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Fonterra Co-operative Group

NZSE:FCG
Snowflake Description

Imperfect balance sheet with limited growth.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
FCG
NZSE
NZ$6B
Market Cap
  1. Home
  2. NZ
  3. Food, Beverage & Tobacco
Company description

Fonterra Co-operative Group Limited, together with its subsidiaries, collects, manufactures, and sells milk and milk-derived products. The last earnings update was 95 days ago. More info.


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FCG Share Price and Events
7 Day Returns
0.3%
NZSE:FCG
-3.3%
NZ Food
0.8%
NZ Market
1 Year Returns
-24.4%
NZSE:FCG
-5.2%
NZ Food
8.9%
NZ Market
FCG Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Fonterra Co-operative Group (FCG) 0.3% -6.9% -7.3% -24.4% -27.2% -33%
NZ Food -3.3% -8.8% -2.6% -5.2% 67.4% 68.1%
NZ Market 0.8% 0.4% 6.5% 8.9% 32.3% 52.3%
1 Year Return vs Industry and Market
  • FCG underperformed the Food industry which returned -5.2% over the past year.
  • FCG underperformed the Market in New Zealand which returned 8.9% over the past year.
Price Volatility
FCG
Industry
5yr Volatility vs Market

FCG Value

 Is Fonterra Co-operative Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Fonterra Co-operative Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Fonterra Co-operative Group.

NZSE:FCG Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 8.5%
Perpetual Growth Rate 10-Year NZ Government Bond Rate 2.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NZSE:FCG
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year NZ Govt Bond Rate 2.4%
Equity Risk Premium S&P Global 6%
Food Unlevered Beta Simply Wall St/ S&P Global 0.55
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.546 (1 + (1- 28%) (123.93%))
1.023
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.02
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.37% + (1.023 * 5.96%)
8.46%

Discounted Cash Flow Calculation for NZSE:FCG using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Fonterra Co-operative Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NZSE:FCG DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (NZD, Millions) Source Present Value
Discounted (@ 8.46%)
2019 247.21 Est @ -10.32% 227.92
2020 231.12 Est @ -6.51% 196.45
2021 222.22 Est @ -3.85% 174.15
2022 217.82 Est @ -1.98% 157.38
2023 216.35 Est @ -0.68% 144.11
2024 216.86 Est @ 0.24% 133.18
2025 218.76 Est @ 0.88% 123.87
2026 221.66 Est @ 1.33% 115.71
2027 225.30 Est @ 1.64% 108.43
2028 229.48 Est @ 1.86% 101.83
Present value of next 10 years cash flows NZ$1,483.03
NZSE:FCG DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= NZ$229.48 × (1 + 2.37%) ÷ (8.46% – 2.37%)
NZ$3,854.42
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= NZ$3,854.42 ÷ (1 + 8.46%)10
NZ$1,710.29
NZSE:FCG Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= NZ$1,483.03 + NZ$1,710.29
NZ$3,193.32
Equity Value per Share
(NZD)
= Total value / Shares Outstanding
= NZ$3,193.32 / 1,611.99
NZ$1.98
NZSE:FCG Discount to Share Price
Calculation Result
Value per share (NZD) From above. NZ$1.98
Current discount Discount to share price of NZ$3.91
= -1 x (NZ$3.91 - NZ$1.98) / NZ$1.98
-97.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Fonterra Co-operative Group is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Fonterra Co-operative Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Fonterra Co-operative Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NZSE:FCG PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-01-31) in NZD NZ$0.13
NZSE:FCG Share Price ** NZSE (2019-06-21) in NZD NZ$3.91
New Zealand Food Industry PE Ratio Median Figure of 11 Publicly-Listed Food Companies 23.22x
New Zealand Market PE Ratio Median Figure of 89 Publicly-Listed Companies 17.71x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Fonterra Co-operative Group.

NZSE:FCG PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NZSE:FCG Share Price ÷ EPS (both in NZD)

= 3.91 ÷ 0.13

30.15x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Fonterra Co-operative Group is overvalued based on earnings compared to the NZ Food industry average.
  • Fonterra Co-operative Group is overvalued based on earnings compared to the New Zealand market.
Price based on expected Growth
Does Fonterra Co-operative Group's expected growth come at a high price?
Raw Data
NZSE:FCG PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 30.15x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
9.6%per year
New Zealand Food Industry PEG Ratio Median Figure of 7 Publicly-Listed Food Companies 1.13x
New Zealand Market PEG Ratio Median Figure of 64 Publicly-Listed Companies 1.35x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Fonterra Co-operative Group, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Fonterra Co-operative Group's assets?
Raw Data
NZSE:FCG PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-01-31) in NZD NZ$4.01
NZSE:FCG Share Price * NZSE (2019-06-21) in NZD NZ$3.91
New Zealand Food Industry PB Ratio Median Figure of 13 Publicly-Listed Food Companies 1.08x
New Zealand Market PB Ratio Median Figure of 128 Publicly-Listed Companies 1.59x
NZSE:FCG PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NZSE:FCG Share Price ÷ Book Value per Share (both in NZD)

= 3.91 ÷ 4.01

0.98x

* Primary Listing of Fonterra Co-operative Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Fonterra Co-operative Group is good value based on assets compared to the NZ Food industry average.
X
Value checks
We assess Fonterra Co-operative Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Food industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Food industry average (and greater than 0)? (1 check)
  5. Fonterra Co-operative Group has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

FCG Future Performance

 How is Fonterra Co-operative Group expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

  • No analysts cover Fonterra Co-operative Group, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
9.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Fonterra Co-operative Group expected to grow at an attractive rate?
  • Fonterra Co-operative Group's earnings growth is expected to exceed the low risk savings rate of 2.4%.
Growth vs Market Checks
  • Fonterra Co-operative Group's earnings growth is expected to exceed the New Zealand market average.
  • Unable to compare Fonterra Co-operative Group's revenue growth to the New Zealand market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
NZSE:FCG Future Growth Rates Data Sources
Data Point Source Value (per year)
NZSE:FCG Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts 9.6%
New Zealand Food Industry Earnings Growth Rate Market Cap Weighted Average 15.5%
New Zealand Food Industry Revenue Growth Rate Market Cap Weighted Average 15.3%
New Zealand Market Earnings Growth Rate Market Cap Weighted Average 6.3%
New Zealand Market Revenue Growth Rate Market Cap Weighted Average 4.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NZSE:FCG Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in NZD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NZSE:FCG Past Financials Data
Date (Data in NZD Millions) Revenue Cash Flow Net Income *
2019-01-31 20,345 1,228 209
2018-10-31 20,392 1,388 -6
2018-07-31 20,438 1,548 -221
2018-04-30 20,134 1,400 -127
2018-01-31 19,830 1,251 -33
2017-10-31 19,531 1,314 351
2017-07-31 19,232 1,376 734
2017-04-30 18,417 1,782 777
2017-01-31 17,602 2,187 819
2016-10-31 17,401 2,733 815
2016-07-31 17,199 3,278 810
2016-04-30 17,568 2,942 758

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Fonterra Co-operative Group's earnings are expected to grow by 9.6% yearly, however this is not considered high growth (20% yearly).
  • Unable to determine if Fonterra Co-operative Group is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NZSE:FCG Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Fonterra Co-operative Group Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NZSE:FCG Past Financials Data
Date (Data in NZD Millions) EPS *
2019-01-31 0.13
2018-10-31 0.00
2018-07-31 -0.14
2018-04-30 -0.08
2018-01-31 -0.02
2017-10-31 0.22
2017-07-31 0.46
2017-04-30 0.48
2017-01-31 0.51
2016-10-31 0.51
2016-07-31 0.51
2016-04-30 0.47

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Fonterra Co-operative Group will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Fonterra Co-operative Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the New Zealand market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the New Zealand market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Fonterra Co-operative Group has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

FCG Past Performance

  How has Fonterra Co-operative Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Fonterra Co-operative Group's growth in the last year to its industry (Food).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Fonterra Co-operative Group's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Fonterra Co-operative Group has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Fonterra Co-operative Group has become profitable in the last year making it difficult to compare the NZ Food industry average.
Earnings and Revenue History
Fonterra Co-operative Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Fonterra Co-operative Group Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NZSE:FCG Past Revenue, Cash Flow and Net Income Data
Date (Data in NZD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-01-31 20,345.00 209.00 2,067.00
2018-10-31 20,391.50 -6.00 2,081.50
2018-07-31 20,438.00 -221.00 2,096.00
2018-04-30 20,134.00 -127.00 2,065.00
2018-01-31 19,830.00 -33.00 2,034.00
2017-10-31 19,531.00 350.50 2,017.50
2017-07-31 19,232.00 734.00 2,001.00
2017-04-30 18,417.00 776.50 2,033.00
2017-01-31 17,602.00 819.00 2,065.00
2016-10-31 17,400.50 814.50 2,098.50
2016-07-31 17,199.00 810.00 2,132.00
2016-04-30 17,568.00 757.50 2,200.00
2016-01-31 17,937.00 705.00 2,268.00
2015-10-31 18,391.00 585.50 2,267.50
2015-07-31 18,845.00 466.00 2,267.00
2015-04-30 19,787.00 291.00 2,145.00
2015-01-31 20,729.00 116.00 2,023.00
2014-10-31 21,502.00 136.50 1,938.50
2014-07-31 22,275.00 157.00 1,854.00
2014-04-30 21,438.00 316.00 1,872.50
2014-01-31 20,601.00 475.00 1,891.00
2013-10-31 19,622.00 596.50 1,896.00
2013-07-31 18,643.00 718.00 1,901.00
2013-04-30 18,860.00 718.50 1,885.50
2013-01-31 19,077.00 719.00 1,870.00
2012-10-31 19,423.00 664.00 1,857.50
2012-07-31 19,769.00 609.00 1,845.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Fonterra Co-operative Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Fonterra Co-operative Group used its assets less efficiently than the NZ Food industry average last year based on Return on Assets.
  • Fonterra Co-operative Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Fonterra Co-operative Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Food industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Fonterra Co-operative Group has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

FCG Health

 How is Fonterra Co-operative Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Fonterra Co-operative Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Fonterra Co-operative Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Fonterra Co-operative Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Fonterra Co-operative Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Fonterra Co-operative Group Company Filings, last reported 4 months ago.

NZSE:FCG Past Debt and Equity Data
Date (Data in NZD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-01-31 6,580.00 7,811.00 348.00
2018-10-31 6,580.00 7,811.00 348.00
2018-07-31 6,349.00 6,899.00 446.00
2018-04-30 6,349.00 6,899.00 446.00
2018-01-31 6,688.00 7,619.00 359.00
2017-10-31 6,688.00 7,619.00 359.00
2017-07-31 7,248.00 6,274.00 393.00
2017-04-30 7,248.00 6,274.00 393.00
2017-01-31 7,125.00 6,760.00 348.00
2016-10-31 7,125.00 6,760.00 348.00
2016-07-31 6,947.00 6,364.00 369.00
2016-04-30 6,947.00 6,364.00 369.00
2016-01-31 6,905.00 7,726.00 338.00
2015-10-31 6,905.00 7,726.00 338.00
2015-07-31 6,659.00 7,599.00 342.00
2015-04-30 6,659.00 7,599.00 342.00
2015-01-31 6,422.00 7,513.00 266.00
2014-10-31 6,422.00 7,513.00 266.00
2014-07-31 6,534.00 4,919.00 340.00
2014-04-30 6,534.00 4,919.00 340.00
2014-01-31 6,663.00 6,076.00 812.00
2013-10-31 6,663.00 6,076.00 812.00
2013-07-31 6,748.00 4,678.00 330.00
2013-04-30 6,748.00 4,678.00 330.00
2013-01-31 7,402.00 5,075.00 530.00
2012-10-31 7,402.00 5,075.00 530.00
2012-07-31 6,655.00 4,991.00 1,033.00
  • Fonterra Co-operative Group's level of debt (118.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (91% vs 118.7% today).
  • Debt is not well covered by operating cash flow (15.7%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 1.7x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Fonterra Co-operative Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Fonterra Co-operative Group has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

FCG Dividends

 What is Fonterra Co-operative Group's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Fonterra Co-operative Group dividends.
If you bought NZ$2,000 of Fonterra Co-operative Group shares you are expected to receive NZ$0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Fonterra Co-operative Group's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Fonterra Co-operative Group's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NZSE:FCG Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
New Zealand Food Industry Average Dividend Yield Market Cap Weighted Average of 7 Stocks 3.5%
New Zealand Market Average Dividend Yield Market Cap Weighted Average of 73 Stocks 3.7%
New Zealand Minimum Threshold Dividend Yield 10th Percentile 2.3%
New Zealand Bottom 25% Dividend Yield 25th Percentile 3.1%
New Zealand Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NZSE:FCG Past Annualized Dividends Data
Date (Data in NZ$) Dividend per share (annual) Avg. Yield (%)
2019-03-20 0.000 0.000
2018-09-13 0.000 0.000
2017-09-25 0.400 6.963
2016-08-17 0.400 6.624
2016-03-23 0.400 7.044
2015-09-24 0.300 5.300
2014-09-24 0.100 1.838
2014-03-26 0.100 1.651
2013-09-25 0.320 5.102
2013-03-27 0.351 4.799

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Fonterra Co-operative Group has not reported any payouts.
  • Unable to verify if Fonterra Co-operative Group's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Fonterra Co-operative Group's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Fonterra Co-operative Group has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Fonterra Co-operative Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 2.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Fonterra Co-operative Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Fonterra Co-operative Group has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

FCG Management

 What is the CEO of Fonterra Co-operative Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Miles Hurrell
TENURE AS CEO 0.8 years
CEO Bio

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, 2018 to March 2019. He was Chief Operating Officer of Farm Source at Fonterra Co-Operative Group Ltd. from June 17, 2016 to August 2018. Mr. Hurrell served as Group Director of Co-operative Affairs at Fonterra Co-Operative Group Ltd. He joined the dairy industry in 2000 after spending the early years of his career working for a major international shipping line. By 2008, he had become Sales Director – Europe, responsible for leading the sale of dairy ingredients within the region. Miles then led the global sourcing division in North America, establishing business partnerships with a number of key suppliers, before becoming the General Manager, Global Sourcing in 2009.He became General Manager, Middle East, Africa and CIS in 2010. He has also served Governance Roles with Prolesur, Falcon (China Farms), Mymilk and Global Dairy Platform. He holds Management Programmes at Insead (International Executive Development), London Business School (Finance), Kellogg’S North Western University (Global Sales) and Imd (Marketing).

CEO Compensation
  • Insufficient data for Miles to compare compensation growth.
  • Insufficient data for Miles to establish whether their remuneration is reasonable compared to companies of similar size in New Zealand.
Management Team Tenure

Average tenure of the Fonterra Co-operative Group management team in years:

3
Average Tenure
  • The tenure for the Fonterra Co-operative Group management team is about average.
Management Team

Miles Hurrell

TITLE
Chief Executive Officer
TENURE
0.8 yrs

Marc Rivers

TITLE
Chief Financial Officer
TENURE
1.3 yrs

Robert Spurway

TITLE
Chief Operating Officer of Global Operations
TENURE
3 yrs

Chris Augustijns

TITLE
Director of Marketing

Deborah Capill

TITLE
Managing Director of People & Culture
TENURE
0.3 yrs

Kelvin Wickham

TITLE
Chief Operating Officer of NZMP
TENURE
12 yrs

Joe Coote

TITLE
President of NZMP Americas
TENURE
3.2 yrs

Judith Swales

TITLE
Chief Operating Officer of Global Consumer & Foodservice
AGE
50
TENURE
6.2 yrs

Mike Cronin

TITLE
Managing Director of Co-operative Affairs
TENURE
3 yrs

René Dedoncker

TITLE
Managing Director of Fonterra Australia
TENURE
4 yrs
Board of Directors Tenure

Average tenure of the Fonterra Co-operative Group board of directors in years:

2
Average Tenure
  • The average tenure for the Fonterra Co-operative Group board of directors is less than 3 years, this suggests a new board.
Board of Directors

John Monaghan

TITLE
Chairman
COMPENSATION
NZ$206K
TENURE
0.9 yrs

Duncan Coull

TITLE
Chairman of Shareholders Council
TENURE
3.9 yrs

Simon Claude Israel

TITLE
Independent Director
COMPENSATION
NZ$282K
AGE
65
TENURE
6.1 yrs

Leonie Guiney

TITLE
Director
COMPENSATION
NZ$43K
TENURE
1.4 yrs

Clinton Dines

TITLE
Independent Director
COMPENSATION
NZ$172K
AGE
60
TENURE
3.6 yrs

Scott St John

TITLE
Independent Director
COMPENSATION
NZ$206K
TENURE
2.7 yrs

Donna Smit

TITLE
Director
COMPENSATION
NZ$172K
TENURE
2.5 yrs

Brent Goldsack

TITLE
Director
COMPENSATION
NZ$131K
TENURE
1.6 yrs

Andy Macfarlane

TITLE
Director
COMPENSATION
NZ$131K
TENURE
1.6 yrs

Bruce Hassall

TITLE
Independent Director
COMPENSATION
NZ$157K
TENURE
1.6 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (NZ$) Value (NZ$)
X
Management checks
We assess Fonterra Co-operative Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Fonterra Co-operative Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

FCG News

Simply Wall St News

Should You Be Worried About Fonterra Co-operative Group Limited's (NZSE:FCG) 3.5% Return On Equity?

We'll use ROE to examine Fonterra Co-operative Group Limited (NZSE:FCG), by way of a worked example. … The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Fonterra Co-operative Group: 3.5% = NZ$209m ÷ NZ$6.6b (Based on the trailing twelve months to January 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … Combining Fonterra Co-operative Group's Debt And Its 3.5% Return On Equity Fonterra Co-operative Group clearly uses a significant amount of debt to boost returns, as it has a debt to equity ratio of 1.19.

Simply Wall St -

You Might Like Fonterra Co-operative Group Limited (NZSE:FCG) But Do You Like Its Debt?

At this constant level of debt, FCG's cash and short-term investments stands at NZ$348m , ready to be used for running the business. … Moreover, FCG has produced NZ$1.2b in operating cash flow during the same period of time, leading to an operating cash to total debt ratio of 16%, signalling that FCG’s current level of operating cash is not high enough to cover debt. … At the current liabilities level of NZ$5.8b, it seems that the business has maintained a safe level of current assets to meet its obligations, with the current ratio last standing at 1.39x.

Simply Wall St -

Why We’re Not Impressed By Fonterra Co-operative Group Limited’s (NZSE:FCG) 4.8% ROCE

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Understanding Return On Capital Employed (ROCE). … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

Did Changing Sentiment Drive Fonterra Co-operative Group's (NZSE:FCG) Share Price Down By 30%?

So we wouldn't blame long term Fonterra Co-operative Group Limited (NZSE:FCG) shareholders for doubting their decision to hold, with the stock down 30% over a half decade. … Check out our latest analysis for Fonterra Co-operative Group. … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

Simply Wall St -

Fonterra Co-operative Group Limited (NZSE:FCG): Time For A Financial Health Check

Stocks with market capitalization between $2B and $10B, such as Fonterra Co-operative Group Limited (NZSE:FCG) with a size of NZ$7.1b, do not attract as much attention from the investing community as do the small-caps and large-caps. … Don’t forget that this is a general and concentrated examination of Fonterra Co-operative Group’s financial health, so you should conduct further analysis. … View our latest analysis for Fonterra Co-operative Group

Simply Wall St -

Why We’re Not Keen On Fonterra Co-operative Group Limited’s (NZSE:FCG) 6.5% Return On Capital

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … What is Return On Capital Employed (ROCE)? … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

Simply Wall St -

Is Fonterra Co-operative Group Limited (NZSE:FCG) A Financially Sound Company?

Small and large cap stocks are widely popular for a variety of reasons, however, mid-cap companies such as Fonterra Co-operative Group Limited (NZSE:FCG), with a market cap of NZ$7.7b, often get neglected by retail investors. … FCG’s financial liquidity and debt position will be analysed in this article, to get an idea of whether the company can fund opportunities for strategic growth and maintain strength through economic downturns. … View our latest analysis for Fonterra Co-operative Group

Simply Wall St -

Fonterra Co-operative Group Limited (NZSE:FCG)'s Return on Capital

and want to begin learning the link between Fonterra Co-operative Group Limited (NZSE:FCG)’s return fundamentals and stock market performance. … To understand Fonterra Co-operative Group’s capital returns we will look at a useful metric called return on capital employed. … Fonterra Co-operative Group's Return On Capital Employed

Simply Wall St -

Is Fonterra Co-operative Group Limited's (NZSE:FCG) Balance Sheet Strong Enough To Weather A Storm?

Small-caps and large-caps are wildly popular among investors, however, mid-cap stocks, such as Fonterra Co-operative Group Limited (NZSE:FCG), with a market capitalization of NZ$8.41b, rarely draw their attention from the investing community. … Don’t forget that this is a general and concentrated examination of Fonterra Co-operative Group’s financial health, so you should conduct further analysis. … View out our latest analysis for Fonterra Co-operative Group

Simply Wall St -

Is Fonterra Co-operative Group Limited's (NZSE:FCG) Balance Sheet Strong Enough To Weather A Storm?

Small-cap and large-cap companies receive a lot of attention from investors, but mid-cap stocks like Fonterra Co-operative Group Limited (NZSE:FCG), with a market cap of NZ$8.19b, are often out of the spotlight. … Don’t forget that this is a general and concentrated examination of Fonterra Co-operative Group’s financial health, so you should conduct further analysis. … See our latest analysis for Fonterra Co-operative Group

Simply Wall St -

FCG Company Info

Description

Fonterra Co-operative Group Limited, together with its subsidiaries, collects, manufactures, and sells milk and milk-derived products. It operates through Ingredients, Consumer and Foodservice, and China Farms segments. The company offers bulk and specialty dairy products, including milk powders, dairy fats, cheese, and proteins for food producers and distributors in approximately 140 countries. It also operates 70 Farm Source rural retail stores; and engages in farming of fresh milk. In addition, the company offers branded consumer products, such as powders, yoghurts, milk, butter, and cheese; and branded products and solutions for commercial kitchens comprising bakery butter, culinary creams, and cheeses. It provides its products primarily under the Anchor, Anmum, Anlene, NZMP, De Winkel, Fresh 'n Fruity, Kapiti, Mainland, Mammoth, Perfect Italiano, Piako, Primo, Symbio, and Tip Top brands. The company has operations in New Zealand, China, rest of Asia, Australia, the United States, Europe, Latin America, and internationally. Fonterra Co-operative Group Limited was founded in 2001 and is based in Auckland, New Zealand.

Details
Name: Fonterra Co-operative Group Limited
FCG
Exchange: NZSE
Founded: 2001
NZ$6,302,887,633
1,611,991,722
Website: http://www.fonterra.com
Address: Fonterra Co-operative Group Limited
Fonterra Centre,
109 Fanshawe Street,
Auckland,
1010,
New Zealand
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NZSE FCG Co-Operative Shares New Zealand Stock Exchange NZ NZD 24. Dec 2012
Number of employees
Current staff
Staff numbers
21,500
Fonterra Co-operative Group employees.
Industry
Packaged Foods and Meats
Food, Beverage & Tobacco
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/23 10:39
End of day share price update: 2019/06/21 00:00
Last earnings filing: 2019/03/20
Last earnings reported: 2019/01/31
Last annual earnings reported: 2018/07/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.