ASX:WGN

Stock Analysis Report

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Executive Summary

Wagners Holding Company Limited produces and sells construction materials in Australia and internationally. More Details


Snowflake Analysis

Reasonable growth potential with imperfect balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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

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


Market Performance


7 Day Return

10.2%

WGN

1.0%

AU Basic Materials

-0.3%

AU Market


1 Year Return

42.1%

WGN

25.1%

AU Basic Materials

11.2%

AU Market

Return vs Industry: WGN exceeded the Australian Basic Materials industry which returned 25.1% over the past year.

Return vs Market: WGN exceeded the Australian Market which returned 11.2% over the past year.


Shareholder returns

WGNIndustryMarket
7 Day10.2%1.0%-0.3%
30 Day4.9%4.6%2.7%
90 Day5.4%0.9%4.4%
1 Year42.1%42.1%28.5%25.1%14.7%11.2%
3 Year-52.3%-54.4%18.1%6.9%30.8%15.1%
5 Yearn/a64.4%37.8%62.3%30.7%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

140.66x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WGN (A$1.94) is trading above our estimate of fair value (A$1.89)

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


Price To Earnings Ratio

PE vs Industry: WGN is poor value based on its PE Ratio (140.7x) compared to the AU Basic Materials industry average (23.5x).

PE vs Market: WGN is poor value based on its PE Ratio (140.7x) compared to the Australian market (19.8x).


Price to Earnings Growth Ratio

PEG Ratio: WGN is poor value based on its PEG Ratio (3.8x)


Price to Book Ratio

PB vs Industry: WGN is overvalued based on its PB Ratio (3.5x) compared to the AU Basic Materials industry average (3x).


Next Steps

Future Growth

How is Wagners Holding forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

37.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WGN's forecast earnings growth (37.5% per year) is above the savings rate (2%).

Earnings vs Market: WGN's earnings (37.5% per year) are forecast to grow faster than the Australian market (15.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: WGN's revenue (6.2% per year) is forecast to grow faster than the Australian market (5.4% per year).

High Growth Revenue: WGN's revenue (6.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WGN's Return on Equity is forecast to be low in 3 years time (14%).


Next Steps

Past Performance

How has Wagners Holding performed over the past 5 years?

-39.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WGN has high quality earnings.

Growing Profit Margin: WGN's current net profit margins (0.9%) are lower than last year (2%).


Past Earnings Growth Analysis

Earnings Trend: WGN's earnings have declined by 39.7% per year over the past 5 years.

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

Earnings vs Industry: WGN had negative earnings growth (-44%) over the past year, making it difficult to compare to the Basic Materials industry average (-6.4%).


Return on Equity

High ROE: WGN's Return on Equity (2.5%) is considered low.


Next Steps

Financial Health

How is Wagners Holding's financial position?


Financial Position Analysis

Short Term Liabilities: WGN's short term assets (A$88.9M) exceed its short term liabilities (A$69.4M).

Long Term Liabilities: WGN's short term assets (A$88.9M) do not cover its long term liabilities (A$161.2M).


Debt to Equity History and Analysis

Debt Level: WGN's debt to equity ratio (57.4%) is considered high.

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

Debt Coverage: WGN's debt is well covered by operating cash flow (71%).

Interest Coverage: WGN's interest payments on its debt are not well covered by EBIT (1.8x coverage).


Balance Sheet


Next Steps

Dividend

What is Wagners Holding current dividend yield, its reliability and sustainability?

1.69%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate WGN'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 WGN's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: WGN is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

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

4.5yrs

Average management tenure


CEO

Cameron Coleman

8.67yrs

Tenure

AU$568,154

Compensation

Mr. Cameron Coleman has been the Chief Executive Officer at Wagners Holding Company Limited and Wagner Group Holdings Pty Ltd. since July 2012. Mr. Coleman has experience across all areas of the business a...


CEO Compensation Analysis

Compensation vs Market: Cameron's total compensation ($USD441.83K) is about average for companies of similar size in the Australian market ($USD499.99K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Cameron Coleman
Chief Executive Officer8.67yrsAU$568.15k0.044%
A$ 163.5k
Fergus Hume
Chief Financial Officer5.08yrsAU$360.48k0.00092%
A$ 3.4k
Karen Brown
General Counsel & Company Secretary3.33yrsno data0.0084%
A$ 31.0k
Rachel Allan
Group Human Resources Manager10.58yrsno datano data
Hugh Stone
Head of Safety1.08yrsno datano data
Michael Kemp
General Manager of New Generation Building Materials4yrsno datano data

4.5yrs

Average Tenure

Experienced Management: WGN's management team is considered experienced (4.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ross Walker
Independent Non-Executive Director3.33yrsAU$100.00k0.063%
A$ 231.3k
Denis Wagner
Non-Executive Chairman3.33yrsAU$200.00k12.02%
A$ 44.2m
Joseph Wagner
Alternate Director3yrsno data11.72%
A$ 43.1m
Lynda Kathryn O'Grady
Independent Non-Executive Director3.33yrsAU$100.00k0.027%
A$ 98.3k
John Wagner
Non-Executive Director3.33yrsAU$100.00k11.99%
A$ 44.1m

3.3yrs

Average Tenure

Experienced Board: WGN's board of directors are considered experienced (3.3 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

Wagners Holding Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Wagners Holding Company Limited
  • Ticker: WGN
  • Exchange: ASX
  • Founded: 1989
  • Industry: Construction Materials
  • Sector: Materials
  • Market Cap: AU$367.842m
  • Shares outstanding: 187.20m
  • Website: https://www.wagner.com.au

Location

  • Wagners Holding Company Limited
  • 11 Ballera Court
  • 1511 Toowoomba Cecil Plains Road
  • Wellcamp
  • Queensland
  • 4350
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
0W7DB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2017
WGNASX (Australian Securities Exchange)YesOrdinary SharesAUAUDDec 2017
WGNCHIA (Chi-X Australia)YesOrdinary SharesAUAUDDec 2017

Biography

Wagners Holding Company Limited produces and sells construction materials in Australia and internationally. It operates through two segments, Construction Materials and Services (CMS), and New Generation B...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/02 07:09
End of Day Share Price2021/03/02 00:00
Earnings2020/12/31
Annual Earnings2020/06/30


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.