NZSE:SEK

Stock Analysis Report

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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. More Details


Snowflake Analysis

Good value 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

-1.0%

SEK

-0.5%

NZ Food

0.2%

NZ Market


1 Year Return

-17.5%

SEK

5.9%

NZ Food

5.6%

NZ Market

Return vs Industry: SEK underperformed the NZ Food industry which returned 5.9% over the past year.

Return vs Market: SEK underperformed the NZ Market which returned 5.6% over the past year.


Shareholder returns

SEKIndustryMarket
7 Day-1.0%-0.5%0.2%
30 Day-1.7%-5.6%6.8%
90 Day0.8%-14.9%7.0%
1 Year-15.0%-17.5%6.8%5.9%9.9%5.6%
3 Year-9.3%-27.7%11.2%6.9%47.4%28.1%
5 Year68.7%21.1%127.7%91.2%100.4%51.5%

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

Valuation

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

17.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SEK (NZ$4.01) is trading below our estimate of fair value (NZ$4.84)

Significantly Below Fair Value: SEK is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: SEK is good value based on its PE Ratio (9.1x) compared to the NZ Food industry average (13.8x).

PE vs Market: SEK is good value based on its PE Ratio (9.1x) compared to the NZ market (22.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SEK is good value based on its PB Ratio (0.7x) compared to the NZ Food industry average (1.4x).


Next Steps

Future Growth

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

-4.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SEK's earnings are forecast to decline over the next 3 years (-4% per year).

Earnings vs Market: SEK's earnings are forecast to decline over the next 3 years (-4% per year).

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

Revenue vs Market: SEK's revenue (8.9% per year) is forecast to grow faster than the NZ market (5.5% per year).

High Growth Revenue: SEK's revenue (8.9% 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%).


Next Steps

Past Performance

How has Seeka performed over the past 5 years?

6.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SEK has a large one-off gain of NZ$4.8M impacting its June 30 2020 financial results.

Growing Profit Margin: SEK's current net profit margins (5.5%) are higher than last year (4%).


Past Earnings Growth Analysis

Earnings Trend: SEK's earnings have grown by 6.8% per year over the past 5 years.

Accelerating Growth: SEK's earnings growth over the past year (45.9%) exceeds its 5-year average (6.8% per year).

Earnings vs Industry: SEK earnings growth over the past year (45.9%) exceeded the Food industry 15.8%.


Return on Equity

High ROE: SEK's Return on Equity (7.7%) is considered low.


Next Steps

Financial Health

How is Seeka's financial position?


Financial Position Analysis

Short Term Liabilities: SEK's short term assets (NZ$126.9M) exceed its short term liabilities (NZ$83.7M).

Long Term Liabilities: SEK's short term assets (NZ$126.9M) do not cover its long term liabilities (NZ$159.0M).


Debt to Equity History and Analysis

Debt Level: SEK's debt to equity ratio (76.2%) is considered high.

Reducing Debt: SEK's debt to equity ratio has increased from 50.2% to 76.2% over the past 5 years.

Debt Coverage: SEK's debt is not well covered by operating cash flow (17.3%).

Interest Coverage: SEK's interest payments on its debt are not well covered by EBIT (1.9x coverage).


Balance Sheet


Next Steps

Dividend

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

4.99%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SEK's dividend (4.99%) is higher than the bottom 25% of dividend payers in the NZ market (2.72%).

High Dividend: SEK's dividend (4.99%) is in the top 25% of dividend payers in the NZ market (4.49%)


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 not increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (22.8%), SEK's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SEK's dividends in 3 years are forecast to be covered by earnings (85.4% payout ratio).


Next Steps

Management

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

7.5yrs

Average board tenure


CEO

Michael Franks

no data

Tenure

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

NamePositionTenureCompensationOwnership
Ashley Waugh
Independent Non-Executive Director6.42yrsNZ$33.33k0.045%
NZ$ 53.3k
Cecilia Tarrant
Independent Non-Executive Director3.5yrsno data0.022%
NZ$ 26.3k
John Hone Burke
Director8.5yrsNZ$34.00k0.32%
NZ$ 384.0k
Amiel Diaz
Director11yrsNZ$30.00kno data
Fred Hutchings
Independent Non-Executive Chairman7.83yrsNZ$16.67k0.16%
NZ$ 186.0k
Martyn Brick
Non-Executive Director7.5yrsNZ$26.67k0.029%
NZ$ 35.1k
Peter Cross
Director4.58yrsNZ$41.67k1.99%
NZ$ 2.4m

7.5yrs

Average Tenure

Experienced Board: SEK's board of directors are considered experienced (7.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: SEK 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

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$119.278m
  • Shares outstanding: 29.45m
  • Website: https://www.seeka.co.nz

Number of Employees


Location

  • Seeka Limited
  • 34 Young Road
  • RD9, Paengaroa 3189
  • Te Puke
  • 3153
  • New Zealand

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SEKNZSE (New Zealand Stock Exchange)YesOrdinary SharesNZNZDNov 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/21 10:31
End of Day Share Price2020/10/21 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.