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Livestock Improvement

NZSE:LIC
Snowflake Description

Undervalued with excellent balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
LIC
NZSE
NZ$89M
Market Cap
  1. Home
  2. NZ
  3. Food, Beverage & Tobacco
Company description

Livestock Improvement Corporation Limited, together with its subsidiaries, develops, produces, and markets artificial breeding, genetics, farm software, farm automation, and herd testing services. The last earnings update was 230 days ago. More info.


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  • Livestock Improvement has significant price volatility in the past 3 months.
LIC Share Price and Events
Price Volatility
LIC
Industry
5yr Volatility vs Market

LIC Value

 Is Livestock Improvement 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 Livestock Improvement 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 Livestock Improvement.

NZSE:LIC 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 9%
Perpetual Growth Rate 10-Year NZ Government Bond Rate 5%

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:LIC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year NZ Govt Bond Rate 5%
Equity Risk Premium S&P Global 5%
Food Unlevered Beta Simply Wall St/ S&P Global 0.37
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.367 (1 + (1- 28%) (51.33%))
0.502
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 5.04% + (0.8 * 4.96%)
9.01%

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

The calculations below outline how an intrinsic value for Livestock Improvement is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

NZSE:LIC DCF 1st Stage: Next 5 year cash flow forecast
2018 2019 2020 2021 2022
Levered FCF (NZD, Millions) 19.41 19.54 19.67 19.80 19.93
Source Extrapolated @ (0.66%) Extrapolated @ (0.66%) Extrapolated @ (0.66%) Extrapolated @ (0.66%) Extrapolated @ (0.66%)
Present Value
Discounted (@ 9.01%)
17.81 16.44 15.18 14.02 12.95
Present value of next 5 years cash flows NZ$76
NZSE:LIC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2022 × (1 + g) ÷ (Discount Rate – g)
= NZ$20 × (1 + 5.04%) ÷ (9.01% – 5.04%)
NZ$528
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= NZ$528 ÷ (1 + 9.01%)5
NZ$343
NZSE:LIC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= NZ$76 + NZ$343
NZ$419
Equity Value per Share
(NZD)
= Total value / Shares Outstanding
= NZ$419 / 7
NZ$56.78
NZSE:LIC Discount to Share Price
Calculation Result
Value per share (NZD) From above. NZ$56.78
Current discount Discount to share price of NZ$3.00
= -1 x (NZ$3.00 - NZ$56.78) / NZ$56.78
94.7%

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

Current Discount
Amount off the current price Livestock Improvement is available for.
Intrinsic value
>50%
Share price is NZ$3 vs Future cash flow value of NZ$56.78
Current Discount Checks
For Livestock Improvement to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Livestock Improvement's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Livestock Improvement's share price is below the future cash flow value, and at a substantial discount (> 40%).
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 Livestock Improvement's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Livestock Improvement's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NZSE:LIC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings () in NZD NZ$0.70
NZSE:LIC Share Price ** NZSE (2018-07-16) in NZD NZ$3
New Zealand Food Industry PE Ratio Median Figure of 11 Publicly-Listed Food Companies 15.87x
New Zealand Market PE Ratio Median Figure of 101 Publicly-Listed Companies 15.76x

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

** Primary Listing of Livestock Improvement.

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

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

= 3 ÷ 0.70

4.31x

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

  • Livestock Improvement is good value based on earnings compared to the NZ Food industry average.
  • Livestock Improvement is good value based on earnings compared to the New Zealand market.
Price based on expected Growth
Does Livestock Improvement's expected growth come at a high price?
Raw Data
NZSE:LIC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 4.31x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
21.7%per year
New Zealand Food Industry PEG Ratio Median Figure of 8 Publicly-Listed Food Companies 2.1x
New Zealand Market PEG Ratio Median Figure of 71 Publicly-Listed Companies 1.85x

*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 Livestock Improvement, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Livestock Improvement's assets?
Raw Data
NZSE:LIC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings () in NZD NZ$7.90
NZSE:LIC Share Price * NZSE (2018-07-16) in NZD NZ$3
New Zealand Food Industry PB Ratio Median Figure of 14 Publicly-Listed Food Companies 1.49x
New Zealand Market PB Ratio Median Figure of 136 Publicly-Listed Companies 1.51x
NZSE:LIC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 3 ÷ 7.90

0.38x

* Primary Listing of Livestock Improvement.

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

  • Livestock Improvement is good value based on assets compared to the NZ Food industry average.
X
Value checks
We assess Livestock Improvement'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. Livestock Improvement has a total score of 5/6, 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.

LIC Future Performance

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

  • No analysts cover Livestock Improvement, 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
21.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Livestock Improvement expected to grow at an attractive rate?
  • Livestock Improvement's earnings growth is expected to exceed the low risk savings rate of 5%.
Growth vs Market Checks
  • Livestock Improvement's earnings growth is expected to exceed the New Zealand market average.
  • Unable to compare Livestock Improvement's revenue growth to the New Zealand market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
NZSE:LIC Future Growth Rates Data Sources
Data Point Source Value (per year)
NZSE:LIC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts 21.7%
New Zealand Food Industry Earnings Growth Rate Market Cap Weighted Average 23.8%
New Zealand Food Industry Revenue Growth Rate Market Cap Weighted Average 19.8%
New Zealand Market Earnings Growth Rate Market Cap Weighted Average 5%
New Zealand Market Revenue Growth Rate Market Cap Weighted Average 0.5%

*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:LIC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (7 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:LIC Future Estimates Data
Date (Data in NZD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
NZSE:LIC Past Financials Data
Date (Data in NZD Millions) Revenue Cash Flow Net Income *
2017-11-30 220 31 16
2017-08-31 210 28 18
2017-05-31 199 25 21
2017-02-28 196 28 10
2016-11-30 193 31 -1
2016-08-31 199 23 -2
2016-05-31 205 14 -4
2016-02-29 209 13 -2
2015-11-30 214 11 0
2015-08-31 221 23 7
2015-05-31 228 35 14
2015-02-28 229 39 17

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Livestock Improvement's earnings are expected to grow significantly at over 20% yearly.
  • Unable to determine if Livestock Improvement 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:LIC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (7 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Livestock Improvement Company Filings, last reported 7 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NZSE:LIC Future Estimates Data
Date (Data in NZD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
NZSE:LIC Past Financials Data
Date (Data in NZD Millions) EPS *
2017-11-30
2017-08-31
2017-05-31 0.70
2017-02-28 0.33
2016-11-30
2016-08-31
2016-05-31 -0.13
2016-02-29 -0.06
2015-11-30
2015-08-31
2015-05-31 0.47
2015-02-28 0.59

*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 Livestock Improvement will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Livestock Improvement'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.
Livestock Improvement has a total score of 3/6, 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.

LIC Past Performance

  How has Livestock Improvement performed over the past 5 years?

  • Livestock Improvement's last earnings update was 230 days ago.
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 Livestock Improvement'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.
  • Livestock Improvement's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Livestock Improvement has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Livestock Improvement has become profitable in the last year making it difficult to compare the NZ Food industry average.
Earnings and Revenue History
Livestock Improvement'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 Livestock Improvement Company Filings, last reported 7 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NZSE:LIC Past Revenue, Cash Flow and Net Income Data
Date (Data in NZD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2017-11-30 220.28 16.40
2017-08-31 209.71 18.49
2017-05-31 199.13 20.57
2017-02-28 195.90 9.83
2016-11-30 192.67 -0.92
2016-08-31 198.86 -2.43
2016-05-31 205.06 -3.95
2016-02-29 209.41 -1.90
2015-11-30 213.77 0.16
2015-08-31 221.08 7.00
2015-05-31 228.39 13.84
2015-02-28 229.27 17.29
2014-11-30 230.16 20.75
2014-08-31 218.79 19.40
2014-05-31 207.42 18.05
2014-02-28 202.22 19.31
2013-11-30 197.03 20.58
2013-08-31 195.32 22.12
2013-05-31 193.62 23.66
2013-02-28 189.77 25.05
2012-11-30 185.91 26.44
2012-08-31 180.33 25.41
2012-05-31 174.74 24.39
2012-02-29 174.10 22.55
2011-11-30 173.46 20.71
2011-08-31 169.53 19.17

*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.
  • Livestock Improvement has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Livestock Improvement used its assets less efficiently than the NZ Food industry average last year based on Return on Assets.
  • Livestock Improvement's use of capital has not improved over the past 3 years (Return on Capital Employed).
X
Past performance checks
We assess Livestock Improvement'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.
Livestock Improvement 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.

LIC Health

 How is Livestock Improvement'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 Livestock Improvement's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Livestock Improvement is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Livestock Improvement's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Livestock Improvement'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 2.2x 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 Livestock Improvement Company Filings, last reported 7 months ago.

NZSE:LIC Past Debt and Equity Data
Date (Data in NZD Millions) Total Equity Total Debt Cash & Short Term Investments
2017-11-30 248.94 45.48 7.56
2017-08-31 248.94 45.48 7.56
2017-05-31 233.41 38.31 3.46
2017-02-28 233.41 38.31 3.46
2016-11-30 231.02 57.83 4.74
2016-08-31 231.02 57.83 4.74
2016-05-31 210.96 49.57 2.67
2016-02-29 210.96 49.57 2.67
2015-11-30 228.69 73.16 11.88
2015-08-31 228.69 73.16 11.88
2015-05-31 218.79 16.83 2.52
2015-02-28 218.79 16.83 2.52
2014-11-30 232.50 22.08 3.49
2014-08-31 232.50 22.08 3.49
2014-05-31 213.37 6.29 15.50
2014-02-28 213.37 6.29 15.50
2013-11-30 219.64 15.25 8.24
2013-08-31 219.64 15.25 8.24
2013-05-31 208.93 5.44 29.25
2013-02-28 208.93 5.44 29.25
2012-11-30 214.65 12.47 10.06
2012-08-31 214.65 12.47 10.06
2012-05-31 196.21 5.12 38.53
2012-02-29 196.21 5.12 38.53
2011-11-30 199.66 5.14 15.56
2011-08-31 199.66 5.14 15.56
  • Livestock Improvement's level of debt (18.3%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (5.8% vs 18.3% today).
  • Debt is well covered by operating cash flow (68.6%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 28x coverage).
X
Financial health checks
We assess Livestock Improvement'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. Livestock Improvement has a total score of 5/6, 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.

LIC Dividends

 What is Livestock Improvement'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
2.15%
Current annual income from Livestock Improvement dividends.
If you bought NZ$2,000 of Livestock Improvement shares you are expected to receive NZ$43 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?
  • Livestock Improvement's pays a lower dividend yield than the bottom 25% of dividend payers in New Zealand (3.33%).
  • Livestock Improvement's dividend is below the markets top 25% of dividend payers in New Zealand (5.92%).
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:LIC 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 9 Stocks 6.6%
New Zealand Market Average Dividend Yield Market Cap Weighted Average of 90 Stocks 5.4%
New Zealand Minimum Threshold Dividend Yield 10th Percentile 1.6%
New Zealand Bottom 25% Dividend Yield 25th Percentile 3.3%
New Zealand Top 25% Dividend Yield 75th Percentile 5.9%

Industry and Market average data is calculated daily.

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

NZSE:LIC Future Dividends Estimate Data
Date (Data in NZ$) Dividend per Share (annual) Avg. No. Analysts
NZSE:LIC Past Annualized Dividends Data
Date (Data in NZ$) Dividend per share (annual) Avg. Yield (%)
2017-07-20 0.064 0.656
2017-02-17 0.000 0.000
2016-07-25 0.000 0.000
2015-07-24 0.203 1.586
2014-07-24 0.359 1.501
2013-07-25 0.549 1.991
2012-07-26 0.392 1.812
2011-07-27 0.450 2.425
2010-07-28 0.235 1.853
2009-07-27 0.419 3.827
2008-08-04 0.327 3.902
2008-07-21 0.227 1.671

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

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of Livestock Improvement's earnings are paid to the shareholders as a dividend.
  • Dividends paid are thoroughly covered by net profit (10.8x coverage).
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 Livestock Improvement's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.6%) - 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 Livestock Improvement afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Livestock Improvement has a total score of 1/6, see the detailed checks below.


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

LIC Management

 What is the CEO of Livestock Improvement'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
Wayne McNee, image provided by Google.
Wayne McNee
TENURE AS CEO 5 years
CEO Bio

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 November 2010. In 2011, he led the merger of the Ministry of Agriculture and Forestry, the New Zealand Food Safety Authority and the Ministry of Fisheries to form the Ministry for Primary Industries. He then went on to lead the development and implementation of MPI's strategy with its vision of growing and protecting New Zealand. Prior to joining MPI, he served as Chief Executive of the Ministry of Fisheries. Among his achievements he led the development of `Fisheries 2030' a long-term strategy and action plan for the sector. Before joining the Ministry of Fisheries, he served as Chief Executive of the Pharmaceutical Management Agency (PHARMAC) a position he assumed in 2001 after being PHARMAC'S General Manager. In mid-2006, he was seconded to the Department of the Prime Minister and Cabinet spending 18 months as a policy advisor primarily on transport, local government and energy policy. Mr. McNee has a BPharm degree (Otago) and has studied leadership and management at Insead Business School, Stanford University, Oxford University and Mt Eliza Business School.

CEO Compensation
  • Insufficient data for Wayne to compare compensation growth.
  • Insufficient data for Wayne to establish whether their compensation is reasonable for a company of this size and profit level.
Management Team Tenure

Average tenure of the Livestock Improvement management team in years:

3.3
Average Tenure
  • The tenure for the Livestock Improvement management team is about average.
Management Team

Wayne McNee

TITLE
Chief Executive Officer
TENURE
5 yrs

Linda Cooper

TITLE
Chief Financial Officer
TENURE
4.1 yrs

Brent Wollaston

TITLE
Acting General Manager of Operations & Service
TENURE
0.1 yrs

Richard Spelman

TITLE
Chief Scientist
TENURE
4.1 yrs

Paul Littlefair

TITLE
Chief Information Officer
TENURE
2.7 yrs

Roz Urbahn

TITLE
Chief People Officer
TENURE
0.9 yrs

Renae Ellison

TITLE
Acting Chief Transformation Officer
TENURE
0.2 yrs

Geoff Corbett

TITLE
Acting Chief Executive Officer of LIC Automation
TENURE
0.7 yrs

Gillian Brennan

TITLE
Company Secretary
TENURE
5.3 yrs

Simon O'Connor

TITLE
General Manager of Emerging Markets and Innovation
TENURE
3.9 yrs
Board of Directors Tenure

Average tenure of the Livestock Improvement board of directors in years:

4.1
Average Tenure
  • The tenure for the Livestock Improvement board of directors is about average.
Board of Directors

Murray King

TITLE
Chairman
COMPENSATION
NZ$114K

Murray Jagger

TITLE
Director
COMPENSATION
NZ$47K
TENURE
18.1 yrs

Phil Lough

TITLE
Independent Director
COMPENSATION
NZ$60K
TENURE
15.8 yrs

Abby Foote

TITLE
Independent Director
COMPENSATION
NZ$68K
TENURE
3.8 yrs

David Jensen

TITLE
Director
COMPENSATION
NZ$47K
TENURE
6.1 yrs

Gray Baldwin

TITLE
Director
COMPENSATION
NZ$47K
TENURE
6.1 yrs

Alison Watters

TITLE
Director
COMPENSATION
NZ$47K
TENURE
4.1 yrs

Candace Reed

TITLE
Independent Director
COMPENSATION
NZ$28K
TENURE
2.8 yrs

Matt Ross

TITLE
Director
TENURE
1.1 yrs

Ben Dickie

TITLE
Director
TENURE
0.1 yrs
Recent Insider Trading
  • No 3 month insider trading information.
Who owns this company?
X
Management checks
We assess Livestock Improvement's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap and profit (greater than 0.5% of the company's profit + 0.03% of 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. Livestock Improvement 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.

LIC News

External News
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Simply Wall St News

Why You Should Not Buy Livestock Improvement Corporation Limited (NZSE:LIC) For Dividend

Over the past 10 years, Livestock Improvement Corporation Limited (NZSE:LIC) has returned an average of 7.00% per year to shareholders in terms of dividend yield. … Let's dig deeper into whether Livestock Improvement should have a place in your portfolio. … View out our latest analysis for Livestock Improvement

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Livestock Improvement Corporation Limited (NZSE:LIC): Can It Deliver A Superior ROE To The Industry?

The content of this article will benefit those of you who are starting to educate yourself about investing in the stock market. … and want to begin learning the link between Livestock Improvement Corporation Limited (NZSE:LIC)’s return fundamentals and stock market performance. … Livestock Improvement Corporation Limited (NZSE:LIC) delivered a less impressive 6.66% ROE over the past year, compared to the 14.32% return generated by its industry.

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Should You Buy Livestock Improvement Corporation Limited (NZE:LIC) At This PE Ratio?

By comparing a stock’s price per share to its earnings per share, we are able to see how much investors are paying for each dollar of the company’s earnings. … Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for LIC Price per share = NZ$2.95 Earnings per share = NZ$0.697 ∴ Price-Earnings Ratio = NZ$2.95 ÷ NZ$0.697 = 4.2x On its own, the P/E ratio doesn’t tell you much; however, it becomes extremely useful when you compare it with other similar companies. … LIC’s P/E of 4.2x is lower than its industry peers (19.5x), which implies that each dollar of LIC’s earnings is being undervalued by investors.

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What Does Livestock Improvement Corporation Limited's (NZE:LIC) Ownership Structure Look Like?

Today, I will be analyzing Livestock Improvement Corporation Limited’s (NZSE:LIC) recent ownership structure, an important but not-so-popular subject among individual investors. … A company's ownership structure is often linked to its share performance in both the long- and short-term. … See our latest analysis for Livestock Improvement NZSE:LIC Ownership_summary Apr 16th 18 Insider Ownership Another important group of shareholders are company insiders.

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Top 3 Cheap Tech Stocks For The Month

NZSE:LIC PE PEG Gauge Apr 14th 18 Green Cross Health Limited (NZSE:GXH) Green Cross Health Limited provides health support, care, and advice services to communities in New Zealand. … Tegel Group Holdings is currently run by Philip Hand. … With the stock's market cap sitting at NZD NZ$290.57M, it comes under the small-cap group TGH's stock is currently trading at -30% less than its intrinsic level of $1.18, at a price of NZ$0.83, according to my discounted cash flow model.

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What Should Investors Know About Livestock Improvement Corporation Limited's (NZE:LIC) Return On Capital?

Therefore, looking at how efficiently Livestock Improvement is able to use capital to create earnings will help us understand your potential return. … See our latest analysis for Livestock Improvement Calculating Return On Capital Employed for LIC Choosing to invest in Livestock Improvement comes at the cost of investing in another potentially favourable company. … To determine Livestock Improvement's capital return we will use ROCE, which tells us how much the company makes from the capital employed in their operations (for things like machinery, wages etc) I have calculated Livestock Improvement’s ROCE for you below: ROCE Calculation for LIC Return on Capital Employed (ROCE) = Earnings Before Tax (EBT) ÷ (Capital Employed) Capital Employed = (Total Assets - Current Liabilities) ∴ ROCE = NZ$21.16M ÷ (NZ$370.67M - NZ$76.77M) = 7.20% The calculation above shows that LIC’s earnings were 7.20% of capital employed.

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Are Livestock Improvement Corporation Limited's (NZE:LIC) Interest Costs Too High?

How does LIC’s operating cash flow stack up against its debt? … Additionally, LIC has generated cash from operations of NZ$25.36M over the same time period, leading to an operating cash to total debt ratio of 66.20%, indicating that LIC’s debt is appropriately covered by operating cash. … In LIC's, case, the ratio of 27.95x suggests that interest is comfortably covered, which means that lenders may be inclined to lend more money to the company, as it is seen as safe in terms of payback.Next Steps: LIC’s high cash coverage and low debt levels indicate its ability to utilise its borrowings efficiently in order to generate ample cash flow.

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What You Must Know About Livestock Improvement Corporation Limited's (NZE:LIC) 6.66% ROE

View our latest analysis for Livestock Improvement Breaking down Return on Equity Return on Equity (ROE) is a measure of Livestock Improvement’s profit relative to its shareholders’ equity. … Return on Equity = Net Profit ÷ Shareholders Equity ROE is measured against cost of equity in order to determine the efficiency of Livestock Improvement’s equity capital deployed. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity NZSE:LIC Last Perf Feb 19th 18 Basically, profit margin measures how much of revenue trickles down into earnings which illustrates how efficient the business is with its cost management.

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Does Livestock Improvement Corporation Limited's (NZE:LIC) PE Ratio Signal A Buying Opportunity?

Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for LIC Price per share = NZ$2.25 Earnings per share = NZ$0.697 ∴ Price-Earnings Ratio = NZ$2.25 ÷ NZ$0.697 = 3.2x The P/E ratio isn’t a metric you view in isolation and only becomes useful when you compare it against other similar companies. … LIC’s P/E of 3.2x is lower than its industry peers (14.1x), which implies that each dollar of LIC’s earnings is being undervalued by investors. … For example, if you inadvertently compared lower risk firms with LIC, then investors would naturally value LIC at a lower price since it is a riskier investment.

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Why Livestock Improvement Corporation Limited's (NZE:LIC) Ownership Structure Is Important

In this analysis, my focus will be on developing a perspective on Livestock Improvement Corporation Limited’s (NZSE:LIC) latest ownership structure, a less discussed, but important factor. … View our latest analysis for Livestock Improvement NZSE:LIC Ownership_summary Jan 9th 18 Insider Ownership Another important group of shareholders are company insiders. … This level of ownership gives retail investors the power to sway key policy decisions such as board composition, executive compensation, and potential acquisitions.

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LIC Company Info

Map
Description

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: Genetics, Herd Testing, Farm Software, and Farm Automation. The Genetics segment provides bovine and cervine genetic breeding materials, and related services to dairy and deer farmers. The Herd Testing segment offers herd testing and animal recording services for pastoral farmers. The Farm Software segment provides data recording and farm management information services. The Farm Automation segment offers dairy automated technologies. The company is also involved in the provision of research and development, diagnostic services, and animal evaluation services; and sale of semen. It operates in New Zealand, Australia, the United Kingdom, Ireland, and other countries. Livestock Improvement Corporation Limited was founded in 1909 and is headquartered in Hamilton, New Zealand.

Details
Name: Livestock Improvement Corporation Limited
LIC
Exchange: NZSE
Founded: 1909
NZ$88,585,764
7,382,147
Website: http://www.lic.co.nz
Address: Livestock Improvement Corporation Limited
Corner Ruakura and Morrinsville Roads,
Newstead,
Hamilton,
New Zealand
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NZSE LIC Investment Shares New Zealand Stock Exchange NZ NZD 20. Apr 2004
Number of employees
Current staff
Staff numbers
0
Livestock Improvement employees.
Industry
Packaged Foods and Meats
Food, Beverage & Tobacco
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2018/07/18 07:42
End of day share price update: 2018/07/16 00:00
Last estimates confirmation: 2017/07/20
Last earnings update: 2017/11/30
Last annual earnings update: 2017/05/31


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.