ASX:WLD

Stock Analysis Report

Executive Summary

Wellard Limited primarily supplies live sheep and cattle to customers in the Middle East and Asia.

Snowflake

Fundamentals

Fair value with mediocre balance sheet.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

4.0%

WLD

-0.3%

AU Food

1.0%

AU Market


1 Year Return

-20.0%

WLD

-8.4%

AU Food

11.7%

AU Market

Return vs Industry: WLD underperformed the Australian Food industry which returned -8.4% over the past year.

Return vs Market: WLD underperformed the Australian Market which returned 11.7% over the past year.


Shareholder returns

WLDIndustryMarket
7 Day4.0%-0.3%1.0%
30 Day2.0%2.7%-0.2%
90 Day26.8%-2.5%0.3%
1 Year-20.0%-20.0%-5.8%-8.4%18.1%11.7%
3 Year-78.8%-79.2%-0.7%-5.5%37.4%19.0%
5 Yearn/a42.0%30.3%51.7%17.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: WLD (A$0.05) is trading below our estimate of fair value (A$2.23)

Significantly Undervalued: WLD is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: WLD is unprofitable, so we can't compare its PE Ratio to the Food industry average.

PE vs Market: WLD is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate WLD's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: WLD is good value based on its PB Ratio (0.5x) compared to the AU Food industry average (1.2x).


Next Steps

Future Growth

How is Wellard forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

35.7%

Forecasted Food, Beverage & Tobacco industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Wellard has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Wellard performed over the past 5 years?

-32.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: WLD is unprofitable, and losses have increased over the past 5 years at a rate of -32.9% per year.

Accelerating Growth: Unable to compare WLD's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: WLD is unprofitable, making it difficult to compare its past year earnings growth to the Food industry (-28.6%).


Return on Equity

High ROE: WLD has a negative Return on Equity (-81.3%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: WLD is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: WLD is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Wellard's financial position?


Financial Position Analysis

Short Term Liabilities: WLD's short term assets (A$58.0M) do not cover its short term liabilities (A$142.5M)

Long Term Liabilities: WLD's short term assets (58.0M) exceeds its long term liabilities (21.0K)


Debt to Equity History and Analysis

Debt Level: WLD's debt to equity ratio (139.3%) is considered high

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


Balance Sheet

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

Debt Coverage by Assets: WLD's debt is not covered by short term assets (assets are 0.7x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable WLD has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: WLD is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 112.4% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.5%markettop25%5.6%industryaverage3.1%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate WLD's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate WLD's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if WLD's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if WLD's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of WLD'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 Wellard's salary, the management and board of directors tenure and is there insider trading?

6.8yrs

Average management tenure


CEO

Wellard has no CEO, or we have no data on them.


Management Age and Tenure

6.8yrs

Average Tenure

Experienced Management: WLD's management team is seasoned and experienced (6.8 years average tenure).


Board Age and Tenure

2.0yrs

Average Tenure

Experienced Board: WLD's board of directors are not considered experienced ( 2 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

  • Paolo Triglia

    Managing Director of Wellard Ships Pte Ltd

    • Tenure: 10.8yrs
    • Compensation: AU$538.07k
  • John Stevenson

    CFO & Executive Director

    • Tenure: 1.2yrs
    • Compensation: AU$521.64k
  • John Klepec

    Executive Chairman

    • Tenure: 1.5yrs
    • Compensation: AU$630.12k
  • Alessandro Polacco

    Executive Director of Wellard Ships

    • Tenure: 10.8yrs
  • Brendan Wade

    Livestock Network Development Manager

    • Tenure: 2.9yrs
  • Michael Silbert

    General Counsel & Company Secretary

    • Tenure: 0yrs
  • Kanda Lu

    Business Development Manager - China & Executive Director

    • Tenure: 2.4yrs
    • Compensation: AU$182.91k
  • Cynthea Pickrell

    Group Financial Controller

    • Tenure: 0yrs
  • Paolo Bianchi

    Managing Director of WellTech Marine Pte Ltd

    • Tenure: 0yrs

Board Members

  • Philip Clausius (51yo)

    Independent Non-Executive Director

    • Tenure: 3.9yrs
    • Compensation: AU$135.00k
  • John Stevenson

    CFO & Executive Director

    • Tenure: 1.2yrs
    • Compensation: AU$521.64k
  • John Klepec

    Executive Chairman

    • Tenure: 1.5yrs
    • Compensation: AU$630.12k
  • Kanda Lu

    Business Development Manager - China & Executive Director

    • Tenure: 2.4yrs
    • Compensation: AU$182.91k

Company Information

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


Key Information

  • Name: Wellard Limited
  • Ticker: WLD
  • Exchange: ASX
  • Founded:
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: AU$26.563m
  • Shares outstanding: 531.25m
  • Website: https://www.wellard.com.au

Number of Employees


Location

  • Wellard Limited
  • 1A Pakenham Street
  • Fremantle
  • Western Australia
  • 6160
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WLDASX (Australian Securities Exchange)YesOrdinary SharesAUAUDDec 2015
WLDCHIA (Chi-X Australia)YesOrdinary SharesAUAUDDec 2015
24QDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2015

Biography

Wellard Limited primarily supplies live sheep and cattle to customers in the Middle East and Asia. It operates through Trading and Chartering, and Other segments. The Trading and Chartering segment engages ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 10:38
End of Day Share Price2019/10/15 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.