DB:6CF

Stock Analysis Report

Executive Summary

Collins Foods Limited operates, manages, and administers restaurants in Australia, Europe, and Asia.

Rewards

PE ratio (29.6x) is below the Hospitality industry average (32.3x)

Earnings are forecast to grow 18.33% per year

Risk Analysis

Has a high level of debt

Unstable dividend track record



Snowflake Analysis

Moderate growth potential with mediocre balance sheet.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-2.5%

6CF

-5.6%

DE Hospitality

-0.3%

DE Market


1 Year Return

36.8%

6CF

-4.8%

DE Hospitality

14.9%

DE Market

Return vs Industry: 6CF exceeded the German Hospitality industry which returned -4.8% over the past year.

Return vs Market: 6CF exceeded the German Market which returned 14.9% over the past year.


Shareholder returns

6CFIndustryMarket
7 Day-2.5%-5.6%-0.3%
30 Day-4.1%-2.2%-0.1%
90 Day4.6%18.4%7.1%
1 Year39.9%36.8%1.6%-4.8%18.5%14.9%
3 Year45.4%32.6%2.5%-11.3%20.0%9.5%
5 Year385.8%314.3%9.7%-11.4%38.0%19.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

29.6x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 6CF (€5.8) is trading above our estimate of fair value (€2.17)

Significantly Below Fair Value: 6CF is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 6CF is good value based on its PE Ratio (29.6x) compared to the Hospitality industry average (32.3x).

PE vs Market: 6CF is poor value based on its PE Ratio (29.6x) compared to the German market (20.4x).


Price to Earnings Growth Ratio

PEG Ratio: 6CF is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: 6CF is overvalued based on its PB Ratio (3.1x) compared to the DE Hospitality industry average (2.5x).


Next Steps

Future Growth

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

18.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6CF's forecast earnings growth (18.3% per year) is above the savings rate (-0.4%).

Earnings vs Market: 6CF's earnings (18.3% per year) are forecast to grow faster than the German market (13% per year).

High Growth Earnings: 6CF's earnings are forecast to grow, but not significantly.

Revenue vs Market: 6CF's revenue (9% per year) is forecast to grow faster than the German market (4.9% per year).

High Growth Revenue: 6CF's revenue (9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 6CF's Return on Equity is forecast to be low in 3 years time (14%).


Next Steps

Past Performance

How has Collins Foods performed over the past 5 years?

32.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6CF has high quality earnings.

Growing Profit Margin: 6CF's current net profit margins (4%) are lower than last year (4.8%).


Past Earnings Growth Analysis

Earnings Trend: 6CF has become profitable over the past 5 years, growing earnings by 32% per year.

Accelerating Growth: 6CF's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 6CF had negative earnings growth (-7.9%) over the past year, making it difficult to compare to the Hospitality industry average (-34.8%).


Return on Equity

High ROE: 6CF's Return on Equity (10.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Collins Foods's financial position?


Financial Position Analysis

Short Term Liabilities: 6CF's short term assets (A$90.4M) do not cover its short term liabilities (A$122.1M).

Long Term Liabilities: 6CF's short term assets (A$90.4M) do not cover its long term liabilities (A$647.7M).


Debt to Equity History and Analysis

Debt Level: 6CF's debt to equity ratio (82.8%) is considered high.

Reducing Debt: 6CF's debt to equity ratio has reduced from 102.5% to 82.8% over the past 5 years.

Debt Coverage: 6CF's debt is well covered by operating cash flow (39.9%).

Interest Coverage: 6CF's interest payments on its debt are well covered by EBIT (3.9x coverage).


Balance Sheet

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

Debt Coverage by Assets: 6CF's debt is not covered by short term assets (assets are 0.3x debt).


Next Steps

Dividend

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

2.07%

Current Dividend Yield


Dividend Yield vs Market

company2.1%marketbottom25%1.4%markettop25%3.6%industryaverage6.1%forecastin3Years2.4%

Current dividend yield vs market & industry

Notable Dividend: 6CF's dividend (2.07%) is higher than the bottom 25% of dividend payers in the German market (1.37%).

High Dividend: 6CF's dividend (2.07%) is low compared to the top 25% of dividend payers in the German market (3.57%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 6CF has been paying a dividend for less than 10 years.

Growing Dividend: 6CF's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (61.4%), 6CF's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 6CF's dividends in 3 years are forecast to be covered by earnings (50.5% payout ratio).


Next Steps

Management

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

2.7yrs

Average management tenure


CEO

Graham Maxwell 0

5.3yrs

Tenure

AU$1,528,128

Compensation

Mr. Graham Maxwell has been the Chief Executive Officer of Collins Foods Limited since September 29, 2014 and has been its Managing Director since March 25, 2015. Mr. Maxwell is an experienced senior execu ...


CEO Compensation Analysis

Compensation vs Market: Graham's total compensation ($USD1.05M) is about average for companies of similar size in the German market ($USD1.17M).

Compensation vs Earnings: Graham's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

2.7yrs

Average Tenure

Experienced Management: 6CF's management team is considered experienced (2.7 years average tenure).


Board Age and Tenure

8.5yrs

Average Tenure

67yo

Average Age

Experienced Board: 6CF's board of directors are considered experienced (8.5 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

BuyAU$614,73905 Jul 19
Yarra Funds Management Limited
EntityCompany
Shares151,897
Max PriceAU$4.05
SellAU$2,420,91405 Jul 19
Yarra Funds Management Limited
EntityCompany
Shares556,621
Max PriceAU$4.35
SellAU$609,63802 Jul 19
Graham Maxwell
EntityIndividual
Role
Chief Executive Officer
MD, CEO & Director
Shares120,000
Max PriceAU$5.08
BuyAU$182,57318 Apr 19
Vinva Investment Management
EntityCompany
Shares44,090
Max PriceAU$4.14
SellAU$300,12518 Apr 19
Vinva Investment Management
EntityCompany
Shares67,719
Max PriceAU$4.43
SellAU$164,99427 Dec 18
Graham Maxwell
EntityIndividual
Role
Chief Executive Officer
MD, CEO & Director
Shares42,234
Max PriceAU$3.91
SellAU$146,14618 Dec 18
Graham Maxwell
EntityIndividual
Role
Chief Executive Officer
MD, CEO & Director
Shares34,221
Max PriceAU$4.27
BuyAU$2,051,97214 Dec 18
Yarra Funds Management Limited
EntityCompany
Shares515,092
Max PriceAU$3.98
BuyAU$21,35913 Dec 18
Bronwyn Morris
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares5,000
Max PriceAU$4.27

Ownership Breakdown

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


Management Team

  • Drew O’Malley

    Chief Operating Officer

    • Tenure: 2.1yrs
    • Compensation: AU$847.89k
  • Newman Manion

    Executive Director

    • Tenure: 8.5yrs
    • Compensation: AU$226.98k
  • Graham Maxwell

    MD, CEO & Director

    • Tenure: 5.3yrs
    • Compensation: AU$1.53m
  • Frances Finucan

    Company Secretary

    • Tenure: 6.4yrs
  • Dawn Linaker

    Chief People Officer

    • Tenure: 2.6yrs
    • Compensation: AU$589.94k
  • Nigel Williams

    Group Chief Financial Officer

    • Tenure: 4.6yrs
    • Compensation: AU$924.80k
  • Mark van 't Loo

    Chief Executive Officer – Collins Foods Europe

    • Tenure: 2.8yrs
    • Compensation: AU$509.59k
  • Tony Van Ark

    Chief Development Officer

    • Tenure: 0.9yrs

Board Members

  • Kevin William Perkins (67yo)

    Non Executive Director

    • Tenure: 8.4yrs
    • Compensation: AU$115.00k
  • Bronwyn Morris (64yo)

    Independent Non-Executive Director

    • Tenure: 8.5yrs
    • Compensation: AU$127.50k
  • Russell Tate (70yo)

    Independent Non-Executive Director

    • Tenure: 8.5yrs
    • Compensation: AU$116.55k
  • Newman Manion

    Executive Director

    • Tenure: 8.5yrs
    • Compensation: AU$226.98k
  • Robert Kaye

    Independent Non-Executive Chairman

    • Tenure: 4.8yrs
    • Compensation: AU$210.00k
  • Graham Maxwell

    MD, CEO & Director

    • Tenure: 5.3yrs
    • Compensation: AU$1.53m

Company Information

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


Key Information

  • Name: Collins Foods Limited
  • Ticker: 6CF
  • Exchange: DB
  • Founded: 1968
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: AU$1.159b
  • Listing Market Cap: AU$716.161m
  • Shares outstanding: 116.58m
  • Website: https://www.collinsfoods.com

Number of Employees


Location

  • Collins Foods Limited
  • 485 Kingsford Smith Drive
  • Level 3
  • Hamilton
  • Queensland
  • 4007
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CKFASX (Australian Securities Exchange)YesOrdinary SharesAUAUDAug 2011
6CFDB (Deutsche Boerse AG)YesOrdinary SharesDEEURAug 2011
CKFCHIA (Chi-X Australia)YesOrdinary SharesAUAUDAug 2011

Biography

Collins Foods Limited operates, manages, and administers restaurants in Australia, Europe, and Asia. It operates through KFC Restaurants Australia, KFC Restaurants Europe, Sizzler Restaurants, and Other se ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/08 21:26
End of Day Share Price2019/12/06 00:00
Earnings2019/10/13
Annual Earnings2019/04/28


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.