ASX:TGR

Stock Analysis Report

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Executive Summary

Tassal Group Limited, together with its subsidiaries, engages in the hatching, farming, processing, marketing, and sale of Atlantic salmon and tiger prawns in Australia. More Details


Snowflake Analysis

Solid track record with excellent balance sheet and pays a dividend.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: TGR is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: TGR's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

0.5%

TGR

0.0005%

AU Food

1.3%

AU Market


1 Year Return

-15.7%

TGR

9.5%

AU Food

-1.7%

AU Market

Return vs Industry: TGR underperformed the Australian Food industry which returned 9.6% over the past year.

Return vs Market: TGR underperformed the Australian Market which returned -1.7% over the past year.


Shareholder returns

TGRIndustryMarket
7 Day0.5%0.0005%1.3%
30 Day3.4%5.0%11.1%
90 Day0.3%5.1%9.0%
1 Year-11.1%-15.7%12.3%9.5%1.7%-1.7%
3 Year4.3%-8.5%-14.8%-21.4%23.1%7.9%
5 Year-0.7%-19.0%11.9%-2.6%57.2%26.0%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

15.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TGR (A$3.66) is trading below our estimate of fair value (A$4.34)

Significantly Below Fair Value: TGR is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: TGR is good value based on its PE Ratio (10.8x) compared to the AU Food industry average (26.6x).

PE vs Market: TGR is good value based on its PE Ratio (10.8x) compared to the Australian market (23x).


Price to Earnings Growth Ratio

PEG Ratio: TGR is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: TGR is good value based on its PB Ratio (1x) compared to the AU Food industry average (1.5x).


Next Steps

Future Growth

How is Tassal Group forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

10.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TGR's forecast earnings growth (10.5% per year) is above the savings rate (2.3%).

Earnings vs Market: TGR's earnings (10.5% per year) are forecast to grow slower than the Australian market (17.9% per year).

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

Revenue vs Market: TGR's revenue (6.8% per year) is forecast to grow faster than the Australian market (5.1% per year).

High Growth Revenue: TGR's revenue (6.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TGR's Return on Equity is forecast to be low in 3 years time (9.1%).


Next Steps

Past Performance

How has Tassal Group performed over the past 5 years?

7.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TGR has high quality earnings.

Growing Profit Margin: TGR's current net profit margins (12.4%) are higher than last year (10.5%).


Past Earnings Growth Analysis

Earnings Trend: TGR's earnings have grown by 7.5% per year over the past 5 years.

Accelerating Growth: TGR's earnings growth over the past year (18.2%) exceeds its 5-year average (7.5% per year).

Earnings vs Industry: TGR earnings growth over the past year (18.2%) exceeded the Food industry -13.2%.


Return on Equity

High ROE: TGR's Return on Equity (8.8%) is considered low.


Next Steps

Financial Health

How is Tassal Group's financial position?


Financial Position Analysis

Short Term Liabilities: TGR's short term assets (A$620.4M) exceed its short term liabilities (A$180.3M).

Long Term Liabilities: TGR's short term assets (A$620.4M) exceed its long term liabilities (A$545.4M).


Debt to Equity History and Analysis

Debt Level: TGR's debt to equity ratio (27.8%) is considered satisfactory.

Reducing Debt: TGR's debt to equity ratio has increased from 15.6% to 27.8% over the past 5 years.

Debt Coverage: TGR's debt is well covered by operating cash flow (22.7%).

Interest Coverage: TGR's interest payments on its debt are well covered by EBIT (10.5x coverage).


Balance Sheet


Next Steps

Dividend

What is Tassal Group current dividend yield, its reliability and sustainability?

4.92%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TGR's dividend (4.92%) is higher than the bottom 25% of dividend payers in the Australian market (2.05%).

High Dividend: TGR's dividend (4.92%) is low compared to the top 25% of dividend payers in the Australian market (5.06%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (52.9%), TGR's dividend payments are covered by earnings.


Future Payout to Shareholders

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


Next Steps

  • Explore strong dividend paying companies in the Food, Beverage & Tobacco industry.

Management

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

8.9yrs

Average management tenure


CEO

Mark Ryan

17yrs

Tenure

AU$1,263,128

Compensation

Mr. Mark Andrew Ryan, B.Com, ACA, MAICD, FAIM has been the Managing Director and Chief Executive Officer of Tassal Group Limited since November 2003. Mr. Ryan has an extensive experience in the finance and...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD933.78K) is above average for companies of similar size in the Australian market ($USD700.67K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Mark Ryan
MD, CEO & Director17yrsAU$1.26m0.11%
A$ 858.3k
Andrew Creswell
CFO & Group Financial Controller10.92yrsAU$472.58k0.023%
A$ 179.1k
Dale Williams
Head of Sales & Marketingno dataAU$456.05kno data
Kaylene Little
Head of People & Communities1.58yrsAU$455.11k0.020%
A$ 158.2k
Mark Asman
Head of Aquaculture4.67yrsAU$461.16k0.017%
A$ 130.3k
Ben Daley
Head of Supply Chain & Commercial Servicesno dataAU$514.84k0.019%
A$ 146.6k
Monika Maedler
General Counsel & Company Secretary8.92yrsno datano data

8.9yrs

Average Tenure

Experienced Management: TGR's management team is seasoned and experienced (8.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mark Ryan
MD, CEO & Director17yrsAU$1.26m0.11%
A$ 858.3k
Allan McCallum
Independent Chairman of the Board15.42yrsAU$240.51k0.18%
A$ 1.4m
James Fazzino
Independent Non-Executive Director0.50yrAU$9.90k0.027%
A$ 205.7k
John Watson
Independent Non-Executive Director2.67yrsAU$145.86k0.090%
A$ 698.5k
Georgina Lynch
Independent Non-Executive Director2yrsAU$135.50k0.012%
A$ 91.5k
Jackie McArthur
Independent Non-Executive Director2yrsAU$135.50k0.026%
A$ 197.4k
Richard Haire
Independent Non Executive Director0.67yrAU$43.20k0.0080%
A$ 62.2k

2.0yrs

Average Tenure

Experienced Board: TGR's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: TGR 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

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


Key Information

  • Name: Tassal Group Limited
  • Ticker: TGR
  • Exchange: ASX
  • Founded: 1986
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: AU$773.483m
  • Shares outstanding: 211.33m
  • Website: https://tassalgroup.com.au

Location

  • Tassal Group Limited
  • Marine Board Building
  • Level 9
  • Hobart
  • Tasmania
  • 7000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TGRASX (Australian Securities Exchange)YesOrdinary SharesAUAUDNov 2003
TSLL.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 2003
TGRCHIA (Chi-X Australia)YesOrdinary SharesAUAUDNov 2003

Biography

Tassal Group Limited, together with its subsidiaries, engages in the hatching, farming, processing, marketing, and sale of Atlantic salmon and tiger prawns in Australia. The company offers fresh, smoked, c...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/29 07:03
End of Day Share Price2020/11/27 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.