ASX:WBA

Stock Analysis Report

Executive Summary

Webster Limited operates as an agribusiness company in Australia.

Snowflake

Fundamentals

Reasonable growth potential with adequate balance sheet.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0%

WBA

1.0%

AU Food

1.7%

AU Market


1 Year Return

13.4%

WBA

-10.3%

AU Food

10.3%

AU Market

Return vs Industry: WBA exceeded the Australian Food industry which returned -10.3% over the past year.

Return vs Market: WBA exceeded the Australian Market which returned 10.3% over the past year.


Shareholder returns

WBAIndustryMarket
7 Day0%1.0%1.7%
30 Day48.3%0.05%-0.4%
90 Day41.3%-3.5%-0.1%
1 Year15.4%13.4%-7.8%-10.3%16.7%10.3%
3 Year75.7%68.8%-0.6%-5.5%36.7%18.4%
5 Year74.7%65.3%40.4%29.0%50.9%16.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

27.16x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: WBA (A$1.95) is trading above our estimate of fair value (A$1.7)

Significantly Undervalued: WBA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: WBA is poor value based on its PE Ratio (27.2x) compared to the Food industry average (25.3x).

PE vs Market: WBA is poor value based on its PE Ratio (27.2x) compared to the Australian market (18.2x).


Price to Earnings Growth Ratio

Low PEG Ratio: WBA is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: WBA is overvalued based on its PB Ratio (1.4x) compared to the AU Food industry average (1.2x).


Next Steps

Future Growth

How is Webster forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

21.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WBA's forecast earnings growth (21.4% per year) is above the savings rate (2.3%).

Earnings vs Market: WBA's earnings (21.4% per year) are forecast to grow faster than the Australian market (10.2% per year).

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

Revenue vs Market: WBA's revenue (11.9% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: WBA's revenue (11.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: WBA's Return on Equity is forecast to be low in 3 years time (5.6%).


Next Steps

Past Performance

How has Webster performed over the past 5 years?

27.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: WBA's earnings have grown significantly by 27.5% per year over the past 5 years.

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

Earnings vs Industry: WBA had negative earnings growth (-31%) over the past year, making it difficult to compare to the Food industry average (-28.6%).


Return on Equity

High ROE: WBA's Return on Equity (5.2%) is considered low.


Return on Assets

ROA vs Industry: WBA's Return on Assets is below or equal to the Food industry average last year.


Return on Capital Employed

ROCE Improving: WBA has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Webster's financial position?


Financial Position Analysis

Short Term Liabilities: WBA's short term assets (A$83.8M) exceeds its short term liabilities (A$55.4M)

Long Term Liabilities: WBA's short term assets (83.8M) do not cover its long term liabilities (87.0M)


Debt to Equity History and Analysis

Debt Level: WBA's debt to equity ratio (20.9%) is considered satisfactory

Reducing Debt: WBA's debt to equity ratio has increased from 8.6% to 20.9% over the past 5 years.

Debt Coverage: WBA's debt is well covered by operating cash flow (71%).

Interest Coverage: WBA's interest payments on its debt are well covered by EBIT (4.4x coverage).


Balance Sheet

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

Debt Coverage by Assets: WBA's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

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

1.54%

Current Dividend Yield


Dividend Yield vs Market

company1.5%marketbottom25%2.5%markettop25%5.6%industryaverage3.1%forecastin3Years1.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: WBA's dividend (1.54%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.45%).

High Dividend: WBA's dividend (1.54%) is low compared to the top 25% of dividend payers in the Australian market (5.56%).

Stable Dividend: WBA is not paying a notable dividend for the Australian market, therefore no need to check if payments are stable.

Growing Dividend: WBA is not paying a notable dividend for the Australian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: WBA is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of WBA's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Maurice Felizzi 0

1.8yrs

Tenure

AU$1,241,006

Compensation

Mr. Maurice Felizzi, BAAcc, CPA, CA, AGIM has been the Chief Executive Officer of Webster Ltd. since December 19, 2017 and was its Company Secretary since April 28, 2016 until January 22, 2019. Mr. Felizzi ...


CEO Compensation Analysis

Compensation vs. Market: Maurice has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Australian market.

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


Management Age and Tenure

2.0yrs

Average Tenure

Experienced Management: WBA's management team is considered experienced (2 years average tenure).


Board Age and Tenure

1.7yrs

Average Tenure

Experienced Board: WBA's board of directors are not considered experienced ( 1.7 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • D. Goullet

    General Manager of Operations - Walnuts Australia

    • Tenure: 0yrs
    • Compensation: AU$432.33k
  • Maurice Felizzi

    CEO, MD & Executive Director

    • Tenure: 1.8yrs
    • Compensation: AU$1.24m
  • B. Barry

    General Manager of Water Operations

    • Tenure: 0yrs
    • Compensation: AU$411.12k
  • G. Lok

    General Manager of Webster Southern Ag

    • Tenure: 2.3yrs
    • Compensation: AU$481.38k
  • W. Andreatta

    Development Director

    • Tenure: 2.3yrs
    • Compensation: AU$380.76k
  • John Tyndall

    CFO & Company Secretary

    • Tenure: 0.8yrs

Board Members

  • Chris Corrigan (72yo)

    Chairman

    • Tenure: 1.8yrs
    • Compensation: AU$121.57k
  • Bevan Cushing

    Non-Executive Director

    • Tenure: 7yrs
    • Compensation: AU$85.61k
  • David Fitzsimons (65yo)

    Non-Executive Director

    • Tenure: 1.5yrs
    • Compensation: AU$38.87k
  • Ross Burling

    Non-Executive Director

    • Tenure: 0.9yrs
  • Joseph Corrigan

    Alternate Director

    • Tenure: 6yrs
  • Maurice Felizzi

    CEO, MD & Executive Director

    • Tenure: 1.8yrs
    • Compensation: AU$1.24m

Company Information

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


Key Information

  • Name: Webster Limited
  • Ticker: WBA
  • Exchange: ASX
  • Founded: 1831
  • Industry: Agricultural Products
  • Sector: Food, Beverage & Tobacco
  • Market Cap: AU$706.378m
  • Shares outstanding: 362.25m
  • Website: https://www.websterltd.com.au

Location

  • Webster Limited
  • 61 Kurrajong Avenue
  • Leeton
  • New South Wales
  • 2705
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WBAASX (Australian Securities Exchange)YesOrdinary SecuritiesAUAUDJan 1992
WBACHIA (Chi-X Australia)YesOrdinary SecuritiesAUAUDJan 1992
WBAPAASX (Australian Securities Exchange)9% CUM PREF AUD1AUAUDSep 1992

Biography

Webster Limited operates as an agribusiness company in Australia. The company operates in two segments, Agriculture and Horticulture. It produces annual row crops, including cotton, wheat, maize, walnuts,  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 10:31
End of Day Share Price2019/10/17 00:00
Earnings2019/03/31
Annual Earnings2018/09/30


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.