Fonterra Co-operative Group
Market Cap
NZ$6.4b
Last Updated
2020/02/25 10:38 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.
Snowflake Analysis
Overvalued with worrying balance sheet.
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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
1.3%
FCG
-1.5%
NZ Food
-0.007%
NZ Market
1 Year Return
-11.9%
FCG
-3.9%
NZ Food
20.2%
NZ Market
Return vs Industry: FCG underperformed the NZ Food industry which returned -3.9% over the past year.
Return vs Market: FCG underperformed the NZ Market which returned 20.2% over the past year.
Shareholder returns
| FCG | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.3% | -1.5% | -0.007% |
| 30 Day | -0.7% | -3.7% | -0.8% |
| 90 Day | 0% | 0.4% | 6.5% |
| 1 Year | -11.9%-11.9% | -2.9%-3.9% | 25.0%20.2% |
| 3 Year | -32.1%-37.5% | 59.9%46.8% | 59.8%39.1% |
| 5 Year | -18.7%-33.4% | 116.1%77.0% | 94.6%51.3% |
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
1 week ago | Simply Wall St
Have Insiders Been Buying Fonterra Co-operative Group Limited (NZSE:FCG) Shares?2 months ago | Simply Wall St
Did You Manage To Avoid Fonterra Co-operative Group's (NZSE:FCG) 33% Share Price Drop?3 months ago | Simply Wall St
Fonterra Co-operative Group (NZSE:FCG) Takes On Some Risk With Its Use Of DebtValuation
Is Fonterra Co-operative Group undervalued compared to its fair value and its price relative to the market?
1.11x
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: FCG (NZ$3.99) is trading above our estimate of fair value (NZ$1.52)
Significantly Below Fair Value: FCG is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: FCG is unprofitable, so we can't compare its PE Ratio to the Food industry average.
PE vs Market: FCG is unprofitable, so we can't compare its PE Ratio to the NZ market.
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 (1.1x) compared to the NZ Food industry average (1.2x).
Next Steps
Future Growth
How is Fonterra Co-operative Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
14.7%
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.
Next Steps
- Take a look at our analysis of FCG’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
- Fonterra Co-operative Group competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Food, Beverage & Tobacco industry.
Past Performance
How has Fonterra Co-operative Group performed over the past 5 years?
-28.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: FCG is currently unprofitable.
Growing Profit Margin: FCG is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: FCG is unprofitable, and losses have increased over the past 5 years at a rate of -28.7% per year.
Accelerating Growth: Unable to compare FCG's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: FCG is unprofitable, making it difficult to compare its past year earnings growth to the Food industry (-9.7%).
Return on Equity
High ROE: FCG has a negative Return on Equity (-10.29%), as it is currently unprofitable.
Next Steps
Financial Health
How is Fonterra Co-operative Group's financial position?
Financial Position Analysis
Short Term Liabilities: FCG's short term assets (NZ$5.8B) exceed its short term liabilities (NZ$5.0B).
Long Term Liabilities: FCG's short term assets (NZ$5.8B) do not cover its long term liabilities (NZ$6.2B).
Debt to Equity History and Analysis
Debt Level: FCG's debt to equity ratio (110.5%) is considered high.
Reducing Debt: FCG's debt to equity ratio has increased from 73% to 110.5% over the past 5 years.
Balance Sheet
Inventory Level: FCG has a high level of physical assets or inventory.
Debt Coverage by Assets: FCG's debt is not covered by short term assets (assets are 0.9x debt).
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: FCG has been profitable on average in the past, therefore cash runway is not a concern.
Forecast Cash Runway: FCG has been profitable on average in the past, therefore cash runway is not a concern.
Next Steps
Dividend
What is Fonterra Co-operative Group's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate FCG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate FCG's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if FCG's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if FCG's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: FCG is not paying a notable dividend for the NZ market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of FCG's dividend in 3 years as they are not forecast to pay a notable one for the NZ market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.7yrs
Average management tenure
CEO
Miles Hurrell 0
1.5yrs
Tenure
NZ$2,320,911
Compensation
Mr. Miles Hurrell serves as Chief Executive Officer of Fonterra Co-Operative Group Ltd since March 2019. He served as Interim Chief Executive Officer at Fonterra Co-Operative Group Ltd. from August 15, 201 ...
CEO Compensation Analysis
Compensation vs Market: Miles's total compensation ($USD1.47M) is about average for companies of similar size in the NZ market ($USD1.37M).
Compensation vs Earnings: Insufficient data to compare Miles's compensation with company performance.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chief Executive Officer | 1.5yrs | NZ$2.32m | no data | |
| Chief Financial Officer | 2yrs | no data | no data | |
| Director of Marketing | 0yrs | no data | no data | |
| Chief Executive Officer of Africa | 12.7yrs | no data | no data | |
| President of NZMP Americas | 3.8yrs | no data | no data | |
| Chief Executive Officer of Asia Pacific (APAC) | 6.8yrs | no data | no data | |
| Managing Director of Co-operative Affairs | 3.7yrs | no data | no data | |
| Managing Director of Fonterra Australia | 4.7yrs | no data | no data | |
| Acting Managing Director of People & Culture | 2.1yrs | no data | no data | |
| Managing Director of Fonterra Brands New Zealand | 1.2yrs | no data | no data |
3.7yrs
Average Tenure
Experienced Management: FCG's management team is considered experienced (3.7 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Director | 2.3yrs | NZ$198.06k | 0.024% NZ$1.5m | |
| Independent Director | 3.3yrs | NZ$210.00k | no data | |
| Director | 3.2yrs | NZ$175.00k | no data | |
| Independent Director | 2.3yrs | NZ$235.00k | no data | |
| Independent Director | 4.3yrs | NZ$175.00k | no data | |
| Chairman of the Board | 1.6yrs | NZ$430.00k | 0.0087% NZ$559.6k | |
| Director | 1.3yrs | NZ$127.90k | no data | |
| Director | 2.3yrs | NZ$175.00k | 0.050% NZ$3.2m | |
| Director | 1.3yrs | NZ$150.58k | 0.011% NZ$681.2k | |
| Director | 1.2yrs | NZ$107.47k | no data |
2.3yrs
Average Tenure
Experienced Board: FCG's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.
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$6.432b
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| FCG | NZSE (New Zealand Stock Exchange) | Yes | Co-Operative Shares | NZ | NZD | Dec 2012 |
Biography
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 milk powders, butter, and cheese products. It also engages in the fast-moving consumer goods and foodservice businesses. In addition, the company operates 70 Farm Source retail stores; and engages in farming of fresh milk. It provides its products primarily under the Anchor, Anmum, Anlene, NZMP, De Winkel, Fresh 'n Fruity, Kapiti, Mainland, Mammoth, Perfect Italiano, Piako, Primo, and Symbio 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.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/25 10:38 |
| End of Day Share Price | 2020/02/24 00:00 |
| Earnings | 2019/07/31 |
| Annual Earnings | 2019/07/31 |
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.