Nufarm Limited, together with its subsidiaries, manufactures and sells crop protection products in Australia, New Zealand, Asia, Europe, North America, and Latin America.
The last earnings update was 34 days ago.
Discounted Cash Flow Calculation for ASX:NUFNA using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value using the 2 stage method. We use
analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.
ASX:NUFNA DCF 1st Stage: Next 5 year cash flow forecast
Amount off the current price
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
Nufarm's share price is below the future cash flow value, and at a moderate discount (> 20%).
Nufarm's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
Nufarm's earnings available for a low price, and how does
this compare to other companies in the same industry?
Nufarm's earnings are expected to grow significantly at over 20% yearly.
Nufarm's revenue is expected to grow by 5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Nufarm's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
0/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Mr. Gregory Allan Hunt, also known as Greg, Grad. Dip., Mgmnt, AMP Harvard, AICD, REBA, has been the Chief Executive Officer and Managing Director of Nufarm Limited since May 05, 2015. Mr. Hunt serves as Managing Director and Chief Executive Officer of Nufarm Australia Limited. He served as an Acting Chief Executive Officer of Nufarm Limited from February 4, 2015 to May 04, 2015 and served as its Chief Operating Officer. Mr. Hunt served as Group Executive of Commercial Operations at Nufarm Limited. Mr. Hunt served as Group Executive for Regional Crop Protection Businesses at Nufarm Limited since February 2014. Mr. Hunt served as Group Executive of Global Marketing and Business Development at Nufarm Limited. Mr. Hunt served as Group Executive Global Marketing and Business Development of Nufarm Limited and served as its Group General Manager of Global Marketing and Business Development since February 6, 2012. He has worked in the agribusiness industry for over 30 years and served as Chief Executive Officer of Elders Ltd. Mr. Hunt has considerable executive and agribusiness experience. He served as Managing Director of Elders Australia Ltd. at Elders Ltd. (also known as Futuris Corp. Ltd) from 2001 to July 13, 2007, where Mr. Hunt served a number of management positions focused on both the Australian and international operations and led its operations across a broad range of activity, including rural merchandising and product distribution. He worked with a number of organisations in business development and agribusiness related investment advisory roles and has assisted companies including Tandou Ltd, Plum Grove Pty Ltd and Biocentral laboratories Ltd. Mr. Hunt served as Managing Director of BWK Ag (Germany), Australian Agricultural Company Ltd., Killara Feedlot Pty Ltd., Webster Ltd., HiFert Pty Ltd., Walnuts Australia Pty Ltd., Elders Indonesia and Elders Insurance Ltd. Mr. Hunt serves as the Chairman of Elementree Pty Ltd., Biocentral Laboratories, Kirribilli Pastoral and Plumgrove Pty Ltd. He has been an Executive Director of Nufarm Limited since May 05, 2015. He serves as Director of Elders Insurance Limited, Elders Australia Limited, Commissioner PT Elders Indonesia. He served as Director of Costa Group Holdings Limited from October 07, 2011 to June 2015. Mr. Hunt served as a Non-executive Independent Director of Plum Grove Pty Ltd. Mr. Hunt served as Director of Elders Rural Bank Limited from July 2002 to July 14, 2006. He served as Independent Non-Executive Director of Tandou Ltd. from November 21, 2007 to February 29, 2012. Mr. Hunt served as a Non Executive Director of Webster Ltd. from January 23, 2004 to October 24, 2007. He served as Director of Tassal Group Ltd. until August 2005. Mr. Hunt attended Harvard University (AMP) and has Graduate Management Qualifications from Australian Institute of Company Directors.
Greg's compensation has been consistent with company performance over the past year.
Greg's remuneration is about average for companies of similar size in Australia.
Management Team Tenure
Average tenure and age of the
management team in years:
The tenure for the Nufarm management team is about average.
MD, CEO & Executive Director
Chief Financial Officer
Group Executive of Corporate Services & Company Secretary
Group Executive of Manufacturing & Supply Chain operations and Acting GM of Latin America
Group Executive of Nuseed
Group Executive of Portfolio Solutions
General Manager of Investor Relations
Group Executive of People & Performance
General Manager of Europe
Group Executive of Growth
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Nufarm board of directors is about average.
Nufarm Limited, together with its subsidiaries, manufactures and sells crop protection products in Australia, New Zealand, Asia, Europe, North America, and Latin America. It operates through two segments, Crop Protection and Seed Technologies. The company offers herbicides, insecticides, and fungicides to protect crops from damage caused by weeds, pests, and diseases. It also provides seeds and seed treatment products; and engages in croplands equipment business. The company is headquartered in Laverton North, Australia.
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