ASX:GNC

Stock Analysis Report

Executive Summary

GrainCorp Limited operates as a food ingredients and agribusiness company in Australasia, Asia, North America, Europe, the Middle East, North Africa, and internationally.

Snowflake

Fundamentals

Moderate growth potential with imperfect balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-3.8%

ASX:GNC

-3.9%

AU Food

-2.5%

AU Market


1 Year Return

4.0%

ASX:GNC

-20.1%

AU Food

-0.6%

AU Market

GNC outperformed the Food industry which returned -20.1% over the past year.

GNC outperformed the Market in Australia which returned -0.6% over the past year.


Share holder returns

GNCIndustryMarket
7 Day-3.8%-3.9%-2.5%
30 Day-11.4%-9.4%-4.4%
90 Day-0.8%-12.4%-1.1%
1 Year5.1%4.0%-18.0%-20.1%5.1%-0.6%
3 Year-0.2%-6.0%-12.2%-16.6%30.2%13.1%
5 Year-7.6%-15.3%22.9%12.0%36.5%5.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is GrainCorp undervalued based on future cash flows and its price relative to the stock market?

0.97x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

GrainCorp's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

GrainCorp's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

GrainCorp is loss making, we can't compare its value to the AU Food industry average.

GrainCorp is loss making, we can't compare the value of its earnings to the Australia market.


Price Based on Expected Growth

Unable to calculate PEG ratio for GrainCorp, we can't assess if its growth is good value.


Price Based on Value of Assets

GrainCorp is good value based on assets compared to the AU Food industry average.


Next Steps

Future Growth

How is GrainCorp expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

93.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

GrainCorp's revenue is expected to grow by 3.3% yearly, however this is not considered high growth (20% yearly).

GrainCorp's earnings are expected to grow significantly at over 20% yearly.

GrainCorp's revenue growth is positive but not above the Australia market average.

GrainCorp's earnings growth is expected to exceed the Australia market average.

GrainCorp's earnings growth is expected to exceed the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

GrainCorp is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has GrainCorp performed over the past 5 years?

0.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

GrainCorp does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.

Unable to compare GrainCorp's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare GrainCorp's 1-year growth to the AU Food industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if GrainCorp has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

GrainCorp used its assets less efficiently than the AU Food industry average last year based on Return on Assets.


Return on Capital Employed

It is difficult to establish if GrainCorp improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is GrainCorp's financial position?


Financial Position Analysis

GrainCorp is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

GrainCorp's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

GrainCorp's level of debt (109%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (78% vs 109% today).

Debt is not well covered by operating cash flow (2%, less than 20% of total debt).

GrainCorp is making a loss, therefore interest payments are not well covered by earnings.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.3x debt.


Next Steps

Dividend

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

1.64%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Unable to evaluate GrainCorp's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate GrainCorp's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as GrainCorp has not reported any payouts.

Unable to verify if GrainCorp's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as GrainCorp has not reported any payouts.


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (2x coverage).


Next Steps

Management

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

0.7yrs

Average management tenure


CEO

Mark Palmquist (62yo)

4.8yrs

Tenure

AU$2,954,000

Compensation

Mr. Mark L. Palmquist, BBus, GAICD, has been the Chief Executive Officer of GrainCorp Limited since October 1, 2014. He served as Managing Director of GrainCorp Limited from October 1, 2014 to April 2019.  ...


CEO Compensation Analysis

Mark's remuneration is about average for companies of similar size in Australia.

Mark's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

0.7yrs

Average Tenure

The average tenure for the GrainCorp management team is less than 2 years, this suggests a new team.


Board Age and Tenure

9.0yrs

Average Tenure

70yo

Average Age

The tenure for the GrainCorp board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

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Ownership Breakdown


Management Team

  • Mark Palmquist (62yo)

    Chief Executive Officer

    • Tenure: 4.8yrs
    • Compensation: AU$2.95m
  • Alistair Bell

    Group Chief Financial Officer

    • Tenure: 8.8yrs
    • Compensation: AU$1.03m
  • Stephanie Belton

    Group General Counsel & Joint Company Secretary

    • Tenure: 0.5yrs
  • Klaus Pamminger

    Chief Operating Officer

    • Tenure: 0.3yrs
    • Compensation: AU$1.30m
  • Cate Hathaway

    Interim Group General Manager Human Resources & SHE

    • Tenure: 1.1yrs
  • Angus Trigg

    Director of Corporate Affairs

    • Tenure: 0.0yrs
  • Darren Smith

    President of GrainCorp Malt

    • Tenure: 0.6yrs
  • Luke Thrum

    Investor Relations Manager

    • Tenure: 0.0yrs
  • Annerly Squires

    Joint Company Secretary

    • Tenure: 0.7yrs

Board Members

  • Donald McGauchie (69yo)

    Non-Executive Director

    • Tenure: 9.7yrs
    • Compensation: AU$150.00k
  • Barbara Gibson (71yo)

    Non-Executive Director

    • Tenure: 8.4yrs
    • Compensation: AU$172.00k
  • Graham Bradley (70yo)

    Chairman of the Board

    • Tenure: 2.3yrs
    • Compensation: AU$370.00k
  • Peter Housden (72yo)

    Non-Executive Director

    • Tenure: 10.8yrs
    • Compensation: AU$181.00k
  • Peter Richards (60yo)

    Deputy Chairman

    • Tenure: 0.2yrs
    • Compensation: AU$164.00k
  • Dan Mangelsdorf

    Non-Executive Director

    • Tenure: 10.5yrs
    • Compensation: AU$175.00k
  • Rebecca Dee-Bradbury (51yo)

    Non-Executive Director

    • Tenure: 4.9yrs
    • Compensation: AU$175.00k
  • Simon Tregoning (71yo)

    Non-Executive Director

    • Tenure: 10.7yrs
    • Compensation: AU$162.00k

Company Information

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


Key Information

  • Name: GrainCorp Limited
  • Ticker: GNC
  • Exchange: ASX
  • Founded: 1916
  • Industry: Agricultural Products
  • Sector: Food, Beverage & Tobacco
  • Market Cap: AU$1.778b
  • Shares outstanding: 228.47m
  • Website: https://www.graincorp.com.au

Number of Employees


Location

  • GrainCorp Limited
  • 175 Liverpool Street
  • Level 28
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GNCASX (Australian Securities Exchange)YesOrdinary SharesAUAUDMar 1998
GRCL.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMar 1998
G3CDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 1998
GNCCHIA (Chi-X Australia)YesOrdinary SharesAUAUDMar 1998

Biography

GrainCorp Limited operates as a food ingredients and agribusiness company in Australasia, Asia, North America, Europe, the Middle East, North Africa, and internationally. The company operates in three segm ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/19 10:32
End of Day Share Price2019/08/19 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.