ISE:GL9

Stock Analysis Report

Executive Summary

Glanbia plc operates as a nutrition company worldwide.

Snowflake

Fundamentals

Adequate balance sheet average dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-2.5%

GL9

-0.1%

IE Food

4.9%

IE Market


1 Year Return

-19.9%

GL9

18.2%

IE Food

2.6%

IE Market

Return vs Industry: GL9 underperformed the Irish Food industry which returned 18.2% over the past year.

Return vs Market: GL9 underperformed the Irish Market which returned 2.6% over the past year.


Share holder returns

GL9IndustryMarket
7 Day-2.5%-0.1%4.9%
30 Day-3.7%-1.8%3.3%
90 Day-20.4%2.4%0.9%
1 Year-18.4%-19.9%23.2%18.2%4.8%2.6%
3 Year-24.2%-27.4%34.1%26.4%19.6%13.9%
5 Year8.6%2.5%67.3%53.7%81.6%66.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Glanbia undervalued based on future cash flows and its price relative to the stock market?

32%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: GL9 (€11.3) is trading below our estimate of fair value (€16.62)

Significantly Undervalued: GL9 is trading below fair value, but not by a significant amount.


Price Based on Earnings

PE vs Industry: GL9 is good value based on its PE Ratio (15.2x) compared to the Food industry average (17x).

PE vs Market: GL9 is poor value based on its PE Ratio (15.2x) compared to the Irish market (13.4x).


Price Based on Expected Growth

Low PEG Ratio: GL9 is poor value based on its PEG Ratio (2x)


Price Based on Value of Assets

PB vs Industry: GL9 is overvalued based on its PB Ratio (2.1x) compared to the XE Food industry average (1.2x).


Next Steps

Future Growth

How is Glanbia expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

7.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: GL9's forecast earnings growth (7.5% per year) is above the savings rate (0.9%).

Earnings vs Market: GL9's earnings (7.5% per year) are forecast to grow slower than the Irish market (12.8% per year).

High Growth Earnings: GL9's earnings are forecast to grow, but not significantly.

Revenue vs Market: GL9's revenue (6.1% per year) is forecast to grow faster than the Irish market (4.2% per year).

High Growth Revenue: GL9's revenue (6.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: GL9's Return on Equity is forecast to be low in 3 years time (13.6%).


Next Steps

Past Performance

How has Glanbia performed over the past 5 years?

9.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: GL9's earnings have grown by 9.7% per year over the past 5 years.

Accelerating Growth: GL9's earnings growth over the past year (0.05%) is below its 5-year average (9.7% per year).

Earnings vs Industry: GL9 earnings growth over the past year (0.05%) underperformed the Food industry 0.3%.


Return on Equity

High ROE: GL9's Return on Equity (13.5%) is considered low.


Return on Assets

ROA vs Industry: GL9 has a higher Return on Assets than the Food industry average last year.


Return on Capital Employed

ROCE Improving: GL9's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Glanbia's financial position?


Financial Position Analysis

Short Term Liabilities: GL9's short term assets (€1.1B) exceeds its short term liabilities (€575.4M)

Long Term Liabilities: GL9's short term assets (1.1B) do not cover its long term liabilities (1.1B)


Debt to Equity History and Analysis

Debt Level: GL9's debt to equity ratio (59.9%) is considered high

Reducing Debt: GL9's debt to equity ratio has reduced from 80.6% to 59.9% over the past 5 years.

Debt Coverage: GL9's debt is well covered by operating cash flow (21%).

Interest Coverage: GL9's interest payments on its debt are well covered by EBIT (10.2x coverage).


Balance Sheet

Inventory Level: GL9 has a high level of physical assets or inventory.

Debt Coverage by Assets: GL9's debt is covered by short term assets (assets are 1.140350x debt).


Next Steps

Dividend

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

2.51%

Expected Dividend Yield


Dividend Yield vs Market

company2.2%marketbottom25%2.4%markettop25%4.0%industryaverage2.6%forecastin3Years2.5%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: GL9's dividend (2.23%) isn’t notable compared to the bottom 25% of dividend payers in the Irish market (2.44%).

High Dividend: GL9's dividend (2.23%) is low compared to the top 25% of dividend payers in the Irish market (3.97%).

Stable Dividend: GL9's dividends per share have been stable in the past 10 years.

Growing Dividend: GL9's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (33.9%), GL9's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GL9's dividends in 3 years are forecast to be well covered by earnings (32.1% payout ratio).


Next Steps

Management

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

4.7yrs

Average management tenure


CEO

Siobhán Talbot (55yo)

5.9yrs

Tenure

€2,341,000

Compensation

Ms. Siobhán Talbot, B.Comm., FCA has been the Group Managing Director of Glanbia plc since November 12, 2013 and its Executive Director since July 1, 2009. Ms. Talbot served as Group Finance Director at Gl ...


CEO Compensation Analysis

Compensation vs. Market: Siobhán's total compensation ($USD2.58M) is about average for companies of similar size in the Irish market ($USD1.47M).

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


Management Age and Tenure

4.7yrs

Average Tenure

54.5yo

Average Age

Experienced Management: GL9's management team is considered experienced (4.7 years average tenure).


Board Age and Tenure

2.3yrs

Average Tenure

61.5yo

Average Age

Experienced Board: GL9's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: GL9 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buy€49,17530 Aug 19
Mark Garvey
EntityIndividual
Role
Member of the Board of Directors
Group Finance Director & Executive Director
Shares5,000
Max Price€9.84
Buy€27,25015 Aug 19
Brendan Hayes
EntityIndividual
Shares2,500
Max Price€10.90
Buy€11,44014 Aug 19
Vincent Gorman
EntityIndividual
Shares1,000
Max Price€11.44
Buy€46,12014 Aug 19
Patsy Ahearn
EntityIndividual
Shares4,000
Max Price€11.53
Buy€92,14412 Aug 19
Martin Keane
EntityIndividual
Role
Chairman of the Board
Chairman
Shares8,000
Max Price€11.52
Buy€55,75009 Aug 19
Siobhán Talbot
EntityIndividual
Role
Chief Executive Officer
Group MD & Executive Director
Shares5,000
Max Price€11.15
Sell€150,89828 Mar 19
Mark Garvey
EntityIndividual
Role
Member of the Board of Directors
Group Finance Director & Executive Director
Shares8,730
Max Price€17.29
Sell€81,55128 Mar 19
Michael Horan
EntityIndividual
Role
Secretary
Group Secretary
Shares4,718
Max Price€17.29
Sell€256,34428 Mar 19
Brian Phelan
EntityIndividual
Role
Unit CEO
Chief Executive Officer of Glanbia Nutritionals
Shares14,755
Max Price€17.45
Sell€256,54428 Mar 19
Siobhán Talbot
EntityIndividual
Role
Chief Executive Officer
Group MD & Executive Director
Shares14,842
Max Price€17.29
Sell€259,90128 Mar 19
Hugh McGuire
EntityIndividual
Role
Unit CEO
Chief Executive Officer of Glanbia Performance Nutrition
Shares14,989
Max Price€17.39
Sell€92,25011 Mar 19
Michael Horan
EntityIndividual
Role
Secretary
Group Secretary
Shares5,000
Max Price€18.45
Sell€149,84011 Mar 19
Brian Phelan
EntityIndividual
Role
Unit CEO
Chief Executive Officer of Glanbia Nutritionals
Shares8,082
Max Price€18.54
Sell€158,32411 Mar 19
Hugh McGuire
EntityIndividual
Role
Unit CEO
Chief Executive Officer of Glanbia Performance Nutrition
Shares8,535
Max Price€18.55

Ownership Breakdown


Management Team

  • Mark Garvey (55yo)

    Group Finance Director & Executive Director

    • Tenure: 5.9yrs
    • Compensation: €1.37m
  • Siobhán Talbot (55yo)

    Group MD & Executive Director

    • Tenure: 5.9yrs
    • Compensation: €2.34m
  • Michael Patten (57yo)

    Director of Group Human Resources & Corporate Affairs

    • Tenure: 4.8yrs
  • Brian Phelan (52yo)

    Chief Executive Officer of Glanbia Nutritionals

    • Tenure: 0.8yrs
    • Compensation: €1.19m
  • Michael Horan (54yo)

    Group Secretary

    • Tenure: 14.3yrs
  • Jim Bergin (56yo)

    Chief Executive of Glanbia Ingredients Ireland Limited

    • Tenure: 2.3yrs
  • Hugh McGuire (48yo)

    Chief Executive Officer of Glanbia Performance Nutrition

    • Tenure: 0.8yrs
    • Compensation: €1.38m
  • Martha Kavanagh

    Head of Corporate Communications

    • Tenure: 0yrs
  • Tom Tench (48yo)

    Group Corporate Development Director

    • Tenure: 4.6yrs
  • Liam Hennigan

    Group Director of Strategic Planning & Investor Relations

    • Tenure: 0yrs

Board Members

  • Dan O'Connor (59yo)

    Senior Independent Director

    • Tenure: 0.4yrs
    • Compensation: €95.00k
  • Mark Garvey (55yo)

    Group Finance Director & Executive Director

    • Tenure: 5.9yrs
    • Compensation: €1.37m
  • Michael Walsh (76yo)

    Member of the US Advisory Board

    • Tenure: 0yrs
  • Siobhán Talbot (55yo)

    Group MD & Executive Director

    • Tenure: 5.9yrs
    • Compensation: €2.34m
  • Eamon Power (64yo)

    Non Executive Director

    • Tenure: 2.3yrs
    • Compensation: €43.00k
  • Donard Gaynor (62yo)

    Independent Non-Executive Director

    • Tenure: 6.6yrs
    • Compensation: €95.00k
  • Martin Keane (63yo)

    Chairman

    • Tenure: 1.3yrs
    • Compensation: €90.00k
  • Wayne Seltzer (76yo)

    Member of The US Advisory Board

    • Tenure: 0yrs
  • John Murphy (56yo)

    Vice Chairman

    • Tenure: 2.3yrs
    • Compensation: €60.00k
  • Patrick Murphy (61yo)

    Vice Chairman

    • Tenure: 1.3yrs
    • Compensation: €53.00k

Company Information

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


Key Information

  • Name: Glanbia plc
  • Ticker: GL9
  • Exchange: ISE
  • Founded: 1964
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: €3.297b
  • Shares outstanding: 295.17m
  • Website: https://www.glanbia.com

Number of Employees


Location

  • Glanbia plc
  • Glanbia House
  • Ring Road
  • Kilkenny
  • Co. Kilkenny
  • Ireland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GLBLSE (London Stock Exchange)YesOrdinary SharesGBEURJan 1992
GL9ISE (Irish Stock Exchange)YesOrdinary SharesIEEURJan 1992
GLAP.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
GL9IBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJan 1992
GL9DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
GLBLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJan 1992
GLB NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNJan 1992
GLAP.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDOct 1998

Biography

Glanbia plc operates as a nutrition company worldwide. It operates through three segments: Glanbia Performance Nutrition, Glanbia Nutritionals, and Glanbia Ireland. The Glanbia Performance Nutrition segmen ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 20:45
End of Day Share Price2019/10/14 00:00
Earnings2019/06/29
Annual Earnings2018/12/29


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.

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