TSX:BCB

Stock Analysis Report

Executive Summary

Cott Corporation, together with its subsidiaries, operates as a route based service company in the United States, the United Kingdom, Canada, and internationally.

Rewards

Trading at 65.9% below its fair value

Earnings are forecast to grow 115.6% per year

Risk Analysis

Interest payments are not well covered by earnings



Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: BCB has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.4%

BCB

0.3%

CA Beverage

0.4%

CA Market


1 Year Return

-8.2%

BCB

-12.9%

CA Beverage

11.0%

CA Market

Return vs Industry: BCB exceeded the Canadian Beverage industry which returned -12.9% over the past year.

Return vs Market: BCB underperformed the Canadian Market which returned 11% over the past year.


Shareholder returns

BCBIndustryMarket
7 Day1.4%0.3%0.4%
30 Day7.8%1.5%0.01%
90 Day0.7%-5.9%0.9%
1 Year-6.6%-8.2%-10.4%-12.9%14.7%11.0%
3 Year32.7%26.2%-7.3%-13.7%15.1%4.6%
5 Year166.9%143.8%55.5%37.2%37.8%17.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Cott 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: BCB (CA$18.04) is trading below our estimate of fair value (CA$52.84)

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


Price To Earnings Ratio

PE vs Industry: BCB is unprofitable, so we can't compare its PE Ratio to the Beverage industry average.

PE vs Market: BCB is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate BCB's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: BCB is good value based on its PB Ratio (1.6x) compared to the CA Beverage industry average (1.9x).


Next Steps

Future Growth

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

115.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BCB is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.4%).

Earnings vs Market: BCB is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: BCB's is expected to become profitable in the next 3 years.

Revenue vs Market: BCB's revenue (4% per year) is forecast to grow slower than the Canadian market (4.9% per year).

High Growth Revenue: BCB's revenue (4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BCB's Return on Equity is forecast to be low in 3 years time (5.5%).


Next Steps

Past Performance

How has Cott performed over the past 5 years?

6.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BCB is currently unprofitable.

Growing Profit Margin: BCB is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: BCB is unprofitable, but has reduced losses over the past 5 years at a rate of 6.1% per year.

Accelerating Growth: Unable to compare BCB's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: BCB is unprofitable, making it difficult to compare its past year earnings growth to the Beverage industry (-0.4%).


Return on Equity

High ROE: BCB has a negative Return on Equity (-0.27%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Cott's financial position?


Financial Position Analysis

Short Term Liabilities: BCB's short term assets ($611.5M) exceed its short term liabilities ($584.7M).

Long Term Liabilities: BCB's short term assets ($611.5M) do not cover its long term liabilities ($1.6B).


Debt to Equity History and Analysis

Debt Level: BCB's debt to equity ratio (116.1%) is considered high.

Reducing Debt: BCB's debt to equity ratio has increased from 110.4% to 116.1% over the past 5 years.

Debt Coverage: BCB's debt is not well covered by operating cash flow (15.7%).

Interest Coverage: BCB is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

Inventory Level: BCB has a high level of physical assets or inventory.

Debt Coverage by Assets: BCB's debt is not covered by short term assets (assets are 0.5x debt).


Next Steps

Dividend

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

1.76%

Current Dividend Yield


Dividend Yield vs Market

company1.8%marketbottom25%2.0%markettop25%5.6%industryaverage2.8%forecastin3Years1.8%

Current dividend yield vs market & industry

Notable Dividend: BCB's dividend (1.76%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (2.01%).

High Dividend: BCB's dividend (1.76%) is low compared to the top 25% of dividend payers in the Canadian market (5.57%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: BCB is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: BCB's dividends in 3 years are forecast to be covered by earnings (50.1% payout ratio).


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

Tom Harrington (61yo)

1yrs

Tenure

US$3,674,387

Compensation

Mr. Thomas J. Harrington, also known as Tom, has been Chief Executive Officer and Director at Cott Corporation since December 30, 2018. He serves as Chief Executive Officer and Chief Operating Officer of D ...


CEO Compensation Analysis

Compensation vs Market: Tom's total compensation ($USD3.67M) is above average for companies of similar size in the Canadian market ($USD2.21M).

Compensation vs Earnings: Tom's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

3.5yrs

Average Tenure

56yo

Average Age

Experienced Management: BCB's management team is considered experienced (3.5 years average tenure).


Board Age and Tenure

11.5yrs

Average Tenure

62yo

Average Age

Experienced Board: BCB's board of directors are seasoned and experienced ( 11.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$1,332,52005 Sep 19
Thomas Harrington
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares80,000
Max PriceUS$16.70
BuyUS$1,311,48814 Aug 19
Crescendo Advisors II LLC
EntityCompany
Shares80,000
Max PriceUS$16.39
BuyUS$1,311,48814 Aug 19
Crescendo Advisors II LLC
EntityCompany
Shares80,000
Max PriceUS$16.39
BuyUS$262,92028 Feb 19
Steven Stanbrook
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares13,500
Max PriceUS$19.48
BuyUS$1,008,32727 Feb 19
Charles Hinson
EntityIndividual
Role
Unit CEO
Chief Executive Officer of S&D Coffee and Tea
Shares51,405
Max PriceUS$19.62
BuyUS$657,98127 Feb 19
Thomas Harrington
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares33,560
Max PriceUS$19.61
SellUS$157,35713 Dec 18
Graham Savage
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares7,879
Max PriceUS$19.97

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Jerry Fowden (62yo)

    Executive Chairman of the Board

    • Tenure: 1yrs
    • Compensation: US$6.98m
  • Steve Kitching (55yo)

    Executive Chair of Route Based Services

    • Tenure: 1yrs
    • Compensation: US$2.29m
  • Jay Wells (56yo)

    Chief Financial & Administrative Officer

    • Tenure: 7.8yrs
    • Compensation: US$1.71m
  • Marni Poe (49yo)

    Chief Legal Officer & Secretary

    • Tenure: 9.8yrs
    • Compensation: US$1.37m
  • Tom Harrington (61yo)

    CEO & Director

    • Tenure: 1yrs
    • Compensation: US$3.67m
  • Ron Hinson (63yo)

    Chief Executive Officer of S&D Coffee and Tea

    • Tenure: 19.9yrs
    • Compensation: US$2.54m
  • Jason Ausher (45yo)

    Chief Accounting Officer

    • Tenure: 4.6yrs
  • Jarrod Langhans

    Vice President of Investor Relations and Corporate FP&A

    • Tenure: 0yrs
  • Steve Erdman (56yo)

    Senior Vice President of Global Human Resources

    • Tenure: 2.5yrs
  • Jamie Jamieson

    Global Chief Information Officer

    • Tenure: 0.7yrs

Board Members

  • BJ Hess (70yo)

    Independent Director

    • Tenure: 15.4yrs
    • Compensation: US$200.00k
  • Jerry Fowden (62yo)

    Executive Chairman of the Board

    • Tenure: 1yrs
    • Compensation: US$6.98m
  • Stephen Halperin (69yo)

    Independent Director

    • Tenure: 27.9yrs
    • Compensation: US$216.02k
  • Graham Savage (71yo)

    Independent Director

    • Tenure: 11.8yrs
    • Compensation: US$217.50k
  • Steven Stanbrook (62yo)

    Independent Director

    • Tenure: 1.1yrs
    • Compensation: US$12.11k
  • Eric Rosenfeld (62yo)

    Lead Independent Director

    • Tenure: 11.5yrs
    • Compensation: US$240.00k
  • Mario Pilozzi (73yo)

    Independent Director

    • Tenure: 11.5yrs
    • Compensation: US$200.00k
  • Greg Monahan (46yo)

    Independent Director

    • Tenure: 11.5yrs
    • Compensation: US$200.00k
  • Tom Harrington (61yo)

    CEO & Director

    • Tenure: 1yrs
    • Compensation: US$3.67m
  • Britta Bomhard (50yo)

    Independent Director

    • Tenure: 1.1yrs
    • Compensation: US$12.11k

Company Information

Cott Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Cott Corporation
  • Ticker: BCB
  • Exchange: TSX
  • Founded: 1955
  • Industry: Soft Drinks
  • Sector: Food, Beverage & Tobacco
  • Market Cap: CA$2.472b
  • Shares outstanding: 134.69m
  • Website: https://www.cott.com

Number of Employees


Location

  • Cott Corporation
  • 1200 Britannia Road East
  • Mississauga
  • Ontario
  • L4W 4T5
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BCBTSX (The Toronto Stock Exchange)YesCommon SharesCACADDec 1986
COTNYSE (New York Stock Exchange)YesCommon SharesUSUSDDec 1986
GC6DB (Deutsche Boerse AG)YesCommon SharesDEEURDec 1986

Biography

Cott Corporation, together with its subsidiaries, operates as a route based service company in the United States, the United Kingdom, Canada, and internationally. The company operates in three segments: Ro ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/10 23:36
End of Day Share Price2019/12/10 00:00
Earnings2019/09/28
Annual Earnings2018/12/29


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.