PGW

PGG WrightsonNZSE:PGW Stock Report

Market Cap

NZ$274.0m

7D

0%

1Y

33.5%

Updated

16 Sep, 2021

Data

Company Financials +
PGW fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance3/6
Financial Health6/6
Dividends3/6

PGW Overview

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

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 not significantly more volatile than the rest of NZ stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: PGW's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

0%

PGW

0.2%

NZ Food

-0.1%

NZ Market


1 Year Return

33.5%

PGW

-46.7%

NZ Food

9.9%

NZ Market

Return vs Industry: PGW exceeded the NZ Food industry which returned -47.2% over the past year.

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


Shareholder returns

PGWIndustryMarket
7 Day0%0.2%-0.1%
30 Day0.3%-5.8%2.3%
90 Day7.4%-2.7%3.4%
1 Year46.3%33.5%-46.2%-46.7%12.7%9.9%
3 Year65.2%-40.5%-43.9%-45.7%35.9%20.4%
5 Year121.6%-30.2%-1.0%-11.9%74.1%35.0%

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

PGG Wrightson Fundamentals Summary

How do PGG Wrightson's earnings and revenue compare to its market cap?
PGW fundamental statistics
Market CapNZ$274.01m
Earnings (TTM)NZ$22.72m
Revenue (TTM)NZ$847.82m

12.1x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PGW income statement (TTM)
RevenueNZ$847.82m
Cost of RevenueNZ$624.59m
Gross ProfitNZ$223.23m
ExpensesNZ$200.51m
EarningsNZ$22.72m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.30
Gross Margin26.33%
Net Profit Margin2.68%
Debt/Equity Ratio5.7%

How did PGW perform over the long term?

See historical performance and comparison

Dividends

8.8%

Current Dividend Yield

93%

Payout Ratio

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$3.63) is trading below our estimate of fair value (NZ$55.48)

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


Price To Earnings Ratio

PE vs Industry: PGW's PE Ratio (12.1x) is in line with the NZ Food industry average.

PE vs Market: PGW is good value based on its PE Ratio (12.1x) compared to the NZ market (23x).


Price to Earnings Growth Ratio

PEG Ratio: PGW's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: PGW is overvalued based on its PB Ratio (1.6x) compared to the NZ Food industry average (0.9x).


Future Growth

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

-13.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PGW's earnings are forecast to decline over the next 3 years (-13.9% per year).

Earnings vs Market: PGW's earnings are forecast to decline over the next 3 years (-13.9% per year).

High Growth Earnings: PGW's earnings are forecast to decline over the next 3 years.

Revenue vs Market: PGW's revenue (1.2% per year) is forecast to grow slower than the NZ market (4.9% per year).

High Growth Revenue: PGW's revenue (1.2% 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 (9.2%).


Past Performance

How has PGG Wrightson performed over the past 5 years?

-33.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PGW has a large one-off gain of NZ$6.7M impacting its June 30 2021 financial results.

Growing Profit Margin: PGW's current net profit margins (2.7%) are higher than last year (0.9%).


Past Earnings Growth Analysis

Earnings Trend: PGW's earnings have declined by 33.8% per year over the past 5 years.

Accelerating Growth: PGW's earnings growth over the past year (224.9%) exceeds its 5-year average (-33.8% per year).

Earnings vs Industry: PGW earnings growth over the past year (224.9%) exceeded the Food industry 7.5%.


Return on Equity

High ROE: PGW's Return on Equity (13.1%) is considered low.


Financial Health

How is PGG Wrightson's financial position?


Financial Position Analysis

Short Term Liabilities: PGW's short term assets (NZ$282.6M) exceed its short term liabilities (NZ$190.1M).

Long Term Liabilities: PGW's short term assets (NZ$282.6M) exceed its long term liabilities (NZ$89.4M).


Debt to Equity History and Analysis

Debt Level: PGW's debt to equity ratio (5.7%) is considered satisfactory.

Reducing Debt: PGW's debt to equity ratio has reduced from 49% to 5.7% over the past 5 years.

Debt Coverage: PGW's debt is well covered by operating cash flow (582.5%).

Interest Coverage: PGW's interest payments on its debt are well covered by EBIT (6.2x coverage).


Balance Sheet


Dividend

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

8.82%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PGW's dividend (8.82%) is higher than the bottom 25% of dividend payers in the NZ market (2.35%).

High Dividend: PGW's dividend (8.82%) is in the top 25% of dividend payers in the NZ market (4.63%)


Stability and Growth of Payments

Stable Dividend: PGW has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: PGW's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (93%), PGW's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PGW's dividends in 3 years are forecast to be covered by earnings (89.6% payout ratio).


Next Steps

Management

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

5.4yrs

Average management tenure


CEO

Stephen Guerin

2.25yrs

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

Experienced Management: PGW's management team is seasoned and experienced (5.4 years average tenure).


Board Members

Experienced Board: PGW's board of directors are not considered experienced ( 2.4 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$274.007m
  • Shares outstanding: 75.48m
  • Website: https://www.pggwrightson.co.nz

Number of Employees


Location

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

Listings


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 Analysis2021/09/16 15:26
End of Day Share Price2021/09/16 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.