NZSE:NZK

Stock Analysis Report

New Zealand King Salmon Investments

Executive Summary

New Zealand King Salmon Investments Limited, together with its subsidiaries, engages in the farming, processing, and sale of premium salmon products.


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.

Share Price & News

How has New Zealand King Salmon Investments's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NZK has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-10.3%

NZK

-2.1%

NZ Food

-1.1%

NZ Market


1 Year Return

-7.4%

NZK

-4.8%

NZ Food

20.2%

NZ Market

Return vs Industry: NZK underperformed the NZ Food industry which returned -4.8% over the past year.

Return vs Market: NZK underperformed the NZ Market which returned 20.2% over the past year.


Shareholder returns

NZKIndustryMarket
7 Day-10.3%-2.1%-1.1%
30 Day-9.5%-4.0%-1.3%
90 Day-8.6%-1.1%5.3%
1 Year-4.9%-7.4%-3.7%-4.8%25.0%20.2%
3 Year60.5%46.7%56.2%43.2%57.4%37.0%
5 Yearn/a110.6%72.4%93.6%50.5%

Price Volatility Vs. Market

How volatile is New Zealand King Salmon Investments's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is New Zealand King Salmon Investments undervalued compared to its fair value and its price relative to the market?

24.54x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NZK (NZ$2.01) is trading above our estimate of fair value (NZ$1.46)

Significantly Below Fair Value: NZK is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NZK is poor value based on its PE Ratio (24.5x) compared to the Food industry average (15.5x).

PE vs Market: NZK is poor value based on its PE Ratio (24.5x) compared to the NZ market (20.4x).


Price to Earnings Growth Ratio

PEG Ratio: NZK is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: NZK is overvalued based on its PB Ratio (1.7x) compared to the NZ Food industry average (1.2x).


Next Steps

Future Growth

How is New Zealand King Salmon Investments forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

20.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NZK's forecast earnings growth (20.5% per year) is above the savings rate (1.3%).

Earnings vs Market: NZK's earnings (20.5% per year) are forecast to grow faster than the NZ market (8.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NZK's revenue (8% per year) is forecast to grow faster than the NZ market (5.7% per year).

High Growth Revenue: NZK's revenue (8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NZK's Return on Equity is forecast to be low in 3 years time (10.4%).


Next Steps

Past Performance

How has New Zealand King Salmon Investments performed over the past 5 years?

27.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NZK has high quality earnings.

Growing Profit Margin: NZK's current net profit margins (6.6%) are lower than last year (10.1%).


Past Earnings Growth Analysis

Earnings Trend: NZK has become profitable over the past 5 years, growing earnings by 27.2% per year.

Accelerating Growth: NZK's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NZK had negative earnings growth (-29.6%) over the past year, making it difficult to compare to the Food industry average (-9.7%).


Return on Equity

High ROE: NZK's Return on Equity (6.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is New Zealand King Salmon Investments's financial position?


Financial Position Analysis

Short Term Liabilities: NZK's short term assets (NZ$109.1M) exceed its short term liabilities (NZ$22.2M).

Long Term Liabilities: NZK's short term assets (NZ$109.1M) exceed its long term liabilities (NZ$31.1M).


Debt to Equity History and Analysis

Debt Level: NZK's debt to equity ratio (10%) is considered satisfactory.

Reducing Debt: NZK's debt to equity ratio has reduced from 457.4% to 10% over the past 5 years.

Debt Coverage: NZK's debt is well covered by operating cash flow (64%).

Interest Coverage: NZK's interest payments on its debt are well covered by EBIT (19.9x coverage).


Balance Sheet

Inventory Level: NZK has a high level of physical assets or inventory.

Debt Coverage by Assets: NZK's debt is covered by short term assets (assets are 6.4x debt).


Next Steps

Dividend

What is New Zealand King Salmon Investments's current dividend yield, its reliability and sustainability?

2.49%

Current Dividend Yield


Dividend Yield vs Market

company2.5%marketbottom25%2.9%markettop25%5.5%industryaverage4.4%forecastin3Years3.2%

Current dividend yield vs market & industry

Notable Dividend: NZK's dividend (2.49%) isn’t notable compared to the bottom 25% of dividend payers in the NZ market (2.87%).

High Dividend: NZK's dividend (2.49%) is low compared to the top 25% of dividend payers in the NZ market (5.52%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, NZK has been paying a dividend for less than 10 years.

Growing Dividend: NZK's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (61%), NZK's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NZK's dividends in 3 years are forecast to be covered by earnings (52.8% payout ratio).


Next Steps

Management

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

4.1yrs

Average board tenure


CEO

Grant Rosewarne 0

NZ$523,287

Compensation

Mr. Grantley Bruce Rosewarne, also known as Grant, MBA (Executive), B App Sc, has been the Chief Executive Officer of New Zealand King Salmon Investments Limited since 2009 and serves as its Managing Direc ...


Board Members

NamePositionTenureCompensationOwnership
Grantley Rosewarne
MD, CEO & Director0yrsNZ$523.29k1.2% NZ$3.3m
Mark Hutton
Independent Non-Executive Director11.4yrsNZ$74.25k0.36% NZ$1.0m
John William Ryder
Independent Non- Executive Chairman4.1yrsNZ$112.25k1.56% NZ$4.4m
Po Sing Lai
Non Executive Director0.8yrsNZ$15.00kno data
Paul Steere
Independent Non-Executive Director11.4yrsNZ$75.00k0.57% NZ$1.6m
Jack Porus
Non-Executive Director11.4yrsNZ$63.00k0.27% NZ$748.6k
Yong Tiong Chiong
Non-Executive & Non-Independent Director0.7yrsNZ$1.94kno data

4.1yrs

Average Tenure

Experienced Board: NZK's board of directors are considered experienced (4.1 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

New Zealand King Salmon Investments Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: New Zealand King Salmon Investments Limited
  • Ticker: NZK
  • Exchange: NZSE
  • Founded: 2008
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: NZ$279.361m
  • Shares outstanding: 138.99m
  • Website: https://www.kingsalmon.co.nz

Number of Employees


Location

  • New Zealand King Salmon Investments Limited
  • 93 Beatty Street
  • Tahunanui
  • Nelson
  • 7011
  • New Zealand

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NZKASX (Australian Securities Exchange)YesOrdinary SharesAUAUDOct 2016
NZKNZSE (New Zealand Stock Exchange)YesOrdinary SharesNZNZDOct 2016
NZKCHIA (Chi-X Australia)YesOrdinary SharesAUAUDOct 2016

Biography

New Zealand King Salmon Investments Limited, together with its subsidiaries, engages in the farming, processing, and sale of premium salmon products. The company operates through three segments: New Zealand Retail, New Zealand Foodservice, and Export. It offers whole fresh fish, pre-cut fillets, portions, and wood roasted and cold smoked products. The company sells its products to chefs, retailers, and wholesalers under the Ora King, Regal, Southern Ocean, Big Catch Salmon Burley, and Omega Plus brands, as well as the New Zealand King Salmon label. It serves customers in New Zealand, China, North America, Australia, Japan, Europe, and internationally. The company was incorporated in 2008 and is headquartered in Nelson, New Zealand. New Zealand King Salmon Investments Limited is a subsidiary of Oregon Group Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 10:54
End of Day Share Price2020/02/26 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.