average management tenure


CEO

Mark Allison (59yo)

5.4yrs

Tenure

AU$2,757,793

Compensation

Mr. Mark Charles Allison, BAgrSc, BEcon, GDM, FAICD, has been the Chief Executive Officer and Managing Director of Elders Limited since May 1, 2014 and also has been its Executive Director since November 1 ...


CEO Compensation Analysis

Compensation vs. Market: Mark's total compensation ($USD1.89M) is about average for companies of similar size in the Australian market ($USD737.68K).

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


Management Age and Tenure

6.1yrs

Average Tenure

Experienced Management: ELD's management team is seasoned and experienced (6.1 years average tenure).


Board Age and Tenure

1.9yrs

Average Tenure

60.5yo

Average Age

Experienced Board: ELD's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: ELD insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellAU$4,575,89127 Sep 19
Schroder Investment Management Limited
EntityCompany
Shares706,753
Max PriceAU$6.47
BuyAU$5,454,24027 Sep 19
Schroder Investment Management Limited
EntityCompany
Shares982,189
Max PriceAU$5.55
SellAU$5,670,53920 Aug 19
Yarra Funds Management Limited
EntityCompany
Shares846,660
Max PriceAU$6.70
BuyAU$7,04316 Aug 19
Diana Eilert
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares1,269
Max PriceAU$5.55
BuyAU$754,63314 Aug 19
Mark Allison
EntityIndividual
Role
Chief Executive Officer
CEO, MD & Executive Director
Shares136,470
Max PriceAU$5.55
BuyAU$92,44613 Aug 19
Ian Wilton
EntityIndividual
Role
Chairman of the Board
Chairman
Shares16,657
Max PriceAU$5.55
BuyAU$6,03313 Aug 19
Michael Carroll
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares1,087
Max PriceAU$5.55
BuyAU$79,90613 Aug 19
Michael Carroll
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares11,838
Max PriceAU$6.75
SellAU$4,579,72809 Aug 19
Yarra Funds Management Limited
EntityCompany
Shares644,978
Max PriceAU$7.10
BuyAU$8,414,03709 Aug 19
Yarra Funds Management Limited
EntityCompany
Shares1,516,043
Max PriceAU$5.55
BuyAU$13,60007 Aug 19
Robyn Clubb
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares2,000
Max PriceAU$6.80
BuyAU$34,95907 Aug 19
Michael Carroll
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares4,822
Max PriceAU$7.25
SellAU$8,825,24626 Jul 19
Pendal Group Limited
EntityCompany
Shares1,366,557
Max PriceAU$6.46
BuyAU$8,547,53026 Jul 19
Pendal Group Limited
EntityCompany
Shares1,258,863
Max PriceAU$6.79
BuyAU$18,397,58604 Jun 19
Health Employees Superannuation Trust Australia
EntityCompany
Shares3,012,147
Max PriceAU$6.11
SellAU$211,10315 May 19
Pendal Group Limited
EntityCompany
Shares33,933
Max PriceAU$6.28
BuyAU$22,059,44415 May 19
Pendal Group Limited
EntityCompany
Shares3,470,519
Max PriceAU$6.36
BuyAU$9,117,34722 Mar 19
Yarra Funds Management Limited
EntityCompany
Shares1,491,651
Max PriceAU$6.11
SellAU$491,68511 Feb 19
Yarra Funds Management Limited
EntityCompany
Shares71,993
Max PriceAU$6.83
BuyAU$8,541,48111 Feb 19
Yarra Funds Management Limited
EntityCompany
Shares1,276,402
Max PriceAU$6.69
SellAU$1,368,00006 Jan 19
SichuanHebang Biotechnology Co.,Ltd.
EntityCompany
Shares190,000
Max PriceAU$7.20
SellAU$10,849,10128 Dec 18
SichuanHebang Biotechnology Co.,Ltd.
EntityCompany
Shares1,219,000
Max PriceAU$8.90
SellAU$3,304,52921 Dec 18
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares455,282
Max PriceAU$7.26
BuyAU$2,175,41121 Dec 18
Realindex Investments Pty Limited
EntityCompany
Shares282,375
Max PriceAU$7.70
BuyAU$1,760,36421 Dec 18
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares248,049
Max PriceAU$7.10
BuyAU$21,143,32412 Dec 18
Yarra Funds Management Limited
EntityCompany
Shares2,958,642
Max PriceAU$7.15
BuyAU$34,99907 Dec 18
Robyn Clubb
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares5,000
Max PriceAU$7.00
BuyAU$58,70306 Dec 18
Diana Eilert
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares8,500
Max PriceAU$6.91
BuyAU$49,94104 Dec 18
Michael Carroll
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares7,280
Max PriceAU$6.86
SellAU$2,010,83821 Nov 18
Vinva Investment Management
EntityCompany
Shares268,709
Max PriceAU$7.48
BuyAU$847,15821 Nov 18
Vinva Investment Management
EntityCompany
Shares118,098
Max PriceAU$7.17
BuyAU$1,448,91112 Nov 18
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares192,327
Max PriceAU$7.71
BuyAU$181,47112 Nov 18
Realindex Investments Pty Limited
EntityCompany
Shares23,674
Max PriceAU$7.72
BuyAU$31,87902 Nov 18
Realindex Investments Pty Limited
EntityCompany
Shares4,373
Max PriceAU$7.29
BuyAU$751,37101 Nov 18
Realindex Investments Pty Limited
EntityCompany
Shares104,317
Max PriceAU$7.44
BuyAU$281,88801 Nov 18
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares40,536
Max PriceAU$7.31

Ownership Breakdown


Management Team

  • Mark Allison (59yo)

    CEO, MD & Executive Director

    • Tenure: 5.4yrs
    • Compensation: AU$2.76m
  • Peter Hastings

    General Counsel & Company Secretary

    • Tenure: 9.7yrs
  • Richard Davey

    Chief Financial Officer

    • Tenure: 6.8yrs
    • Compensation: AU$995.67k
  • Tom Russo

    General Manager of Real Estate

    • Tenure: 3.8yrs
  • James Cornish

    General Manager of West Zone

    • Tenure: 8.8yrs
    • Compensation: AU$717.38k
  • Malcolm Hunt

    General Manager of South Zone

    • Tenure: 7.8yrs
    • Compensation: AU$866.70k
  • Sanjeeta Singh

    Joint Company Secretary

    • Tenure: 3.6yrs
  • Karen Ross

    General Manager of Digital

    • Tenure: 3.5yrs

Board Members

  • Ian Wilton (67yo)

    Chairman

    • Tenure: 0.08yrs
    • Compensation: AU$164.25k
  • Diana Eilert (59yo)

    Non-Executive Director

    • Tenure: 1.9yrs
    • Compensation: AU$128.08k
  • Robyn Clubb (62yo)

    Non-Executive Director

    • Tenure: 4.1yrs
    • Compensation: AU$153.29k
  • Mark Allison (59yo)

    CEO, MD & Executive Director

    • Tenure: 5.4yrs
    • Compensation: AU$2.76m
  • Mike Carroll

    Non-Executive Director

    • Tenure: 1.1yrs
    • Compensation: AU$12.41k

Company Information

Elders Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Elders Limited
  • Ticker: ELD
  • Exchange: ASX
  • Founded: 1839
  • Industry: Agricultural Products
  • Sector: Food, Beverage & Tobacco
  • Market Cap: AU$866.902m
  • Shares outstanding: 141.65m
  • Website: https://elders.com.au

Number of Employees


Location

  • Elders Limited
  • 80 Grenfell Street
  • Level 10
  • Adelaide
  • South Australia
  • 5000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ELDASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
FTZDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
ELDCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992

Biography

Elders Limited provides livestock, real estate, and wool agency services to rural and regional customers primarily in Australia. It operates through Network, Feed and Processing, and Other segments. The co ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 10:32
End of Day Share Price2019/10/23 00:00
Earnings2019/03/31
Annual Earnings2018/09/30


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.