ASX:SGLLV

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Very undervalued with flawless balance sheet and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: SGLLV has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.7%

SGLLV

-2.6%

AU Food

-1.4%

AU Market


1 Year Return

41.8%

SGLLV

3.5%

AU Food

-7.1%

AU Market

Return vs Industry: SGLLV exceeded the Australian Food industry which returned 3.5% over the past year.

Return vs Market: SGLLV exceeded the Australian Market which returned -7.1% over the past year.


Shareholder returns

SGLLVIndustryMarket
7 Day-0.7%-2.6%-1.4%
30 Day2.8%1.5%3.4%
90 Day5.0%6.2%3.8%
1 Year50.2%41.8%6.6%3.5%-3.7%-7.1%
3 Year75.0%47.6%-13.1%-20.0%16.9%2.1%
5 Year84.2%33.2%14.7%-0.4%46.0%15.6%

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?

20.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SGLLV (A$5.46) is trading below our estimate of fair value (A$6.86)

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 (11.9x) compared to the AU Food industry average (23.3x).

PE vs Market: SGLLV is good value based on its PE Ratio (11.9x) compared to the Australian market (21.1x).


Price to Earnings Growth Ratio

PEG Ratio: SGLLV is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: SGLLV is good value based on its PB Ratio (0.7x) 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 2 analysts?

14.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SGLLV's forecast earnings growth (14.5% per year) is above the savings rate (2.3%).

Earnings vs Market: SGLLV's earnings (14.5% per year) are forecast to grow slower than the Australian market (17.7% per year).

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

Revenue vs Market: SGLLV's revenue (5.6% per year) is forecast to grow faster than the Australian market (4.6% per year).

High Growth Revenue: SGLLV's revenue (5.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SGLLV's Return on Equity is forecast to be low in 3 years time (7.2%).


Next Steps

  • Explore growth companies in the Food, Beverage & Tobacco industry.

Past Performance

How has Ricegrowers performed over the past 5 years?

-10.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SGLLV has high quality earnings.

Growing Profit Margin: SGLLV's current net profit margins (2.4%) are lower than last year (2.6%).


Past Earnings Growth Analysis

Earnings Trend: SGLLV's earnings have declined by 10% 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 (-14.3%) over the past year, making it difficult to compare to the Food industry average (-10%).


Return on Equity

High ROE: SGLLV's Return on Equity (4.7%) is considered low.


Next Steps

Financial Health

How is Ricegrowers's financial position?


Financial Position Analysis

Short Term Liabilities: SGLLV's short term assets (A$516.0M) exceed its short term liabilities (A$272.1M).

Long Term Liabilities: SGLLV's short term assets (A$516.0M) exceed its long term liabilities (A$64.8M).


Debt to Equity History and Analysis

Debt Level: SGLLV's debt to equity ratio (22.3%) is considered satisfactory.

Reducing Debt: SGLLV's debt to equity ratio has reduced from 62% to 22.3% over the past 5 years.

Debt Coverage: SGLLV's debt is well covered by operating cash flow (83.6%).

Interest Coverage: SGLLV's interest payments on its debt are well covered by EBIT (6.1x coverage).


Balance Sheet


Next Steps

Dividend

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

6.04%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SGLLV's dividend (6.04%) is higher than the bottom 25% of dividend payers in the Australian market (2.13%).

High Dividend: SGLLV's dividend (6.04%) is in the top 25% of dividend payers in the Australian market (5.47%)


Stability and Growth of Payments

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 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (72%), SGLLV's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SGLLV's dividends in 3 years are forecast to be covered by earnings (56.9% payout ratio).


Next Steps

Management

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

7.0yrs

Average management tenure


CEO

Rob Gordon

8.67yrs

Tenure

AU$3,343,246

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 ($USD2.38M) is above average for companies of similar size in the Australian market ($USD511.64K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Robert Gordon
CEO & Executive Director8.67yrsAU$3.34m0.21%
A$ 692.2k
Dimitri Courtelis
Chief Financial Officer2.58yrsAU$1.24m0.0059%
A$ 19.8k
Tom Howard
General Manager of Global Operations & Agribusinessno datano datano data
Kate Cooper
Acting Company Secretary & Group General Counsel4.75yrsno datano data
Paul Parker
General Manager of People & Culture1.75yrsno datano data
Rachel Westbrook
Head of Financeno datano datano data
Matthew Gerber
Head of Corporate Affairsno datano datano data
Julian Luke
Head of Corporate Affairsno datano datano data
Matt Alonso
Chief Executive Officer of Sunfoods LLC9.75yrsno datano data
Stephen Forde
Chief Executive Officer of Riviana Foods Pty Ltd7yrsno datano data
Worthington-Eyre Greg
Chief Executive Officer of Trukai Industries Limited7.75yrsno datano data

7.0yrs

Average Tenure

Experienced Management: SGLLV's management team is seasoned and experienced (7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Gordon
CEO & Executive Director8.67yrsAU$3.34m0.21%
A$ 692.2k
Luisa Catanzaro
Non Executive Independent Director2.08yrsAU$110.62kno data
Ian Glasson
Non-Executive Non Independent Director4.67yrsAU$107.92k0.039%
A$ 131.9k
Lawrence Arthur
Chairman6.75yrsAU$197.70k0.44%
A$ 1.5m
Gillian Kirkup
Non-Executive Director14.92yrsAU$101.77k0.14%
A$ 458.0k
Leigh Vial
Non-Executive Director5.17yrsAU$97.29k0.21%
A$ 696.7k
John Bradford
Non-Executive Director5.17yrsAU$104.23k0.062%
A$ 207.2k
Ian Mason
Non-Executive Director2.67yrsAU$98.19k0.27%
A$ 892.0k
Jeremy Morton
Director1.17yrsAU$62.66k0.24%
A$ 807.2k
Julian Zanatta
Director1.17yrsAU$63.15k0.044%
A$ 147.1k
Andrew Crane
Non Executive Independent Director2.08yrsAU$93.57kno data

4.7yrs

Average Tenure

Experienced Board: SGLLV's board of directors are considered experienced (4.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: SGLLV 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

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$335.770m
  • Shares outstanding: 60.28m
  • 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
SGLLVCHIA (Chi-X Australia)YesOrdinary B Class SharesAUAUDMay 2015
SGLL.FOTCPK (Pink Sheets LLC)YesOrdinary B Class SharesUSUSDMay 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 Analysis2020/10/27 10:32
End of Day Share Price2020/10/27 00:00
Earnings2020/04/30
Annual Earnings2020/04/30


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.