ASX:ELD

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Solid track record and good value.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: ELD has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.4%

ELD

-0.3%

AU Food

0.01%

AU Market


1 Year Return

99.5%

ELD

-3.1%

AU Food

-5.7%

AU Market

Return vs Industry: ELD exceeded the Australian Food industry which returned -3.1% over the past year.

Return vs Market: ELD exceeded the Australian Market which returned -5.7% over the past year.


Shareholder returns

ELDIndustryMarket
7 Day-0.4%-0.3%0.01%
30 Day16.0%5.0%5.4%
90 Day16.6%6.3%4.0%
1 Year104.1%99.5%-0.5%-3.1%-2.4%-5.7%
3 Year172.0%142.4%-11.8%-18.6%18.0%3.0%
5 Year230.2%184.5%18.5%4.0%42.1%13.2%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ELD (A$11.95) is trading below our estimate of fair value (A$27.99)

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


Price To Earnings Ratio

PE vs Industry: ELD is good value based on its PE Ratio (16.9x) compared to the AU Food industry average (25.4x).

PE vs Market: ELD is good value based on its PE Ratio (16.9x) compared to the Australian market (21.5x).


Price to Earnings Growth Ratio

PEG Ratio: ELD is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: ELD is overvalued based on its PB Ratio (3x) 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 7 analysts?

8.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ELD's forecast earnings growth (8.5% per year) is above the savings rate (2.3%).

Earnings vs Market: ELD's earnings (8.5% per year) are forecast to grow slower than the Australian market (17.5% per year).

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

Revenue vs Market: ELD's revenue (5.9% per year) is forecast to grow faster than the Australian market (4.7% per year).

High Growth Revenue: ELD's revenue (5.9% 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 (16.4%).


Next Steps

Past Performance

How has Elders performed over the past 5 years?

15.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ELD has high quality earnings.

Growing Profit Margin: ELD's current net profit margins (5.3%) are higher than last year (3.9%).


Past Earnings Growth Analysis

Earnings Trend: ELD's earnings have grown by 15.5% per year over the past 5 years.

Accelerating Growth: ELD's earnings growth over the past year (57.7%) exceeds its 5-year average (15.5% per year).

Earnings vs Industry: ELD earnings growth over the past year (57.7%) exceeded the Food industry -9.4%.


Return on Equity

High ROE: ELD's Return on Equity (16.3%) is considered low.


Next Steps

Financial Health

How is Elders's financial position?


Financial Position Analysis

Short Term Liabilities: ELD's short term assets (A$1.0B) exceed its short term liabilities (A$790.5M).

Long Term Liabilities: ELD's short term assets (A$1.0B) exceed its long term liabilities (A$220.2M).


Debt to Equity History and Analysis

Debt Level: ELD's debt to equity ratio (42.8%) is considered high.

Reducing Debt: ELD's debt to equity ratio has reduced from 96.1% to 42.8% over the past 5 years.

Debt Coverage: ELD's debt is not well covered by operating cash flow (19.7%).

Interest Coverage: ELD's interest payments on its debt are well covered by EBIT (12.1x coverage).


Balance Sheet


Next Steps

Dividend

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

1.51%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ELD's dividend (1.51%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.14%).

High Dividend: ELD's dividend (1.51%) is low compared to the top 25% of dividend payers in the Australian market (5.48%).


Stability and Growth of Payments

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 3 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (25.5%), 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 (34.4% payout ratio).


Next Steps

Management

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

6.4yrs

Average management tenure


CEO

Mark Allison (60 yo)

6.42yrs

Tenure

AU$1,667,029

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 ($USD1.18M) is about average for companies of similar size in the Australian market ($USD1.30M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Mark Allison
CEO, MD & Executive Director6.42yrsAU$1.67m0.82%
A$ 15.4m
Richard Davey
Chief Financial Officer7.75yrsAU$742.23k0.070%
A$ 1.3m
James Cornish
General Manager of West Zone9.75yrsAU$532.90k0.041%
A$ 762.9k
Malcolm Hunt
General Manager of South Zone8.75yrsAU$597.00k0.044%
A$ 832.3k
Peter Hastings
General Counsel & Company Secretary10.67yrsno datano data
Olivia Richardson
General Manager of People & Cultureno datano datano data
Sanjeeta Singh
Head of Risk0.25yrno datano data
Shannon Doecke
Company Secretary0.25yrno datano data
Tom Russo
General Manager of Real Estate4.75yrsno datano data
Karen Ross
General Manager of Digital4.5yrsno datano data

6.4yrs

Average Tenure

Experienced Management: ELD's management team is seasoned and experienced (6.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mark Allison
CEO, MD & Executive Director6.42yrsAU$1.67m0.82%
A$ 15.4m
Matthew Quinn
Additional Non-Executive Director0.67yrno data0.0097%
A$ 182.7k
Ian Wilton
Chairman1.08yrsAU$169.33k0.084%
A$ 1.6m
Diana Eilert
Non-Executive Director2.92yrsAU$149.20k0.0088%
A$ 166.2k
Robyn Clubb
Independent Non-Executive Director5.08yrsAU$154.90k0.0067%
A$ 125.6k

2.9yrs

Average Tenure

60yo

Average Age

Experienced Board: ELD's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


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 been diluted in the past year, with total shares outstanding growing by 10%.


Top Shareholders

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$1.880b
  • Shares outstanding: 155.75m
  • 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
EDES.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDDec 2008

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 Analysis2020/10/21 10:31
End of Day Share Price2020/10/21 00:00
Earnings2020/03/31
Annual Earnings2019/09/30


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.