LSE:CWK

Stock Analysis Report

Executive Summary

Cranswick plc produces and supplies food products to grocery retailers, food service sector, and other food producers in the United Kingdom, Continental Europe, and internationally.


Snowflake Analysis

Excellent balance sheet average dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.2%

CWK

-2.2%

GB Food

0.2%

GB Market


1 Year Return

52.3%

CWK

8.1%

GB Food

6.4%

GB Market

Return vs Industry: CWK exceeded the UK Food industry which returned 9.5% over the past year.

Return vs Market: CWK exceeded the UK Market which returned 7.1% over the past year.


Shareholder returns

CWKIndustryMarket
7 Day-0.2%-2.2%0.2%
30 Day11.4%-1.9%-1.4%
90 Day19.0%3.9%3.8%
1 Year55.5%52.3%10.8%8.1%11.9%6.4%
3 Year73.2%64.0%7.2%0.2%18.6%3.8%
5 Year194.2%167.8%1.8%-8.2%34.8%4.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

16.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CWK (£38.4) is trading below our estimate of fair value (£45.75)

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


Price To Earnings Ratio

PE vs Industry: CWK is poor value based on its PE Ratio (27x) compared to the Food industry average (16.9x).

PE vs Market: CWK is poor value based on its PE Ratio (27x) compared to the UK market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: CWK is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: CWK is overvalued based on its PB Ratio (3.5x) compared to the GB Food industry average (1.2x).


Next Steps

Future Growth

How is Cranswick forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

8.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CWK's forecast earnings growth (8.9% per year) is above the savings rate (0.5%).

Earnings vs Market: CWK's earnings (8.9% per year) are forecast to grow slower than the UK market (13% per year).

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

Revenue vs Market: CWK's revenue (5.3% per year) is forecast to grow faster than the UK market (3.5% per year).

High Growth Revenue: CWK's revenue (5.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CWK's Return on Equity is forecast to be low in 3 years time (13.4%).


Next Steps

Past Performance

How has Cranswick performed over the past 5 years?

12.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CWK has high quality earnings.

Growing Profit Margin: CWK's current net profit margins (4.9%) are higher than last year (4.7%).


Past Earnings Growth Analysis

Earnings Trend: CWK's earnings have grown by 12.4% per year over the past 5 years.

Accelerating Growth: CWK's earnings growth over the past year (7.5%) is below its 5-year average (12.4% per year).

Earnings vs Industry: CWK earnings growth over the past year (7.5%) underperformed the Food industry 8.5%.


Return on Equity

High ROE: CWK's Return on Equity (13.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Cranswick's financial position?


Financial Position Analysis

Short Term Liabilities: CWK's short term assets (£318.1M) exceed its short term liabilities (£194.1M).

Long Term Liabilities: CWK's short term assets (£318.1M) exceed its long term liabilities (£139.0M).


Debt to Equity History and Analysis

Debt Level: CWK's debt to equity ratio (15.8%) is considered satisfactory.

Reducing Debt: CWK's debt to equity ratio has increased from 10.8% to 15.8% over the past 5 years.

Debt Coverage: CWK's debt is well covered by operating cash flow (101.5%).

Interest Coverage: CWK's interest payments on its debt are well covered by EBIT (102x coverage).


Balance Sheet

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

Debt Coverage by Assets: CWK's debt is covered by short term assets (assets are 3.6x debt).


Next Steps

Dividend

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

1.46%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CWK's dividend (1.46%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.79%).

High Dividend: CWK's dividend (1.46%) is low compared to the top 25% of dividend payers in the UK market (5.09%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (39.9%), CWK's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CWK's dividends in 3 years are forecast to be well covered by earnings (36.7% payout ratio).


Next Steps

Management

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

6.8yrs

Average management tenure


CEO

Adam Couch (50yo)

7.5yrs

Tenure

UK£1,874,000

Compensation

Mr. Adam Hartley Couch has been the Chief Executive Officer of Cranswick plc since August 2012. Mr. Couch has over 23 years’ experience in the food industry. He served as Managing Director of the fresh por ...


CEO Compensation Analysis

Compensation vs Market: Adam's total compensation ($USD2.41M) is about average for companies of similar size in the UK market ($USD2.33M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Adam Couch
CEO & Executive Director7.5yrsUK£1.87m0.31% £6.2m
Mark Bottomley
Group Finance Director & Executive Director10.7yrsUK£1.25m0.17% £3.4m
James Brisby
Commercial Director & Executive Director9.6yrsUK£1.25m0.18% £3.7m
Steven Glover
Company Secretary2.6yrsno datano data

6.8yrs

Average Tenure

Experienced Management: CWK's management team is seasoned and experienced (6.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Adam Couch
CEO & Executive Director7.5yrsUK£1.87m0.31% £6.2m
Mark Bottomley
Group Finance Director & Executive Director10.7yrsUK£1.25m0.17% £3.4m
James Brisby
Commercial Director & Executive Director9.6yrsUK£1.25m0.18% £3.7m
Tim Smith
Independent Non-Executive Director1.8yrsUK£51.00k0.0029% £57.4k
Martin Thomas Davey
Chairman15.6yrsUK£894.00k0.46% £9.2m
Mark Reckitt
Senior Independent Director1.3yrsUK£58.00k0.0025% £49.6k
Pamela Powell
Independent Non-Executive Director1.8yrsUK£51.00k0.0019% £38.3k
Kate Allum
Independent Non-executive Director6.6yrsUK£53.00kno data

8.1yrs

Average Tenure

61yo

Average Age

Experienced Board: CWK's board of directors are considered experienced (8.1 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

Cranswick plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Cranswick plc
  • Ticker: CWK
  • Exchange: LSE
  • Founded: 1970
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: UK£1.994b
  • Shares outstanding: 52.14m
  • Website: https://www.cranswick.plc.uk

Number of Employees


Location

  • Cranswick plc
  • Crane Court
  • Hesslewood Country Office Park
  • Hessle
  • Yorkshire
  • HU13 0PA
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CWKLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
CWKLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992
0U6DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992

Biography

Cranswick plc produces and supplies food products to grocery retailers, food service sector, and other food producers in the United Kingdom, Continental Europe, and internationally. It offers fresh pork, gourmet bacon and gammon, fresh chicken, and prepared chicken and poultry products, as well as gourmet sausages, cooked meats, continental foods, handmade pastries, and British charcuteries. The company was founded in 1970 and is based in Hessle, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/21 20:38
End of Day Share Price2020/02/21 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.