LSE:BAG

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Flawless balance sheet established dividend payer.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.3%

BAG

3.2%

GB Beverage

5.9%

GB Market


1 Year Return

-44.1%

BAG

-24.1%

GB Beverage

-22.7%

GB Market

Return vs Industry: BAG underperformed the UK Beverage industry which returned -19.1% over the past year.

Return vs Market: BAG underperformed the UK Market which returned -18.8% over the past year.


Shareholder returns

BAGIndustryMarket
7 Day4.3%3.2%5.9%
30 Day-19.4%-18.1%-23.1%
90 Day-21.9%-25.0%-28.1%
1 Year-42.8%-44.1%-22.0%-24.1%-18.6%-22.7%
3 Year-16.6%-22.0%12.2%4.1%-13.4%-24.7%
5 Year-17.9%-26.8%49.2%30.7%1.3%-22.0%

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?

10.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BAG (£4.52) is trading below our estimate of fair value (£5.03)

Significantly Below Fair Value: BAG is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: BAG is good value based on its PE Ratio (15.9x) compared to the Beverage industry average (17.5x).

PE vs Market: BAG is poor value based on its PE Ratio (15.9x) compared to the UK market (12.7x).


Price to Earnings Growth Ratio

PEG Ratio: BAG is poor value based on its PEG Ratio (4.7x)


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 (2.6x).


Next Steps

Future Growth

How is A.G. BARR forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

3.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BAG's forecast earnings growth (3.4% per year) is above the savings rate (0.5%).

Earnings vs Market: BAG's earnings (3.4% per year) are forecast to grow slower than the UK market (15.4% per year).

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

Revenue vs Market: BAG's revenue (2.3% per year) is forecast to grow slower than the UK market (2.7% per year).

High Growth Revenue: BAG's revenue (2.3% 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 (14%).


Next Steps

Past Performance

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

2.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BAG has high quality earnings.

Growing Profit Margin: BAG's current net profit margins (12.1%) are lower than last year (13.3%).


Past Earnings Growth Analysis

Earnings Trend: BAG's earnings have grown by 2.9% 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 (-11.1%) over the past year, making it difficult to compare to the Beverage industry average (4.4%).


Return on Equity

High ROE: BAG's Return on Equity (15.7%) 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 (£89.1M) exceed its short term liabilities (£64.6M).

Long Term Liabilities: BAG's short term assets (£89.1M) exceed its long term liabilities (£29.9M).


Debt to Equity History and Analysis

Debt Level: BAG's debt to equity ratio (2.2%) is considered satisfactory.

Reducing Debt: BAG's debt to equity ratio has reduced from 9.5% to 2.2% over the past 5 years.

Debt Coverage: BAG's debt is well covered by operating cash flow (1004.5%).

Interest Coverage: BAG's interest payments on its debt are well covered by EBIT (137.7x coverage).


Balance Sheet

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

Debt Coverage by Assets: BAG's debt is covered by short term assets (assets are 20.3x debt).


Next Steps

Dividend

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

3.69%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BAG's dividend (3.69%) is higher than the bottom 25% of dividend payers in the UK market (2.65%).

High Dividend: BAG's dividend (3.69%) is low compared to the top 25% of dividend payers in the UK market (7.27%).


Stability and Growth of Payments

Stable Dividend: BAG's dividends per share have been stable in the past 10 years.

Growing Dividend: BAG's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (59%), BAG's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BAG's dividends in 3 years are forecast to be covered by earnings (59.6% payout ratio).


Next Steps

Management

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

14.1yrs

Average management tenure


CEO

Roger White (53yo)

16.17s

Tenure

UK£1,434,000

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 June 21, 2002, Sales and Marketing Director since May 27, 2 ...


CEO Compensation Analysis

Compensation vs Market: Roger's total compensation ($USD1.78M) is above average for companies of similar size in the UK market ($USD1.26M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Roger White
CEO & Executive Director16.17yrsUK£1.43m0.34% £1.7m
Stuart Lorimer
Finance Director & Executive Director5.17yrsUK£801.00k0.039% £197.1k
Jonathan Kemp
Commercial Director & Executive Director16.42yrsUK£709.00k0.12% £603.1k
Julie Barr
Legal Affairs Manager & Company Secretary12yrsno datano data
Doug Brown
Head of Human Resourcesno datano datano data

14.1yrs

Average Tenure

49.5yo

Average Age

Experienced Management: BAG's management team is seasoned and experienced (14.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Roger White
CEO & Executive Director16.17yrsUK£1.43m0.34% £1.7m
Stuart Lorimer
Finance Director & Executive Director5.17yrsUK£801.00k0.039% £197.1k
Jonathan Kemp
Commercial Director & Executive Director16.42yrsUK£709.00k0.12% £603.1k
Martin Griffiths
Senior Independent Non-Executive Directorno dataUK£58.00k0.0049% £24.4k
David Ritchie
Independent Non-Executive Director4.92yrsUK£56.00k0.00090% £4.5k
William Robin Barr
Non-Executive Director56.17yrsUK£48.00k15.29% £76.8m
Pamela Powell
Independent Non-Executive Director6.33yrsUK£48.00k0.0045% £22.6k
John Ross Nicolson
Chairman5.17yrsUK£142.00k0.010% £51.9k
Susan Barratt
Former Senior Non-Executive Independent Director2.17yrsUK£48.00kno data
Nicholas Barry Wharton
Independent Non-Executive Director1.33yrsUK£12.00kno data

5.2yrs

Average Tenure

53yo

Average Age

Experienced Board: BAG's board of directors are considered experienced (5.2 years average tenure).


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

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£502.176m
  • Shares outstanding: 111.22m
  • 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 Carbonates, Still Drinks and Water, and Other segments. The company offers flavored, carbonated soft, sparkling and still soft, juice fruit, flavored energy, squash, non-carbonated, natural, and blended exotic juice drinks, as well as other juices and soft drinks; spring and sparkling water; mixers and iced tea; and fruit cocktail mixers, including purées and syrups. It sells its products under the Barr flavours, Bundaberg, D'N'B, Funkin, IRN-BRU, KA, OMJ!, Prima Spremitura, Rockstar, Rubicon, Simply, Snapple, St Clement's, St Clement's Sparkling, Strathmore, Sun Exotic, Tizer, Le Joli, and Big Willie brands. The company also engages in the distribution and sale of cocktail solutions. A.G. BARR p.l.c. was founded in 1875 and is headquartered in Cumbernauld, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/27 22:26
End of Day Share Price2020/03/27 00:00
Earnings2019/07/27
Annual Earnings2019/01/26


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.