ASX:CSR

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

CSR Limited, together with its subsidiaries, engages in the manufacture and supply of building products for homes and commercial buildings in Australia and New Zealand. More Details


Snowflake Analysis

Flawless balance sheet second-rate dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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

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


Market Performance


7 Day Return

3.4%

CSR

-0.5%

AU Basic Materials

1.7%

AU Market


1 Year Return

2.9%

CSR

16.6%

AU Basic Materials

-1.6%

AU Market

Return vs Industry: CSR underperformed the Australian Basic Materials industry which returned 19.3% over the past year.

Return vs Market: CSR exceeded the Australian Market which returned -0.6% over the past year.


Shareholder returns

CSRIndustryMarket
7 Day3.4%-0.5%1.7%
30 Day5.4%9.8%9.5%
90 Day36.1%25.6%9.2%
1 Year5.7%2.9%18.5%16.6%1.8%-1.6%
3 Year23.2%5.4%25.2%13.3%24.8%9.2%
5 Year120.7%66.1%76.0%47.5%56.1%25.0%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

20.74x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CSR (A$4.89) is trading above our estimate of fair value (A$3.8)

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


Price To Earnings Ratio

PE vs Industry: CSR is poor value based on its PE Ratio (20.7x) compared to the XX Basic Materials industry average (15x).

PE vs Market: CSR is good value based on its PE Ratio (20.7x) compared to the Australian market (22.8x).


Price to Earnings Growth Ratio

PEG Ratio: CSR's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: CSR is good value based on its PB Ratio (2.1x) compared to the AU Basic Materials industry average (2.6x).


Next Steps

Future Growth

How is CSR forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

-2.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CSR's earnings are forecast to decline over the next 3 years (-2% per year).

Earnings vs Market: CSR's earnings are forecast to decline over the next 3 years (-2% per year).

High Growth Earnings: CSR's earnings are forecast to decline over the next 3 years.

Revenue vs Market: CSR's revenue (1.7% per year) is forecast to grow slower than the Australian market (5.1% per year).

High Growth Revenue: CSR's revenue (1.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CSR's Return on Equity is forecast to be low in 3 years time (12.3%).


Next Steps

Past Performance

How has CSR performed over the past 5 years?

-5.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CSR has high quality earnings.

Growing Profit Margin: CSR's current net profit margins (5.4%) are lower than last year (5.4%).


Past Earnings Growth Analysis

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

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

Earnings vs Industry: CSR had negative earnings growth (-6.4%) over the past year, making it difficult to compare to the Basic Materials industry average (1.7%).


Return on Equity

High ROE: CSR's Return on Equity (10.4%) is considered low.


Next Steps

Financial Health

How is CSR's financial position?


Financial Position Analysis

Short Term Liabilities: CSR's short term assets (A$832.4M) exceed its short term liabilities (A$456.9M).

Long Term Liabilities: CSR's short term assets (A$832.4M) exceed its long term liabilities (A$475.6M).


Debt to Equity History and Analysis

Debt Level: CSR is debt free.

Reducing Debt: CSR has no debt compared to 5 years ago when its debt to equity ratio was 0.9%.

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

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


Balance Sheet


Next Steps

Dividend

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

3.47%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CSR's dividend (3.48%) is higher than the bottom 25% of dividend payers in the Australian market (2.08%).

High Dividend: CSR's dividend (3.48%) is low compared to the top 25% of dividend payers in the Australian market (5.05%).


Stability and Growth of Payments

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

Growing Dividend: CSR's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36%), CSR's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CSR's dividends in 3 years are forecast to be covered by earnings (68.8% payout ratio).


Next Steps

Management

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

0.8yrs

Average management tenure


CEO

Julie Coates (57 yo)

1.17yrs

Tenure

AU$1,488,659

Compensation

Ms. Julie Ann Coates, BA DipEd (Melb) has been the Chief Executive Officer, Managing Director and Executive Director of CSR Limited since September 2, 2019. Ms. Coates has been Managing Director at Goodman...


CEO Compensation Analysis

Compensation vs Market: Julie's total compensation ($USD1.10M) is about average for companies of similar size in the Australian market ($USD1.34M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Julie Coates
CEO, MD & Executive Director1.17yrsAU$1.49m0.00016%
A$ 3.8k
David Fallu
Chief Financial Officer3.75yrsAU$781.50k0.013%
A$ 315.4k
Ian Hardiman
Executive General Manager of New Businessno dataAU$755.44kno data
Andree Taylor
General Manager of Investor Relations & Corporate Communicationsno datano datano data
Debbie Schroeder
Manager of Risk & Legal and Company Secretary0.33yrno datano data
Catherine Flynn
Human Resources Director0.83yrno datano data
Chris Karakatsanis
Head of Health0.83yrno datano data
Marion Johnstone
General Managerno datano datano data
Sara Lom
Group Financial Controllerno datano datano data
Andrew Rottinger
Executive General Manager Construction Systemsno datano datano data
Thomas Burmeister
Chief Financial Officer of Rinker Group Limitedno dataAU$1.38mno data
Amy Bentley
Executive General Manager Logistics0.83yrno datano data

0.8yrs

Average Tenure

52yo

Average Age

Experienced Management: CSR's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Julie Coates
CEO, MD & Executive Director1.17yrsAU$1.49m0.00016%
A$ 3.8k
Michael Ihlein
Independent Non-Executive Director9.33yrsAU$185.55k0.013%
A$ 312.6k
Matthew Quinn
Independent Non-Executive Director7.25yrsAU$185.55k0.015%
A$ 358.2k
John Gillam
Independent Non-Executive Chairman2.42yrsAU$395.26k0.052%
A$ 1.2m
Penelope Winn
Independent Non-Executive Director5yrsAU$185.55k0.011%
A$ 250.6k
Christine Holman
Independent Non-Executive Director4.08yrsAU$169.87k0.016%
A$ 387.8k

4.5yrs

Average Tenure

57.5yo

Average Age

Experienced Board: CSR's board of directors are considered experienced (4.5 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

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


Key Information

  • Name: CSR Limited
  • Ticker: CSR
  • Exchange: ASX
  • Founded: 1855
  • Industry: Construction Materials
  • Sector: Materials
  • Market Cap: AU$2.374b
  • Shares outstanding: 485.38m
  • Website: https://www.csr.com.au

Number of Employees


Location

  • CSR Limited
  • Triniti 3
  • Level 5
  • North Ryde
  • New South Wales
  • 2113
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CSRL.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 1983
CSRDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 1983
CSRASX (Australian Securities Exchange)YesOrdinary SharesAUAUDMay 1983
CSRCHIA (Chi-X Australia)YesOrdinary SharesAUAUDMay 1983

Biography

CSR Limited, together with its subsidiaries, engages in the manufacture and supply of building products for homes and commercial buildings in Australia and New Zealand. It operates through Building Product...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/27 07:00
End of Day Share Price2020/11/27 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


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.