NZSE:SML

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Executive Summary

Synlait Milk Limited manufactures and sells dairy products in China, rest of Asia, the Middle East, Africa, New Zealand, Australia, and internationally. More Details


Snowflake Analysis

Undervalued with adequate balance sheet.


Similar Companies

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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.7%

SML

-0.7%

NZ Food

-1.1%

NZ Market


1 Year Return

-38.8%

SML

18.8%

NZ Food

1.6%

NZ Market

Return vs Industry: SML underperformed the NZ Food industry which returned 18.8% over the past year.

Return vs Market: SML underperformed the NZ Market which returned 1.6% over the past year.


Shareholder returns

SMLIndustryMarket
7 Day-5.7%-0.7%-1.1%
30 Day-13.3%-6.3%0.3%
90 Day-22.1%-7.4%3.1%
1 Year-38.8%-38.8%19.3%18.8%6.1%1.6%
3 Year6.4%6.4%35.6%28.3%42.6%22.9%
5 Year136.6%129.2%134.9%95.1%95.7%46.6%

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

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SML (NZ$5.8) is trading below our estimate of fair value (NZ$20.01)

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 (14.6x) compared to the NZ Food industry average (16.6x).

PE vs Market: SML is good value based on its PE Ratio (14.6x) compared to the NZ market (22.5x).


Price to Earnings Growth Ratio

PEG Ratio: SML is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: SML is overvalued based on its PB Ratio (2x) compared to the NZ Food industry average (1.3x).


Next Steps

Future Growth

How is Synlait Milk forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

17.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SML's forecast earnings growth (17.7% per year) is above the savings rate (2.6%).

Earnings vs Market: SML's earnings (17.7% per year) are forecast to grow faster than the NZ market (10.6% per year).

High Growth Earnings: SML's earnings are forecast to grow, but not significantly.

Revenue vs Market: SML's revenue (11.5% per year) is forecast to grow faster than the NZ market (5.6% per year).

High Growth Revenue: SML's revenue (11.5% 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 (15.2%).


Next Steps

Past Performance

How has Synlait Milk performed over the past 5 years?

34.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SML has a high level of non-cash earnings.

Growing Profit Margin: SML's current net profit margins (6.4%) are lower than last year (7.7%).


Past Earnings Growth Analysis

Earnings Trend: SML's earnings have grown significantly by 34.5% per year over the past 5 years.

Accelerating Growth: SML's earnings growth over the past year (0.8%) is below its 5-year average (34.5% per year).

Earnings vs Industry: SML earnings growth over the past year (0.8%) underperformed the Food industry 2.2%.


Return on Equity

High ROE: SML's Return on Equity (13.7%) is considered low.


Next Steps

Financial Health

How is Synlait Milk's financial position?


Financial Position Analysis

Short Term Liabilities: SML's short term assets (NZ$406.2M) do not cover its short term liabilities (NZ$547.0M).

Long Term Liabilities: SML's short term assets (NZ$406.2M) exceed its long term liabilities (NZ$324.3M).


Debt to Equity History and Analysis

Debt Level: SML's debt to equity ratio (86.7%) is considered high.

Reducing Debt: SML's debt to equity ratio has reduced from 171.5% to 86.7% over the past 5 years.

Debt Coverage: SML's debt is well covered by operating cash flow (26.1%).

Interest Coverage: SML's interest payments on its debt are well covered by EBIT (9x coverage).


Balance Sheet


Next Steps

Dividend

What is Synlait Milk current dividend yield, its reliability and sustainability?

1.35%

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.


Next Steps

Management

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

3.1yrs

Average management tenure


CEO

Leon Clement

2.08yrs

Tenure

Mr. Leon Clement has been the Managing Director for Sri Lanka at Fonterra Brands (Thailand) since December 1, 2012. He is Chief Executive Officer at Synlait Milk Ltd. since August 13, 2018. He joined Synl ...


Leadership Team

NamePositionTenureCompensationOwnership
John Penno
Co-Founder & Director1.83yrsNZ$229.89k2.84%
NZ$ 29.6m
Leon Clement
Chief Executive Officer2.08yrsno datano data
Angela Dixon
Chief Financial Officer0.25yrno datano data
Mark Toomey
Director of Operations0.75yrno datano data
Roger Schwarzenbach
General Manager of Innovation & Technical Services3.08yrsno data0.0034%
NZ$ 34.8k
Deborah Marris
Director of Legalno datano datano data
Martijn Jager
Director of Sales & Business Development3.58yrsno data0.0082%
NZ$ 85.7k
Boyd Williams
Director of People3.58yrsno data0.0049%
NZ$ 51.1k
Tania Pearson
Company Secretaryno datano datano data

3.1yrs

Average Tenure

Experienced Management: SML's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Penno
Co-Founder & Director1.83yrsNZ$229.89k2.84%
NZ$ 29.6m
Ruth Richardson
Non-Executive Director16.67yrsno data0.031%
NZ$ 326.1k
Graeme Milne
Independent Chairmanno dataNZ$156.33k0.041%
NZ$ 421.9k
Willem Roest
Independent Non-Executive Director7.33yrsno data0.015%
NZ$ 161.0k
Ian Knowles
Independent Non-Executive Director7.17yrsno data0.031%
NZ$ 319.0k
Sihang Yang
Director10.08yrsno datano data
Qikai Lu
Director 4.75yrsno datano data
Min Ben
Director3.83yrsno datano data

7.2yrs

Average Tenure

68yo

Average Age

Experienced Board: SML's board of directors are considered experienced (7.2 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Synlait Milk Limited
  • Ticker: SML
  • Exchange: NZSE
  • Founded: 2005
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: NZ$1.040b
  • Shares outstanding: 179.31m
  • Website: https://www.synlait.com

Number of Employees


Location

  • Synlait Milk Limited
  • 1028 Heslerton Road
  • RD13
  • Rakaia
  • 7783
  • New Zealand

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SMLNZSE (New Zealand Stock Exchange)YesOrdinary SharesNZNZDJul 2013
SM1ASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJul 2013
SM1CHIA (Chi-X Australia)YesOrdinary SharesAUAUDJul 2013

Biography

Synlait Milk Limited manufactures and sells dairy products in China, rest of Asia, the Middle East, Africa, New Zealand, Australia, and internationally. It provides fresh milk; nutritional products, includ ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/19 19:08
End of Day Share Price2020/09/18 00:00
Earnings2020/01/31
Annual Earnings2019/07/31


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.