NZSE:SEK

Stock Analysis Report

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

Fundamentals

Fair value with acceptable track record.

Risks

  • Seeka is covered by less than 3 analysts.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-1.8%

NZSE:SEK

-3.2%

NZ Food

-1.2%

NZ Market


1 Year Return

-20.5%

NZSE:SEK

-11.7%

NZ Food

9.4%

NZ Market

SEK underperformed the Food industry which returned -10.2% over the past year.

SEK underperformed the Market in New Zealand which returned 10.1% over the past year.


Share holder returns

SEKIndustryMarket
7 Day-1.8%-3.2%-1.2%
30 Day-2.8%-10.6%0.2%
90 Day1.0%-8.2%3.4%
1 Year-7.3%-20.5%-10.4%-11.7%14.2%9.4%
3 Year41.2%7.8%55.1%41.9%45.0%25.7%
5 Year137.4%60.6%85.0%50.9%97.9%53.8%

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 based on future cash flows and its price relative to the stock market?

4%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Seeka's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Seeka's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Seeka is good value based on earnings compared to the NZ Food industry average.

Seeka is good value based on earnings compared to the New Zealand market.


Price Based on Expected Growth

Seeka is poor value based on expected growth next year.


Price Based on Value of Assets

Seeka is good value based on assets compared to the NZ Food industry average.


Next Steps

Future Growth

How is Seeka expected 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 Estimates


Future Annual Growth Analysis

Seeka's revenue is expected to grow by 10.4% yearly, however this is not considered high growth (20% yearly).

Seeka's earnings are expected to grow by 3.3% yearly, however this is not considered high growth (20% yearly).

Seeka's revenue growth is expected to exceed the New Zealand market average.

Seeka's earnings growth is positive but not above the New Zealand market average.

Seeka's earnings growth is expected to exceed the low risk savings rate of 2.4%.


Earnings per Share Growth Estimates


Future Return on Equity

Seeka is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Seeka performed over the past 5 years?

14.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Seeka's year on year earnings growth rate has been positive over the past 5 years.

Seeka's 1-year earnings growth exceeds its 5-year average (145.4% vs 14.1%)

Seeka's earnings growth has exceeded the NZ Food industry average in the past year (145.4% vs -3.4%).


Return on Equity

Seeka has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Seeka used its assets less efficiently than the NZ Food industry average last year based on Return on Assets.


Return on Capital Employed

Seeka's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Seeka's financial position?


Financial Position Analysis

Seeka is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Seeka's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Seeka's level of debt (94.7%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (54.3% vs 94.7% today).

Debt is not well covered by operating cash flow (9.8%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 3.4x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

4.95%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Seeka's pays a higher dividend yield than the bottom 25% of dividend payers in New Zealand (3.08%).

Seeka's dividend is below the markets top 25% of dividend payers in New Zealand (5.68%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

No dividend growth in 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.5x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.2x coverage).


Next Steps

Management

What is the CEO of Seeka's salary, the management and board of directors tenure and is there insider trading?

6.3yrs

Average board tenure


CEO

Michael Franks 0

0yrs

Tenure

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 Age and Tenure

6.3yrs

Average Tenure

The tenure for the Seeka board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Stuart McKinstry

    CFO & Company Secretary

    • Tenure: 12.9yrs
  • Jennie Stinson

    Group Financial Controller

    • Tenure: 0yrs
  • Jim Dunseath

    Compliance Manager

    • Tenure: 0yrs
  • Michael Franks

    Chief Executive Officer

    • Tenure: 0yrs
  • Jim Smith

    General Manager of Growers and Marketing

    • Tenure: 0.7yrs

Board Members

  • Ashley Waugh

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: NZ$33.33k
  • Cecilia Tarrant (59yo)

    Independent Director

    • Tenure: 2.3yrs
  • John Hone Burke

    Director

    • Tenure: 7.4yrs
    • Compensation: NZ$34.00k
  • Mel Diaz

    Director

    • Tenure: 9.9yrs
    • Compensation: NZ$30.00k
  • Fred Hutchings

    Independent Chairman of the Board

    • Tenure: 6.8yrs
    • Compensation: NZ$16.67k
  • Martyn Brick

    Non-Independent Director

    • Tenure: 6.3yrs
    • Compensation: NZ$26.67k
  • Peter Cross

    Director

    • Tenure: 3.5yrs
    • Compensation: NZ$41.67k

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$152.072m
  • Shares outstanding: 31.48m
  • Website: https://www.seeka.co.nz

Number of Employees


Location

  • Seeka Limited
  • 47 Young Road
  • PO Box 47
  • Te Puke
  • 3186
  • 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 Analysis2019/09/18 10:33
End of Day Share Price2019/09/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.