LSE:CWK

Stock Analysis Report

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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. More Details

Rewards

Earnings are forecast to grow 4.12% per year

Earnings grew by 18.8% over the past year

Risk Analysis

No risks detected for CWK from our risk checks.


Snowflake Analysis

Excellent balance sheet with solid track record and pays a dividend.


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 is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: CWK's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-3.3%

CWK

-0.4%

GB Food

1.2%

GB Market


1 Year Return

13.0%

CWK

-15.4%

GB Food

-9.6%

GB Market

Return vs Industry: CWK exceeded the UK Food industry which returned -15.4% over the past year.

Return vs Market: CWK exceeded the UK Market which returned -9.1% over the past year.


Shareholder returns

CWKIndustryMarket
7 Day-3.3%-0.4%1.2%
30 Day7.3%10.0%8.6%
90 Day-4.6%-1.5%5.4%
1 Year14.9%13.0%-13.8%-15.4%-6.1%-9.6%
3 Year27.0%20.1%-21.4%-26.2%-0.6%-12.6%
5 Year120.9%101.7%-24.0%-31.4%23.3%-4.4%

Long-Term 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?

22.77x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CWK (£36.58) is trading above our estimate of fair value (£34.64)

Significantly Below Fair Value: 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 (23x) compared to the GB Food industry average (11.9x).

PE vs Market: CWK is poor value based on its PE Ratio (23x) compared to the UK market (20.1x).


Price to Earnings Growth Ratio

PEG Ratio: CWK is poor value based on its PEG Ratio (5.6x)


Price to Book Ratio

PB vs Industry: CWK is overvalued based on its PB Ratio (3.1x) compared to the GB Food industry average (0.9x).


Next Steps

Future Growth

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

4.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CWK's forecast earnings growth (4.1% per year) is above the savings rate (1.2%).

Earnings vs Market: CWK's earnings (4.1% per year) are forecast to grow slower than the UK market (26.7% per year).

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

Revenue vs Market: CWK's revenue (4.8% per year) is forecast to grow slower than the UK market (6.4% per year).

High Growth Revenue: CWK's revenue (4.8% 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 (12.6%).


Next Steps

Past Performance

How has Cranswick performed over the past 5 years?

11.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CWK has high quality earnings.

Growing Profit Margin: CWK's current net profit margins (5%) are higher than last year (4.8%).


Past Earnings Growth Analysis

Earnings Trend: CWK's earnings have grown by 11.8% per year over the past 5 years.

Accelerating Growth: CWK's earnings growth over the past year (18.8%) exceeds its 5-year average (11.8% per year).

Earnings vs Industry: CWK earnings growth over the past year (18.8%) exceeded the Food industry 14.1%.


Return on Equity

High ROE: CWK's Return on Equity (13.5%) is considered low.


Next Steps

Financial Health

How is Cranswick's financial position?


Financial Position Analysis

Short Term Liabilities: CWK's short term assets (£354.7M) exceed its short term liabilities (£213.8M).

Long Term Liabilities: CWK's short term assets (£354.7M) exceed its long term liabilities (£167.2M).


Debt to Equity History and Analysis

Debt Level: CWK's debt to equity ratio (16.7%) is considered satisfactory.

Reducing Debt: CWK's debt to equity ratio has increased from 6.4% to 16.7% over the past 5 years.

Debt Coverage: CWK's debt is well covered by operating cash flow (114.1%).

Interest Coverage: CWK's interest payments on its debt are well covered by EBIT (36.3x coverage).


Balance Sheet


Next Steps

Dividend

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

1.67%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CWK's dividend (1.65%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.72%).

High Dividend: CWK's dividend (1.65%) is low compared to the top 25% of dividend payers in the UK market (4.91%).


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 (38%), 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 (38% payout ratio).


Next Steps

Management

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

7.5yrs

Average management tenure


CEO

Adam Couch (51 yo)

8.25yrs

Tenure

UK£2,925,000

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 ($USD3.89M) is above average for companies of similar size in the UK market ($USD2.12M).

Compensation vs Earnings: Adam's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Adam Couch
CEO & Executive Director8.25yrsUK£2.93m0.34%
£ 6.5m
Mark Bottomley
Group Finance Director & Executive Director11.42yrsUK£1.94m0.19%
£ 3.6m
James Brisby
Commercial Director & Executive Director10.33yrsUK£1.91m0.20%
£ 3.9m
Steven Glover
Company Secretary3.33yrsno datano data

7.5yrs

Average Tenure

Experienced Management: CWK's management team is seasoned and experienced (7.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Adam Couch
CEO & Executive Director8.25yrsUK£2.93m0.34%
£ 6.5m
Mark Bottomley
Group Finance Director & Executive Director11.42yrsUK£1.94m0.19%
£ 3.6m
James Brisby
Commercial Director & Executive Director10.33yrsUK£1.91m0.20%
£ 3.9m
Tim Smith
Independent Non-Executive Director2.58yrsUK£58.00k0.0029%
£ 54.3k
Martin Thomas Davey
Chairman16.33yrsUK£962.00k0.34%
£ 6.5m
Mark Reckitt
Senior Independent Director2yrsUK£59.00k0.0025%
£ 47.0k
Pamela Powell
Independent Non-Executive Director2.58yrsUK£51.00k0.0019%
£ 36.2k
H. Allum
Independent Non-Executive Director7.33yrsUK£59.00kno data

8.8yrs

Average Tenure

62yo

Average Age

Experienced Board: CWK's board of directors are considered experienced (8.8 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: 1972
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: UK£1.904b
  • Shares outstanding: 52.54m
  • Website: https://www.cranswick.plc.uk

Number of Employees


Location

  • Cranswick plc
  • Crane Court
  • Hesslewood Country Office Park
  • Hessle
  • North Humberside
  • 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 Analysis2020/11/23 21:44
End of Day Share Price2020/11/23 00:00
Earnings2020/03/28
Annual Earnings2020/03/28


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.