ASX:RIC

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Undervalued with proven track record.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

2.9%

RIC

-0.4%

AU Food

1.3%

AU Market


1 Year Return

-25.3%

RIC

-10.0%

AU Food

9.9%

AU Market

Return vs Industry: RIC underperformed the Australian Food industry which returned -10% over the past year.

Return vs Market: RIC underperformed the Australian Market which returned 9.9% over the past year.


Share holder returns

RICIndustryMarket
7 Day2.9%-0.4%1.3%
30 Day1.9%2.5%-0.7%
90 Day-7.5%-2.5%-0.4%
1 Year-23.0%-25.3%-7.5%-10.0%16.3%9.9%
3 Year-8.0%-16.0%-1.7%-6.5%35.8%17.6%
5 Year46.7%25.7%43.8%31.9%51.9%17.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

4%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: RIC (A$1.05) is trading below our estimate of fair value (A$1.09)

Significantly Undervalued: RIC is trading below fair value, but not by a significant amount.


Price Based on Earnings

PE vs Industry: RIC is good value based on its PE Ratio (13.7x) compared to the Food industry average (25.3x).

PE vs Market: RIC is good value based on its PE Ratio (13.7x) compared to the Australian market (17.9x).


Price Based on Expected Growth

Low PEG Ratio: RIC is good value based on its PEG Ratio (0.9x)


Price Based on Value of Assets

PB vs Industry: RIC is good value based on its PB Ratio (1.2x) compared to the AU Food industry average (1.2x).


Next Steps

Future Growth

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

14.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: RIC's forecast earnings growth (14.6% per year) is above the savings rate (2.3%).

Earnings vs Market: RIC's earnings (14.6% per year) are forecast to grow faster than the Australian market (10.2% per year).

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

Revenue vs Market: RIC's revenue (4.8% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: RIC's revenue (4.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: RIC's Return on Equity is forecast to be low in 3 years time (10.6%).


Next Steps

Past Performance

How has Ridley performed over the past 5 years?

0.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: RIC's earnings have grown by 0.7% per year over the past 5 years.

Accelerating Growth: RIC's earnings growth over the past year (35.4%) exceeds its 5-year average (0.7% per year).

Earnings vs Industry: RIC earnings growth over the past year (35.4%) exceeded the Food industry -28.6%.


Return on Equity

High ROE: RIC's Return on Equity (8.5%) is considered low.


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is Ridley's financial position?


Financial Position Analysis

Short Term Liabilities: RIC's short term assets (A$209.7M) exceeds its short term liabilities (A$176.8M)

Long Term Liabilities: RIC's short term assets (209.7M) exceeds its long term liabilities (119.4M)


Debt to Equity History and Analysis

Debt Level: RIC's debt to equity ratio (56.7%) is considered high

Reducing Debt: RIC's debt to equity ratio has increased from 34.5% to 56.7% over the past 5 years.

Debt Coverage: RIC's debt is well covered by operating cash flow (23.4%).

Interest Coverage: RIC's interest payments on its debt are well covered by EBIT (4.9x coverage).


Balance Sheet

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

Debt Coverage by Assets: RIC's debt is covered by short term assets (assets are 1.331800x debt).


Next Steps

Dividend

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

4.94%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Ridley before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company4.0%marketbottom25%2.5%markettop25%5.6%industryaverage2.9%forecastin3Years4.9%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: RIC's dividend (4.05%) is higher than the bottom 25% of dividend payers in the Australian market (2.5%).

High Dividend: RIC's dividend (4.05%) is low compared to the top 25% of dividend payers in the Australian market (5.6%).

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.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (55.6%), RIC's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RIC's dividends in 3 years are forecast to be covered by earnings (53.1% payout ratio).


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Quinton Hildebrand 0

0.2yrs

Tenure

0

Mr. Quinton Lance Hildebrand, BSc (AgEcon), MBA serves as Chief Executive Officer, Managing Director and Director of Ridley Corporation Limited since August 26, 2019. Mr. Hildebrand served as the Chief Com ...


Management Age and Tenure

3.8yrs

Average Tenure

Experienced Management: RIC's management team is considered experienced (3.8 years average tenure).


Board Age and Tenure

5.3yrs

Average Tenure

57yo

Average Age

Experienced Board: RIC's board of directors are considered experienced (5.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

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Ownership Breakdown


Management Team

  • Alan Boyd (59yo)

    CFO & Company Secretary

    • Tenure: 10.5yrs
    • Compensation: AU$649.70k
  • Quinton Hildebrand

    CEO, MD & Director

    • Tenure: 0.2yrs
  • Ian Fairbairn

    General Manager of Operations

    • Tenure: 8.8yrs
  • Mike Murphy

    General Manager of Safety

    • Tenure: 3.8yrs
    • Compensation: AU$437.14k
  • Anton Feely

    Head of Strategy & Corporate Development

    • Tenure: 3.5yrs

Board Members

  • Ejnar Knudsen (50yo)

    Non Executive Director

    • Tenure: 6.3yrs
    • Compensation: AU$85.00k
  • Gary Weiss (66yo)

    Independent Chairman

    • Tenure: 4.3yrs
    • Compensation: AU$177.63k
  • David Lord (61yo)

    Non-Executive Director

    • Tenure: 3.5yrs
    • Compensation: AU$91.43k
  • Patria Mann (57yo)

    Independent Non Executive Director

    • Tenure: 11.6yrs
    • Compensation: AU$96.43k
  • Quinton Hildebrand

    CEO, MD & Director

    • Tenure: 0.2yrs
  • Robert van Barneveld (51yo)

    Independent Non Executive Director

    • Tenure: 9.3yrs
    • Compensation: AU$95.00k

Company Information

Ridley Corporation Limited's company bio, 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
  • Market Cap: AU$326.819m
  • Shares outstanding: 311.26m
  • Website: https://www.ridley.com.au

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RIDY.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
RICASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
RICCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992
RI6DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992

Biography

Ridley Corporation Limited, together with its subsidiaries, provides animal nutrition solutions in Australasia. It operates through two segments, AgriProducts and Property. It offers animal meals, includin ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 10:32
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.

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