United Malt Group (ASX:UMG) - Share price, News & Analysis

UMG fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	4/6
Past Performance	0/6
Financial Health	4/6
Dividends	0/6

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.

Rewards

Trading at 44.1% below our estimate of its fair value

Earnings are forecast to grow 34.87% per year

Risk Analysis

Large one-off items impacting financial results

Profit margins (0.8%) are lower than last year (3.3%)

United Malt Group Competitors

Australian Agricultural

ASX:AAC

AU$1.2b

Inghams Group

ASX:ING

AU$1.0b

Bega Cheese

ASX:BGA

AU$1.4b

Tassal Group

ASX:TGR

AU$771.2m

Price History & Performance

Summary of all time highs, changes and price drops for United Malt Group
Historical stock prices
Current Share Price	AU$3.71
52 Week High	AU$4.76
52 Week Low	AU$3.70
Beta	0.16
1 Month Change	-8.85%
3 Month Change	-12.29%
1 Year Change	-15.68%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-9.51%

Shareholder Returns

	UMG	AU Food	AU Market
7D	-3.9%	2.1%	-0.4%
1Y	-15.7%	-3.1%	-1.1%

Return vs Industry: UMG underperformed the Australian Food industry which returned -3.1% over the past year.

Return vs Market: UMG underperformed the Australian Market which returned -1.1% over the past year.

Price Volatility

Is UMG's price volatile compared to industry and market?
UMG volatility
UMG Average Weekly Movement	4.0%
Food Industry Average Movement	5.4%
Market Average Movement	9.3%
10% most volatile stocks in AU Market	16.4%
10% least volatile stocks in AU Market	4.2%

Stable Share Price: UMG is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: UMG's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2009	900	Mark Palmquist	https://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 Cap	AU$1.11b
Earnings (TTM)	AU$10.50m
Revenue (TTM)	AU$1.30b

105.8x

P/E Ratio

0.9x

P/S Ratio

Is UMG overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
UMG income statement (TTM)
Revenue	AU$1.30b
Cost of Revenue	AU$1.01b
Gross Profit	AU$293.90m
Other Expenses	AU$283.40m
Earnings	AU$10.50m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.035
Gross Margin	22.61%
Net Profit Margin	0.81%
Debt/Equity Ratio	50.1%

How did UMG perform over the long term?

See historical performance and comparison

Dividends

1.5%

Current Dividend Yield

144%

Payout Ratio

Does UMG pay a reliable dividends?

See UMG dividend history and benchmarks

When do you need to buy UMG by to receive an upcoming dividend?
United Malt Group dividend dates
Ex Dividend Date	Jun 01 2022
Dividend Pay Date	Jun 17 2022
Days until Ex dividend	5 days
Days until Dividend pay date	21 days

Does UMG pay a reliable dividends?

See UMG dividend history and benchmarks

New valuation analysis is now available for all ASX stocks. This is in beta.

Future Growth

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

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

34.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: UMG's forecast earnings growth (34.9% per year) is above the savings rate (1.8%).

Earnings vs Market: UMG's earnings (34.9% per year) are forecast to grow faster than the Australian market (6.4% per year).

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

Revenue vs Market: UMG's revenue (5.3% per year) is forecast to grow faster than the Australian market (4.9% per year).

High Growth Revenue: UMG's revenue (5.3% 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 (7.6%).

Past Performance

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

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-34.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: UMG has a large one-off loss of A$27.6M impacting its March 31 2022 financial results.

Growing Profit Margin: UMG's current net profit margins (0.8%) are lower than last year (3.3%).

Past Earnings Growth Analysis

Earnings Trend: UMG's earnings have declined by 34.8% 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 (-74%) over the past year, making it difficult to compare to the Food industry average (6.2%).

Return on Equity

High ROE: UMG's Return on Equity (1%) is considered low.

Financial Health

How is United Malt Group's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: UMG's short term assets (A$792.6M) exceed its short term liabilities (A$359.1M).

Long Term Liabilities: UMG's short term assets (A$792.6M) exceed its long term liabilities (A$536.7M).

Debt to Equity History and Analysis

Debt Level: UMG's net debt to equity ratio (32.8%) 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 not well covered by operating cash flow (14.8%).

Interest Coverage: UMG's interest payments on its debt are well covered by EBIT (5.7x coverage).

Balance Sheet

Dividend

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

Dividend Score

1/6

Dividend Score 1/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.48%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: UMG's dividend (1.48%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.6%).

High Dividend: UMG's dividend (1.48%) is low compared to the top 25% of dividend payers in the Australian market (6.23%).

Stability and Growth of Payments

Stable Dividend: UMG has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: UMG has only been paying a dividend for 2 years, and since then payments have fallen.

Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (144.2%), UMG's dividend payments are not well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: UMG is paying a dividend but the company has no free cash flows.

Discover strong dividend paying companies

Management

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

2.2yrs

Average management tenure

CEO

Mark Palmquist (64 yo)

2.17yrs

Tenure

AU$2,227,522

Compensation

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

CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD1.58M) is above average for companies of similar size in the Australian market ($USD1.03M).

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 considered experienced (2.2 years average tenure).

Board Members

Experienced Board: UMG's board of directors are not considered experienced ( 2.3 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: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/26 00:00
End of Day Share Price	2022/05/26 00:00
Earnings	2022/03/31
Annual Earnings	2021/09/30