Synlait Milk Limited, together with its subsidiaries, manufactures and sells dairy products in China, rest of Asia, the Middle East, Africa, New Zealand, Australia, and internationally. More Details
Undervalued with reasonable growth potential.
Share Price & News
How has Synlait Milk's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: SML is more volatile than 75% of NZ stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: SML's weekly volatility (6%) has been stable over the past year, but is still higher than 75% of NZ stocks.
7 Day Return
1 Year Return
Return vs Industry: SML exceeded the NZ Food industry which returned -51.7% over the past year.
Return vs Market: SML underperformed the NZ Market which returned 7.6% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is Synlait Milk's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 month ago | Simply Wall StWhat Kind Of Shareholders Own Synlait Milk Limited (NZSE:SML)?
5 months ago | Simply Wall StWho Has Been Selling Synlait Milk Limited (NZSE:SML) Shares?
Is Synlait Milk undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: SML (NZ$3.69) is trading below our estimate of fair value (NZ$7.16)
Significantly Below Fair Value: SML is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: SML is good value based on its PE Ratio (12.5x) compared to the NZ Food industry average (17.9x).
PE vs Market: SML is good value based on its PE Ratio (12.5x) compared to the NZ market (23.8x).
Price to Earnings Growth Ratio
PEG Ratio: SML is good value based on its PEG Ratio (0.2x)
Price to Book Ratio
PB vs Industry: SML's PB Ratio (1x) is in line with the NZ Food industry average.
How is Synlait Milk forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SML's forecast earnings growth (60% per year) is above the savings rate (2.1%).
Earnings vs Market: SML's earnings (60% per year) are forecast to grow faster than the NZ market (11.9% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: SML's revenue (7.9% per year) is forecast to grow faster than the NZ market (5.4% per year).
High Growth Revenue: SML's revenue (7.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: SML's Return on Equity is forecast to be low in 3 years time (8.6%).
How has Synlait Milk performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SML has high quality earnings.
Growing Profit Margin: SML's current net profit margins (3.9%) are lower than last year (6.4%).
Past Earnings Growth Analysis
Earnings Trend: SML's earnings have grown by 16.4% per year over the past 5 years.
Accelerating Growth: SML's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: SML had negative earnings growth (-22.1%) over the past year, making it difficult to compare to the Food industry average (4.8%).
Return on Equity
High ROE: SML's Return on Equity (6.7%) is considered low.
How is Synlait Milk's financial position?
Financial Position Analysis
Short Term Liabilities: SML's short term assets (NZ$626.8M) exceed its short term liabilities (NZ$573.2M).
Long Term Liabilities: SML's short term assets (NZ$626.8M) exceed its long term liabilities (NZ$360.6M).
Debt to Equity History and Analysis
Debt Level: SML's debt to equity ratio (59.2%) is considered high.
Reducing Debt: SML's debt to equity ratio has reduced from 147.7% to 59.2% over the past 5 years.
Debt Coverage: SML's debt is not well covered by operating cash flow (4.9%).
Interest Coverage: SML's interest payments on its debt are well covered by EBIT (4.4x coverage).
What is Synlait Milk current dividend yield, its reliability and sustainability?
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate SML's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate SML's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if SML's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if SML's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of SML's dividend in 3 years as they are not forecast to pay a notable one for the NZ market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Dr. John William Penno serves as Interim Chief Executive Officer at Synlait Milk Limited since May 01, 2021. Dr. Penno is a Co-Founder of Synlait Milk Limited since June 21, 2013. Dr. Penno serves as an Ex...
CEO Compensation Analysis
Compensation vs Market: John's total compensation ($USD60.23K) is below average for companies of similar size in the NZ market ($USD491.21K).
Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.
Experienced Management: SML's management team is considered experienced (2.1 years average tenure).
Experienced Board: SML's board of directors are considered experienced (6.9 years average tenure).
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
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 21.9%.
Synlait Milk Limited's company bio, employee growth, exchange listings and data sources
- Name: Synlait Milk Limited
- Ticker: SML
- Exchange: NZSE
- Founded: 2005
- Industry: Packaged Foods and Meats
- Sector: Food, Beverage & Tobacco
- Market Cap: NZ$815.310m
- Shares outstanding: 218.58m
- Website: https://www.synlait.com
Number of Employees
- Synlait Milk Limited
- 1028 Heslerton Road
- New Zealand
Synlait Milk Limited, together with its subsidiaries, manufactures and sells dairy products in China, rest of Asia, the Middle East, Africa, New Zealand, Australia, and internationally. The company is also...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/08/02 07:01|
|End of Day Share Price||2021/08/02 00:00|
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.