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ORA

OroraASX:ORA Stock Report

Market Cap

AU$2.7b

7D

0.3%

1Y

22.7%

Updated

16 Oct, 2021

Data

Company Financials +
ORA fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance4/6
Financial Health4/6
Dividends2/6

ORA Overview

Orora Limited designs, manufactures, and supplies packaging products and services to the grocery, fast moving consumer goods, and industrial markets in Australia, New Zealand, the United States, and internationally.

Orora Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Orora
Historical stock prices
Current Share PriceAU$3.13
52 Week HighAU$2.43
52 Week LowAU$3.73
Beta0.41
1 Month Change-4.28%
3 Month Change-8.21%
1 Year Change22.75%
3 Year Change-25.03%
5 Year Change-16.25%
Change since IPO105.25%

Recent News & Updates

Sep 22
Orora Limited's (ASX:ORA) Intrinsic Value Is Potentially 64% Above Its Share Price

Orora Limited's (ASX:ORA) Intrinsic Value Is Potentially 64% Above Its Share Price

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Orora Limited...

Aug 24
Orora (ASX:ORA) Will Pay A Larger Dividend Than Last Year At AU$0.075

Orora (ASX:ORA) Will Pay A Larger Dividend Than Last Year At AU$0.075

Orora Limited ( ASX:ORA ) will increase its dividend on the 11th of October to AU$0.075. This takes the dividend yield...

Jun 02
An Intrinsic Calculation For Orora Limited (ASX:ORA) Suggests It's 26% Undervalued

An Intrinsic Calculation For Orora Limited (ASX:ORA) Suggests It's 26% Undervalued

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

Shareholder Returns

ORAAU PackagingAU Market
7D0.3%0.7%0.9%
1Y22.7%21.5%20.2%

Return vs Industry: ORA exceeded the Australian Packaging industry which returned 21.5% over the past year.

Return vs Market: ORA exceeded the Australian Market which returned 20.2% over the past year.

Price Volatility

Is ORA's price volatile compared to industry and market?
ORA volatility
ORA Beta0.41
Industry Beta0.82
Market Beta1

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

Volatility Over Time: ORA's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19493,768Brian Lowehttps://www.ororagroup.com

Orora Limited designs, manufactures, and supplies packaging products and services to the grocery, fast moving consumer goods, and industrial markets in Australia, New Zealand, the United States, and internationally. It operates through Orora Australasia and Orora North America segments. The company provides glass bottles, aluminum cans, tabs and ends, closures and caps, boxes and cartons, point-of-purchase displays, packaging equipment, rigid and flexible packaging, and general packaging materials and supplies.

Orora Fundamentals Summary

How do Orora's earnings and revenue compare to its market cap?
ORA fundamental statistics
Market CapAU$2.74b
Earnings (TTM)AU$129.70m
Revenue (TTM)AU$3.54b

21.1x

P/E Ratio

0.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ORA income statement (TTM)
RevenueAU$3.54b
Cost of RevenueAU$2.86b
Gross ProfitAU$674.20m
ExpensesAU$544.50m
EarningsAU$129.70m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.15
Gross Margin19.06%
Net Profit Margin3.67%
Debt/Equity Ratio65.5%

How did ORA perform over the long term?

See historical performance and comparison

Dividends

4.5%

Current Dividend Yield

100%

Payout Ratio

Valuation

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

48.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ORA (A$3.13) is trading below our estimate of fair value (A$6.04)

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


Price To Earnings Ratio

PE vs Industry: ORA is poor value based on its PE Ratio (21.1x) compared to the Global Packaging industry average (15.3x).

PE vs Market: ORA is poor value based on its PE Ratio (21.1x) compared to the Australian market (19.8x).


Price to Earnings Growth Ratio

PEG Ratio: ORA is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: ORA is overvalued based on its PB Ratio (3.6x) compared to the XX Packaging industry average (1.5x).


Future Growth

How is Orora forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

12.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ORA's forecast earnings growth (12.2% per year) is above the savings rate (1.9%).

Earnings vs Market: ORA's earnings (12.2% per year) are forecast to grow faster than the Australian market (11.8% per year).

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

Revenue vs Market: ORA's revenue (2.4% per year) is forecast to grow slower than the Australian market (5.4% per year).

High Growth Revenue: ORA's revenue (2.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ORA's Return on Equity is forecast to be high in 3 years time (22%)


Past Performance

How has Orora performed over the past 5 years?

-19.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ORA has high quality earnings.

Growing Profit Margin: ORA's current net profit margins (3.7%) are higher than last year (0.7%).


Past Earnings Growth Analysis

Earnings Trend: ORA's earnings have declined by 19.4% per year over the past 5 years.

Accelerating Growth: ORA's earnings growth over the past year (387.6%) exceeds its 5-year average (-19.4% per year).

Earnings vs Industry: ORA earnings growth over the past year (387.6%) exceeded the Packaging industry 27.1%.


Return on Equity

High ROE: ORA's Return on Equity (16.9%) is considered low.


Financial Health

How is Orora's financial position?


Financial Position Analysis

Short Term Liabilities: ORA's short term assets (A$980.8M) exceed its short term liabilities (A$806.3M).

Long Term Liabilities: ORA's short term assets (A$980.8M) exceed its long term liabilities (A$749.7M).


Debt to Equity History and Analysis

Debt Level: ORA's debt to equity ratio (65.5%) is considered high.

Reducing Debt: ORA's debt to equity ratio has increased from 46.5% to 65.5% over the past 5 years.

Debt Coverage: ORA's debt is well covered by operating cash flow (53.8%).

Interest Coverage: ORA's interest payments on its debt are well covered by EBIT (8.6x coverage).


Balance Sheet


Dividend

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

4.47%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ORA's dividend (4.47%) is higher than the bottom 25% of dividend payers in the Australian market (2.27%).

High Dividend: ORA's dividend (4.47%) is low compared to the top 25% of dividend payers in the Australian market (5.32%).


Stability and Growth of Payments

Stable Dividend: ORA has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: ORA's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (100.2%), ORA's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ORA's dividends in 3 years are forecast to be covered by earnings (78.1% payout ratio).


Next Steps

Management

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

1.6yrs

Average management tenure


CEO

Brian Lowe

2yrs

Tenure

AU$2,337,975

Compensation

Mr. Brian Phillip Lowe, MBA, serves as Managing Director, Chief Executive Officer and Director at Orora Limited since October 1, 2019. Mr. Lowe served as Group General Manager of Fibre at Orora Limited sin...


CEO Compensation Analysis

Compensation vs Market: Brian's total compensation ($USD1.74M) is about average for companies of similar size in the Australian market ($USD1.41M).

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


Leadership Team

Experienced Management: ORA's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

Experienced Board: ORA's board of directors are not considered experienced ( 2.1 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.


Top Shareholders

Company Information

Orora Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Orora Limited
  • Ticker: ORA
  • Exchange: ASX
  • Founded: 1949
  • Industry: Metal and Glass Containers
  • Sector: Materials
  • Market Cap: AU$2.742b
  • Shares outstanding: 876.03m
  • Website: https://www.ororagroup.com

Number of Employees


Location

  • Orora Limited
  • 109-133 Burwood Road
  • Hawthorn
  • Victoria
  • 3122
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/16 07:04
End of Day Share Price2021/10/15 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.