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LMF.

Lanka Milk Foods (CWE) COSE:LMF.N0000 Stock Report

Last Price

LK₨154.50

Market Cap

LK₨6.2b

7D

-6.1%

1Y

-12.3%

Updated

05 Oct, 2022

Data

Company Financials
LMF.N0000 fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance1/6
Financial Health4/6
Dividends2/6

LMF.N0000 Stock Overview

Lanka Milk Foods (CWE) PLC engages in manufacturing, importing, packaging, marketing, and distributing dairy and beverage products in Sri Lanka and internationally.

Lanka Milk Foods (CWE) Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Lanka Milk Foods (CWE)
Historical stock prices
Current Share PriceLK₨154.50
52 Week HighLK₨295.00
52 Week LowLK₨99.00
Beta0.42
1 Month Change-5.36%
3 Month Change54.12%
1 Year Change-12.34%
3 Year Change66.85%
5 Year Change6.55%
Change since IPO419.33%

Recent News & Updates

Shareholder Returns

LMF.N0000LK FoodLK Market
7D-6.1%-6.6%-7.2%
1Y-12.3%4.6%-8.1%

Return vs Industry: LMF.N0000 underperformed the LK Food industry which returned 5.5% over the past year.

Return vs Market: LMF.N0000 underperformed the LK Market which returned -7.7% over the past year.

Price Volatility

Is LMF.N0000's price volatile compared to industry and market?
LMF.N0000 volatility
LMF.N0000 Average Weekly Movement10.0%
Food Industry Average Movement9.6%
Market Average Movement8.6%
10% most volatile stocks in LK Market13.4%
10% least volatile stocks in LK Market5.3%

Stable Share Price: LMF.N0000 is not significantly more volatile than the rest of LK stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: LMF.N0000's weekly volatility (10%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1981741Manjula Dahanayakehttps://www.lmfgroup.lk

Lanka Milk Foods (CWE) PLC engages in manufacturing, importing, packaging, marketing, and distributing dairy and beverage products in Sri Lanka and internationally. It operates through Powdered Milk; Liquid Milk and Others; Agriculture; and Trading segments. The company offers full cream milk powder; butter; fresh milk; flavored milk, including vanilla, chocolate, strawberry, coffee, banana, and faluda; full cream and non-fat milk; and fruit drinks, such as apple, mango, mixed fruit, and orange variants.

Lanka Milk Foods (CWE) Fundamentals Summary

How do Lanka Milk Foods (CWE)'s earnings and revenue compare to its market cap?
LMF.N0000 fundamental statistics
Market CapLK₨6.18b
Earnings (TTM)LK₨1.42b
Revenue (TTM)LK₨10.80b

4.3x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LMF.N0000 income statement (TTM)
RevenueLK₨10.80b
Cost of RevenueLK₨8.81b
Gross ProfitLK₨2.00b
Other ExpensesLK₨572.33m
EarningsLK₨1.42b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)35.61
Gross Margin18.48%
Net Profit Margin13.18%
Debt/Equity Ratio30.8%

How did LMF.N0000 perform over the long term?

See historical performance and comparison

Dividends

3.2%

Current Dividend Yield

21%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is LMF.N0000 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for LMF.N0000?

Other financial metrics that can be useful for relative valuation.

LMF.N0000 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.9x
Enterprise Value/EBITDA3.9x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does LMF.N0000's PE Ratio compare to its peers?

LMF.N0000 PE Ratio vs Peers
The above table shows the PE ratio for LMF.N0000 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average14.7x
TPL.N0000 Talawakelle Tea Estates
4.3xn/aLK₨4.6b
HARI.N0000 Harischandra Mills
39.8xn/aLK₨8.3b
KFP.N0000 Keells Food Products
11.2xn/aLK₨4.6b
COCO.N0000 Renuka Foods
3.4xn/aLK₨3.8b
LMF.N0000 Lanka Milk Foods (CWE)
4.3xn/aLK₨6.2b

Price-To-Earnings vs Peers: LMF.N0000 is good value based on its Price-To-Earnings Ratio (4.3x) compared to the peer average (14.7x).


Price to Earnings Ratio vs Industry

How does LMF.N0000's PE Ratio compare vs other companies in the LK Food Industry?

Price-To-Earnings vs Industry: LMF.N0000 is good value based on its Price-To-Earnings Ratio (4.3x) compared to the LK Food industry average (5.1x)


Price to Earnings Ratio vs Fair Ratio

What is LMF.N0000's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

LMF.N0000 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio4.3x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate LMF.N0000's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of LMF.N0000 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LMF.N0000 (LKR154.5) is trading above our estimate of fair value (LKR47.56)

Significantly Below Fair Value: LMF.N0000 is trading above our estimate of fair value.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

How is Lanka Milk Foods (CWE) forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


22.6%

Forecasted Food, Beverage & Tobacco 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 Lanka Milk Foods (CWE) 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.


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Past Performance

How has Lanka Milk Foods (CWE) performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


31.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: LMF.N0000 has a high level of non-cash earnings.

Growing Profit Margin: LMF.N0000's current net profit margins (13.2%) are lower than last year (16.3%).


Past Earnings Growth Analysis

Earnings Trend: LMF.N0000's earnings have grown significantly by 31.6% per year over the past 5 years.

Accelerating Growth: LMF.N0000's earnings growth over the past year (9.1%) is below its 5-year average (31.6% per year).

Earnings vs Industry: LMF.N0000 earnings growth over the past year (9.1%) underperformed the Food industry 106.4%.


Return on Equity

High ROE: LMF.N0000's Return on Equity (12.6%) is considered low.


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Financial Health

How is Lanka Milk Foods (CWE)'s financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: LMF.N0000's short term assets (LKR4.0B) exceed its short term liabilities (LKR2.4B).

Long Term Liabilities: LMF.N0000's short term assets (LKR4.0B) exceed its long term liabilities (LKR2.6B).


Debt to Equity History and Analysis

Debt Level: LMF.N0000's net debt to equity ratio (25.7%) is considered satisfactory.

Reducing Debt: LMF.N0000's debt to equity ratio has increased from 3.4% to 30.8% over the past 5 years.

Debt Coverage: LMF.N0000's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: LMF.N0000's interest payments on its debt are well covered by EBIT (3.1x coverage).


Balance Sheet


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Dividend

What is Lanka Milk Foods (CWE) current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


3.24%

Current Dividend Yield

Dividend Yield vs Market

Lanka Milk Foods (CWE) Dividend Yield vs Market
How does Lanka Milk Foods (CWE) dividend yield compare to the market?
SegmentDividend Yield
Company (Lanka Milk Foods (CWE))3.2%
Market Bottom 25% (LK)2.1%
Market Top 25% (LK)8.1%
Industry Average (Food)3.6%
Analyst forecast in 3 Years (Lanka Milk Foods (CWE))n/a

Notable Dividend: LMF.N0000's dividend (3.24%) is higher than the bottom 25% of dividend payers in the LK market (2.13%).

High Dividend: LMF.N0000's dividend (3.24%) is low compared to the top 25% of dividend payers in the LK market (8.08%).


Stability and Growth of Payments

Stable Dividend: LMF.N0000 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: LMF.N0000's dividend payments have increased, but the company has only paid a dividend for 9 years.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (21.1%), LMF.N0000's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: LMF.N0000 is paying a dividend but the company has no free cash flows.


Discover strong dividend paying companies

Management

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

14.4yrs

Average board tenure


CEO

Manjula Dahanayake

3.42yrs

Tenure

Mr. Manjula Dahanayake is Group Chief Executive Officer of Lanka Milk Foods (CWE) PLC and serves as its Chief Executive Officer since May 2, 2019. Mr. Dahanayake holds a Master's Degree in Business Adminis...


Board Members

Experienced Board: LMF.N0000's board of directors are seasoned and experienced ( 14.4 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

What is the ownership structure of LMF.N0000?
Owner TypeNumber of SharesOwnership Percentage
Institutions1,603,8574.0%
Individual Insiders2,626,9996.6%
Public Companies6,715,78416.8%
General Public7,377,61618.4%
Private Companies21,673,74454.2%

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


Top Shareholders

Top 25 shareholders own 81.35% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
48.87%
Milford Exports (Ceylon) Ltd.
19,546,830LKR3.0b0%no data
16.79%
Melstacorp PLC
6,715,784LKR1.0b0%no data
1.44%
Employees Trust Fund Board
575,787LKR89.0m0%0.76%
1.36%
Arc Capital (Pvt) Ltd.
544,826LKR84.2m-49.53%no data
1.28%
Vasudevan Saraswathi
513,007LKR79.3m0%no data
1.14%
E.W. Balasuriya & Co. (Pvt) Limited
457,547LKR70.7m0%no data
1.04%
Husseinally Abdulhussein
417,660LKR64.5m0%no data
1.03%
Rukaiya Abdulhussein
410,000LKR63.3m0%no data
0.99%
Yusuf Abdulhussein
397,637LKR61.4m0%no data
0.93%
Hi Line Trading Ltd
371,533LKR57.4m0%no data
0.89%
Senkadagaka Finance Co. Ltd, Asset Management Arm
355,706LKR55.0m0%66.48%
0.83%
Senfin Asset Management (Pvt) Ltd
332,364LKR51.4m16.38%5.13%
0.75%
Averbach Grauson & Co.
299,531LKR46.3m0%no data
0.63%
Commercial Bank of Ceylon PLC.,Asset Management Arm
250,000LKR38.6m0%13.76%
0.62%
Hallsville Trading Group Inc.
249,221LKR38.5m0%no data
0.35%
Manickam Theagarajah
140,933LKR21.8m0%no data
0.34%
Mark Raaymakers
135,493LKR20.9m0%no data
0.33%
Gulamhussein Abdulhussein
132,622LKR20.5m0%no data
0.28%
Kalin Holdings Pvt Ltd
112,256LKR17.3m0%no data
0.26%
Meenambigai Radhakrishnan
102,337LKR15.8m7.34%no data
0.25%
Dinesh Sellamuttu
101,748LKR15.7m-44.55%no data
0.25%
Andal Radhakrishnan
101,468LKR15.7m7.41%no data
0.23%
Sakuvi Investment Trust (Pvt) Limited
92,000LKR14.2m0%no data
0.23%
Arunasalam Sithampalm
91,160LKR14.1m0%no data
0.23%
Essajee Carimjee & Company (Pvt) Limited, Asset Management Arm
90,000LKR13.9m0%40.63%

Company Information

Lanka Milk Foods (CWE) PLC's employee growth, exchange listings and data sources


Key Information

  • Name: Lanka Milk Foods (CWE) PLC
  • Ticker: LMF.N0000
  • Exchange: COSE
  • Founded: 1981
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Implied Market Cap: LK₨6.180b
  • Shares outstanding: 40.00m
  • Website: https://www.lmfgroup.lk

Number of Employees


Location

  • Lanka Milk Foods (CWE) PLC
  • No. 579/1, Welisara
  • Ragama
  • Sri Lanka


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LMF.N0000COSE (Colombo Stock Exchange)YesOrdinary SharesLKLKRNov 1992

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/05 00:00
End of Day Share Price2022/10/05 00:00
Earnings2022/06/30
Annual Earnings2022/03/31


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.