ASX:UMG

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

United Malt Group Limited processes and supplies malt and craft ingredients to brewers, distillers, and other users in North America, the United Kingdom, Australia, and Asia. More Details


Snowflake Analysis

Adequate balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: UMG is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: UMG's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-1.5%

UMG

-2.7%

AU Food

2.4%

AU Market


1 Year Return

n/a

UMG

8.8%

AU Food

-0.6%

AU Market

Return vs Industry: Insufficient data to determine how UMG performed against the Australian Food industry.

Return vs Market: Insufficient data to determine how UMG performed against the Australian Market.


Shareholder returns

UMGIndustryMarket
7 Day-1.5%-2.7%2.4%
30 Day12.2%1.3%8.0%
90 Day12.2%5.3%8.8%
1 Yearn/a11.4%8.8%2.7%-0.6%
3 Yearn/a-14.6%-21.3%24.3%9.0%
5 Yearn/a9.9%-4.4%56.9%25.7%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is United Malt 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: UMG (A$4.51) is trading below our estimate of fair value (A$10.68)

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


Price To Earnings Ratio

PE vs Industry: UMG is poor value based on its PE Ratio (26.8x) compared to the AU Food industry average (25.4x).

PE vs Market: UMG is poor value based on its PE Ratio (26.8x) compared to the Australian market (22.8x).


Price to Earnings Growth Ratio

PEG Ratio: UMG is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: UMG is good value based on its PB Ratio (1.3x) compared to the AU Food industry average (1.5x).


Next Steps

Future Growth

How is United Malt Group forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

18.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UMG's forecast earnings growth (18.4% per year) is above the savings rate (2.3%).

Earnings vs Market: UMG's earnings (18.4% per year) are forecast to grow faster than the Australian market (17.8% per year).

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

Revenue vs Market: UMG's revenue (4.4% per year) is forecast to grow slower than the Australian market (5.1% per year).

High Growth Revenue: UMG's revenue (4.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: UMG's Return on Equity is forecast to be low in 3 years time (7.1%).


Next Steps

Past Performance

How has United Malt Group performed over the past 5 years?

-5.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UMG has high quality earnings.

Growing Profit Margin: UMG's current net profit margins (3.5%) are lower than last year (4.3%).


Past Earnings Growth Analysis

Earnings Trend: UMG's earnings have declined by 5.4% per year over the past 5 years.

Accelerating Growth: UMG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: UMG had negative earnings growth (-19.8%) over the past year, making it difficult to compare to the Food industry average (-13.2%).


Return on Equity

High ROE: UMG's Return on Equity (4.4%) is considered low.


Next Steps

Financial Health

How is United Malt Group's financial position?


Financial Position Analysis

Short Term Liabilities: UMG's short term assets (A$835.6M) exceed its short term liabilities (A$316.6M).

Long Term Liabilities: UMG's short term assets (A$835.6M) exceed its long term liabilities (A$538.9M).


Debt to Equity History and Analysis

Debt Level: UMG's debt to equity ratio (44.4%) is considered high.

Reducing Debt: Insufficient data to determine if UMG's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: UMG's debt is well covered by operating cash flow (22.2%).

Interest Coverage: UMG's interest payments on its debt are well covered by EBIT (6.5x coverage).


Balance Sheet


Next Steps

Dividend

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

1.73%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: UMG's dividend (1.73%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.08%).

High Dividend: UMG's dividend (1.73%) is low compared to the top 25% of dividend payers in the Australian market (5.05%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether UMG's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if UMG's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (23.1%), UMG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: UMG's dividends in 3 years are forecast to be covered by earnings (62.7% payout ratio).


Next Steps

Management

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

0.7yrs

Average management tenure


CEO

Mark Palmquist (63 yo)

0.67

Tenure

AU$1,566,049

Compensation

Mr. Mark L. Palmquist, Bec, BBus, GAICD, serves as Director at TeleSense, Inc. He is the Managing Director and Director of United Malt Group Limited since January 13, 2020 and Chief Executive Officer since...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD1.15M) is about average for companies of similar size in the Australian market ($USD936.18K).

Compensation vs Earnings: Insufficient data to compare Mark's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Mark Palmquist
MD, CEO & Director0.67yrAU$1.57m0.14%
A$ 1.9m
Amy Spanik
Chief Financial Officer0.67yrAU$554.84kno data
Bryan Bechard
President of Warehouse & Distrbution0.67yrAU$486.28kno data
Darren Smith
President of Processing0.67yrAU$778.88kno data
Mary Welle
Vice President of Human Resources0.67yrno datano data
Lisa Jones
Company Secretary0.67yrno datano data

0.7yrs

Average Tenure

Experienced Management: UMG's management team is not considered experienced ( 0.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Mark Palmquist
MD, CEO & Director0.67yrAU$1.57m0.14%
A$ 1.9m
Jane McAloon
Independent Non-Executive Director0.83yrAU$68.09k0.0040%
A$ 54.4k
Barbara Gibson
Independent Non-Executive Director0.83yrAU$68.09k0.010%
A$ 134.5k
Terry Williamson
Independent Non-Executive Director0.67yrAU$68.09k0.012%
A$ 155.6k
Graham Bradley
Independent Non-Executive Chairman of the Board0.83yrAU$150.82k0.027%
A$ 366.3k
Gary Mize
Independent Non-Executive Director0.083yrno datano data
Simon Tregoning
Independent Non-Executive Director0.83yrAU$63.43k0.024%
A$ 328.1k

0.8yrs

Average Tenure

71yo

Average Age

Experienced Board: UMG's board of directors are not considered experienced ( 0.8 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: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: UMG only recently listed within the past 12 months.


Top Shareholders

Company Information

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


Key Information

  • Name: United Malt Group Limited
  • Ticker: UMG
  • Exchange: ASX
  • Founded: 2009
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: AU$1.346b
  • Shares outstanding: 299.18m
  • Website: https://www.unitedmalt.com

Number of Employees


Location

  • United Malt Group Limited
  • 700 Washington Street
  • Suite 508
  • Vancouver
  • Western Australia
  • 98660
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
UMGASX (Australian Securities Exchange)YesOrdinary SharesAUAUDMar 2020
UMGCHIA (Chi-X Australia)YesOrdinary SharesAUAUDMar 2020
UMLG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMar 2020

Biography

United Malt Group Limited processes and supplies malt and craft ingredients to brewers, distillers, and other users in North America, the United Kingdom, Australia, and Asia. The company operates through P...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/26 07:07
End of Day Share Price2020/11/26 00:00
Earnings2020/09/30
Annual Earnings2020/09/30


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.