Fonterra Co-operative Group
Market Cap
NZ$5.2b
Last Updated
2021/08/04 07:01 UTC
Data Sources
Company Financials
Executive Summary
Fonterra Co-operative Group Limited, together with its subsidiaries, collects, manufactures, and sells milk and milk-derived products. More Details
Rewards
Risk Analysis
Snowflake Analysis
Undervalued with proven track record.
Similar Companies
Share Price & News
How has Fonterra Co-operative Group's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: FCG is more volatile than 90% of NZ stocks over the past 3 months, typically moving +/- 8% a week.
Volatility Over Time: FCG's weekly volatility (8%) has been stable over the past year, but is still higher than 75% of NZ stocks.
Market Performance
7 Day Return
6.7%
FCG
2.4%
NZ Food
0.8%
NZ Market
1 Year Return
-16.4%
FCG
-49.7%
NZ Food
8.5%
NZ Market
Return vs Industry: FCG exceeded the NZ Food industry which returned -49.7% over the past year.
Return vs Market: FCG underperformed the NZ Market which returned 8.5% over the past year.
Shareholder returns
| FCG | Industry | Market | |
|---|---|---|---|
| 7 Day | 6.7% | 2.4% | 0.8% |
| 30 Day | -12.1% | -9.4% | -1.1% |
| 90 Day | -29.8% | -19.4% | -2.1% |
| 1 Year | -14.5%-16.4% | -49.2%-49.7% | 11.3%8.5% |
| 3 Year | -36.0%-37.4% | -36.8%-39.1% | 40.1%22.9% |
| 5 Year | -37.3%-44.5% | 7.2%-5.7% | 69.5%30.5% |
Long-Term Price Volatility Vs. Market
How volatile is Fonterra Co-operative Group's share price compared to the market and industry in the last 5 years?
Simply Wall St News
4 weeks ago | Simply Wall St
We Think Fonterra Co-operative Group (NZSE:FCG) Is Taking Some Risk With Its Debt1 month ago | Simply Wall St
What Type Of Returns Would Fonterra Co-operative Group's(NZSE:FCG) Shareholders Have Earned If They Purchased Their Shares Five Years Ago?3 months ago | Simply Wall St
If You Like EPS Growth Then Check Out Fonterra Co-operative Group (NZSE:FCG) Before It's Too LateValuation
Is Fonterra Co-operative Group undervalued compared to its fair value and its price relative to the market?
27.5%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: FCG (NZ$3.2) is trading below our estimate of fair value (NZ$4.41)
Significantly Below Fair Value: FCG is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: FCG is good value based on its PE Ratio (9.9x) compared to the NZ Food industry average (18.1x).
PE vs Market: FCG is good value based on its PE Ratio (9.9x) compared to the NZ market (21.7x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate FCG's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: FCG is good value based on its PB Ratio (0.7x) compared to the NZ Food industry average (1x).
Future Growth
How is Fonterra Co-operative Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
25.0%
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 Fonterra Co-operative Group 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 Fonterra Co-operative Group performed over the past 5 years?
-17.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: FCG has high quality earnings.
Growing Profit Margin: FCG's current net profit margins (2.6%) are higher than last year (2.3%).
Past Earnings Growth Analysis
Earnings Trend: FCG's earnings have declined by 17.3% per year over the past 5 years.
Accelerating Growth: FCG's earnings growth over the past year (12%) exceeds its 5-year average (-17.3% per year).
Earnings vs Industry: FCG earnings growth over the past year (12%) exceeded the Food industry 4.8%.
Return on Equity
High ROE: FCG's Return on Equity (7.4%) is considered low.
Financial Health
How is Fonterra Co-operative Group's financial position?
Financial Position Analysis
Short Term Liabilities: FCG's short term assets (NZ$10.3B) exceed its short term liabilities (NZ$7.1B).
Long Term Liabilities: FCG's short term assets (NZ$10.3B) exceed its long term liabilities (NZ$5.7B).
Debt to Equity History and Analysis
Debt Level: FCG's debt to equity ratio (78.3%) is considered high.
Reducing Debt: FCG's debt to equity ratio has reduced from 109.1% to 78.3% over the past 5 years.
Debt Coverage: FCG's debt is not well covered by operating cash flow (19.1%).
Interest Coverage: FCG's interest payments on its debt are well covered by EBIT (3.5x coverage).
Balance Sheet
Dividend
What is Fonterra Co-operative Group current dividend yield, its reliability and sustainability?
3.13%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: FCG's dividend (3.13%) is higher than the bottom 25% of dividend payers in the NZ market (2.31%).
High Dividend: FCG's dividend (3.13%) is low compared to the top 25% of dividend payers in the NZ market (4.51%).
Stability and Growth of Payments
Stable Dividend: FCG has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: FCG has only been paying a dividend for 8 years, and since then payments have fallen.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (30.9%), FCG'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?
3.6yrs
Average management tenure
CEO
Miles Hurrell
3yrs
Tenure
NZ$2,008,500
Compensation
Mr. Miles Hurrell serves as Chief Executive Officer of Fonterra Co-Operative Group Ltd since March 2019. He served as Interim Chief Executive Officer at Fonterra Co-Operative Group Ltd. from August 15, 201...
CEO Compensation Analysis
Compensation vs Market: Miles's total compensation ($USD1.41M) is about average for companies of similar size in the NZ market ($USD1.45M).
Compensation vs Earnings: Miles's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: FCG's management team is considered experienced (3.6 years average tenure).
Board Members
Experienced Board: FCG's board of directors are considered experienced (3.3 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
Fonterra Co-operative Group Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Fonterra Co-operative Group Limited
- Ticker: FCG
- Exchange: NZSE
- Founded: 2001
- Industry: Packaged Foods and Meats
- Sector: Food, Beverage & Tobacco
- Market Cap: NZ$5.227b
- Shares outstanding: 1.61b
- Website: https://www.fonterra.com
Number of Employees
Location
- Fonterra Co-operative Group Limited
- Fonterra Centre
- 109 Fanshawe Street
- Auckland
- 1010
- New Zealand
Listings
Biography
Fonterra Co-operative Group Limited, together with its subsidiaries, collects, manufactures, and sells milk and milk-derived products. The company offers milk powders, butter, and cheese products. It also ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/08/04 07:01 |
| End of Day Share Price | 2021/08/04 00:00 |
| Earnings | 2021/01/31 |
| Annual Earnings | 2020/07/31 |
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.