ASX:GXL

Stock Analysis Report

Executive Summary

Greencross Limited, an integrated pet care company, provides veterinary services in Australia and New Zealand.

Snowflake

Fundamentals

Reasonable growth potential with adequate balance sheet.

Risks

  • Greencross's last earnings update was 192 days ago.

Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0%

ASX:GXL

5.5%

AU Specialty Retail

-2.6%

AU Market


1 Year Return

-5.6%

ASX:GXL

0.3%

AU Specialty Retail

-0.7%

AU Market

GXL outperformed the Specialty Retail industry which returned -8.1% over the past year.

GXL underperformed the Market in Australia which returned 0.7% over the past year.


Share holder returns

GXLIndustryMarket
7 Day0%5.5%-2.6%
30 Day0.7%1.9%-4.1%
90 Day3.4%9.0%0.5%
1 Year-0.9%-5.6%5.2%0.3%5.1%-0.7%
3 Year-18.6%-27.1%1.0%-12.1%30.1%13.0%
5 Year-20.0%-31.4%53.9%25.0%36.4%5.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Greencross undervalued based on future cash flows and its price relative to the stock market?

29%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Greencross's share price is below the future cash flow value, and at a moderate discount (> 20%).

Greencross's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Greencross is overvalued based on earnings compared to the AU Specialty Retail industry average.

Greencross is overvalued based on earnings compared to the Australia market.


Price Based on Expected Growth

Greencross is poor value based on expected growth next year.


Price Based on Value of Assets

Greencross is good value based on assets compared to the AU Specialty Retail industry average.


Next Steps

Future Growth

How is Greencross expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

24.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Greencross's revenue is expected to grow by 5.6% yearly, however this is not considered high growth (20% yearly).

Greencross's earnings are expected to grow significantly at over 20% yearly.

Greencross's revenue growth is expected to exceed the Australia market average.

Greencross's earnings growth is expected to exceed the Australia market average.

Greencross's earnings growth is expected to exceed the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

Greencross is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Greencross performed over the past 5 years?

57.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Greencross has delivered over 20% year on year earnings growth in the past 5 years.

Greencross's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Greencross's 1-year earnings growth is negative, it can't be compared to the AU Specialty Retail industry average.


Return on Equity

Greencross has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Greencross used its assets less efficiently than the AU Specialty Retail industry average last year based on Return on Assets.


Return on Capital Employed

Greencross's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Greencross's financial position?


Financial Position Analysis

Greencross is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Greencross's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Greencross's level of debt (61.5%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (210.3% vs 61.5% today).

Debt is well covered by operating cash flow (20.9%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 4.3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.5x debt.


Next Steps

Dividend

What is Greencross's current dividend yield, its reliability and sustainability?

2.75%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Greencross's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.62%).

Greencross's dividend is below the markets top 25% of dividend payers in Australia (6.02%).

Greencross has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Dividend payments have increased, but Greencross only paid a dividend in the past 5 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.1x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.4x coverage).


Next Steps

Management

What is the CEO of Greencross's salary, the management and board of directors tenure and is there insider trading?

0.8yrs

Average management tenure


CEO

Simon Hickey

0.9yrs

Tenure

AU$902,642

Compensation

Mr. Simon Hickey has been Chief Executive Officer, Managing Director and Director of Greencross Limited (Greencross) since March 5, 2018. Mr. Hickey was Group Chief Executive Officer and Managing Director  ...


CEO Compensation Analysis

Simon's remuneration is about average for companies of similar size in Australia.

Insufficient data for Simon to compare compensation growth.


Management Age and Tenure

0.8yrs

Average Tenure

The average tenure for the Greencross management team is less than 2 years, this suggests a new team.


Board Age and Tenure

4.4yrs

Average Tenure

The tenure for the Greencross board of directors is about average.


Insider Trading

No 3 month insider trading information.


Recent Insider Transactions

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Ownership Breakdown


Management Team

  • Tania Whyte

    Chief Customer Officer

  • Robert Wruck

    Head of Investor Relations

  • Rachel Chay

    Chief Veterinary Officer

  • Vincent Pollaers

    Chief Human Resources Officer

    • Tenure: 4.8yrs
  • Chris Gava

    Chief Information Officer

    • Tenure: 0.4yrs
  • Tanya Houghton

    Chief Operating Officer

    • Tenure: 0.8yrs
    • Compensation: A$475.65k
  • Simon Hickey

    MD, CEO & Director

    • Tenure: 0.9yrs
    • Compensation: A$902.64k
  • David Bissett

    Chief Operating Officer of Business Development

  • Richard Bowker

    Chief Merchant

  • Lucas Barry

    Chief Financial Officer

    • Tenure: 0.7yrs
    • Compensation: A$483.80k

Board Members

  • Chris Knoblanche

    Non-Executive Director

    • Tenure: 4.4yrs
    • Compensation: A$147.88k
  • Stuart James (70yo)

    Non Executive Chairman

    • Tenure: 5.0yrs
    • Compensation: A$230.18k
  • Glen Richards

    Non-Executive Director

    • Tenure: 3.9yrs
    • Compensation: A$108.98k
  • Paul Wilson

    Non-Executive Director

    • Tenure: 5.0yrs
    • Compensation: A$108.94k
  • Christy Boyce

    Non-Executive Director

    • Tenure: 4.4yrs
    • Compensation: A$147.88k
  • Rebekah Horne

    Non-Executive Director

    • Tenure: 3.4yrs
    • Compensation: A$109.54k
  • Simon Hickey

    MD, CEO & Director

    • Tenure: 0.9yrs
    • Compensation: A$902.64k

Company Information

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


Key Information

  • Name: Greencross Limited
  • Ticker: GXL
  • Exchange: ASX
  • Founded: 1994
  • Industry: specialty stores
  • Sector: retail
  • Market Cap: AU$673.187m
  • Shares outstanding: 121.51m
  • Website: Click here

Number of Employees


Location

  • Greencross Limited
  • 5/28 Balaclava Street
  • Woolloongabba
  • Queensland
  • 4102
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GXLASX (Australian Securities Exchange)YesOrdinary SharesAUAUDFeb 2014
GRSS.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDFeb 2014
GXLCHIA (Chi-X Australia)YesOrdinary SharesAUAUDFeb 2014
GE8DB (Deutsche Boerse AG)YesOrdinary SharesDEEURFeb 2014

Biography

Greencross Limited, an integrated pet care company, provides veterinary services in Australia and New Zealand. It operates in three segments: Retail, Veterinary, and New Zealand. The company engages in the ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/02/27 10:34
End of Day Share Price2019/02/11 00:00
Earnings2018/07/01
Annual Earnings2018/07/01


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.