ASX:CLV

Stock Analysis Report

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Market Cap

AU$292.9m

Last Updated

2021/08/05 08:05 UTC

Data Sources

Company Financials +

Executive Summary

Clover Corporation Limited refines and sells natural oils in Australia, New Zealand, Asia, Europe, and the Americas. More Details


Snowflake Analysis

Excellent balance sheet with proven track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: CLV is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: CLV's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

4.4%

CLV

0.3%

AU Chemicals

1.1%

AU Market


1 Year Return

-20.0%

CLV

-4.3%

AU Chemicals

26.8%

AU Market

Return vs Industry: CLV underperformed the Australian Chemicals industry which returned -4.3% over the past year.

Return vs Market: CLV underperformed the Australian Market which returned 26.8% over the past year.


Shareholder returns

CLVIndustryMarket
7 Day4.4%0.3%1.1%
30 Day-1.7%-0.1%3.4%
90 Day-8.3%-5.7%5.7%
1 Year-18.7%-20.0%-3.4%-4.3%31.5%26.8%
3 Year24.6%20.3%-22.5%-25.6%35.1%18.7%
5 Year331.4%303.4%-7.3%-15.2%67.5%35.0%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CLV (A$1.78) is trading below our estimate of fair value (A$12.26)

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


Price To Earnings Ratio

PE vs Industry: CLV is good value based on its PE Ratio (28.5x) compared to the Australian Chemicals industry average (55.1x).

PE vs Market: CLV is poor value based on its PE Ratio (28.5x) compared to the Australian market (20.4x).


Price to Earnings Growth Ratio

PEG Ratio: CLV is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: CLV is overvalued based on its PB Ratio (5.3x) compared to the AU Chemicals industry average (3.1x).


Future Growth

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

19.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CLV's forecast earnings growth (19.7% per year) is above the savings rate (1.9%).

Earnings vs Market: CLV's earnings (19.7% per year) are forecast to grow faster than the Australian market (13.2% per year).

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

Revenue vs Market: CLV's revenue (10.6% per year) is forecast to grow faster than the Australian market (5.1% per year).

High Growth Revenue: CLV's revenue (10.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CLV's Return on Equity is forecast to be low in 3 years time (17.7%).


Past Performance

How has Clover performed over the past 5 years?

35.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CLV has high quality earnings.

Growing Profit Margin: CLV's current net profit margins (12.9%) are higher than last year (12.8%).


Past Earnings Growth Analysis

Earnings Trend: CLV's earnings have grown significantly by 35.9% per year over the past 5 years.

Accelerating Growth: CLV's earnings growth over the past year (1%) is below its 5-year average (35.9% per year).

Earnings vs Industry: CLV earnings growth over the past year (1%) exceeded the Chemicals industry -45.6%.


Return on Equity

High ROE: CLV's Return on Equity (18.5%) is considered low.


Financial Health

How is Clover's financial position?


Financial Position Analysis

Short Term Liabilities: CLV's short term assets (A$52.1M) exceed its short term liabilities (A$6.5M).

Long Term Liabilities: CLV's short term assets (A$52.1M) exceed its long term liabilities (A$12.2M).


Debt to Equity History and Analysis

Debt Level: CLV's debt to equity ratio (24.6%) is considered satisfactory.

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

Debt Coverage: CLV's debt is well covered by operating cash flow (120.8%).

Interest Coverage: CLV's interest payments on its debt are well covered by EBIT (32.2x coverage).


Balance Sheet


Dividend

What is Clover current dividend yield, its reliability and sustainability?

0.56%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CLV's dividend (0.56%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (1.96%).

High Dividend: CLV's dividend (0.56%) is low compared to the top 25% of dividend payers in the Australian market (4.96%).


Stability and Growth of Payments

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

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CLV'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?

4.2yrs

Average board tenure


CEO

Peter Davey

6.75yrs

Tenure

AU$951,520

Compensation

Mr. Peter J. Davey, MBA, GradDip Bus., Dip.Art(Design), GAICD, has been Chief Executive Officer and Managing Director of Clover Corporation Limited since November 11, 2014. Mr. Davey has held senior manage...


CEO Compensation Analysis

Compensation vs Market: Peter's total compensation ($USD701.35K) is above average for companies of similar size in the Australian market ($USD460.17K).

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


Board Members

Experienced Board: CLV's board of directors are considered experienced (4.2 years average tenure).


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.


Top Shareholders

Company Information

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


Key Information

  • Name: Clover Corporation Limited
  • Ticker: CLV
  • Exchange: ASX
  • Founded: 1988
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Market Cap: AU$292.933m
  • Shares outstanding: 166.44m
  • Website: https://www.clovercorp.com.au

Number of Employees


Location

  • Clover Corporation Limited
  • 39 Pinnacle Road
  • Altona North
  • Victoria
  • 3025
  • Australia

Listings


Biography

Clover Corporation Limited refines and sells natural oils in Australia, New Zealand, Asia, Europe, and the Americas. The company is also involved in the production of encapsulated powders; and research and...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/05 08:05
End of Day Share Price2021/08/05 00:00
Earnings2021/01/31
Annual Earnings2020/07/31


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.