ASX:BKL

Stock Analysis Report

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Executive Summary

Blackmores Limited develops, sells, and markets natural health products for humans and animals in Australia, New Zealand, Asia, China, and internationally. More Details


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: BKL is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: BKL's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-5.9%

BKL

-0.1%

AU Personal Products

0.3%

AU Market


1 Year Return

8.6%

BKL

8.8%

AU Personal Products

12.5%

AU Market

Return vs Industry: BKL exceeded the Australian Personal Products industry which returned 6.8% over the past year.

Return vs Market: BKL exceeded the Australian Market which returned 9.7% over the past year.


Shareholder returns

BKLIndustryMarket
7 Day-5.9%-0.1%0.3%
30 Day-0.4%1.6%2.2%
90 Day-4.0%6.1%4.0%
1 Year8.6%8.6%9.8%8.8%16.1%12.5%
3 Year-37.6%-39.9%-30.0%-32.3%31.1%15.1%
5 Year-47.4%-52.1%-28.7%-36.0%62.5%31.3%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

44.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BKL (A$77.52) is trading below our estimate of fair value (A$137.84)

Significantly Below Fair Value: BKL is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BKL is poor value based on its PE Ratio (124.5x) compared to the AU Personal Products industry average (27.5x).

PE vs Market: BKL is poor value based on its PE Ratio (124.5x) compared to the Australian market (20x).


Price to Earnings Growth Ratio

PEG Ratio: BKL is poor value based on its PEG Ratio (4.3x)


Price to Book Ratio

PB vs Industry: BKL is overvalued based on its PB Ratio (4x) compared to the AU Personal Products industry average (2.6x).


Next Steps

Future Growth

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

29.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BKL's forecast earnings growth (29.1% per year) is above the savings rate (2%).

Earnings vs Market: BKL's earnings (29.1% per year) are forecast to grow faster than the Australian market (15.7% per year).

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

Revenue vs Market: BKL's revenue (9.1% per year) is forecast to grow faster than the Australian market (5.5% per year).

High Growth Revenue: BKL's revenue (9.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BKL's Return on Equity is forecast to be low in 3 years time (17%).


Next Steps

Past Performance

How has Blackmores performed over the past 5 years?

-24.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BKL has high quality earnings.

Growing Profit Margin: BKL's current net profit margins (2%) are lower than last year (5.9%).


Past Earnings Growth Analysis

Earnings Trend: BKL's earnings have declined by 24.7% per year over the past 5 years.

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

Earnings vs Industry: BKL had negative earnings growth (-65.6%) over the past year, making it difficult to compare to the Personal Products industry average (4.1%).


Return on Equity

High ROE: BKL's Return on Equity (3.8%) is considered low.


Next Steps

Financial Health

How is Blackmores's financial position?


Financial Position Analysis

Short Term Liabilities: BKL's short term assets (A$304.4M) exceed its short term liabilities (A$138.8M).

Long Term Liabilities: BKL's short term assets (A$304.4M) exceed its long term liabilities (A$33.8M).


Debt to Equity History and Analysis

Debt Level: BKL is debt free.

Reducing Debt: BKL has no debt compared to 5 years ago when its debt to equity ratio was 12.4%.

Debt Coverage: BKL has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: BKL has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

0.76%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: BKL's dividend (0.75%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.11%).

High Dividend: BKL's dividend (0.75%) is low compared to the top 25% of dividend payers in the Australian market (5.43%).


Stability and Growth of Payments

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

Growing Dividend: BKL 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: BKL is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

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


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Alastair Symington (47 yo)

1.42yrs

Tenure

AU$1,346,738

Compensation

Mr. Alastair Symington has been Chief Executive Officer and Managing Director of Blackmores Limited since October 1, 2019. Mr. Alastair serves as Director of Blackmores Limited since September 16, 2019. Mr...


CEO Compensation Analysis

Compensation vs Market: Alastair's total compensation ($USD1.05M) is about average for companies of similar size in the Australian market ($USD884.85K).

Compensation vs Earnings: Insufficient data to compare Alastair's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Alastair Symington
CEO, MD & Director1.42yrsAU$1.35m0.096%
A$ 1.4m
Gunther Burghardt
Group Chief Financial Officer1.17yrsAU$607.73k0.0026%
A$ 38.7k
Jeremy Cowan
Chief Operations Officer2.67yrsno datano data
Michelle Gough
Group Financial Controller & Investor Relations Managerno datano datano data
Nimalan Rutnam
Group Legal Counselno datano datano data
Raffaele D'Alisa
Director of Communications & Corporate Citizenshipno datano datano data
Eric Jeanmaire
Sales Directorno datano datano data
Joanne Smith
Chief Marketing & Innovation Officer1yrno datano data
Jane Franks
Chief People Officer2.67yrsno datano data
Michael Evans
Head of Innovation & Developmentno datano datano data
Craig Wagner
Head of Grocery & Emerging Channelno datano datano data
Kitty Liu
Managing Director of China1.25yrsno datano data

1.3yrs

Average Tenure

Experienced Management: BKL's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Alastair Symington
CEO, MD & Director1.42yrsAU$1.35m0.096%
A$ 1.4m
Anne Templeman-Jones
Non-Executive Chairman0.42yrno datano data
David Ansell
Independent & Non-Executive Director7.42yrsAU$160.46k0.0073%
A$ 109.5k
Christine Holman
Independent Non-Executive Director2yrsAU$169.85k0.015%
A$ 225.9k

1.8yrs

Average Tenure

Experienced Board: BKL's board of directors are not considered experienced ( 1.8 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 been diluted in the past year, with total shares outstanding growing by 11.2%.


Top Shareholders

Company Information

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


Key Information

  • Name: Blackmores Limited
  • Ticker: BKL
  • Exchange: ASX
  • Founded: 1930
  • Industry: Personal Products
  • Sector: Household
  • Market Cap: AU$1.500b
  • Shares outstanding: 19.35m
  • Website: https://www.blackmores.com.au

Number of Employees


Location

  • Blackmores Limited
  • 20 Jubilee Avenue
  • Warriewood
  • Sydney
  • New South Wales
  • 2102
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BKLASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
BKLCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992

Biography

Blackmores Limited develops, sells, and markets natural health products for humans and animals in Australia, New Zealand, Asia, China, and internationally. The company offers vitamins, and herbal and miner...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/04 07:04
End of Day Share Price2021/03/04 00:00
Earnings2020/12/31
Annual Earnings2020/06/30


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.