Fonterra Co-operative Group
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
1 Year Returns
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.
FCG Value
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.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Fonterra Co-operative Group.
| 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.
| 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.
| 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 | ||
| 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 |
| 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 |
| 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.
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?
| 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.
| 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?
| 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?
| 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 |
| 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.
Value checks
We assess Fonterra Co-operative Group's value by looking at:- 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. )
- Is the PE ratio less than the market average, and/ or less than the Food industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Food industry average (and greater than 0)? (1 check) 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
- 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!
Earnings growth vs Low Risk Savings
- 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
| 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
| 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 |
| 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.
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.
| 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.
Future performance checks
We assess Fonterra Co-operative Group's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the New Zealand market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the New Zealand market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
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
Past Earnings growth analysis
- 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
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.
| 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).
Past performance checks
We assess Fonterra Co-operative Group's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Food industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
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.
- 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
Assets
Liabilities and shares
- 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.
All data from Fonterra Co-operative Group Company Filings, last reported 4 months ago.
| 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).
Financial health checks
We assess Fonterra Co-operative Group's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Fonterra Co-operative Group has a total score of 2/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- 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
If you bought
NZ$2,000 of
Fonterra Co-operative Group
shares you are expected to receive
NZ$0
in your first year as a dividend.
Dividend Amount
- Unable to evaluate Fonterra Co-operative Group's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
- Unable to evaluate Fonterra Co-operative Group's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 0 Analyst Estimates (S&P Global) | See Below |
| New Zealand Food Industry Average Dividend Yield | Market Cap Weighted Average of 7 Stocks | 3.5% |
| New Zealand Market Average Dividend Yield | Market Cap Weighted Average of 73 Stocks | 3.7% |
| New Zealand Minimum Threshold Dividend Yield | 10th Percentile | 2.3% |
| New Zealand Bottom 25% Dividend Yield | 25th Percentile | 3.1% |
| New Zealand Top 25% Dividend Yield | 75th Percentile | 5.7% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in NZ$) | 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.
Income/ dividend checks
We assess Fonterra Co-operative Group's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 2.3%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- 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) 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
CEO
| 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:
- The tenure for the Fonterra Co-operative Group management team is about average.
Management Team
Miles Hurrell
Chief Executive Officer
0.8 yrs
Marc Rivers
Chief Financial Officer
1.3 yrs
Robert Spurway
Chief Operating Officer of Global Operations
3 yrs
Chris Augustijns
Director of Marketing
Deborah Capill
Managing Director of People & Culture
0.3 yrs
Kelvin Wickham
Chief Operating Officer of NZMP
12 yrs
Joe Coote
President of NZMP Americas
3.2 yrs
Judith Swales
Chief Operating Officer of Global Consumer & Foodservice
50
6.2 yrs
Mike Cronin
Managing Director of Co-operative Affairs
3 yrs
René Dedoncker
Managing Director of Fonterra Australia
4 yrs
Board of Directors Tenure
Average tenure of the Fonterra Co-operative Group board of directors in years:
- 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
Chairman
NZ$206K
0.9 yrs
Duncan Coull
Chairman of Shareholders Council
3.9 yrs
Simon Claude Israel
Independent Director
NZ$282K
65
6.1 yrs
Leonie Guiney
Director
NZ$43K
1.4 yrs
Clinton Dines
Independent Director
NZ$172K
60
3.6 yrs
Scott St John
Independent Director
NZ$206K
2.7 yrs
Donna Smit
Director
NZ$172K
2.5 yrs
Brent Goldsack
Director
NZ$131K
1.6 yrs
Andy Macfarlane
Director
NZ$131K
1.6 yrs
Bruce Hassall
Independent Director
NZ$157K
1.6 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price (NZ$) | Value (NZ$) | |
|---|---|---|---|---|---|---|---|---|---|---|
Management checks
We assess Fonterra Co-operative Group's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) 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 - – Full articleYou 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 - – Full articleWhy 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 - – Full articleDid 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 - – Full articleFonterra 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 - – Full articleWhy 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 - – Full articleIs 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 - – Full articleFonterra 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 - – Full articleIs 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 - – Full articleIs 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 - – Full articleFCG 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
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.
