LSE:BAG

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

A.G. BARR p.l.c., together with its subsidiaries, manufactures, distributes, and sells soft drinks in the United Kingdom and internationally. More Details


Snowflake Analysis

Excellent balance sheet and overvalued.


Similar Companies

Share Price & News

How has A.G. BARR's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.3%

BAG

-4.1%

GB Beverage

-3.7%

GB Market


1 Year Return

-15.6%

BAG

-21.0%

GB Beverage

-19.3%

GB Market

Return vs Industry: BAG exceeded the UK Beverage industry which returned -20.1% over the past year.

Return vs Market: BAG exceeded the UK Market which returned -19.7% over the past year.


Shareholder returns

BAGIndustryMarket
7 Day-1.3%-4.1%-3.7%
30 Day4.3%-5.9%-4.2%
90 Day9.0%-10.5%-4.3%
1 Year-15.6%-15.6%-19.0%-21.0%-16.2%-19.3%
3 Year-20.2%-23.7%1.0%-6.4%-13.3%-24.0%
5 Year-3.0%-11.6%49.6%31.3%10.2%-14.6%

Price Volatility Vs. Market

How volatile is A.G. BARR's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is A.G. BARR undervalued compared to its fair value and its price relative to the market?

25.01x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BAG (£4.71) is trading above our estimate of fair value (£3.22)

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


Price To Earnings Ratio

PE vs Industry: BAG is poor value based on its PE Ratio (25.1x) compared to the GB Beverage industry average (20.5x).

PE vs Market: BAG is poor value based on its PE Ratio (25.1x) compared to the UK market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: BAG is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: BAG is good value based on its PB Ratio (2.5x) compared to the GB Beverage industry average (2.7x).


Next Steps

Future Growth

How is A.G. BARR forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

11.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BAG's forecast earnings growth (11.6% per year) is above the savings rate (1.2%).

Earnings vs Market: BAG's earnings (11.6% per year) are forecast to grow slower than the UK market (23.9% per year).

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

Revenue vs Market: BAG's revenue (3.4% per year) is forecast to grow slower than the UK market (5.8% per year).

High Growth Revenue: BAG's revenue (3.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BAG's Return on Equity is forecast to be low in 3 years time (11.4%).


Next Steps

Past Performance

How has A.G. BARR performed over the past 5 years?

-4.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BAG has a large one-off loss of £11.1M impacting its July 25 2020 financial results.

Growing Profit Margin: BAG's current net profit margins (8.5%) are lower than last year (12.1%).


Past Earnings Growth Analysis

Earnings Trend: BAG's earnings have declined by 4.2% per year over the past 5 years.

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

Earnings vs Industry: BAG had negative earnings growth (-34.9%) over the past year, making it difficult to compare to the Beverage industry average (-13.6%).


Return on Equity

High ROE: BAG's Return on Equity (10%) is considered low.


Next Steps

Financial Health

How is A.G. BARR's financial position?


Financial Position Analysis

Short Term Liabilities: BAG's short term assets (£164.0M) exceed its short term liabilities (£122.8M).

Long Term Liabilities: BAG's short term assets (£164.0M) exceed its long term liabilities (£27.8M).


Debt to Equity History and Analysis

Debt Level: BAG's debt to equity ratio (28.5%) is considered satisfactory.

Reducing Debt: BAG's debt to equity ratio has increased from 18.5% to 28.5% over the past 5 years.

Debt Coverage: BAG's debt is well covered by operating cash flow (87.5%).

Interest Coverage: BAG's interest payments on its debt are well covered by EBIT (101.5x coverage).


Balance Sheet


Next Steps

Dividend

What is A.G. BARR current dividend yield, its reliability and sustainability?

2.53%

Forecast Dividend Yield


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

Dividend Coverage: BAG is not paying a notable dividend for the UK market.


Future Payout to Shareholders

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


Next Steps

Management

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

14.7yrs

Average management tenure


CEO

Roger White (54 yo)

16.75yrs

Tenure

UK£739,000

Compensation

Mr. Roger Alexander White, MA (Hons) has been the Chief Executive Officer of A.G.Barr P.l.c. since 2004 and served as its Managing Director since joined on June 21, 2002, Sales and Marketing Director since ...


CEO Compensation Analysis

Compensation vs Market: Roger's total compensation ($USD959.39K) is about average for companies of similar size in the UK market ($USD1.15M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Roger White
CEO & Executive Director16.75yrsUK£739.00k0.34%
£ 1.8m
Stuart Lorimer
Finance Director & Executive Director5.75yrsUK£365.00k0.044%
£ 231.1k
Jonathan Kemp
Commercial Director & Executive Director17yrsUK£334.00k0.13%
£ 690.0k
Julie Barr
Legal Affairs Manager & Company Secretary12.58yrsno datano data
Doug Brown
Head of Human Resourcesno datano datano data

14.7yrs

Average Tenure

50.5yo

Average Age

Experienced Management: BAG's management team is seasoned and experienced (14.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Roger White
CEO & Executive Director16.75yrsUK£739.00k0.34%
£ 1.8m
Stuart Lorimer
Finance Director & Executive Director5.75yrsUK£365.00k0.044%
£ 231.1k
Jonathan Kemp
Commercial Director & Executive Director17yrsUK£334.00k0.13%
£ 690.0k
David Ritchie
Independent Non-Executive Director5.5yrsUK£57.00k0.00090%
£ 4.7k
William Robin Barr
Non-Executive Director56.75yrsUK£49.00k15.29%
£ 79.7m
Pamela Powell
Independent Non-Executive Director6.92yrsUK£49.00k0.0045%
£ 23.4k
John Ross Nicolson
Chairman5.75yrsUK£145.00k0.010%
£ 53.9k
Susan Barratt
Senior Independent Non-Executive Director0.42yrUK£49.00kno data
Nicholas Barry Wharton
Independent Non-Executive Director1.92yrsUK£49.00kno data

5.8yrs

Average Tenure

53.5yo

Average Age

Experienced Board: BAG's board of directors are considered experienced (5.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: BAG 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

A.G. BARR p.l.c.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: A.G. BARR p.l.c.
  • Ticker: BAG
  • Exchange: LSE
  • Founded: 1875
  • Industry: Soft Drinks
  • Sector: Food, Beverage & Tobacco
  • Market Cap: UK£520.840m
  • Shares outstanding: 111.17m
  • Website: https://www.agbarr.co.uk

Number of Employees


Location

  • A.G. BARR p.l.c.
  • Westfield House
  • 4 Mollins Road
  • Cumbernauld
  • Lanarkshire
  • G68 9HD
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BAGLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
BAGLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992
AF72DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992

Biography

A.G. BARR p.l.c., together with its subsidiaries, manufactures, distributes, and sells soft drinks in the United Kingdom and internationally. It operates through three segments: Carbonated Soft Drinks, Sti ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/29 21:22
End of Day Share Price2020/10/29 00:00
Earnings2020/07/25
Annual Earnings2020/01/25


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.