Blackmores (ASX:BKL) - Share price, News & Analysis

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

BKL Stock Overview

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

Rewards

Trading at 54.1% below our estimate of its fair value

Earnings are forecast to grow 27.54% per year

Earnings grew by 233.4% over the past year

Risk Analysis

No risks detected for BKL from our risk checks.

Blackmores Competitors

BWX

ASX:BWX

AU$188.8m

Hangzhou Haoyue Personal Care

SHSE:605009

CN¥5.9b

PZ Cussons

LSE:PZC

UK£826.0m

Irwin Naturals

CNSX:IWIN

CA$1.0b

Price History & Performance

Summary of all time highs, changes and price drops for Blackmores
Historical stock prices
Current Share Price	AU$69.62
52 Week High	AU$103.97
52 Week Low	AU$65.00
Beta	0.35
1 Month Change	-1.93%
3 Month Change	-5.05%
1 Year Change	-4.94%
3 Year Change	-22.57%
5 Year Change	-27.36%
Change since IPO	2,431.64%

Recent News & Updates

Jun 22

Is There An Opportunity With Blackmores Limited's (ASX:BKL) 34% Undervaluation?

Today we will run through one way of estimating the intrinsic value of Blackmores Limited ( ASX:BKL ) by taking the...

Shareholder Returns

	BKL	AU Personal Products	AU Market
7D	-1.9%	-2.0%	1.4%
1Y	-4.9%	-34.4%	-11.3%

Return vs Industry: BKL exceeded the Australian Personal Products industry which returned -34.4% over the past year.

Return vs Market: BKL exceeded the Australian Market which returned -11.3% over the past year.

Price Volatility

Is BKL's price volatile compared to industry and market?
BKL volatility
BKL Average Weekly Movement	4.8%
Personal Products Industry Average Movement	9.3%
Market Average Movement	9.7%
10% most volatile stocks in AU Market	16.3%
10% least volatile stocks in AU Market	4.2%

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.

About the Company

Founded	Employees	CEO	Website
1930	1,200	Alastair Symington	https://www.blackmores.com.au

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 mineral nutritional supplements. It also provides products for various conditions related to arthritis, joints, bones, and muscles; brain health; cold, flu, and immunity; digestive health; energy and exercise; essentials; everyday health; and eye health.

Blackmores Fundamentals Summary

How do Blackmores's earnings and revenue compare to its market cap?
BKL fundamental statistics
Market Cap	AU$1.35b
Earnings (TTM)	AU$30.16m
Revenue (TTM)	AU$619.38m

44.9x

P/E Ratio

2.2x

P/S Ratio

Is BKL overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
BKL income statement (TTM)
Revenue	AU$619.38m
Cost of Revenue	AU$235.20m
Gross Profit	AU$384.18m
Other Expenses	AU$354.02m
Earnings	AU$30.16m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Aug 18, 2022

Earnings per share (EPS)	1.55
Gross Margin	62.03%
Net Profit Margin	4.87%
Debt/Equity Ratio	0%

How did BKL perform over the long term?

See historical performance and comparison

Dividends

1.8%

Current Dividend Yield

67%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is BKL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for BKL?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for BKL. This is calculated by dividing BKL's market cap by their current preferred multiple.
What is BKL's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	AU$1.35b

BKL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2.1x
Enterprise Value/EBITDA	18.6x
PEG Ratio	1.6x

Price to Earnings Ratio vs Peers

How does BKL's PE Ratio compare to its peers?

BKL PE Ratio vs Peers

The above table shows the PE ratio for BKL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	46.1x
BWX BWX	16.2x	40.8%	AU$188.8m
605009 Hangzhou Haoyue Personal Care	17.9x	26.5%	CN¥5.9b
PZC PZ Cussons	22.7x	12.7%	UK£826.0m
IWIN Irwin Naturals	127.5x	n/a	CA$1.0b
BKL Blackmores	44.9x	27.5%	AU$1.4b

Forward PE

Price-To-Earnings vs Peers: BKL is good value based on its Price-To-Earnings Ratio (44.9x) compared to the peer average (46.1x).

Price to Earnings Ratio vs Industry

How does BKL's PE Ratio compare vs other companies in the Global Personal Products Industry?

Price-To-Earnings vs Industry: BKL is expensive based on its Price-To-Earnings Ratio (44.9x) compared to the Global Personal Products industry average (22.2x)

Price to Earnings Ratio vs Fair Ratio

What is BKL's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

BKL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	44.9x
Fair PE Ratio	41.2x

Price-To-Earnings vs Fair Ratio: BKL is expensive based on its Price-To-Earnings Ratio (44.9x) compared to the estimated Fair Price-To-Earnings Ratio (41.2x).

Share Price vs Fair Value

What is the Fair Price of BKL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BKL (A$69.62) is trading below our estimate of fair value (A$151.56)

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

Price to Earnings Growth Ratio

PEG Ratio: BKL is poor value based on its PEG Ratio (1.6x)

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Future Growth

How is Blackmores 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

27.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: BKL's forecast earnings growth (27.5% per year) is above the savings rate (1.8%).

Earnings vs Market: BKL's earnings (27.5% per year) are forecast to grow faster than the Australian market (6% per year).

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

Revenue vs Market: BKL's revenue (11.1% per year) is forecast to grow faster than the Australian market (5.2% per year).

High Growth Revenue: BKL's revenue (11.1% 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 (15.4%).

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Past Performance

How has Blackmores performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

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

-29.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BKL has high quality earnings.

Growing Profit Margin: BKL's current net profit margins (4.9%) are higher than last year (1.6%).

Past Earnings Growth Analysis

Earnings Trend: BKL's earnings have declined by 29.3% per year over the past 5 years.

Accelerating Growth: BKL's earnings growth over the past year (233.4%) exceeds its 5-year average (-29.3% per year).

Earnings vs Industry: BKL earnings growth over the past year (233.4%) exceeded the Personal Products industry 14.3%.

Return on Equity

High ROE: BKL's Return on Equity (9.5%) is considered low.

Discover strong past performing companies

Financial Health

How is Blackmores's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

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

Financial Position Analysis

Short Term Liabilities: BKL's short term assets (A$347.1M) exceed its short term liabilities (A$142.4M).

Long Term Liabilities: BKL's short term assets (A$347.1M) exceed its long term liabilities (A$37.7M).

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 71.4%.

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

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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

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

1.81%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: BKL's dividend (1.81%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.74%).

High Dividend: BKL's dividend (1.81%) is low compared to the top 25% of dividend payers in the Australian market (6.85%).

Stability and Growth of Payments

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

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

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (67.4%), BKL's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (70.7%), BKL's dividend payments are covered by cash flows.

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Management

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

2.3yrs

Average management tenure

CEO

Alastair Symington (47 yo)

2.67yrs

Tenure

AU$2,283,477

Compensation

Mr. Alastair Symington., BEc, PostGradDip IntBus, MAICD, has been Chief Executive Officer and Managing Director of Blackmores Limited since October 1, 2019. Mr. Alastair serves as Director of Blackmores Li...

CEO Compensation Analysis

Compensation vs Market: Alastair's total compensation ($USD1.59M) is above average for companies of similar size in the Australian market ($USD1.04M).

Compensation vs Earnings: Alastair's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: BKL's management team is considered experienced (2.3 years average tenure).

Board Members

Experienced Board: BKL's board of directors are not considered experienced ( 1.2 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	2022/06/26 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2021/12/31
Annual Earnings	2021/06/30