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LIC

Livestock ImprovementNZSE:LIC Stock Report

Market Cap

NZ$173.7m

7D

0%

1Y

56.4%

Updated

25 Oct, 2021

Data

Company Financials
LIC fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance4/6
Financial Health6/6
Dividends4/6

LIC Overview

Livestock Improvement Corporation Limited, together with its subsidiaries, develops, produces, and markets artificial breeding, genetics, farm software, farm automation, and herd testing services.

Price History & Performance

Summary of all time highs, changes and price drops for Livestock Improvement
Historical stock prices
Current Share PriceNZ$1.22
52 Week HighNZ$0.78
52 Week LowNZ$1.35
Beta0.12
1 Month Change0%
3 Month Change-9.63%
1 Year Change56.41%
3 Year Change69.44%
5 Year Change84.15%
Change since IPO212.82%

Recent News & Updates

Jul 25
Livestock Improvement (NZSE:LIC) Has Announced That Its Dividend Will Be Reduced To NZ$0.13

Livestock Improvement (NZSE:LIC) Has Announced That Its Dividend Will Be Reduced To NZ$0.13

Livestock Improvement Corporation Limited ( NZSE:LIC ) is reducing its dividend to NZ$0.13 on the 20th of Augustwhich...

Jul 22
A Look At The Intrinsic Value Of Livestock Improvement Corporation Limited (NZSE:LIC)

A Look At The Intrinsic Value Of Livestock Improvement Corporation Limited (NZSE:LIC)

In this article we are going to estimate the intrinsic value of Livestock Improvement Corporation Limited ( NZSE:LIC...

Jan 20
Livestock Improvement (NZSE:LIC) Has Compensated Shareholders With A Respectable 92% Return On Their Investment

Livestock Improvement (NZSE:LIC) Has Compensated Shareholders With A Respectable 92% Return On Their Investment

One simple way to benefit from the stock market is to buy an index fund. But if you choose individual stocks with...

Shareholder Returns

LICNZ FoodNZ Market
7D0%-0.6%0.4%
1Y56.4%-37.8%2.1%

Return vs Industry: LIC exceeded the NZ Food industry which returned -37.8% over the past year.

Return vs Market: LIC exceeded the NZ Market which returned 2.1% over the past year.

Price Volatility

Is LIC's price volatile compared to industry and market?
LIC volatility
LIC Beta0.12
Industry Beta0.56
Market Beta1

Stable Share Price: LIC is more volatile than 75% of NZ stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: Insufficient data to determine LIC's volatility change over the past year.

About the Company

FoundedEmployeesCEOWebsite
1909n/aWayne McNeehttps://www.lic.co.nz

Livestock Improvement Corporation Limited, together with its subsidiaries, develops, produces, and markets artificial breeding, genetics, farm software, farm automation, and herd testing services. The company operates in four segments: NZ Market Genetics, Herd Testing, Farm Software, and Farm Automation. The NZ Market Genetics segment provides bovine genetic breeding materials, and related services to dairy farmers.

Livestock Improvement Fundamentals Summary

How do Livestock Improvement's earnings and revenue compare to its market cap?
LIC fundamental statistics
Market CapNZ$173.66m
Earnings (TTM)NZ$23.61m
Revenue (TTM)NZ$249.01m

7.4x

P/E Ratio

0.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LIC income statement (TTM)
RevenueNZ$249.01m
Cost of RevenueNZ$144.37m
Gross ProfitNZ$104.64m
ExpensesNZ$81.03m
EarningsNZ$23.61m

Last Reported Earnings

May 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.17
Gross Margin42.02%
Net Profit Margin9.48%
Debt/Equity Ratio0%

How did LIC perform over the long term?

See historical performance and comparison

Dividends

10.3%

Current Dividend Yield

76%

Payout Ratio

Valuation

Is Livestock Improvement undervalued compared to its fair value and its price relative to the market?

28.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LIC (NZ$1.22) is trading below our estimate of fair value (NZ$1.7)

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


Price To Earnings Ratio

PE vs Industry: LIC is good value based on its PE Ratio (7.4x) compared to the NZ Food industry average (14.5x).

PE vs Market: LIC is good value based on its PE Ratio (7.4x) compared to the NZ market (22.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate LIC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: LIC is good value based on its PB Ratio (0.6x) compared to the NZ Food industry average (1.1x).


Future Growth

How is Livestock Improvement forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

26.6%

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 Livestock Improvement has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has Livestock Improvement performed over the past 5 years?

25.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LIC has high quality earnings.

Growing Profit Margin: LIC's current net profit margins (9.5%) are higher than last year (8.7%).


Past Earnings Growth Analysis

Earnings Trend: LIC has become profitable over the past 5 years, growing earnings by 25.2% per year.

Accelerating Growth: LIC's earnings growth over the past year (12.1%) is below its 5-year average (25.2% per year).

Earnings vs Industry: LIC earnings growth over the past year (12.1%) exceeded the Food industry 2.9%.


Return on Equity

High ROE: LIC's Return on Equity (8%) is considered low.


Financial Health

How is Livestock Improvement's financial position?


Financial Position Analysis

Short Term Liabilities: LIC's short term assets (NZ$113.5M) exceed its short term liabilities (NZ$33.4M).

Long Term Liabilities: LIC's short term assets (NZ$113.5M) exceed its long term liabilities (NZ$54.5M).


Debt to Equity History and Analysis

Debt Level: LIC is debt free.

Reducing Debt: LIC has no debt compared to 5 years ago when its debt to equity ratio was 23.5%.

Debt Coverage: LIC has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: LIC has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Livestock Improvement current dividend yield, its reliability and sustainability?

10.25%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LIC's dividend (10.25%) is higher than the bottom 25% of dividend payers in the NZ market (2.41%).

High Dividend: LIC's dividend (10.25%) is in the top 25% of dividend payers in the NZ market (4.9%)


Stability and Growth of Payments

Stable Dividend: LIC's dividend payments have been volatile in the past 10 years.

Growing Dividend: LIC's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (76%), LIC's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.4yrs

Average management tenure


CEO

Wayne McNee

8.25yrs

Tenure

Mr. Wayne McNee has been the Chief Executive Officer at Livestock Improvement Corporation Limited since July 2013. Mr. McNee was Director-General for the Ministry for Primary Industries (MPI) since Novembe...


Leadership Team

Experienced Management: LIC's management team is considered experienced (4.4 years average tenure).


Board Members

Experienced Board: LIC's board of directors are considered experienced (4.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Livestock Improvement Corporation Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Livestock Improvement Corporation Limited
  • Ticker: LIC
  • Exchange: NZSE
  • Founded: 1909
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: NZ$173.661m
  • Shares outstanding: 142.34m
  • Website: https://www.lic.co.nz

Location

  • Livestock Improvement Corporation Limited
  • 605 Ruakura Road
  • Newstead
  • Hamilton
  • New Zealand

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/25 06:01
End of Day Share Price2021/10/18 00:00
Earnings2021/05/31
Annual Earnings2021/05/31


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.