NZSE:SAN

Stock Analysis Report

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Executive Summary

Sanford Limited engages in farming, harvesting, processing, storing, and marketing of seafood products. More Details


Snowflake Analysis

Reasonable growth potential and fair value.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: SAN is not significantly more volatile than the rest of NZ stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: SAN's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-3.1%

SAN

-1.6%

NZ Food

-1.7%

NZ Market


1 Year Return

-31.8%

SAN

-3.1%

NZ Food

9.0%

NZ Market

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

Return vs Market: SAN underperformed the NZ Market which returned 9% over the past year.


Shareholder returns

SANIndustryMarket
7 Day-3.1%-1.6%-1.7%
30 Day-10.5%-2.6%0.3%
90 Day-11.5%-15.0%5.4%
1 Year-29.7%-31.8%-2.3%-3.1%13.1%9.0%
3 Year-30.3%-37.3%6.8%2.6%47.1%28.2%
5 Year4.4%-11.3%108.8%76.7%98.3%50.4%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Sanford undervalued compared to its fair value and its price relative to the market?

20.87x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SAN (NZ$5.01) is trading above our estimate of fair value (NZ$2.53)

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


Price To Earnings Ratio

PE vs Industry: SAN is poor value based on its PE Ratio (20.9x) compared to the NZ Food industry average (16.5x).

PE vs Market: SAN is good value based on its PE Ratio (20.9x) compared to the NZ market (23x).


Price to Earnings Growth Ratio

PEG Ratio: SAN is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: SAN is good value based on its PB Ratio (0.8x) compared to the NZ Food industry average (1.4x).


Next Steps

Future Growth

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

22.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SAN's forecast earnings growth (22.6% per year) is above the savings rate (2.6%).

Earnings vs Market: SAN's earnings (22.6% 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: SAN's revenue (7.3% per year) is forecast to grow faster than the NZ market (5.6% per year).

High Growth Revenue: SAN's revenue (7.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SAN's Return on Equity is forecast to be low in 3 years time (6.2%).


Next Steps

Past Performance

How has Sanford performed over the past 5 years?

3.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SAN has a large one-off gain of NZ$5.4M impacting its September 30 2020 financial results.

Growing Profit Margin: SAN's current net profit margins (4.8%) are lower than last year (7.6%).


Past Earnings Growth Analysis

Earnings Trend: SAN's earnings have grown by 3.2% per year over the past 5 years.

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

Earnings vs Industry: SAN had negative earnings growth (-46.1%) over the past year, making it difficult to compare to the Food industry average (11.6%).


Return on Equity

High ROE: SAN's Return on Equity (3.7%) is considered low.


Next Steps

Financial Health

How is Sanford's financial position?


Financial Position Analysis

Short Term Liabilities: SAN's short term assets (NZ$193.7M) exceed its short term liabilities (NZ$120.8M).

Long Term Liabilities: SAN's short term assets (NZ$193.7M) do not cover its long term liabilities (NZ$199.5M).


Debt to Equity History and Analysis

Debt Level: SAN's debt to equity ratio (30.6%) is considered satisfactory.

Reducing Debt: SAN's debt to equity ratio has increased from 30.3% to 30.6% over the past 5 years.

Debt Coverage: SAN's debt is not well covered by operating cash flow (10%).

Interest Coverage: SAN's interest payments on its debt are well covered by EBIT (3.8x coverage).


Balance Sheet


Next Steps

Dividend

What is Sanford current dividend yield, its reliability and sustainability?

2.43%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate SAN'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 SAN's dividends per share have been stable in the past.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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

6.2yrs

Average management tenure


CEO

Volker Kuntzsch

6.92yrs

Tenure

Mr. Kuntzsch Volker, MSc has been the Chief Executive Officer of Sanford Limited since December 2013. Mr. Volker's distinguished international career in the fishing industry spanning 25 years. He served as...


Leadership Team

NamePositionTenureCompensationOwnership
Volker Kuntzsch
Chief Executive Officer6.92yrsno data0.0050%
NZ$ 23.2k
Jit Hui Chia
Chief Financial Officer6.17yrsno datano data
Karen Duffy
Chief People Officerno datano datano data
Andre Gargiulo
Chief Customer Officer4.75yrsno datano data
Stuart Houliston
Financial Controllerno datano datano data
Dean McIntosh
General Manager of Risk and Corporate Affairsno datano datano data

6.2yrs

Average Tenure

Experienced Management: SAN's management team is seasoned and experienced (6.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert McLeod
Independent Non-Executive Chairman1.83yrsNZ$78.75k0.030%
NZ$ 142.8k
Peter Kean
Independent Non-Executive Director5.92yrsNZ$100.52k0.027%
NZ$ 125.3k
Peter Goodfellow
Non-Executive Director14.58yrsNZ$90.00k0.30%
NZ$ 1.4m
Peter Cullinane
Independent Non-Executive Director1.83yrsno data0.013%
NZ$ 60.1k
Fiona Mackenzie
Independent Non-Executive Director0.83yrno data0.0011%
NZ$ 5.0k
Abigail Foote
Independent Non-Executive Director2.83yrsno data0.013%
NZ$ 60.1k

2.3yrs

Average Tenure

Experienced Board: SAN's board of directors are not considered experienced ( 2.3 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: SAN 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

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


Key Information

  • Name: Sanford Limited
  • Ticker: SAN
  • Exchange: NZSE
  • Founded: 1881
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: NZ$468.466m
  • Shares outstanding: 93.51m
  • Website: https://www.sanford.co.nz

Number of Employees


Location

  • Sanford Limited
  • 22 Jellicoe Street
  • Freemans Bay
  • Auckland
  • 1010
  • New Zealand

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SANNZSE (New Zealand Stock Exchange)YesOrdinary SharesNZNZDJan 1992
SARD.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDOct 2010

Biography

Sanford Limited engages in farming, harvesting, processing, storing, and marketing of seafood products. It operates through Wildcatch and Aquaculture segments. The company catches and processes inshore and...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/23 10:42
End of Day Share Price2020/11/23 00:00
Earnings2020/09/30
Annual Earnings2020/09/30


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.