Synlait Milk
Market Cap
AU$783.3m
Last Updated
2021/03/04 07:08 UTC
Data Sources
Company Financials +
Executive Summary
Synlait Milk Limited, together with its subsidiaries, manufactures and sells dairy products in China, rest of Asia, the Middle East, Africa, New Zealand, Australia, and internationally. More Details
Rewards
Risk Analysis
Snowflake Analysis
Very undervalued with mediocre balance sheet.
Similar Companies
Share Price & News
How has Synlait Milk's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: SM1 is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: SM1's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
-15.4%
SM1
-0.3%
AU Food
0.3%
AU Market
1 Year Return
-41.4%
SM1
15.2%
AU Food
12.5%
AU Market
Return vs Industry: SM1 underperformed the Australian Food industry which returned 15.2% over the past year.
Return vs Market: SM1 underperformed the Australian Market which returned 12.5% over the past year.
Shareholder returns
| SM1 | Industry | Market | |
|---|---|---|---|
| 7 Day | -15.4% | -0.3% | 0.3% |
| 30 Day | -26.2% | 2.1% | 2.2% |
| 90 Day | -35.8% | 2.5% | 4.0% |
| 1 Year | -41.4%-41.4% | 18.4%15.2% | 16.1%12.5% |
| 3 Year | -53.8%-53.8% | -2.1%-10.7% | 31.1%15.1% |
| 5 Year | n/a | 24.7%10.1% | 62.5%31.3% |
Long-Term Price Volatility Vs. Market
How volatile is Synlait Milk's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Valuation
Is Synlait Milk 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: SM1 (A$3.24) is trading below our estimate of fair value (A$7.24)
Significantly Below Fair Value: SM1 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: SM1 is good value based on its PE Ratio (9.2x) compared to the AU Food industry average (21.4x).
PE vs Market: SM1 is good value based on its PE Ratio (9.2x) compared to the Australian market (20x).
Price to Earnings Growth Ratio
PEG Ratio: SM1 is good value based on its PEG Ratio (0.9x)
Price to Book Ratio
PB vs Industry: SM1 is good value based on its PB Ratio (1.1x) compared to the AU Food industry average (1.5x).
Next Steps
Future Growth
How is Synlait Milk forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
9.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SM1's forecast earnings growth (9.7% per year) is above the savings rate (2%).
Earnings vs Market: SM1's earnings (9.7% per year) are forecast to grow slower than the Australian market (15.6% per year).
High Growth Earnings: SM1's earnings are forecast to grow, but not significantly.
Revenue vs Market: SM1's revenue (6.4% per year) is forecast to grow faster than the Australian market (5.6% per year).
High Growth Revenue: SM1's revenue (6.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: SM1's Return on Equity is forecast to be low in 3 years time (9%).
Next Steps
Past Performance
How has Synlait Milk performed over the past 5 years?
25.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SM1 has high quality earnings.
Growing Profit Margin: SM1's current net profit margins (5.8%) are lower than last year (8%).
Past Earnings Growth Analysis
Earnings Trend: SM1's earnings have grown significantly by 25.4% per year over the past 5 years.
Accelerating Growth: SM1's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: SM1 had negative earnings growth (-8.5%) over the past year, making it difficult to compare to the Food industry average (-19.6%).
Return on Equity
High ROE: SM1's Return on Equity (12.4%) is considered low.
Next Steps
Financial Health
How is Synlait Milk's financial position?
Financial Position Analysis
Short Term Liabilities: SM1's short term assets (NZ$386.4M) exceed its short term liabilities (NZ$384.7M).
Long Term Liabilities: SM1's short term assets (NZ$386.4M) do not cover its long term liabilities (NZ$501.0M).
Debt to Equity History and Analysis
Debt Level: SM1's debt to equity ratio (87.3%) is considered high.
Reducing Debt: SM1's debt to equity ratio has reduced from 153.3% to 87.3% over the past 5 years.
Debt Coverage: SM1's debt is not well covered by operating cash flow (19.9%).
Interest Coverage: SM1's interest payments on its debt are well covered by EBIT (6.3x coverage).
Balance Sheet
Next Steps
Dividend
What is Synlait Milk current dividend yield, its reliability and sustainability?
0.85%
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate SM1's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate SM1's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if SM1's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if SM1's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of SM1's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.4yrs
Average management tenure
CEO
Leon Clement
2.58yrs
Tenure
Mr. Leon Clement has been the Managing Director for Sri Lanka at Fonterra Brands (Thailand) since December 1, 2012. He is Chief Executive Officer at Synlait Milk Ltd. since August 13, 2018. He joined Synl...
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-Founder & Director | 2.33yrs | NZ$86.30k | 2.34% NZ$ 18.3m | |
| Chief Executive Officer | 2.58yrs | no data | no data | |
| Chief Financial Officer | 0.75yr | no data | no data | |
| Director of Operations | 1.25yrs | no data | no data | |
| General Manager of Innovation & Technical Services | 3.58yrs | no data | 0% NZ$ 0 | |
| Director of Legal | no data | no data | no data | |
| Director of Sales & Business Development | 4.08yrs | no data | 0.012% NZ$ 97.3k | |
| Director of People | 4.08yrs | no data | 0.0088% NZ$ 69.2k | |
| Company Secretary | no data | no data | no data | |
| Director of Sustainability & Brand | 3.17yrs | no data | 0.00013% NZ$ 1.0k | |
| Corporate Affairs Manager | no data | no data | no data |
3.4yrs
Average Tenure
Experienced Management: SM1's management team is considered experienced (3.4 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-Founder & Director | 2.33yrs | NZ$86.30k | 2.34% NZ$ 18.3m | |
| Non-Executive Director | 17.17yrs | NZ$86.30k | 0.030% NZ$ 236.6k | |
| Independent Chairman | 15yrs | NZ$172.00k | 0.038% NZ$ 295.9k | |
| Independent Non-Executive Director | 7.67yrs | NZ$98.30k | 0.030% NZ$ 232.2k | |
| Director | 10.58yrs | NZ$86.30k | no data | |
| Director | 5.25yrs | NZ$86.30k | no data | |
| Director | 4.33yrs | NZ$86.30k | no data | |
| Independent Director | 0.33yr | no data | 0.0061% NZ$ 47.8k |
6.5yrs
Average Tenure
Experienced Board: SM1's board of directors are considered experienced (6.5 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: SM1 insiders have only sold shares 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 21.9%.
Top Shareholders
Company Information
Synlait Milk Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Synlait Milk Limited
- Ticker: SM1
- Exchange: ASX
- Founded: 2005
- Industry: Packaged Foods and Meats
- Sector: Food, Beverage & Tobacco
- Market Cap: NZ$841.539m
- Listing Market Cap: NZ$783.300m
- Shares outstanding: 218.58m
- Website: https://www.synlait.com
Number of Employees
Location
- Synlait Milk Limited
- 1028 Heslerton Road
- RD13
- Rakaia
- 7783
- New Zealand
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| SML | NZSE (New Zealand Stock Exchange) | Yes | Ordinary Shares | NZ | NZD | Jul 2013 |
| SM1 | ASX (Australian Securities Exchange) | Yes | Ordinary Shares | AU | AUD | Jul 2013 |
| SM1 | CHIA (Chi-X Australia) | Yes | Ordinary Shares | AU | AUD | Jul 2013 |
Biography
Synlait Milk Limited, together with its subsidiaries, manufactures and sells dairy products in China, rest of Asia, the Middle East, Africa, New Zealand, Australia, and internationally. The company is also...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/03/04 07:08 |
| End of Day Share Price | 2021/03/04 00:00 |
| Earnings | 2020/07/31 |
| Annual Earnings | 2020/07/31 |
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.