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DGL

DGL GroupASX:DGL Stock Report

Market Cap

AU$785.2m

7D

1.0%

1Y

n/a

Updated

25 Oct, 2021

Data

Company Financials +
DGL fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance3/6
Financial Health5/6
Dividends0/6

DGL Overview

DGL Group Limited provides specialty chemical formulation and manufacturing, warehousing and distribution, and waste management and recycling solutions in Australia and New Zealand.

DGL Group Competitors

Mainfreight

NZSE:MFT

NZ$9.1b

Cleanaway Waste Management

ASX:CWY

AU$5.9b

Price History & Performance

Summary of all time highs, changes and price drops for DGL Group
Historical stock prices
Current Share PriceAU$3.01
52 Week HighAU$0.94
52 Week LowAU$3.28
Beta0
1 Month Change-1.31%
3 Month Change100.67%
1 Year Changen/a
3 Year Changen/a
5 Year Changen/a
Change since IPO180.00%

Recent News & Updates

Sep 07
Shareholders Shouldn’t Be Too Comfortable With DGL Group's (ASX:DGL) Strong Earnings

Shareholders Shouldn’t Be Too Comfortable With DGL Group's (ASX:DGL) Strong Earnings

Despite posting strong earnings, DGL Group Limited's ( ASX:DGL ) stock didn't move much over the last week. We think...

Aug 25
Is DGL Group Limited (ASX:DGL) Trading At A 49% Discount?

Is DGL Group Limited (ASX:DGL) Trading At A 49% Discount?

Does the August share price for DGL Group Limited ( ASX:DGL ) reflect what it's really worth? Today, we will estimate...

Shareholder Returns

DGLAU ChemicalsAU Market
7D1.0%1.4%0.6%
1Yn/a15.2%21.3%

Return vs Industry: Insufficient data to determine how DGL performed against the Australian Chemicals industry.

Return vs Market: Insufficient data to determine how DGL performed against the Australian Market.

Price Volatility

Is DGL's price volatile compared to industry and market?
DGL volatility
DGL Beta0
Industry Beta0.80
Market Beta1

Stable Share Price: DGL is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: Insufficient data to determine DGL's volatility change over the past year.

About the Company

FoundedEmployeesCEOWebsite
1984n/aSimon Henryhttps://www.dglgroup.com

DGL Group Limited provides specialty chemical formulation and manufacturing, warehousing and distribution, and waste management and recycling solutions in Australia and New Zealand. The company operates through three segments: Chemical Manufacturing, Warehousing and Distribution, and Environmental Solutions. The Chemical Manufacturing segment produces a range of specialty chemicals; and undertakes advanced formulation and contract manufacturing on behalf of third parties.

DGL Group Fundamentals Summary

How do DGL Group's earnings and revenue compare to its market cap?
DGL fundamental statistics
Market CapAU$785.22m
Earnings (TTM)AU$47.17m
Revenue (TTM)AU$154.48m

16.6x

P/E Ratio

5.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
DGL income statement (TTM)
RevenueAU$154.48m
Cost of RevenueAU$93.68m
Gross ProfitAU$60.80m
ExpensesAU$13.63m
EarningsAU$47.17m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.18
Gross Margin39.36%
Net Profit Margin30.53%
Debt/Equity Ratio15.2%

How did DGL perform over the long term?

See historical performance and comparison

Valuation

Is DGL Group 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: DGL (A$3.01) is trading below our estimate of fair value (A$7.68)

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


Price To Earnings Ratio

PE vs Industry: DGL is good value based on its PE Ratio (16.6x) compared to the Australian Chemicals industry average (52.5x).

PE vs Market: DGL is good value based on its PE Ratio (16.6x) compared to the Australian market (19.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: DGL is overvalued based on its PB Ratio (4x) compared to the AU Chemicals industry average (3.9x).


Future Growth

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

-21.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DGL's earnings are forecast to decline over the next 3 years (-21.4% per year).

Earnings vs Market: DGL's earnings are forecast to decline over the next 3 years (-21.4% per year).

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

Revenue vs Market: DGL's revenue (17.7% per year) is forecast to grow faster than the Australian market (5.3% per year).

High Growth Revenue: DGL's revenue (17.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DGL's Return on Equity is forecast to be low in 3 years time (10%).


Past Performance

How has DGL Group performed over the past 5 years?

1,077.1%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: DGL has a high level of non-cash earnings.

Growing Profit Margin: DGL's current net profit margins (30.5%) are higher than last year (3.9%).


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if DGL's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Insufficient data to compare DGL's past year earnings growth to its 5-year average.

Earnings vs Industry: DGL earnings growth over the past year (1077.1%) exceeded the Chemicals industry -61.8%.


Return on Equity

High ROE: DGL's Return on Equity (24.2%) is considered high.


Financial Health

How is DGL Group's financial position?


Financial Position Analysis

Short Term Liabilities: DGL's short term assets (A$86.3M) exceed its short term liabilities (A$50.8M).

Long Term Liabilities: DGL's short term assets (A$86.3M) exceed its long term liabilities (A$31.5M).


Debt to Equity History and Analysis

Debt Level: DGL's debt to equity ratio (15.2%) is considered satisfactory.

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

Debt Coverage: DGL's debt is well covered by operating cash flow (64.2%).

Interest Coverage: DGL's interest payments on its debt are well covered by EBIT (6.2x coverage).


Balance Sheet


Dividend

What is DGL Group current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate DGL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate DGL's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if DGL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if DGL's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

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

0.8yrs

Average management tenure


CEO

Simon Henry

22.75yrs

Tenure

AU$131,876

Compensation

Mr. Simon Henry is the sole shareholder and Founder of DGL. He has been the CEO of DGL Group Limited since 1999 and serves its Executive Director. He has many years of experience in industrial property dev...


CEO Compensation Analysis

Compensation vs Market: Simon's total compensation ($USD98.86K) is below average for companies of similar size in the Australian market ($USD722.80K).

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


Leadership Team

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


Board Members

Experienced Board: DGL's board of directors are not considered experienced ( 0.5 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: DGL only recently listed within the past 12 months.


Top Shareholders

Company Information

DGL Group Limited's employee growth, exchange listings and data sources


Key Information

  • Name: DGL Group Limited
  • Ticker: DGL
  • Exchange: ASX
  • Founded: 1984
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Market Cap: AU$785.219m
  • Shares outstanding: 260.87m
  • Website: https://www.dglgroup.com

Location

  • DGL Group Limited
  • 63 Albert Street
  • Level 12
  • Auckland
  • 1010
  • New Zealand

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/25 16:39
End of Day Share Price2021/10/25 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.