ASX:SGLLV

Stock Analysis Report

Executive Summary

Ricegrowers Limited, operates as a rice food company in Australia and internationally.

Snowflake

Fundamentals

Undervalued with excellent balance sheet.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

2.1%

SGLLV

0.6%

AU Food

0.4%

AU Market


1 Year Return

-34.8%

SGLLV

-10.2%

AU Food

9.8%

AU Market

Return vs Industry: SGLLV underperformed the Australian Food industry which returned -10.2% over the past year.

Return vs Market: SGLLV underperformed the Australian Market which returned 9.8% over the past year.


Shareholder returns

SGLLVIndustryMarket
7 Day2.1%0.6%0.4%
30 Day-2.3%-1.2%-1.3%
90 Day-18.5%-4.3%-0.5%
1 Year-30.9%-34.8%-7.7%-10.2%16.1%9.8%
3 Year12.2%-8.0%-1.9%-6.7%36.1%17.9%
5 Yearn/a38.7%27.4%49.4%15.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Ricegrowers undervalued compared to its fair value and its price relative to the market?

43.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SGLLV (A$3.91) is trading below our estimate of fair value (A$6.92)

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


Price To Earnings Ratio

PE vs Industry: SGLLV is good value based on its PE Ratio (7.2x) compared to the Food industry average (25.3x).

PE vs Market: SGLLV is good value based on its PE Ratio (7.2x) compared to the Australian market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SGLLV's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SGLLV is good value based on its PB Ratio (0.5x) compared to the AU Food industry average (1.3x).


Next Steps

Future Growth

How is Ricegrowers forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

2.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SGLLV's forecast earnings growth (2% per year) is below the savings rate (2.3%).

Earnings vs Market: SGLLV's earnings (2% per year) are forecast to grow slower than the Australian market (10.3% per year).

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

Revenue vs Market: Insufficient data to determine if SGLLV's revenue is forecast to grow faster than the Australian market.

High Growth Revenue: Insufficient data to determine if SGLLV's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if SGLLV's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Ricegrowers performed over the past 5 years?

-2.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SGLLV's earnings have declined by -2.1% per year over the past 5 years.

Accelerating Growth: SGLLV's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SGLLV had negative earnings growth (-26.2%) over the past year, making it difficult to compare to the Food industry average (-28.6%).


Return on Equity

High ROE: SGLLV's Return on Equity (7.1%) is considered low.


Return on Assets

ROA vs Industry: SGLLV's Return on Assets is below or equal to the Food industry average last year.


Return on Capital Employed

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


Next Steps

Financial Health

How is Ricegrowers's financial position?


Financial Position Analysis

Short Term Liabilities: SGLLV's short term assets (A$555.4M) exceeds its short term liabilities (A$268.9M)

Long Term Liabilities: SGLLV's short term assets (555.4M) exceeds its long term liabilities (98.1M)


Debt to Equity History and Analysis

Debt Level: SGLLV's debt to equity ratio (28.5%) is considered satisfactory

Reducing Debt: SGLLV's debt to equity ratio has reduced from 67.3% to 28.5% over the past 5 years.

Debt Coverage: SGLLV's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: SGLLV's interest payments on its debt are well covered by EBIT (7.5x coverage).


Balance Sheet

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

Debt Coverage by Assets: SGLLV's debt is covered by short term assets (assets are 4.217450x debt).


Next Steps

Dividend

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

8.44%

Current Dividend Yield


Dividend Yield vs Market

company8.4%marketbottom25%2.4%markettop25%5.6%industryaverage3.1%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SGLLV's dividend (8.44%) is higher than the bottom 25% of dividend payers in the Australian market (2.44%).

High Dividend: SGLLV's dividend (8.44%) is in the top 25% of dividend payers in the Australian market (5.59%)

Stable Dividend: Whilst dividend payments have been stable, SGLLV has been paying a dividend for less than 10 years.

Growing Dividend: SGLLV's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (60.6%), SGLLV's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

6.8yrs

Average management tenure


CEO

Rob Gordon 0

7.7yrs

Tenure

AU$2,838,540

Compensation

Mr. Robert Francis Gordon, also known as Rob, BSc (Hons), CEng, MAICD, is Non-Executive Director at Inghams Group Limited since April 11, 2019. He has been Chief Executive Officer of Ricegrowers Limited si ...


CEO Compensation Analysis

Compensation vs. Market: Rob's total compensation ($USD1.94M) is about average for companies of similar size in the Australian market ($USD464.02K).

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


Management Age and Tenure

6.8yrs

Average Tenure

Experienced Management: SGLLV's management team is seasoned and experienced (6.8 years average tenure).


Board Age and Tenure

3.9yrs

Average Tenure

Experienced Board: SGLLV's board of directors are considered experienced (3.9 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.


Ownership Breakdown


Management Team

  • Rob Gordon

    CEO & Executive Director

    • Tenure: 7.7yrs
    • Compensation: AU$2.84m
  • Mandy Del Gigante

    Company Secretary

    • Tenure: 0yrs
  • Matt Alonso

    Chief Executive Officer of Sunfoods LLC

    • Tenure: 8.8yrs
  • Stephen Forde

    Chief Executive Officer of Riviana Foods Pty Ltd

    • Tenure: 6yrs
  • Worthington-Eyre Greg

    Chief Executive Officer of Trukai Industries Limited

    • Tenure: 6.8yrs
  • Dimitri Courtelis (38yo)

    Chief Financial Officer

    • Tenure: 1.6yrs
    • Compensation: AU$1.12m
  • Rachel Westbrook

    Head of Finance

    • Tenure: 0yrs
  • Matthew Gerber

    Head of Corporate Affairs

    • Tenure: 0yrs
  • Julian Luke

    Head of Corporate Affairs

    • Tenure: 0yrs

Board Members

  • Rob Gordon

    CEO & Executive Director

    • Tenure: 7.7yrs
    • Compensation: AU$2.84m
  • Luisa Catanzaro

    Non Executive Independent Director

    • Tenure: 1.1yrs
    • Compensation: AU$64.80k
  • Ian Glasson

    Non-Executive Independent Director

    • Tenure: 3.7yrs
    • Compensation: AU$105.29k
  • Laurie Arthur

    Chairman

    • Tenure: 5.8yrs
    • Compensation: AU$192.88k
  • Gillian Kirkup

    Non-Executive Director

    • Tenure: 13.9yrs
    • Compensation: AU$99.29k
  • Leigh Vial

    Non-Executive Director

    • Tenure: 4.2yrs
    • Compensation: AU$99.92k
  • John Bradford

    Non-Executive Director

    • Tenure: 4.2yrs
    • Compensation: AU$98.13k
  • Ian Mason (60yo)

    Non-Executive Director

    • Tenure: 1.7yrs
    • Compensation: AU$97.04k
  • Jeremy Morton

    Director

    • Tenure: 0.2yrs
  • Julian Zanatta

    Director

    • Tenure: 0.2yrs

Company Information

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


Key Information

  • Name: Ricegrowers Limited
  • Ticker: SGLLV
  • Exchange: ASX
  • Founded: 1950
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: AU$230.927m
  • Shares outstanding: 59.21m
  • Website: https://www.sunrice.com.au

Number of Employees


Location

  • Ricegrowers Limited
  • MLC Centre
  • Level 24
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SGLLVASX (Australian Securities Exchange)YesOrdinary B Class SharesAUAUDMay 2015

Biography

Ricegrowers Limited, operates as a rice food company in Australia and internationally. The company operates through Rice Pool, International Rice, Rice Food, Riviana Foods, and CopRice segments. It engages ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 10:35
End of Day Share Price2019/10/21 00:00
Earnings2019/04/30
Annual Earnings2019/04/30


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.