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

Fundamentals

Flawless 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


Market Performance


7 Day Return

8.1%

CWK

2.7%

GB Food

2.3%

GB Market


1 Year Return

9.5%

CWK

-4.0%

GB Food

2.5%

GB Market

Return vs Industry: CWK exceeded the UK Food industry which returned -4% over the past year.

Return vs Market: CWK exceeded the UK Market which returned 2.5% over the past year.


Shareholder returns

CWKIndustryMarket
7 Day8.1%2.7%2.3%
30 Day11.2%-3.7%-1.3%
90 Day31.1%-2.3%-1.9%
1 Year11.9%9.5%-1.4%-4.0%7.4%2.5%
3 Year47.6%39.6%-1.5%-8.7%18.8%4.3%
5 Year181.8%156.0%2.4%-7.7%36.4%6.8%

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?

24.42x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: CWK (£33.08) is trading above our estimate of fair value (£25.08)

Significantly Undervalued: CWK is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CWK is poor value based on its PE Ratio (24.4x) compared to the Food industry average (17x).

PE vs Market: CWK is poor value based on its PE Ratio (24.4x) compared to the UK market (16.4x).


Price to Earnings Growth Ratio

Low PEG Ratio: CWK is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: CWK is overvalued based on its PB Ratio (3.2x) 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?

8.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CWK's forecast earnings growth (8.6% per year) is above the savings rate (1.2%).

Earnings vs Market: CWK's earnings (8.6% per year) are forecast to grow slower than the UK market (12.4% per year).

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

Revenue vs Market: CWK's revenue (6.8% per year) is forecast to grow faster than the UK market (4.1% per year).

High Growth Revenue: CWK's revenue (6.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: CWK's Return on Equity is forecast to be low in 3 years time (13.3%).


Next Steps

Past Performance

How has Cranswick performed over the past 5 years?

12.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CWK's earnings have grown by 12.9% per year over the past 5 years.

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

Earnings vs Industry: CWK had negative earnings growth (-0.6%) over the past year, making it difficult to compare to the Food industry average (4.5%).


Return on Equity

High ROE: CWK's Return on Equity (13%) is considered low.


Return on Assets

ROA vs Industry: CWK has a higher Return on Assets than the Food industry average last year.


Return on Capital Employed

ROCE Improving: CWK's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Cranswick's financial position?


Financial Position Analysis

Short Term Liabilities: CWK's short term assets (£272.5M) exceeds its short term liabilities (£158.7M)

Long Term Liabilities: CWK's short term assets (272.5M) exceeds its long term liabilities (24.3M)


Debt to Equity History and Analysis

Debt Level: CWK's debt to equity ratio (2.7%) is considered satisfactory

Reducing Debt: CWK's debt to equity ratio has reduced from 9.6% to 2.7% over the past 5 years.

Debt Coverage: CWK's debt is well covered by operating cash flow (617.6%).

Interest Coverage: CWK's interest payments on its debt are well covered by EBIT (895x 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 19.190140x debt).


Next Steps

Dividend

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

1.69%

Current Dividend Yield


Dividend Yield vs Market

company1.7%marketbottom25%2.0%markettop25%5.4%industryaverage2.7%forecastin3Years1.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: CWK's dividend (1.69%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (2%).

High Dividend: CWK's dividend (1.69%) is low compared to the top 25% of dividend payers in the UK market (5.44%).

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 (41.3%), 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 (37.6% payout ratio).


Next Steps

Management

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

6.5yrs

Average management tenure


CEO

Adam Couch (50yo)

7.2yrs

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 ($USD2.39M) is about average for companies of similar size in the UK market ($USD1.81M).

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


Management Age and Tenure

6.5yrs

Average Tenure

Experienced Management: CWK's management team is seasoned and experienced (6.5 years average tenure).


Board Age and Tenure

7.8yrs

Average Tenure

61yo

Average Age

Experienced Board: CWK's board of directors are considered experienced (7.8 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

BuyUK£19,84825 Jun 19
Mark Bottomley
EntityIndividual
Role
Member of the Board of Directors
Group Finance Director & Executive Director
Shares780
Max PriceUK£25.45
BuyUK£19,87220 Jun 19
Mark Bottomley
EntityIndividual
Role
Member of the Board of Directors
Group Finance Director & Executive Director
Shares771
Max PriceUK£25.77
SellUK£64,44520 Jun 19
Mark Bottomley
EntityIndividual
Role
Member of the Board of Directors
Group Finance Director & Executive Director
Shares2,508
Max PriceUK£25.80
BuyUK£19,84620 Jun 19
Mark Bottomley
EntityIndividual
Role
Member of the Board of Directors
Group Finance Director & Executive Director
Shares773
Max PriceUK£25.67
BuyUK£22325 Jan 19
Chris Aldersley
EntityIndividual
Shares8
Max PriceUK£27.87

Ownership Breakdown


Management Team

  • Adam Couch (50yo)

    CEO & Executive Director

    • Tenure: 7.2yrs
    • Compensation: UK£1.87m
  • Mark Bottomley

    Group Finance Director & Executive Director

    • Tenure: 10.3yrs
    • Compensation: UK£1.25m
  • Jim Brisby

    Commercial Director & Executive Director

    • Tenure: 9.3yrs
    • Compensation: UK£1.25m
  • Steven Glover

    Company Secretary

    • Tenure: 2.3yrs

Board Members

  • Tim Smith (62yo)

    Independent Non-Executive Director

    • Tenure: 1.5yrs
    • Compensation: UK£51.00k
  • Martin Thomas Davey (65yo)

    Chairman

    • Tenure: 15.3yrs
    • Compensation: UK£894.00k
  • Adam Couch (50yo)

    CEO & Executive Director

    • Tenure: 7.2yrs
    • Compensation: UK£1.87m
  • Mark Reckitt (61yo)

    Senior Independent Director

    • Tenure: 0.9yrs
    • Compensation: UK£58.00k
  • Pam Powell

    Independent Non-Executive Director

    • Tenure: 1.5yrs
    • Compensation: UK£51.00k
  • Mark Bottomley

    Group Finance Director & Executive Director

    • Tenure: 10.3yrs
    • Compensation: UK£1.25m
  • Kate Allum (54yo)

    Independent Non-executive Director

    • Tenure: 6.3yrs
    • Compensation: UK£53.00k
  • Jim Brisby

    Commercial Director & Executive Director

    • Tenure: 9.3yrs
    • Compensation: UK£1.25m

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£1.723b
  • Shares outstanding: 52.09m
  • 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, g ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 20:32
End of Day Share Price2019/10/15 00:00
Earnings2019/03/31
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.