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RIC

Ridley ASX:RIC Stock Report

Last Price

AU$1.77

Market Cap

AU$565.5m

7D

0.6%

1Y

56.6%

Updated

27 Jun, 2022

Data

Company Financials +
RIC fundamental analysis
Snowflake Score
Valuation4/6
Future Growth2/6
Past Performance1/6
Financial Health6/6
Dividends2/6

RIC Stock Overview

Ridley Corporation Limited, together with its subsidiaries, provides animal nutrition solutions in Australia.

Ridley Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Ridley
Historical stock prices
Current Share PriceAU$1.77
52 Week HighAU$1.84
52 Week LowAU$0.99
Beta0.83
1 Month Change4.12%
3 Month Change4.43%
1 Year Change56.64%
3 Year Change42.17%
5 Year Change26.43%
Change since IPO195.00%

Recent News & Updates

Apr 19
Slowing Rates Of Return At Ridley (ASX:RIC) Leave Little Room For Excitement

Slowing Rates Of Return At Ridley (ASX:RIC) Leave Little Room For Excitement

If you're looking for a multi-bagger, there's a few things to keep an eye out for. In a perfect world, we'd like to see...

Shareholder Returns

RICAU FoodAU Market
7D0.6%-1.8%1.4%
1Y56.6%-13.6%-11.3%

Return vs Industry: RIC exceeded the Australian Food industry which returned -13.6% over the past year.

Return vs Market: RIC exceeded the Australian Market which returned -11.3% over the past year.

Price Volatility

Is RIC's price volatile compared to industry and market?
RIC volatility
RIC Average Weekly Movement5.7%
Food Industry Average Movement6.0%
Market Average Movement9.7%
10% most volatile stocks in AU Market16.3%
10% least volatile stocks in AU Market4.2%

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

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

About the Company

FoundedEmployeesCEOWebsite
1987612Quinton Hildebrandhttps://www.ridley.com.au

Ridley Corporation Limited, together with its subsidiaries, provides animal nutrition solutions in Australia. It operates in two segments, Packaged Feeds and Ingredients, and Bulk Stockfeeds. The company offers packaged products and supplements, such as bagged poultry, dairy, dog, horse, and lifestyle animal feeds, as well as block and loose lick supplements; aquafeed, which includes extruded and steam pelleted products for various fin fish and prawns; and rendered poultry, red meat, and fish products for the pet food, stockfeed, and aquaculture sectors.

Ridley Fundamentals Summary

How do Ridley's earnings and revenue compare to its market cap?
RIC fundamental statistics
Market CapAU$565.51m
Earnings (TTM)AU$37.42m
Revenue (TTM)AU$966.28m

15.1x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RIC income statement (TTM)
RevenueAU$966.28m
Cost of RevenueAU$878.47m
Gross ProfitAU$87.81m
Other ExpensesAU$50.39m
EarningsAU$37.42m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.12
Gross Margin9.09%
Net Profit Margin3.87%
Debt/Equity Ratio14.7%

How did RIC perform over the long term?

See historical performance and comparison

Dividends

1.9%

Current Dividend Yield

46%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

RIC 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/Revenue0.6x
Enterprise Value/EBITDA8.9x
PEG Ratio2.4x

Price to Earnings Ratio vs Peers

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

RIC PE Ratio vs Peers
The above table shows the PE ratio for RIC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average19.7x
SHV Select Harvests
24.7x33.5%AU$641.0m
LGL Lynch Group Holdings
9.4x16.9%AU$256.3m
CGC Costa Group Holdings
33.2x18.2%AU$1.4b
ELD Elders
11.4x-3.2%AU$2.0b
RIC Ridley
15.1x6.2%AU$565.5m

Price-To-Earnings vs Peers: RIC is good value based on its Price-To-Earnings Ratio (15.1x) compared to the peer average (19.7x).


Price to Earnings Ratio vs Industry

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

Price-To-Earnings vs Industry: RIC is expensive based on its Price-To-Earnings Ratio (15.1x) compared to the Oceanic Food industry average (14.3x)


Price to Earnings Ratio vs Fair Ratio

What is RIC'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.

RIC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15.1x
Fair PE Ratio18.3x

Price-To-Earnings vs Fair Ratio: RIC is good value based on its Price-To-Earnings Ratio (15.1x) compared to the estimated Fair Price-To-Earnings Ratio (18.3x).


Share Price vs Fair Value

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

Below Fair Value: RIC (A$1.77) is trading below our estimate of fair value (A$5.08)

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


Price to Earnings Growth Ratio

PEG Ratio: RIC is poor value based on its PEG Ratio (2.4x)


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Future Growth

How is Ridley forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


6.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RIC's forecast earnings growth (6.2% per year) is above the savings rate (1.8%).

Earnings vs Market: RIC's earnings (6.2% per year) are forecast to grow faster than the Australian market (6% per year).

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

Revenue vs Market: RIC's revenue (3% per year) is forecast to grow slower than the Australian market (5.2% per year).

High Growth Revenue: RIC's revenue (3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RIC's Return on Equity is forecast to be low in 3 years time (13.6%).


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Past Performance

How has Ridley performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-12.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: RIC has a large one-off gain of A$11.2M impacting its December 31 2021 financial results.

Growing Profit Margin: RIC became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: RIC's earnings have declined by 12.6% per year over the past 5 years.

Accelerating Growth: RIC has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: RIC has become profitable in the last year, making it difficult to compare its past year earnings growth to the Food industry (50%).


Return on Equity

High ROE: RIC's Return on Equity (12.2%) is considered low.


Discover strong past performing companies

Financial Health

How is Ridley's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: RIC's short term assets (A$237.0M) exceed its short term liabilities (A$201.2M).

Long Term Liabilities: RIC's short term assets (A$237.0M) exceed its long term liabilities (A$53.5M).


Debt to Equity History and Analysis

Debt Level: RIC's net debt to equity ratio (5.6%) is considered satisfactory.

Reducing Debt: RIC's debt to equity ratio has reduced from 44% to 14.7% over the past 5 years.

Debt Coverage: RIC's debt is well covered by operating cash flow (182.4%).

Interest Coverage: RIC's interest payments on its debt are well covered by EBIT (11.4x coverage).


Balance Sheet


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Dividend

What is Ridley current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


1.92%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: RIC's dividend (1.92%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.75%).

High Dividend: RIC's dividend (1.92%) is low compared to the top 25% of dividend payers in the Australian market (6.85%).


Stability and Growth of Payments

Stable Dividend: RIC's dividend payments have been volatile in the past 10 years.

Growing Dividend: RIC's dividend payments have fallen over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (46.3%), RIC's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (17.8%), RIC's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

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

2.2yrs

Average management tenure


CEO

Quinton Hildebrand

2.83yrs

Tenure

AU$1,527,061

Compensation

Mr. Quinton Lance Hildebrand, BSc (AgEcon), MBA, LLB (Hons) LLM (NZ) JSD (Cornell, NY)., serves as Chief Executive Officer, Managing Director and Director of Ridley Corporation Limited since August 26, 201...


CEO Compensation Analysis

Compensation vs Market: Quinton's total compensation ($USD1.06M) is about average for companies of similar size in the Australian market ($USD888.65K).

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


Leadership Team

Experienced Management: RIC's management team is considered experienced (2.2 years average tenure).


Board Members

Experienced Board: RIC's board of directors are considered experienced (6.2 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

Ownership Breakdown

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


Top Shareholders

Company Information

Ridley Corporation Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Ridley Corporation Limited
  • Ticker: RIC
  • Exchange: ASX
  • Founded: 1987
  • Industry: Agricultural Products
  • Sector: Food, Beverage & Tobacco
  • Implied Market Cap: AU$565.506m
  • Shares outstanding: 319.49m
  • Website: https://www.ridley.com.au

Number of Employees


Location

  • Ridley Corporation Limited
  • 565 Bourke Street
  • Level 4
  • Melbourne
  • Victoria
  • 3000
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/27 00:00
End of Day Share Price2022/06/27 00:00
Earnings2021/12/31
Annual Earnings2021/06/30


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.