GrainCorp Limited operates as a food ingredients and agribusiness company in Australasia, Asia, North America, Europe, the Middle East, North Africa, and internationally.
Fair value with moderate growth potential.
Share Price & News
How has GrainCorp's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: GNC has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: GNC underperformed the Australian Food industry which returned -7% over the past year.
Return vs Market: GNC underperformed the Australian Market which returned 10.9% over the past year.
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
1 year ago | Simply Wall StA Closer Look At GrainCorp Limited's (ASX:GNC) Uninspiring ROE
1 year ago | Simply Wall StIs GrainCorp Limited's (ASX:GNC) CEO Overpaid Relative To Its Peers?
1 year ago | Simply Wall StGrainCorp Limited (ASX:GNC): The Return Story
Is GrainCorp undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: GNC (A$8.11) is trading below our estimate of fair value (A$11.28)
Significantly Below Fair Value: GNC is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: GNC is unprofitable, so we can't compare its PE Ratio to the Food industry average.
PE vs Market: GNC is unprofitable, so we can't compare its PE Ratio to the Australian market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate GNC's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: GNC is good value based on its PB Ratio (1x) compared to the AU Food industry average (1.2x).
How is GrainCorp forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: GNC is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.1%).
Earnings vs Market: GNC is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: GNC's is expected to become profitable in the next 3 years.
Revenue vs Market: GNC's revenue (1.9% per year) is forecast to grow slower than the Australian market (4.1% per year).
High Growth Revenue: GNC's revenue (1.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: GNC's Return on Equity is forecast to be low in 3 years time (5.4%).
How has GrainCorp performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: GNC is currently unprofitable.
Growing Profit Margin: GNC is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: GNC is unprofitable, and losses have increased over the past 5 years at a rate of -17.8% per year.
Accelerating Growth: Unable to compare GNC's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: GNC is unprofitable, making it difficult to compare its past year earnings growth to the Food industry (-21.4%).
Return on Equity
High ROE: GNC has a negative Return on Equity (-6.15%), as it is currently unprofitable.
Return on Assets
Return on Capital Employed
How is GrainCorp's financial position?
Financial Position Analysis
Short Term Liabilities: GNC's short term assets (A$1.9B) exceed its short term liabilities (A$1.1B).
Long Term Liabilities: GNC's short term assets (A$1.9B) exceed its long term liabilities (A$906.8M).
Debt to Equity History and Analysis
Debt Level: GNC's debt to equity ratio (76.1%) is considered high.
Reducing Debt: GNC's debt to equity ratio has increased from 54.4% to 76.1% over the past 5 years.
Inventory Level: GNC has a high level of physical assets or inventory.
Debt Coverage by Assets: GNC's debt is covered by short term assets (assets are 1.4x debt).
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: GNC has been profitable on average in the past, therefore cash runway is not a concern.
Forecast Cash Runway: GNC has been profitable on average in the past, therefore cash runway is not a concern.
What is GrainCorp's current dividend yield, its reliability and sustainability?
Forecast Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: Unable to evaluate GNC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate GNC's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if GNC's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if GNC's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: GNC is not paying a notable dividend for the Australian market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of GNC's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mark Palmquist (62yo)
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 26, 20 ...
CEO Compensation Analysis
Compensation vs Market: Mark's total compensation ($USD1.06M) is about average for companies of similar size in the Australian market ($USD1.38M).
Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.
|Chief Executive Officer||5.3yrs||AU$1.60m||0.10% A$1.9m|
|Group Chief Financial Officer||9.3yrs||AU$755.00k||0.035% A$657.2k|
|Chief Operating Officer||0yrs||AU$894.00k||0.0094% A$174.8k|
|Chief People & Transformation Officer||1.6yrs||AU$515.23k||no data|
|President & CEO of GrainCorp Malt||0yrs||AU$703.18k||0.0075% A$139.6k|
|Senior Manager of Corporate Affairs & Investor Relations||0yrs||no data||no data|
|Group General Counsel & Joint Company Secretary||1yrs||no data||no data|
|Director of Corporate Affairs||0yrs||no data||no data|
|Joint Company Secretary||1.2yrs||no data||no data|
Experienced Management: GNC's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.
|Non-Executive Director||10.2yrs||AU$150.00k||0.039% A$721.4k|
|Non-Executive Director||0.2yrs||no data||no data|
|Non-Executive Director||8.9yrs||AU$180.00k||0.0031% A$56.8k|
|Chairman of the Board||2.8yrs||AU$370.00k||0.015% A$271.7k|
|Deputy Chairman||0.7yrs||AU$172.00k||0.0044% A$81.1k|
|Non-Executive Director||11yrs||AU$175.00k||0.0068% A$126.0k|
|Non-Executive Director||11.2yrs||AU$162.00k||0.013% A$243.3k|
|Non-Executive Director||0.2yrs||no data||no data|
Experienced Board: GNC's board of directors are considered experienced (5.8 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
GrainCorp Limited's company bio, employee growth, exchange listings and data sources
- Name: GrainCorp Limited
- Ticker: GNC
- Exchange: ASX
- Founded: 1916
- Industry: Agricultural Products
- Sector: Food, Beverage & Tobacco
- Market Cap: AU$1.856b
- Shares outstanding: 228.85m
- Website: https://www.graincorp.com.au
Number of Employees
- GrainCorp Limited
- 175 Liverpool Street
- Level 28
- New South Wales
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|GNC||ASX (Australian Securities Exchange)||Yes||Ordinary Shares||AU||AUD||Mar 1998|
|GRCL.F||OTCPK (Pink Sheets LLC)||Yes||Ordinary Shares||US||USD||Mar 1998|
|G3C||DB (Deutsche Boerse AG)||Yes||Ordinary Shares||DE||EUR||Mar 1998|
|GNC||CHIA (Chi-X Australia)||Yes||Ordinary Shares||AU||AUD||Mar 1998|
GrainCorp Limited operates as a food ingredients and agribusiness company in Australasia, Asia, North America, Europe, the Middle East, North Africa, and internationally. It operates through three segments: Grains, Malt, and Oils. The Grains segment receives, transports, tests, stores, and imports grains comprising wheat, barley, canola, and sorghum, as well as other bulk commodities. It also markets grain and agricultural products; and operates grain pools. The Malt segment produces malt products; provides brewing inputs and other malting services to brewers and distillers; sells farm inputs; and exports malt. The Oils segment is involved in processing and crushing oilseeds; supplying edible oils and feeds; operating bulk liquid port terminals; and the provision of storage, packaging, transportation, and logistics services. GrainCorp Limited was founded in 1916 and is headquartered in Sydney, Australia.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/26 10:35|
|End of Day Share Price||2020/02/26 00:00|
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.