ASX:SHV

Stock Analysis Report

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Executive Summary

Select Harvests Limited engages in processing, packaging, marketing, and distributing edible nuts, dried fruits, seeds, and a range of natural health foods in Australia. More Details


Snowflake Analysis

Undervalued with excellent balance sheet and pays a dividend.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: SHV is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: SHV's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

3.3%

SHV

-1.7%

AU Food

2.3%

AU Market


1 Year Return

-15.9%

SHV

9.7%

AU Food

-0.3%

AU Market

Return vs Industry: SHV underperformed the Australian Food industry which returned 9.8% over the past year.

Return vs Market: SHV underperformed the Australian Market which returned -1% over the past year.


Shareholder returns

SHVIndustryMarket
7 Day3.3%-1.7%2.3%
30 Day1.8%1.6%7.2%
90 Day14.3%6.9%8.7%
1 Year-12.1%-15.9%12.4%9.7%3.1%-0.3%
3 Year58.4%45.7%-13.1%-20.0%24.2%8.8%
5 Year-19.0%-32.8%11.8%-2.9%55.4%24.4%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SHV (A$6.31) is trading below our estimate of fair value (A$12.83)

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


Price To Earnings Ratio

PE vs Industry: SHV is good value based on its PE Ratio (12x) compared to the AU Food industry average (25.9x).

PE vs Market: SHV is good value based on its PE Ratio (12x) compared to the Australian market (22.5x).


Price to Earnings Growth Ratio

PEG Ratio: SHV is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: SHV's PB Ratio (1.5x) is in line with the AU Food industry average.


Next Steps

Future Growth

How is Select Harvests forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

20.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SHV's forecast earnings growth (20.6% per year) is above the savings rate (2.3%).

Earnings vs Market: SHV's earnings (20.6% per year) are forecast to grow faster than the Australian market (17.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SHV's revenue (7.3% per year) is forecast to grow faster than the Australian market (5.2% per year).

High Growth Revenue: SHV's revenue (7.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SHV's Return on Equity is forecast to be low in 3 years time (10.8%).


Next Steps

Past Performance

How has Select Harvests performed over the past 5 years?

-9.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SHV has high quality earnings.

Growing Profit Margin: SHV's current net profit margins (17.3%) are higher than last year (8.3%).


Past Earnings Growth Analysis

Earnings Trend: SHV's earnings have declined by 9.2% per year over the past 5 years.

Accelerating Growth: SHV's earnings growth over the past year (114%) exceeds its 5-year average (-9.2% per year).

Earnings vs Industry: SHV earnings growth over the past year (114%) exceeded the Food industry -13.2%.


Return on Equity

High ROE: SHV's Return on Equity (12.9%) is considered low.


Next Steps

Financial Health

How is Select Harvests's financial position?


Financial Position Analysis

Short Term Liabilities: SHV's short term assets (A$213.4M) exceed its short term liabilities (A$99.7M).

Long Term Liabilities: SHV's short term assets (A$213.4M) do not cover its long term liabilities (A$322.2M).


Debt to Equity History and Analysis

Debt Level: SHV's debt to equity ratio (18%) is considered satisfactory.

Reducing Debt: SHV's debt to equity ratio has reduced from 38.3% to 18% over the past 5 years.

Debt Coverage: SHV's debt is well covered by operating cash flow (88.8%).

Interest Coverage: SHV's interest payments on its debt are well covered by EBIT (28.2x coverage).


Balance Sheet


Next Steps

Dividend

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

6.34%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SHV's dividend (6.34%) is higher than the bottom 25% of dividend payers in the Australian market (2.11%).

High Dividend: SHV's dividend (6.34%) is in the top 25% of dividend payers in the Australian market (5.06%)


Stability and Growth of Payments

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

Growing Dividend: SHV's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (55.2%), SHV's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SHV's dividends in 3 years are forecast to be covered by earnings (53.8% payout ratio).


Next Steps

Management

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

3.0yrs

Average management tenure


CEO

Paul Thompson

8.33yrs

Tenure

AU$1,329,220

Compensation

Mr. Paul Thompson, B Bus and MAICD, has been the Chief Executive Officer and Managing Director of Select Harvests Limited since July 9, 2012. Mr. Thompson is an experienced executive with over 30 years of ...


CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD967.34K) is above average for companies of similar size in the Australian market ($USD694.70K).

Compensation vs Earnings: Paul's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Paul Thompson
MD, CEO & Executive Director8.33yrsAU$1.33m0.071%
A$ 508.8k
Bradley Crump
CFO & Company Secretary3yrsAU$658.84kno data
Urania Cecco
General Manager of People1.33yrsAU$276.20kno data
Rob Anstey
Financial Controller of Food Products Divisionno datano datano data

3.0yrs

Average Tenure

Experienced Management: SHV's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Paul Thompson
MD, CEO & Executive Director8.33yrsAU$1.33m0.071%
A$ 508.8k
Frederick Grimwade
Independent Non-Executive Director10.33yrsAU$97.45k0.083%
A$ 589.6k
Fiona Rosalyn Bennett
Independent Non-Executive Director3.33yrsAU$110.45k0.0082%
A$ 58.3k
Michael Iwaniw
Independent Chairman of the Board9yrsAU$218.36k0.20%
A$ 1.4m
Guy Kingwill
Independent Non Executive Director1yrno data0.0055%
A$ 39.5k
Michael Carroll
Independent Non-Executive Director11.67yrsAU$110.45k0.023%
A$ 165.5k
Nicki Anderson
Independent Non-Executive Director4.83yrsAU$97.45k0.0077%
A$ 55.1k

8.3yrs

Average Tenure

63yo

Average Age

Experienced Board: SHV's board of directors are considered experienced (8.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: SHV insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 17.3%.


Top Shareholders

Company Information

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


Key Information

  • Name: Select Harvests Limited
  • Ticker: SHV
  • Exchange: ASX
  • Founded: 1969
  • Industry: Agricultural Products
  • Sector: Food, Beverage & Tobacco
  • Market Cap: AU$714.104m
  • Shares outstanding: 112.28m
  • Website: https://www.selectharvests.com.au

Number of Employees


Location

  • Select Harvests Limited
  • 360 Settlement Road
  • Thomastown
  • Victoria
  • 3074
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SHVASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
SHVT.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
SHVCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992
H0IDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992

Biography

Select Harvests Limited engages in processing, packaging, marketing, and distributing edible nuts, dried fruits, seeds, and a range of natural health foods in Australia. The company operates through Almond...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/24 10:36
End of Day Share Price2020/11/24 00:00
Earnings2020/03/31
Annual Earnings2019/09/30


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.