NZSE:PGW

Stock Analysis Report

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Executive Summary

PGG Wrightson Limited provides goods and services for agricultural sector in New Zealand. More Details


Snowflake Analysis

Flawless balance sheet with proven track record.

Share Price & News

How has PGG Wrightson's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PGW is less volatile than 75% of NZ stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: PGW's weekly volatility (2%) has been stable over the past year.


Market Performance


7 Day Return

0%

PGW

-1.6%

NZ Food

-1.7%

NZ Market


1 Year Return

20.8%

PGW

-3.1%

NZ Food

9.0%

NZ Market

Return vs Industry: PGW exceeded the NZ Food industry which returned -3.1% over the past year.

Return vs Market: PGW exceeded the NZ Market which returned 9% over the past year.


Shareholder returns

PGWIndustryMarket
7 Day0%-1.6%-1.7%
30 Day0%-2.6%0.3%
90 Day9.2%-15.0%5.4%
1 Year26.5%20.8%-2.3%-3.1%13.1%9.0%
3 Year36.7%-49.0%6.8%2.6%47.1%28.2%
5 Year127.2%-28.7%108.8%76.7%98.3%50.4%

Long-Term Price Volatility Vs. Market

How volatile is PGG Wrightson's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is PGG Wrightson 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: PGW (NZ$2.96) is trading below our estimate of fair value (NZ$10.36)

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


Price To Earnings Ratio

PE vs Industry: PGW is poor value based on its PE Ratio (31.3x) compared to the NZ Food industry average (16.5x).

PE vs Market: PGW is poor value based on its PE Ratio (31.3x) compared to the NZ market (23x).


Price to Earnings Growth Ratio

PEG Ratio: PGW is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: PGW's PB Ratio (1.4x) is in line with the NZ Food industry average.


Next Steps

Future Growth

How is PGG Wrightson forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

20.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PGW's forecast earnings growth (20.4% per year) is above the savings rate (2.6%).

Earnings vs Market: PGW's earnings (20.4% per year) are forecast to grow faster than the NZ market (11.7% per year).

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

Revenue vs Market: PGW's revenue (2.4% per year) is forecast to grow slower than the NZ market (5.6% per year).

High Growth Revenue: PGW's revenue (2.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PGW's Return on Equity is forecast to be low in 3 years time (9.3%).


Next Steps

Past Performance

How has PGG Wrightson performed over the past 5 years?

-34.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PGW has high quality earnings.

Growing Profit Margin: PGW's current net profit margins (0.9%) are higher than last year (0.5%).


Past Earnings Growth Analysis

Earnings Trend: PGW's earnings have declined by 34.5% per year over the past 5 years.

Accelerating Growth: PGW's earnings growth over the past year (85.6%) exceeds its 5-year average (-34.5% per year).

Earnings vs Industry: PGW earnings growth over the past year (85.6%) exceeded the Food industry 11.6%.


Return on Equity

High ROE: PGW's Return on Equity (4.6%) is considered low.


Next Steps

Financial Health

How is PGG Wrightson's financial position?


Financial Position Analysis

Short Term Liabilities: PGW's short term assets (NZ$280.2M) exceed its short term liabilities (NZ$179.7M).

Long Term Liabilities: PGW's short term assets (NZ$280.2M) exceed its long term liabilities (NZ$123.1M).


Debt to Equity History and Analysis

Debt Level: PGW's debt to equity ratio (31.9%) is considered satisfactory.

Reducing Debt: PGW's debt to equity ratio has reduced from 47.9% to 31.9% over the past 5 years.

Debt Coverage: PGW's debt is well covered by operating cash flow (68.5%).

Interest Coverage: PGW's interest payments on its debt are well covered by EBIT (3.5x coverage).


Balance Sheet


Next Steps

Dividend

What is PGG Wrightson current dividend yield, its reliability and sustainability?

5.77%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate PGW's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate PGW's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if PGW's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PGW's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: PGW is not paying a notable dividend for the NZ market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PGW'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?

4.6yrs

Average management tenure


CEO

Stephen Guerin

1.42yrs

Tenure

Mr. Stephen Guerin serves as Chief Executive Officer at PGG Wrightson Limited since June 1, 2019. He had been Group General Manager of Retail & Water at PGG Wrightson Limited since September 1, 2016 until ...


Leadership Team

NamePositionTenureCompensationOwnership
Stephen Guerin
Chief Executive Officer1.42yrsno data0.0051%
NZ$ 11.4k
Peter Scott
Chief Financial Officer5.67yrsno datano data
Jane Pearson
Legal Counselno datano datano data
Rachel Shearer
General Manager of Human Resources4.58yrsno datano data
Julian Daly
GM of Corporate Affairs & Company Secretaryno datano datano data

4.6yrs

Average Tenure

Experienced Management: PGW's management team is considered experienced (4.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Joo Hai Lee
Deputy Chairman of the Board1.58yrsNZ$127.50kno data
U. Kean Seng
Director7.92yrsNZ$80.00kno data
John Fulton
Alternate Director5.67yrsno datano data
Rodger Finlay
Independent Chairman1.58yrsNZ$212.50k0.12%
NZ$ 265.1k
Sarah Brown
Independent Director1.58yrsNZ$80.00k0.015%
NZ$ 33.7k
B. Cushing
Independent Director1.58yrsNZ$98.13kno data

1.6yrs

Average Tenure

57.5yo

Average Age

Experienced Board: PGW's board of directors are not considered experienced ( 1.6 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

PGG Wrightson Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: PGG Wrightson Limited
  • Ticker: PGW
  • Exchange: NZSE
  • Founded: 1841
  • Industry: Agricultural Products
  • Sector: Food, Beverage & Tobacco
  • Market Cap: NZ$223.433m
  • Shares outstanding: 75.48m
  • Website: https://www.pggwrightson.co.nz

Location

  • PGG Wrightson Limited
  • 1 Robin Mann Place
  • Christchurch Airport
  • Christchurch
  • 8053
  • New Zealand

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PGWNZSE (New Zealand Stock Exchange)YesOrdinary SharesNZNZDJan 1992
PGWF.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992

Biography

PGG Wrightson Limited provides goods and services for agricultural sector in New Zealand. The company operates in two segments, Agency, and Retail & Water. It operates rural supplies stores that offer a ra...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/23 10:46
End of Day Share Price2020/11/23 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.