DB:6LW

Stock Analysis Report

Executive Summary

Colabor Group Inc., together with its subsidiaries, distributes and markets food and food-related products in Canada.


Snowflake Analysis

Excellent balance sheet and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 6LW has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.1%

6LW

1.2%

DE Consumer Retailing

-0.2%

DE Market


1 Year Return

0.9%

6LW

2.8%

DE Consumer Retailing

13.7%

DE Market

Return vs Industry: 6LW underperformed the German Consumer Retailing industry which returned 2.8% over the past year.

Return vs Market: 6LW underperformed the German Market which returned 13.7% over the past year.


Shareholder returns

6LWIndustryMarket
7 Day3.1%1.2%-0.2%
30 Day-8.2%2.8%0.3%
90 Day8.4%2.4%3.7%
1 Year0.9%0.9%6.8%2.8%17.2%13.7%
3 Yearn/a7.3%-3.4%15.4%5.3%
5 Yearn/a9.5%-7.3%21.3%4.7%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Colabor Group 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: 6LW (€0.34) is trading below our estimate of fair value (€4.17)

Significantly Below Fair Value: 6LW is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 6LW is unprofitable, so we can't compare its PE Ratio to the Consumer Retailing industry average.

PE vs Market: 6LW is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 6LW's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 6LW is good value based on its PB Ratio (0.5x) compared to the XE Consumer Retailing industry average (1.6x).


Next Steps

Future Growth

How is Colabor Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-12.9%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if 6LW's forecast earnings growth is above the savings rate (-0.4%).

Earnings vs Market: Insufficient data to determine if 6LW's earnings are forecast to grow faster than the German market

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

Revenue vs Market: 6LW's revenue is expected to decline over the next 3 years (-12.9% per year).

High Growth Revenue: 6LW's revenue is forecast to decline over the next 3 years (-12.9% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 6LW's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Colabor Group performed over the past 5 years?

48.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6LW is currently unprofitable.

Growing Profit Margin: 6LW is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 6LW is unprofitable, but has reduced losses over the past 5 years at a rate of 48.4% per year.

Accelerating Growth: Unable to compare 6LW's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 6LW is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Retailing industry (2%).


Return on Equity

High ROE: 6LW has a negative Return on Equity (-1.28%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Colabor Group's financial position?


Financial Position Analysis

Short Term Liabilities: 6LW's short term assets (CA$154.8M) exceed its short term liabilities (CA$91.5M).

Long Term Liabilities: 6LW's short term assets (CA$154.8M) exceed its long term liabilities (CA$83.4M).


Debt to Equity History and Analysis

Debt Level: 6LW's debt to equity ratio (77.5%) is considered high.

Reducing Debt: 6LW's debt to equity ratio has reduced from 124.3% to 77.5% over the past 5 years.


Balance Sheet

Inventory Level: 6LW has a high level of physical assets or inventory.

Debt Coverage by Assets: 6LW's debt is covered by short term assets (assets are 2x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable 6LW has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: 6LW is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 5.5% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 6LW's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 6LW's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 6LW's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 6LW's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 6LW is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 6LW's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

0.3yrs

Average management tenure


CEO

Louis Frenette 0

0.3yrs

Tenure

Mr. Louis Frenette serves as Chief Executive Officer and President of Colabor Group Inc. since November 25, 2019. Mr. Frenette served as the Chief Executive Officer and President of Danone, Inc. Mr. Frene ...


Leadership Team

NamePositionTenureCompensationOwnership
Jean-Roch Thiffault
General Manager of Norref0yrsCA$237.51kno data
Pierre Tanguay
General Manager of Colabor Food Distributor0yrsCA$45.51kno data
Louis Frenette
President & CEO0.3yrsno datano data
Pierre Gagné
Senior VP & CFO0.3yrsno data0.039% CA$13.9k
Elisabeth Tremblay
Vice-President of Human Resources & Communications0yrsno datano data
Mathieu Dumulong
Vice President of Sales2.1yrsno datano data
Marko Potvin
Vice President of Central Procurement & Private Labels0yrsCA$463.15kno data

0.3yrs

Average Tenure

Experienced Management: 6LW's management team is not considered experienced ( 0.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Robert Briscoe
Director3.6yrsCA$47.25k12% CA$4.2m
Robert Johnston
Independent Director3.3yrsCA$48.00k0.098% CA$34.7k
J. Horgan
Independent Director3yrsCA$48.75k0.0089% CA$3.1k
Denis Mathieu
Independent Director2.1yrsCA$47.25k0.024% CA$8.3k
Warrant White
Chairman0.8yrsCA$50.25k0.0098% CA$3.5k
Danièle Bergeron
Director0.3yrsno datano data
Raymond Paré
Independent Director2.2yrsCA$62.25kno data

2.2yrs

Average Tenure

Experienced Board: 6LW's board of directors are not considered experienced ( 2.2 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

Colabor Group Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Colabor Group Inc.
  • Ticker: 6LW
  • Exchange: DB
  • Founded: 1962
  • Industry: Food Distributors
  • Sector: Consumer Retailing
  • Market Cap: CA$50.331m
  • Listing Market Cap: CA$35.252m
  • Shares outstanding: 101.68m
  • Website: https://www.colabor.com

Number of Employees


Location

  • Colabor Group Inc.
  • 1620 De Montarville Boulevard
  • Boucherville
  • Quebec
  • J4B 8P4
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GCLTSX (The Toronto Stock Exchange)YesCommon SharesCACADJun 2005
COLF.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJun 2005
6LWDB (Deutsche Boerse AG)YesCommon SharesDEEURJun 2005

Biography

Colabor Group Inc., together with its subsidiaries, distributes and markets food and food-related products in Canada. It operates through two segments, Distribution and Wholesale. The Distribution segment offers frozen products, dry staples, dairy products, meat, fish, seafood, fruits and vegetables, disposables, and sanitation products. It also operates Skor Cash & Carry locations in southern Ontario, which offer retail and foodservice products to convenience stores, small grocery stores, cafeterias, and restaurants. This segment serves foodservice operators, specialty food stores, supermarkets, restaurants, fish stores, hotels, caterers, and fish stores and markets, as well as institutional accounts, such as healthcare institutions, schools and universities, and other retail customers. The Wholesale segment provides a range of fresh and frozen meat comprising beef, veal, lamb, pork, and poultry products for distributors, food retailers, and specialty butchers, as well as other food and non-food products to wholesalers. The company was founded in 1962 and is headquartered in Boucherville, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 22:34
End of Day Share Price2020/02/20 00:00
Earnings2019/09/07
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.