NZSE:FCG

Stock Analysis Report

Executive Summary

Fonterra Co-operative Group Limited, together with its subsidiaries, collects, manufactures, and sells milk and milk-derived products.


Snowflake Analysis

Adequate balance sheet and fair value.


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

-0.5%

FCG

1.9%

NZ Food

0.8%

NZ Market


1 Year Return

-11.3%

FCG

0.3%

NZ Food

-4.5%

NZ Market

Return vs Industry: FCG underperformed the NZ Food industry which returned -0.5% over the past year.

Return vs Market: FCG underperformed the NZ Market which returned -5.1% over the past year.


Shareholder returns

FCGIndustryMarket
7 Day-0.5%1.9%0.8%
30 Day-1.5%1.2%-14.1%
90 Day-5.4%5.1%-17.0%
1 Year-11.3%-11.3%1.7%0.3%-1.0%-4.5%
3 Year-33.7%-36.9%57.1%47.3%30.1%14.0%
5 Year-13.7%-28.0%138.3%96.7%62.3%26.9%

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

Valuation

Is Fonterra Co-operative Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FCG (NZ$3.84) is trading below our estimate of fair value (NZ$15.39)

Significantly Below Fair Value: FCG is trading below fair value by more than 20%.


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 (1x) compared to the NZ Food industry average (1x).


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?

16.1%

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

Past Performance

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

-43.9%

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 -43.9% 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 (2.2%).


Return on Equity

High ROE: FCG has a negative Return on Equity (-1.46%), 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$9.7B) exceed its short term liabilities (NZ$7.6B).

Long Term Liabilities: FCG's short term assets (NZ$9.7B) exceed its long term liabilities (NZ$6.2B).


Debt to Equity History and Analysis

Debt Level: FCG's debt to equity ratio (96%) is considered high.

Reducing Debt: FCG's debt to equity ratio has reduced from 114.4% to 96% over the past 5 years.

Debt Coverage: FCG's debt is well covered by operating cash flow (26.7%).

Interest Coverage: FCG is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


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?

3.8yrs

Average management tenure


CEO

Miles Hurrell

1.67s

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 ($USD1.36M) is below average for companies of similar size in the NZ market ($USD2.28M).

Compensation vs Earnings: Insufficient data to compare Miles's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Miles Hurrell
Chief Executive Officer1.67yrsNZ$2.32mno data
Marc Rivers
Chief Financial Officer2.17yrsno datano data
Chris Augustijns
Director of Marketingno datano datano data
Kelvin Wickham
Chief Executive Officer of Africa12.83yrsno datano data
Joe Coote
President of NZMP Americas4yrsno datano data
Judith Swales
Chief Executive Officer of Asia Pacific (APAC)7yrsno datano data
Mike Cronin
Managing Director of Co-operative Affairs3.83yrsno datano data
René Dedoncker
Managing Director of Fonterra Australia4.83yrsno datano data
Mark Van Zon
Acting Managing Director of People & Culture2.25yrsno datano data
Brett Henshaw
Managing Director of Fonterra Brands New Zealand1.33yrsno datano data

3.8yrs

Average Tenure

Experienced Management: FCG's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Brent Goldsack
Director2.42yrsNZ$198.06k0.024% NZ$1.5m
Scott St John
Independent Director3.5yrsNZ$210.00kno data
Donna Smit
Director3.33yrsNZ$175.00kno data
Bruce Hassall
Independent Director2.42yrsNZ$235.00kno data
Clinton Dines
Independent Director4.42yrsNZ$175.00kno data
John Monaghan
Chairman of the Board1.75yrsNZ$430.00k0.0087% NZ$538.6k
Peter McBride
Director1.42yrsNZ$127.90kno data
Andrew Macfarlane
Director2.42yrsNZ$175.00k0.050% NZ$3.1m
Leonie Guiney
Director1.42yrsNZ$150.58k0.011% NZ$655.6k
John Nicholls
Director1.33yrsNZ$107.47kno data

2.4yrs

Average Tenure

Experienced Board: FCG's board of directors are not considered experienced ( 2.4 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$6.190b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FCGNZSE (New Zealand Stock Exchange)YesCo-Operative SharesNZNZDDec 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 10:36
End of Day Share Price2020/04/07 00:00
Earnings2020/01/31
Annual Earnings2019/07/31


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.