Market Cap
NZ$137.6m
Last Updated
2020/02/19 10:37 UTC
Data Sources
Company Financials +
Executive Summary
Seeka Limited, together with its subsidiaries, provides orchard lease and management, and post harvest services to the horticulture industry primarily in New Zealand.
Snowflake Analysis
Undervalued with proven track record and pays a dividend.
Share Price & News
How has Seeka's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: SEK has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-3.3%
SEK
1.6%
NZ Food
0.3%
NZ Market
1 Year Return
-2.7%
SEK
3.4%
NZ Food
21.9%
NZ Market
Return vs Industry: SEK underperformed the NZ Food industry which returned 3.4% over the past year.
Return vs Market: SEK underperformed the NZ Market which returned 21.9% over the past year.
Shareholder returns
| SEK | Industry | Market | |
|---|---|---|---|
| 7 Day | -3.3% | 1.6% | 0.3% |
| 30 Day | -8.0% | 0.6% | -0.2% |
| 90 Day | -9.0% | 2.3% | 7.2% |
| 1 Year | 3.2%-2.7% | 4.7%3.4% | 26.9%21.9% |
| 3 Year | 17.6%-7.8% | 59.2%46.0% | 60.1%39.2% |
| 5 Year | 96.6%36.8% | 119.0%79.3% | 98.3%54.2% |
Price Volatility Vs. Market
How volatile is Seeka's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Could Seeka Limited (NZSE:SEK) Have The Makings Of Another Dividend Aristocrat?4 weeks ago | Simply Wall St
Here's What Seeka Limited's (NZSE:SEK) P/E Ratio Is Telling Us1 month ago | Simply Wall St
Do Insiders Own Shares In Seeka Limited (NZSE:SEK)?Valuation
Is Seeka undervalued compared to its fair value and its price relative to the market?
21.1%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: SEK (NZ$4.35) is trading below our estimate of fair value (NZ$5.51)
Significantly Below Fair Value: SEK is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: SEK is good value based on its PE Ratio (12.2x) compared to the Food industry average (15.8x).
PE vs Market: SEK is good value based on its PE Ratio (12.2x) compared to the NZ market (19.8x).
Price to Earnings Growth Ratio
PEG Ratio: SEK is poor value based on its PEG Ratio (3.7x)
Price to Book Ratio
PB vs Industry: SEK is good value based on its PB Ratio (0.9x) compared to the NZ Food industry average (1.2x).
Next Steps
Future Growth
How is Seeka forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?
3.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SEK's forecast earnings growth (3.3% per year) is above the savings rate (1.3%).
Earnings vs Market: SEK's earnings (3.3% per year) are forecast to grow slower than the NZ market (6.3% per year).
High Growth Earnings: SEK's earnings are forecast to grow, but not significantly.
Revenue vs Market: SEK's revenue (10.4% per year) is forecast to grow faster than the NZ market (5.1% per year).
High Growth Revenue: SEK's revenue (10.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: SEK's Return on Equity is forecast to be low in 3 years time (6.2%).
Next Steps
Past Performance
How has Seeka performed over the past 5 years?
14.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SEK has a high level of non-cash earnings.
Growing Profit Margin: SEK's current net profit margins (4.4%) are higher than last year (2%).
Past Earnings Growth Analysis
Earnings Trend: SEK's earnings have grown by 14.1% per year over the past 5 years.
Accelerating Growth: SEK's earnings growth over the past year (145.4%) exceeds its 5-year average (14.1% per year).
Earnings vs Industry: SEK earnings growth over the past year (145.4%) exceeded the Food industry -9.7%.
Return on Equity
High ROE: SEK's Return on Equity (6.2%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Seeka's financial position?
Financial Position Analysis
Short Term Liabilities: SEK's short term assets (NZ$132.3M) exceed its short term liabilities (NZ$111.4M).
Long Term Liabilities: SEK's short term assets (NZ$132.3M) do not cover its long term liabilities (NZ$136.1M).
Debt to Equity History and Analysis
Debt Level: SEK's debt to equity ratio (94.7%) is considered high.
Reducing Debt: SEK's debt to equity ratio has increased from 54.3% to 94.7% over the past 5 years.
Debt Coverage: SEK's debt is not well covered by operating cash flow (9.8%).
Interest Coverage: SEK's interest payments on its debt are well covered by EBIT (3.4x coverage).
Balance Sheet
Inventory Level: SEK has a high level of physical assets or inventory.
Debt Coverage by Assets: SEK's debt is not covered by short term assets (assets are 0.9x debt).
Next Steps
Dividend
What is Seeka's current dividend yield, its reliability and sustainability?
5.52%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: SEK's dividend (5.52%) is higher than the bottom 25% of dividend payers in the NZ market (2.87%).
High Dividend: SEK's dividend (5.52%) is low compared to the top 25% of dividend payers in the NZ market (5.53%).
Stability and Growth of Payments
Stable Dividend: SEK's dividend payments have been volatile in the past 10 years.
Growing Dividend: SEK's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (67.2%), SEK's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: SEK's dividends in 3 years are forecast to be covered by earnings (82.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
6.8yrs
Average board tenure
CEO
Michael Franks 0
Mr. Michael Franks serves as the Chief Executive Officer at Seeka Kiwifruit Industries Limited and served as its Chief Financial Officer and General Manager of Commercial.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Independent Non-Executive Director | 5.8yrs | NZ$33.33k | 0.023% NZ$31.2k | |
| Independent Non-Executive Director | 2.8yrs | no data | 0.020% NZ$27.0k | |
| Director | 7.8yrs | NZ$34.00k | 0.29% NZ$403.3k | |
| Director | 10.3yrs | NZ$30.00k | no data | |
| Independent Non-Executive Chairman | 7.2yrs | NZ$16.67k | 0.13% NZ$184.5k | |
| Non-Executive Director | 6.8yrs | NZ$26.67k | 0.027% NZ$37.7k | |
| Director | 3.9yrs | NZ$41.67k | 1.45% NZ$2.0m |
6.8yrs
Average Tenure
Experienced Board: SEK's board of directors are considered experienced (6.8 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 been substantially diluted in the past year, with total shares outstanding growing by 59.4%.
Top Shareholders
Company Information
Seeka Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Seeka Limited
- Ticker: SEK
- Exchange: NZSE
- Founded: 1987
- Industry: Agricultural Products
- Sector: Food, Beverage & Tobacco
- Market Cap: NZ$137.627m
- Shares outstanding: 31.64m
- Website: https://www.seeka.co.nz
Number of Employees
Location
- Seeka Limited
- 47 Young Road
- PO Box 47
- Te Puke
- 3186
- New Zealand
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| SEK | NZSE (New Zealand Stock Exchange) | Yes | Ordinary Shares | NZ | NZD | Nov 2003 |
Biography
Seeka Limited, together with its subsidiaries, provides orchard lease and management, and post harvest services to the horticulture industry primarily in New Zealand. It operates through Orchard Operations, Post Harvest Operations, and Retail Service Operations segments. The Orchard Operations segment offers on-orchard management services to orchard owners who produce kiwifruit, avocado, and kiwiberry crops. The Post Harvest Operations segment provides post-harvest services to the kiwifruit, avocado, and kiwiberry industries that include crops from the company’s orchard management and lease operations, as well as crops from independent orchard owners. The Retail Service Operations segment offers fruit marketing services; and retail and ripening services for imported fruit produce, and operates a wholesale market. The company was formerly known as Seeka Kiwifruit Industries Limited and changed its name to Seeka Limited in October 2016. Seeka Limited was incorporated in 1987 and is headquartered in Te Puke, New Zealand.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/19 10:37 |
| End of Day Share Price | 2020/02/18 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.