Livestock Improvement Corporation Limited, together with its subsidiaries, develops, produces, and markets artificial breeding, genetics, farm software, farm automation, and herd testing services. More Details
Flawless balance sheet and undervalued.
Share Price & News
How has Livestock Improvement's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: LIC has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: LIC underperformed the NZ Food industry which returned 6.1% over the past year.
Return vs Market: LIC underperformed the NZ Market which returned 5.1% over the past year.
Price Volatility Vs. Market
How volatile is Livestock Improvement's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 month ago | Simply Wall StAre Livestock Improvement's (NZSE:LIC) Statutory Earnings A Good Guide To Its Underlying Profitability?
2 months ago | Simply Wall StLivestock Improvement (NZSE:LIC) Has Compensated Shareholders With A Respectable 51% Return On Their Investment
4 months ago | Simply Wall StHere's What Livestock Improvement Corporation Limited's (NZSE:LIC) P/E Ratio Is Telling Us
Is Livestock Improvement undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: LIC (NZ$0.78) is trading below our estimate of fair value (NZ$2.69)
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 (6.5x) compared to the NZ Food industry average (14.1x).
PE vs Market: LIC is good value based on its PE Ratio (6.5x) compared to the NZ market (23x).
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 (0.4x) compared to the NZ Food industry average (1.4x).
How is Livestock Improvement forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
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.
- Examine whether Livestock Improvement is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
- Livestock Improvement competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Food, Beverage & Tobacco industry.
How has Livestock Improvement performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: LIC has a large one-off loss of NZ$7.2M impacting its May 31 2020 financial results.
Growing Profit Margin: LIC's current net profit margins (6.9%) are lower than last year (9%).
Past Earnings Growth Analysis
Earnings Trend: LIC's earnings have grown significantly by 32.5% per year over the past 5 years.
Accelerating Growth: LIC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: LIC had negative earnings growth (-21.1%) over the past year, making it difficult to compare to the Food industry average (15.8%).
Return on Equity
High ROE: LIC's Return on Equity (6%) is considered low.
How is Livestock Improvement's financial position?
Financial Position Analysis
Short Term Liabilities: LIC's short term assets (NZ$87.7M) exceed its short term liabilities (NZ$34.1M).
Long Term Liabilities: LIC's short term assets (NZ$87.7M) exceed its long term liabilities (NZ$55.6M).
Debt to Equity History and Analysis
Debt Level: LIC's debt to equity ratio (0.6%) is considered satisfactory.
Reducing Debt: LIC's debt to equity ratio has reduced from 8.2% to 0.6% over the past 5 years.
Debt Coverage: LIC's debt is well covered by operating cash flow (3218.9%).
Interest Coverage: LIC's interest payments on its debt are well covered by EBIT (47.9x coverage).
What is Livestock Improvement current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: LIC's dividend (16.34%) is higher than the bottom 25% of dividend payers in the NZ market (2.74%).
High Dividend: LIC's dividend (16.34%) is in the top 25% of dividend payers in the NZ market (4.49%)
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: With its high payout ratio (106.2%), LIC's dividend payments are not well 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.
How experienced are the management team and are they aligned to shareholders interests?
Average management 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 ...
|Chief Executive Officer||7.25yrs||no data||no data|
|Chief Financial Officer||1.67yrs||no data||no data|
|General Manager of Operations & Service||0.92yr||no data||no data|
|Chief Scientist||6.33yrs||no data||no data|
|Chief Information Officer||0.75yr||no data||no data|
|Communications Manager||3.58yrs||no data||no data|
|Chief People Officer||3.17yrs||no data||no data|
|Company Secretary||7.5yrs||no data||no data|
Experienced Management: LIC's management team is considered experienced (3.4 years average tenure).
|Independent Chairman||no data||NZ$120.00k||0.095% |
|Independent Director||3yrs||NZ$65.00k||no data|
|Independent Director||1.33yrs||no data||0.0022% |
|Independent Director||8.33yrs||NZ$51.00k||0.013% |
|Independent Director||1.83yrs||NZ$27.00k||no data|
|Independent Director||6.33yrs||NZ$51.00k||0.024% |
|Independent Director||5yrs||NZ$63.00k||no data|
|Independent Director||3.33yrs||NZ$51.00k||0.065% |
|Independent Director||2.33yrs||NZ$51.00k||0.017% |
Experienced Board: LIC's board of directors are considered experienced (3.3 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Livestock Improvement Corporation Limited's company bio, employee growth, exchange listings and data sources
- Name: Livestock Improvement Corporation Limited
- Ticker: LIC
- Exchange: NZSE
- Founded: 1909
- Industry: Packaged Foods and Meats
- Sector: Food, Beverage & Tobacco
- Market Cap: NZ$111.029m
- Shares outstanding: 142.34m
- Website: https://www.lic.co.nz
- Livestock Improvement Corporation Limited
- Corner Ruakura and Morrinsville Roads
- New Zealand
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|LIC||NZSE (New Zealand Stock Exchange)||Yes||Ordinary Shares||NZ||NZD||Apr 2004|
Livestock Improvement Corporation Limited, together with its subsidiaries, develops, produces, and markets artificial breeding, genetics, farm software, farm automation, and herd testing services. The comp ...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/10/20 10:36|
|End of Day Share Price||2020/10/19 00:00|
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.