ASX:ANN

Stock Analysis Report

Executive Summary

Ansell Limited designs, develops, and manufactures protection solutions in the Asia Pacific, Europe, the Middle East, Africa, Latin America, Caribbean, and North America.

Snowflake

Fundamentals

Flawless balance sheet average dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-0.7%

ANN

-1.8%

AU Medical Equipment

0.1%

AU Market


1 Year Return

19.5%

ANN

29.8%

AU Medical Equipment

11.9%

AU Market

Return vs Industry: ANN underperformed the Australian Medical Equipment industry which returned 29.8% over the past year.

Return vs Market: ANN exceeded the Australian Market which returned 11.9% over the past year.


Shareholder returns

ANNIndustryMarket
7 Day-0.7%-1.8%0.1%
30 Day-1.3%-0.06%-1.1%
90 Day-0.4%-0.9%-1.4%
1 Year22.6%19.5%31.9%29.8%18.5%11.9%
3 Year32.6%22.9%50.0%43.4%36.4%18.1%
5 Year59.1%39.4%142.8%122.9%50.9%16.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

22.9x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ANN (A$27.54) is trading above our estimate of fair value (A$27.11)

Significantly Below Fair Value: ANN is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ANN is good value based on its PE Ratio (22.9x) compared to the Medical Equipment industry average (30.1x).

PE vs Market: ANN is poor value based on its PE Ratio (22.9x) compared to the Australian market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: ANN is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: ANN is good value based on its PB Ratio (1.8x) compared to the AU Medical Equipment industry average (4.7x).


Next Steps

  • Explore potentially undervalued companies in the Healthcare industry.

Future Growth

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

12.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ANN's forecast earnings growth (12.5% per year) is above the savings rate (2.3%).

Earnings vs Market: ANN's earnings (12.5% per year) are forecast to grow faster than the Australian market (10.2% per year).

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

Revenue vs Market: ANN's revenue (3.9% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: ANN's revenue (3.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ANN's Return on Equity is forecast to be low in 3 years time (10.8%).


Next Steps

Past Performance

How has Ansell performed over the past 5 years?

3.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ANN's earnings have grown by 3.3% per year over the past 5 years.

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

Earnings vs Industry: ANN had negative earnings growth (-19.5%) over the past year, making it difficult to compare to the Medical Equipment industry average (29.5%).


Return on Equity

High ROE: ANN's Return on Equity (8%) is considered low.


Return on Assets

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


Return on Capital Employed

ROCE Improving: ANN's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Ansell's financial position?


Financial Position Analysis

Short Term Liabilities: ANN's short term assets ($959.2M) exceeds its short term liabilities ($312.9M)

Long Term Liabilities: ANN's short term assets (959.2M) exceeds its long term liabilities (653.6M)


Debt to Equity History and Analysis

Debt Level: ANN's debt to equity ratio (38.7%) is considered satisfactory

Reducing Debt: ANN's debt to equity ratio has reduced from 64.4% to 38.7% over the past 5 years.

Debt Coverage: ANN's debt is well covered by operating cash flow (34.6%).

Interest Coverage: ANN's interest payments on its debt are well covered by EBIT (18.4x coverage).


Balance Sheet

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

Debt Coverage by Assets: ANN's debt is covered by short term assets (assets are 1.759030x debt).


Next Steps

Dividend

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

2.47%

Current Dividend Yield


Dividend Yield vs Market

company2.5%marketbottom25%2.4%markettop25%5.6%industryaverage1.6%forecastin3Years2.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: ANN's dividend (2.47%) is higher than the bottom 25% of dividend payers in the Australian market (2.44%).

High Dividend: ANN's dividend (2.47%) is low compared to the top 25% of dividend payers in the Australian market (5.58%).

Stable Dividend: ANN's dividend payments have been volatile in the past 10 years.

Growing Dividend: ANN's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (56.6%), ANN's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ANN's dividends in 3 years are forecast to be well covered by earnings (42.8% payout ratio).


Next Steps

Management

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

0.5yrs

Average management tenure


CEO

Magnus Nicolin (62yo)

9.6yrs

Tenure

US$5,306,544

Compensation

Mr. Magnus R. Nicolin, BA (Stockholm), MBA (Wharton), has been the Chief Executive Officer and Managing Director of Ansell Limited since March 1, 2010. Mr. Nicolin served as the President of Europe, Middle ...


CEO Compensation Analysis

Compensation vs. Market: Magnus's total compensation ($USD5.31M) is about average for companies of similar size in the Australian market ($USD2.18M).

Compensation vs Earnings: Magnus's compensation has been consistent with company performance over the past year.


Management Age and Tenure

0.5yrs

Average Tenure

Experienced Management: ANN's management team is not considered experienced ( 0.5 years average tenure), which suggests a new team.


Board Age and Tenure

3.9yrs

Average Tenure

62yo

Average Age

Experienced Board: ANN's board of directors are considered experienced (3.9 years average tenure).


Insider Trading

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


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Ownership Breakdown


Management Team

  • Magnus Nicolin (62yo)

    MD, CEO & Executive Director

    • Tenure: 9.6yrs
    • Compensation: US$5.31m
  • Neil Salmon (50yo)

    President of Industrial GBU

    • Tenure: 0.5yrs
    • Compensation: US$2.12m
  • Peter Dobbelsteijn

    Senior Vice President of Global Supply Chain

    • Tenure: 9.2yrs
    • Compensation: US$1.02m
  • Giri Peddinti

    Senior VP & Global Chief Information Officer

    • Tenure: 7.8yrs
  • Darryl Nazareth

    President of Healthcare GBU

    • Tenure: 0.5yrs
    • Compensation: US$517.38k
  • Mike Gilleece

    Senior VP & Corporate General Counsel

    • Tenure: 2.3yrs
  • Jocelyn Petersen

    Vice President of Global FP&A

    • Tenure: 0yrs
  • Zubair Javeed

    Chief Financial Officer

    • Tenure: 0.5yrs
    • Compensation: US$345.85k
  • John Marsden

    Senior VP of Global Operations and R&D

    • Tenure: 0.5yrs
  • Amanda Manzoni

    Chief Human Resources Officer

    • Tenure: 0.3yrs

Board Members

  • Marissa Peterson (57yo)

    Independent Non-Executive Director

    • Tenure: 13.2yrs
    • Compensation: US$173.50k
  • Magnus Nicolin (62yo)

    MD, CEO & Executive Director

    • Tenure: 9.6yrs
    • Compensation: US$5.31m
  • John Bevan (62yo)

    Deputy Chairman

    • Tenure: 2.7yrs
    • Compensation: US$175.00k
  • William Day (69yo)

    Independent Non-Executive Director

    • Tenure: 12.2yrs
    • Compensation: US$174.50k
  • Glenn Lawrence Barnes (72yo)

    Independent Chairman

    • Tenure: 7yrs
    • Compensation: US$335.00k
  • Bill Reilly (67yo)

    Non-Executive Director

    • Tenure: 2yrs
    • Compensation: US$151.50k
  • Christina Stercken (61yo)

    Independent Non-Executive Director

    • Tenure: 2yrs
    • Compensation: US$155.50k
  • Leslie Desjardins (59yo)

    Independent Non-Executive Director

    • Tenure: 3.9yrs
    • Compensation: US$167.50k
  • Christine Yan (53yo)

    Independent Non-Executive Director

    • Tenure: 0.5yrs
    • Compensation: US$38.88k

Company Information

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


Key Information

  • Name: Ansell Limited
  • Ticker: ANN
  • Exchange: ASX
  • Founded: 1888
  • Industry: Health Care Supplies
  • Sector: Healthcare
  • Market Cap: AU$3.636b
  • Shares outstanding: 130.71m
  • Website: https://www.ansell.com

Number of Employees


Location

  • Ansell Limited
  • 678 Victoria Street
  • Level 3
  • Richmond
  • Victoria
  • 3121
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ANSL.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
ANNASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
PD1ADB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
ANNCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992
ANSL.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDOct 2007

Biography

Ansell Limited designs, develops, and manufactures protection solutions in the Asia Pacific, Europe, the Middle East, Africa, Latin America, Caribbean, and North America. It operates through two segments,  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 10:33
End of Day Share Price2019/10/23 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.