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GK

GraceKennedyJMSE:GK Stock Report

Market Cap

JA$97.9b

7D

-0.1%

1Y

57.0%

Updated

07 Dec, 2021

Data

Company Financials
GK fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance4/6
Financial Health5/6
Dividends3/6

GK Stock Overview

GraceKennedy Limited engages in food trading and financial services businesses.

GraceKennedy Competitors

Nestlé Lanka

COSE:NEST.N0000

LK₨67.2b

Jamaican Teas

JMSE:JAMT

JA$7.8b

S&P International Holding

SEHK:1695

HK$77.8m

Price History & Performance

Summary of all time highs, changes and price drops for GraceKennedy
Historical stock prices
Current Share PriceJA$98.89
52 Week HighJA$105.99
52 Week LowJA$58.01
Beta0.29
1 Month Change-1.05%
3 Month Change-3.05%
1 Year Change56.97%
3 Year Change66.20%
5 Year Change140.61%
Change since IPO589.93%

Recent News & Updates

Shareholder Returns

GKJM Consumer RetailingJM Market
7D-0.1%-0.03%-1.5%
1Y57.0%46.6%2.5%

Return vs Industry: GK exceeded the JM Consumer Retailing industry which returned 47% over the past year.

Return vs Market: GK exceeded the JM Market which returned 2.3% over the past year.

Price Volatility

Is GK's price volatile compared to industry and market?
GK volatility
GK Average Weekly Movement1.7%
Consumer Retailing Industry Average Movement8.2%
Market Average Movement8.7%
10% most volatile stocks in JM Market14.7%
10% least volatile stocks in JM Market4.8%

Stable Share Price: GK is less volatile than 75% of JM stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: GK's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1922n/aDon Wehbyhttps://www.gracekennedy.com

GraceKennedy Limited engages in food trading and financial services businesses. It operates through four segments: Food Trading, Banking and Investments, Insurance, and Money Services. The Food Trading segment engages in the merchandising of general goods and food products; processing and distribution of food products; and operation of a chain of supermarkets.

GraceKennedy Fundamentals Summary

How do GraceKennedy's earnings and revenue compare to its market cap?
GK fundamental statistics
Market CapJA$97.95b
Earnings (TTM)JA$7.47b
Revenue (TTM)JA$125.09b

13.1x

P/E Ratio

0.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GK income statement (TTM)
RevenueJA$125.09b
Cost of RevenueJA$71.41b
Gross ProfitJA$53.67b
ExpensesJA$46.20b
EarningsJA$7.47b

Dividends

2.0%

Current Dividend Yield

26%

Payout Ratio

Valuation

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

45.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GK (JMD98.89) is trading below our estimate of fair value (JMD182.53)

Significantly Below Fair Value: GK is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: GK is good value based on its PE Ratio (13.1x) compared to the JM Consumer Retailing industry average (17.3x).

PE vs Market: GK is good value based on its PE Ratio (13.1x) compared to the JM market (17.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate GK's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: GK is good value based on its PB Ratio (1.5x) compared to the JM Consumer Retailing industry average (1.9x).


Future Growth

How is GraceKennedy forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

10.5%

Forecasted Consumer Retailing industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as GraceKennedy has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has GraceKennedy performed over the past 5 years?

13.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GK has high quality earnings.

Growing Profit Margin: GK's current net profit margins (6%) are higher than last year (5%).


Past Earnings Growth Analysis

Earnings Trend: GK's earnings have grown by 13.4% per year over the past 5 years.

Accelerating Growth: GK's earnings growth over the past year (32.5%) exceeds its 5-year average (13.4% per year).

Earnings vs Industry: GK earnings growth over the past year (32.5%) underperformed the Consumer Retailing industry 35.6%.


Return on Equity

High ROE: GK's Return on Equity (11.9%) is considered low.


Financial Health

How is GraceKennedy's financial position?


Financial Position Analysis

Short Term Liabilities: GK's short term assets (JMD98.3B) exceed its short term liabilities (JMD43.9B).

Long Term Liabilities: GK's short term assets (JMD98.3B) exceed its long term liabilities (JMD77.7B).


Debt to Equity History and Analysis

Debt Level: GK's net debt to equity ratio (10%) is considered satisfactory.

Reducing Debt: GK's debt to equity ratio has reduced from 52.6% to 49.6% over the past 5 years.

Debt Coverage: GK's debt is well covered by operating cash flow (44.3%).

Interest Coverage: GK's interest payments on its debt are not well covered by EBIT (2.3x coverage).


Balance Sheet


Dividend

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

1.95%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GK's dividend (1.95%) is higher than the bottom 25% of dividend payers in the JM market (1.24%).

High Dividend: GK's dividend (1.95%) is low compared to the top 25% of dividend payers in the JM market (3.12%).


Stability and Growth of Payments

Stable Dividend: GK's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (25.6%), GK's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

3.0yrs

Average management tenure


CEO

Don Wehby

10.42yrs

Tenure

Senator Donald G. Wehby, also known as Don, BSc (Hons.), MSc (Acctg.), FCA, CD serves as Non-Executive Chairman of Key Insurance Company Ltd. since March 2020. He has been the Group Chief Executive Officer...


Leadership Team

Experienced Management: GK's management team is considered experienced (3 years average tenure).


Board Members

Experienced Board: GK'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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

GraceKennedy Limited's employee growth, exchange listings and data sources


Key Information

  • Name: GraceKennedy Limited
  • Ticker: GK
  • Exchange: JMSE
  • Founded: 1922
  • Industry: Food Distributors
  • Sector: Consumer Retailing
  • Market Cap: JA$97.948b
  • Shares outstanding: 990.47m
  • Website: https://www.gracekennedy.com

Location

  • GraceKennedy Limited
  • 42-56 Harbour Street
  • Kingston
  • Jamaica

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/07 00:27
End of Day Share Price2021/12/06 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.