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UMG

United Malt GroupASX:UMG Stock Report

Market Cap

AU$1.2b

7D

1.5%

1Y

-5.0%

Updated

03 Dec, 2021

Data

Company Financials +
UMG fundamental analysis
Snowflake Score
Valuation3/6
Future Growth4/6
Past Performance0/6
Financial Health5/6
Dividends1/6

UMG Stock Overview

United Malt Group Limited processes and supplies malt and craft ingredients to brewers, distillers, and food markets in North America, the United Kingdom, Australia, and Asia.

Price History & Performance

Summary of all time highs, changes and price drops for United Malt Group
Historical stock prices
Current Share PriceAU$4.16
52 Week HighAU$4.76
52 Week LowAU$3.53
Beta0
1 Month Change0.73%
3 Month Change-0.95%
1 Year Change-5.02%
3 Year Changen/a
5 Year Changen/a
Change since IPO1.46%

Recent News & Updates

Nov 19
United Malt Group (ASX:UMG) Has Affirmed Its Dividend Of AU$0.035

United Malt Group (ASX:UMG) Has Affirmed Its Dividend Of AU$0.035

The board of United Malt Group Limited ( ASX:UMG ) has announced that it will pay a dividend on the 17th of December...

Jul 28
United Malt Group (ASX:UMG) Might Be Having Difficulty Using Its Capital Effectively

United Malt Group (ASX:UMG) Might Be Having Difficulty Using Its Capital Effectively

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...

Shareholder Returns

UMGAU FoodAU Market
7D1.5%-2.2%-0.7%
1Y-5.0%-3.0%9.8%

Return vs Industry: UMG underperformed the Australian Food industry which returned -3% over the past year.

Return vs Market: UMG underperformed the Australian Market which returned 9.8% over the past year.

Price Volatility

Is UMG's price volatile compared to industry and market?
UMG volatility
UMG Average Weekly Movement3.0%
Food Industry Average Movement7.2%
Market Average Movement8.3%
10% most volatile stocks in AU Market15.7%
10% least volatile stocks in AU Market3.7%

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

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

About the Company

FoundedEmployeesCEOWebsite
2009900Mark Palmquisthttps://www.unitedmalt.com

United Malt Group Limited processes and supplies malt and craft ingredients to brewers, distillers, and food markets in North America, the United Kingdom, Australia, and Asia. The company operates through Processing and Warehouse & Distribution segments. It is also involved in the distribution and sale of malt, hops, yeast, adjuncts, and related products to craft brewers.

United Malt Group Fundamentals Summary

How do United Malt Group's earnings and revenue compare to its market cap?
UMG fundamental statistics
Market CapAU$1.25b
Earnings (TTM)AU$13.80m
Revenue (TTM)AU$1.24b

90.2x

P/E Ratio

1.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
UMG income statement (TTM)
RevenueAU$1.24b
Cost of RevenueAU$943.10m
Gross ProfitAU$295.00m
ExpensesAU$281.20m
EarningsAU$13.80m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.046
Gross Margin23.83%
Net Profit Margin1.11%
Debt/Equity Ratio48.7%

How did UMG perform over the long term?

See historical performance and comparison

Dividends

1.3%

Current Dividend Yield

119%

Payout Ratio

Valuation

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

33.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: UMG (A$4.16) is trading below our estimate of fair value (A$6.23)

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 (90.2x) compared to the Australian Food industry average (18.4x).

PE vs Market: UMG is poor value based on its PE Ratio (90.2x) compared to the Australian market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: UMG is poor value based on its PEG Ratio (3.3x)


Price to Book Ratio

PB vs Industry: UMG is good value based on its PB Ratio (1.2x) compared to the AU Food industry average (1.5x).


Future Growth

How is United Malt Group forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

27.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UMG's forecast earnings growth (27.5% per year) is above the savings rate (1.9%).

Earnings vs Market: UMG's earnings (27.5% per year) are forecast to grow faster than the Australian market (11.8% per year).

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

Revenue vs Market: UMG's revenue (6.1% per year) is forecast to grow faster than the Australian market (5.2% per year).

High Growth Revenue: UMG's revenue (6.1% 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 (7.3%).


Past Performance

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

-17.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UMG has a large one-off loss of A$29.6M impacting its September 30 2021 financial results.

Growing Profit Margin: UMG's current net profit margins (1.1%) are lower than last year (3.5%).


Past Earnings Growth Analysis

Earnings Trend: UMG's earnings have declined by 17.8% 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 (-69.7%) over the past year, making it difficult to compare to the Food industry average (106.9%).


Return on Equity

High ROE: UMG's Return on Equity (1.3%) is considered low.


Financial Health

How is United Malt Group's financial position?


Financial Position Analysis

Short Term Liabilities: UMG's short term assets (A$852.3M) exceed its short term liabilities (A$376.6M).

Long Term Liabilities: UMG's short term assets (A$852.3M) exceed its long term liabilities (A$550.1M).


Debt to Equity History and Analysis

Debt Level: UMG's net debt to equity ratio (21.8%) is considered satisfactory.

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 (29.7%).

Interest Coverage: UMG's interest payments on its debt are well covered by EBIT (7x coverage).


Balance Sheet


Dividend

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

1.32%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: UMG's dividend (1.32%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.3%).

High Dividend: UMG's dividend (1.32%) is low compared to the top 25% of dividend payers in the Australian market (5.58%).


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 high payout ratio (119.2%), UMG's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: UMG's dividends in 3 years are forecast to be covered by earnings (58.8% payout ratio).


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Mark Palmquist (64 yo)

1.75yrs

Tenure

AU$2,227,522

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 ($USD1.58M) is above average for companies of similar size in the Australian market ($USD993.06K).

Compensation vs Earnings: Mark's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: UMG's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: UMG's board of directors are not considered experienced ( 1.9 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: UMG 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

United Malt Group Limited's 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$1.245b
  • Shares outstanding: 299.34m
  • Website: https://www.unitedmalt.com

Number of Employees


Location

  • United Malt Group Limited
  • 18110 SE 34th Street
  • Suite 240
  • Vancouver
  • Washington
  • 98683
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/03 16:08
End of Day Share Price2021/12/03 00:00
Earnings2021/09/30
Annual Earnings2021/09/30


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.