ASX:TGR

Stock Analysis Report

Executive Summary

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

Rewards

Trading at 72.4% below its fair value

Earnings are forecast to grow 12.84% per year

Earnings grew by 2% over the past year

Risk Analysis

Unstable dividend track record

Shareholders have been diluted in the past year



Snowflake Analysis

Undervalued 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.3%

TGR

2.5%

AU Food

2.0%

AU Market


1 Year Return

-0.9%

TGR

-3.8%

AU Food

19.8%

AU Market

Return vs Industry: TGR exceeded the Australian Food industry which returned -4.2% over the past year.

Return vs Market: TGR underperformed the Australian Market which returned 19.4% over the past year.


Shareholder returns

TGRIndustryMarket
7 Day2.3%2.5%2.0%
30 Day4.7%4.2%3.3%
90 Day6.2%1.1%5.8%
1 Year3.1%-0.9%-0.8%-3.8%25.2%19.8%
3 Year22.9%9.6%12.7%4.4%39.6%20.9%
5 Year44.7%19.6%36.1%24.0%61.8%25.3%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TGR (A$4.43) is trading below our estimate of fair value (A$16.06)

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


Price To Earnings Ratio

PE vs Industry: TGR is good value based on its PE Ratio (13.4x) compared to the Food industry average (21.9x).

PE vs Market: TGR is good value based on its PE Ratio (13.4x) compared to the Australian market (18.9x).


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 (1.2x) compared to the AU Food industry average (1.3x).


Next Steps

Future Growth

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

12.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TGR's forecast earnings growth (12.8% per year) is above the savings rate (1.1%).

Earnings vs Market: TGR's earnings (12.8% per year) are forecast to grow faster than the Australian market (9.6% per year).

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

Revenue vs Market: TGR's revenue (10% per year) is forecast to grow faster than the Australian market (3.8% per year).

High Growth Revenue: TGR's revenue (10% 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 (8.9%).


Next Steps

Past Performance

How has Tassal Group performed over the past 5 years?

6.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TGR has high quality earnings.

Growing Profit Margin: TGR's current net profit margins (10.5%) are lower than last year (11.9%).


Past Earnings Growth Analysis

Earnings Trend: TGR's earnings have grown by 6.8% per year over the past 5 years.

Accelerating Growth: TGR's earnings growth over the past year (2%) is below its 5-year average (6.8% per year).

Earnings vs Industry: TGR earnings growth over the past year (2%) exceeded the Food industry -7.1%.


Return on Equity

High ROE: TGR's Return on Equity (9.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Tassal Group's financial position?


Financial Position Analysis

Short Term Liabilities: TGR's short term assets (A$501.6M) exceed its short term liabilities (A$124.4M).

Long Term Liabilities: TGR's short term assets (A$501.6M) exceed its long term liabilities (A$325.2M).


Debt to Equity History and Analysis

Debt Level: TGR's debt to equity ratio (27.9%) is considered satisfactory.

Reducing Debt: TGR's debt to equity ratio has increased from 11% to 27.9% over the past 5 years.

Debt Coverage: TGR's debt is well covered by operating cash flow (50.8%).

Interest Coverage: TGR's interest payments on its debt are well covered by EBIT (10.1x coverage).


Balance Sheet

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

Debt Coverage by Assets: TGR's debt is covered by short term assets (assets are 2.8x debt).


Next Steps

Dividend

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

4.04%

Current Dividend Yield


Dividend Yield vs Market

company4.0%marketbottom25%2.3%markettop25%5.4%industryaverage3.3%forecastin3Years4.3%

Current dividend yield vs market & industry

Notable Dividend: TGR's dividend (4.06%) is higher than the bottom 25% of dividend payers in the Australian market (2.34%).

High Dividend: TGR's dividend (4.06%) is low compared to the top 25% of dividend payers in the Australian market (5.47%).


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 (54.5%), 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 (52.7% payout ratio).


Next Steps

Management

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

8.1yrs

Average management tenure


CEO

Mark Ryan 0

16.2yrs

Tenure

AU$1,211,233

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 ($USD835.91K) is about average for companies of similar size in the Australian market ($USD959.05K).

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


Management Age and Tenure

8.1yrs

Average Tenure

Experienced Management: TGR's management team is seasoned and experienced (8.1 years average tenure).


Board Age and Tenure

4.8yrs

Average Tenure

Experienced Board: TGR's board of directors are considered experienced (4.8 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.


Recent Insider Transactions

BuyAU$18,99006 Sep 19
John Watson
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares4,500
Max PriceAU$4.22
BuyAU$56,55030 Aug 19
Trevor Gerber
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares13,000
Max PriceAU$4.35
BuyAU$39,33029 Aug 19
John Watson
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares9,000
Max PriceAU$4.37
BuyAU$110,25028 Aug 19
Jacqueline McArthur
EntityIndividual
Shares25,000
Max PriceAU$4.41
BuyAU$81,65726 Aug 19
John Watson
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares18,350
Max PriceAU$4.45
BuyAU$47,70006 May 19
John Watson
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares10,000
Max PriceAU$4.77
SellAU$52,62322 Mar 19
Credit Suisse, Investment Banking and Securities Investments
EntityCompany
Shares10,585
Max PriceAU$4.98
BuyAU$21,89522 Mar 19
Credit Suisse, Investment Banking and Securities Investments
EntityCompany
Shares4,372
Max PriceAU$5.01
SellAU$1,47021 Mar 19
Credit Suisse, Investment Banking and Securities Investments
EntityCompany
Shares1,667
Max PriceAU$5.05
BuyAU$21,76421 Mar 19
Credit Suisse, Investment Banking and Securities Investments
EntityCompany
Shares7,205
Max PriceAU$4.96
SellAU$4,710,24218 Mar 19
Credit Suisse, Investment Banking and Securities Investments
EntityCompany
Shares1,023,538
Max PriceAU$4.60
BuyAU$5,641,47018 Mar 19
Credit Suisse, Investment Banking and Securities Investments
EntityCompany
Shares1,186,773
Max PriceAU$4.75
SellAU$964,40021 Feb 19
Mark Ryan
EntityIndividual
Role
Chief Executive Officer
MD, CEO & Director
Shares200,000
Max PriceAU$4.82

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.4%.


Management Team

  • Monika Maedler

    General Counsel & Company Secretary

    • Tenure: 8.1yrs
  • Dale Williams

    Head of Sales & Marketing

    • Compensation: AU$464.96k
  • Mark Asman

    Head of Aquaculture

    • Tenure: 3.8yrs
    • Compensation: AU$448.30k
  • Mark Ryan

    MD, CEO & Director

    • Tenure: 16.2yrs
    • Compensation: AU$1.21m
  • Kaylene Little

    Head of People & Communities

    • Tenure: 0.8yrs
    • Compensation: AU$396.81k
  • Andrew Creswell

    CFO & Group Financial Controller

    • Tenure: 10.1yrs
    • Compensation: AU$452.64k
  • Ben Daley

    Head of Supply Chain & Commercial Services

    • Compensation: AU$455.47k

Board Members

  • Trevor Gerber (61yo)

    Independent Non-Executive Director

    • Tenure: 7.8yrs
    • Compensation: AU$134.63k
  • Allan McCallum

    Independent Chairman of the Board

    • Tenure: 14.6yrs
    • Compensation: AU$232.92k
  • John Watson (69yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: AU$142.16k
  • Mark Ryan

    MD, CEO & Director

    • Tenure: 16.2yrs
    • Compensation: AU$1.21m
  • Georgina Lynch

    Independent Non-Executive Director

    • Tenure: 1.2yrs
    • Compensation: AU$77.71k
  • Jackie McArthur

    Independent Non-Executive Director

    • Tenure: 1.2yrs
    • Compensation: AU$77.71k

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$922.818m
  • Shares outstanding: 207.37m
  • 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 in Australia. The company offers fresh, smoked, canned, and frozen salmon. It also procures, processes, markets, and sells prawns and other seafood species. The company provides its products under the Tassal, Superior Gold, Tasmanian Smokehouse, and De Costi Seafoods brands through retail and wholesale channels. The company also exports its products. Tassal Group Limited was founded in 1986 and is headquartered in Hobart, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/17 10:33
End of Day Share Price2020/01/17 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.