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Synlait Milk

NZSE:SML
Snowflake Description

Acceptable track record with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SML
NZSE
NZ$2B
Market Cap
  1. Home
  2. NZ
  3. Food, Beverage & Tobacco
Company description

Synlait Milk Limited manufactures and sells dairy products in China, rest of Asia, the Middle East, Africa, New Zealand, Australia, and rest of world. The last earnings update was 1 day ago. More info.


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SML Share Price and Events
7 Day Returns
-7.8%
NZSE:SML
-1.3%
NZ Food
0.7%
NZ Market
1 Year Returns
5.6%
NZSE:SML
-7.9%
NZ Food
6%
NZ Market
SML Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Synlait Milk (SML) -7.8% 1% 11.2% 5.6% 228.3% 144.4%
NZ Food -1.3% 2.6% 12.8% -7.9% 61.1% 63.7%
NZ Market 0.7% 1.2% 5.8% 6% 22.4% 43.5%
1 Year Return vs Industry and Market
  • SML outperformed the Food industry which returned -7.9% over the past year.
Price Volatility
SML
Industry
5yr Volatility vs Market

Value

 Is Synlait Milk undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Synlait Milk to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Synlait Milk.

NZSE:SML Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 7 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.1%
Perpetual Growth Rate 10-Year NZ Government Bond Rate 2.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NZSE:SML
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year NZ Govt Bond Rate 2.4%
Equity Risk Premium S&P Global 6%
Food Unlevered Beta Simply Wall St/ S&P Global 0.56
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.561 (1 + (1- 28%) (14.85%))
0.746
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.37% + (0.8 * 5.96%)
7.14%

Discounted Cash Flow Calculation for NZSE:SML using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Synlait Milk is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NZSE:SML DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (NZD, Millions) Source Present Value
Discounted (@ 7.14%)
2019 -197.80 Analyst x1 -184.62
2020 66.35 Analyst x2 57.80
2021 112.25 Analyst x2 91.28
2022 153.46 Est @ 36.71% 116.47
2023 193.99 Est @ 26.41% 137.43
2024 231.24 Est @ 19.2% 152.90
2025 263.96 Est @ 14.15% 162.90
2026 291.98 Est @ 10.62% 168.19
2027 315.76 Est @ 8.14% 169.77
2028 336.00 Est @ 6.41% 168.62
Present value of next 10 years cash flows NZ$1,040.74
NZSE:SML DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= NZ$336.00 × (1 + 2.37%) ÷ (7.14% – 2.37%)
NZ$7,213.94
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= NZ$7,213.94 ÷ (1 + 7.14%)10
NZ$3,620.24
NZSE:SML Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= NZ$1,040.74 + NZ$3,620.24
NZ$4,660.97
Equity Value per Share
(NZD)
= Total value / Shares Outstanding
= NZ$4,660.97 / 179.22
NZ$26.01
NZSE:SML Discount to Share Price
Calculation Result
Value per share (NZD) From above. NZ$26.01
Current discount Discount to share price of NZ$9.75
= -1 x (NZ$9.75 - NZ$26.01) / NZ$26.01
62.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Synlait Milk is available for.
Intrinsic value
>50%
Share price is NZ$9.75 vs Future cash flow value of NZ$26.01
Current Discount Checks
For Synlait Milk to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Synlait Milk's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Synlait Milk's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Synlait Milk's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Synlait Milk's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NZSE:SML PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-01-31) in NZD NZ$0.39
NZSE:SML Share Price ** NZSE (2019-03-20) in NZD NZ$9.75
New Zealand Food Industry PE Ratio Median Figure of 10 Publicly-Listed Food Companies 21.65x
New Zealand Market PE Ratio Median Figure of 89 Publicly-Listed Companies 17.1x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Synlait Milk.

NZSE:SML PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NZSE:SML Share Price ÷ EPS (both in NZD)

= 9.75 ÷ 0.39

24.77x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Synlait Milk is overvalued based on earnings compared to the NZ Food industry average.
  • Synlait Milk is overvalued based on earnings compared to the New Zealand market.
Price based on expected Growth
Does Synlait Milk's expected growth come at a high price?
Raw Data
NZSE:SML PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 24.77x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts
17%per year
New Zealand Food Industry PEG Ratio Median Figure of 7 Publicly-Listed Food Companies 1.05x
New Zealand Market PEG Ratio Median Figure of 66 Publicly-Listed Companies 1.42x

*Line of best fit is calculated by linear regression .

NZSE:SML PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 24.77x ÷ 17%

1.45x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Synlait Milk is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Synlait Milk's assets?
Raw Data
NZSE:SML PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-01-31) in NZD NZ$2.64
NZSE:SML Share Price * NZSE (2019-03-20) in NZD NZ$9.75
New Zealand Food Industry PB Ratio Median Figure of 13 Publicly-Listed Food Companies 1.14x
New Zealand Market PB Ratio Median Figure of 126 Publicly-Listed Companies 1.52x
NZSE:SML PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NZSE:SML Share Price ÷ Book Value per Share (both in NZD)

= 9.75 ÷ 2.64

3.7x

* Primary Listing of Synlait Milk.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Synlait Milk is overvalued based on assets compared to the NZ Food industry average.
X
Value checks
We assess Synlait Milk's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Food industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Food industry average (and greater than 0)? (1 check)
  5. Synlait Milk has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
17%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Synlait Milk expected to grow at an attractive rate?
  • Synlait Milk's earnings growth is expected to exceed the low risk savings rate of 2.4%.
Growth vs Market Checks
  • Synlait Milk's earnings growth is expected to exceed the New Zealand market average.
  • Synlait Milk's revenue growth is expected to exceed the New Zealand market average.
Annual Growth Rates Comparison
Raw Data
NZSE:SML Future Growth Rates Data Sources
Data Point Source Value (per year)
NZSE:SML Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts 17%
NZSE:SML Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts 17.4%
New Zealand Food Industry Earnings Growth Rate Market Cap Weighted Average 19.1%
New Zealand Food Industry Revenue Growth Rate Market Cap Weighted Average 15.4%
New Zealand Market Earnings Growth Rate Market Cap Weighted Average 5.9%
New Zealand Market Revenue Growth Rate Market Cap Weighted Average 4.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NZSE:SML Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
All numbers in NZD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NZSE:SML Future Estimates Data
Date (Data in NZD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-07-31 158
2022-07-31 149
2021-07-31 1,408 168 133 7
2020-07-31 1,255 138 106 7
2019-07-31 1,012 111 89 7
NZSE:SML Past Financials Data
Date (Data in NZD Millions) Revenue Cash Flow Net Income *
2019-01-31 911 55 71
2018-10-31 895 77 73
2018-07-31 879 98 75
2018-04-30 894 151 72
2018-01-31 910 204 68
2017-10-31 834 160 53
2017-07-31 759 115 40
2017-04-30 691 101 36
2017-01-31 622 86 35
2016-10-31 584 95 35
2016-07-31 547 104 34
2016-04-30 505 94 31

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Synlait Milk's earnings are expected to grow by 17% yearly, however this is not considered high growth (20% yearly).
  • Synlait Milk's revenue is expected to grow by 17.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NZSE:SML Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below

All data from Synlait Milk Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NZSE:SML Future Estimates Data
Date (Data in NZD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-07-31
2022-07-31
2021-07-31 0.72 0.74 0.70 4.00
2020-07-31 0.56 0.58 0.55 4.00
2019-07-31 0.49 0.51 0.47 4.00
NZSE:SML Past Financials Data
Date (Data in NZD Millions) EPS *
2019-01-31 0.39
2018-10-31 0.41
2018-07-31 0.42
2018-04-30 0.40
2018-01-31 0.38
2017-10-31 0.30
2017-07-31 0.23
2017-04-30 0.22
2017-01-31 0.22
2016-10-31 0.23
2016-07-31 0.23
2016-04-30 0.21

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Synlait Milk is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Synlait Milk's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the New Zealand market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the New Zealand market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Synlait Milk has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Synlait Milk performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Synlait Milk's growth in the last year to its industry (Food).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Synlait Milk has delivered over 20% year on year earnings growth in the past 5 years.
  • Synlait Milk's 1-year earnings growth is less than its 5-year average (3.3% vs 39.6%)
  • Synlait Milk's earnings growth has not exceeded the NZ Food industry average in the past year (3.3% vs 22.9%).
Earnings and Revenue History
Synlait Milk's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Synlait Milk Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NZSE:SML Past Revenue, Cash Flow and Net Income Data
Date (Data in NZD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-01-31 910.64 70.55 58.98
2018-10-31 894.82 72.88 56.57
2018-07-31 879.00 74.55 54.24
2018-04-30 894.31 72.07 50.83
2018-01-31 909.61 68.28 46.76
2017-10-31 834.30 53.25 45.34
2017-07-31 758.99 39.53 44.58
2017-04-30 690.54 36.50 43.73
2017-01-31 622.09 34.77 43.08
2016-10-31 584.48 34.58 40.58
2016-07-31 546.87 34.38 38.08
2016-04-30 505.48 30.80 31.70
2016-01-31 464.09 27.21 25.33
2015-10-31 456.11 18.88 26.96
2015-07-31 448.14 10.55 28.59
2015-04-30 480.64 5.81 36.16
2015-01-31 513.14 1.06 43.73
2014-10-31 556.83 10.33 44.04
2014-07-31 600.52 19.60 44.34
2014-04-30 564.49 18.24 42.65
2014-01-31 528.46 16.87 40.97
2013-10-31 474.24 14.20 39.53
2013-07-31 420.01 11.53 38.09
2013-04-30 399.07 10.19 36.93
2013-01-31 378.13 8.85 35.77
2012-10-31 377.45 6.62 34.37
2012-07-31 376.77 4.38 32.97

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Synlait Milk has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Synlait Milk used its assets more efficiently than the NZ Food industry average last year based on Return on Assets.
  • Synlait Milk has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Synlait Milk's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Food industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Synlait Milk has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Synlait Milk's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Synlait Milk's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Synlait Milk's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Synlait Milk's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Synlait Milk's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Synlait Milk Company Filings, last reported 1 month ago.

NZSE:SML Past Debt and Equity Data
Date (Data in NZD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-01-31 472.82 300.39 13.49
2018-10-31 472.82 300.39 13.49
2018-07-31 424.74 146.39 32.13
2018-04-30 424.74 146.39 32.13
2018-01-31 434.74 138.61 88.88
2017-10-31 434.74 138.61 88.88
2017-07-31 376.72 156.09 73.83
2017-04-30 393.08 156.09 73.83
2017-01-31 365.67 149.88 3.31
2016-10-31 365.67 149.88 3.31
2016-07-31 256.84 215.45 2.05
2016-04-30 256.84 215.45 2.05
2016-01-31 195.95 293.17 1.13
2015-10-31 195.95 293.17 1.13
2015-07-31 171.85 263.57 1.53
2015-04-30 171.85 263.57 1.53
2015-01-31 162.22 278.47 0.44
2014-10-31 162.22 278.47 0.44
2014-07-31 183.13 154.49 2.39
2014-04-30 183.13 154.49 2.39
2014-01-31 176.52 156.65 4.66
2013-10-31 176.52 156.65 4.66
2013-07-31 164.04 107.92 2.37
2013-04-30 164.04 107.92 2.37
2013-01-31 90.99 187.12 3.16
2012-10-31 90.99 187.12 3.16
2012-07-31 86.29 107.73 0.67
  • Synlait Milk's level of debt (63.5%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (88.7% vs 63.5% today).
  • Debt is not well covered by operating cash flow (18.3%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 14.2x coverage).
X
Financial health checks
We assess Synlait Milk's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Synlait Milk has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Synlait Milk dividends. Estimated to be 0.74% next year.
If you bought NZ$2,000 of Synlait Milk shares you are expected to receive NZ$0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Synlait Milk's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Synlait Milk's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NZSE:SML Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
New Zealand Food Industry Average Dividend Yield Market Cap Weighted Average of 8 Stocks 3.6%
New Zealand Market Average Dividend Yield Market Cap Weighted Average of 76 Stocks 4%
New Zealand Minimum Threshold Dividend Yield 10th Percentile 1.9%
New Zealand Bottom 25% Dividend Yield 25th Percentile 3.3%
New Zealand Top 25% Dividend Yield 75th Percentile 5.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NZSE:SML Future Dividends Estimate Data
Date (Data in NZ$) Dividend per Share (annual) Avg. No. Analysts
2023-07-31
2022-07-31
2021-07-31 0.65 1.00
2020-07-31 0.00 4.00
2019-07-31 0.00 4.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Synlait Milk has not reported any payouts.
  • Unable to verify if Synlait Milk's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Synlait Milk's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Synlait Milk has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Synlait Milk's dividends in 3 years as they are not expected to pay a notable one for New Zealand.
X
Income/ dividend checks
We assess Synlait Milk's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Synlait Milk afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Synlait Milk has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Leon Clement
TENURE AS CEO 0.6 years
CEO Bio

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 Synlait in August 2018. He has led major businesses internationally, specifically in Vietnam and Sri Lanka, and has deep experience in the branded dairy sector. He was their Managing Director of Sri Lanka and Indian Subcontinent. He has a Bachelor of Engineering from University of Auckland, and a Masters in Engineering Management from University of Canterbury.

CEO Compensation
  • Insufficient data for Leon to compare compensation growth.
  • Insufficient data for Leon to establish whether their remuneration is reasonable compared to companies of similar size in New Zealand.
Management Team Tenure

Average tenure of the Synlait Milk management team in years:

1.8
Average Tenure
  • The average tenure for the Synlait Milk management team is less than 2 years, this suggests a new team.
Management Team

John Penno

TITLE
Co-Founder & Director
TENURE
5.8 yrs

Leon Clement

TITLE
Chief Executive Officer
TENURE
0.6 yrs

Nigel Greenwood

TITLE
Chief Financial Officer

Neil Betteridge

TITLE
Director of Operations
TENURE
1.6 yrs

Roger Schwarzenbach

TITLE
General Manager of Innovation & Technical Services
TENURE
1.6 yrs

Deborah Marris

TITLE
Director of Legal

Dan Walraven

TITLE
Communications Manager

Martijn Jager

TITLE
Director of Sales & Business Development
TENURE
2.1 yrs

Boyd Williams

TITLE
Director of People
TENURE
2.1 yrs
Board of Directors Tenure

Average tenure and age of the Synlait Milk board of directors in years:

5.8
Average Tenure
66
Average Age
  • The tenure for the Synlait Milk board of directors is about average.
Board of Directors

Graeme Milne

TITLE
Chairman
AGE
64

John Penno

TITLE
Co-Founder & Director

Ruth Richardson

TITLE
Non-Executive Director
AGE
66
TENURE
15.2 yrs

Bill Roest

TITLE
Independent Non-Executive Director
AGE
70
TENURE
5.8 yrs

Edward Yang

TITLE
Director
TENURE
8.6 yrs

Sam Knowles

TITLE
Independent Non-Executive Director
TENURE
5.7 yrs

Albert Lu

TITLE
Director
TENURE
3.3 yrs

Min Ben

TITLE
Director
TENURE
2.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (NZ$) Value (NZ$)
08. Oct 18 Sell John Penno Individual 03. Oct 18 03. Oct 18 -1,020,755 NZ$10.80 NZ$-11,024,153
X
Management checks
We assess Synlait Milk's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Synlait Milk has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is Synlait Milk Limited (NZSE:SML) A High Quality Stock To Own?

Synlait Milk has a ROE of 18%, based on the last twelve months. … One way to conceptualize this, is that for each NZ$1 of shareholders' equity it has, the company made NZ$0.18 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

What Should You Know About Synlait Milk Limited's (NZSE:SML) Capital Returns?

and looking to gauge the potential return on investment in Synlait Milk Limited (NZSE:SML). … To understand Synlait Milk’s capital returns we will look at a useful metric called return on capital employed. … Synlait Milk's Return On Capital Employed

Simply Wall St -

Should You Be Tempted To Sell Synlait Milk Limited (NZSE:SML) Because Of Its PE Ratio?

The content of this article will benefit those of you who are starting to educate yourself about investing in the stock market. … and want to learn about the link between company’s fundamentals and stock market performance. … While SML might seem like a stock to avoid or sell if you own it, it is important to understand the assumptions behind the P/E ratio before you make any investment decisions.

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Is Synlait Milk Limited's (NZSE:SML) ROE Of 15.71% Sustainable?

With an ROE of 15.71%, Synlait Milk Limited (NZSE:SML) returned in-line to its own industry which delivered 14.32% over the past year. … Sustainability can be gauged by a company’s financial leverage – the more debt it has, the higher ROE is pumped up in the short term, at the expense of long term interest payment burden. … View our latest analysis for Synlait Milk

Simply Wall St -

Will Synlait Milk Limited's (NZSE:SML) Earnings Grow In The Next 12 Months?

Based on Synlait Milk Limited's (NZSE:SML) earnings update in January 2018,. … the higher past 5-year average growth rate of 37.46% … Currently with earnings of NZ$38.22m, we can expect this to reach NZ$45.43m by 2019.

Simply Wall St -

How Financially Strong Is Synlait Milk Limited (NZSE:SML)?

While small-cap stocks, such as Synlait Milk Limited (NZSE:SML) with its market cap of NZ$2.06b, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn.

Simply Wall St -

Are Synlait Milk Limited's (NZSE:SML) Interest Costs Too High?

Investors are always looking for growth in small-cap stocks like Synlait Milk Limited (NZSE:SML), with a market cap of NZ$1.96b. … However, an important fact which most ignore is: how financially healthy is the business? … Evaluating financial health as part of your investment thesis is

Simply Wall St -

Does Synlait Milk Limited's (NZE:SML) PE Ratio Warrant A Sell?

Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for SML Price per share = NZ$10.75 Earnings per share = NZ$0.381 ∴ Price-Earnings Ratio = NZ$10.75 ÷ NZ$0.381 = 28.2x The P/E ratio itself doesn’t tell you a lot; however, it becomes very insightful when you compare it with other similar companies. … At 28.2x, SML’s P/E is higher than its industry peers (19.5x). … In this case, SML’s P/E would be higher since investors would also reward SML’s higher growth with a higher price.

Simply Wall St -

Is Synlait Milk Limited's (NZE:SML) Balance Sheet A Threat To Its Future?

On top of this, SML has produced NZ$115.18M in operating cash flow during the same period of time, resulting in an operating cash to total debt ratio of 73.79%, signalling that SML’s debt is appropriately covered by operating cash. … Looking at SML’s most recent NZ$232.33M liabilities, it appears that the company has maintained a safe level of current assets to meet its obligations, with the current ratio last standing at 1.11x. … In SML's, case, the ratio of 11.96x suggests that interest is comfortably covered, which means that debtors may be willing to loan the company more money, giving SML ample headroom to grow its debt facilities.Next Steps: SML’s debt level is appropriate for a company its size, and it is also able to generate sufficient cash flow coverage, meaning it has been able to put its debt in good use.

Simply Wall St -

Is Synlait Milk Limited's (NZE:SML) Future Growth Already Accounted For In Today's Price?

SML is available at a PE (price-to-earnings) ratio of 23.14x today, which tells us the stock is overvalued based on current earnings compared to the food industry average of 18.04x , and overvalued compared to the NZ market average ratio of 13.84x. … But, to be able to properly assess the value of a high-growth stock such as Synlait Milk, we must incorporate its earnings growth in our valuation. … A PE ratio of 23.14x and expected year-on-year earnings growth of 12.33% give Synlait Milk a higher PEG ratio of 1.88x.

Simply Wall St -

Company Info

Description

Synlait Milk Limited manufactures and sells dairy products in China, rest of Asia, the Middle East, Africa, New Zealand, Australia, and rest of world. It provides nutritional products, including infant and adult nutritional powders; ingredients comprising whole milk powders, skim milk powders, and anhydrous milk fat; and specialty products, such as lactoferrin. The company was founded in 2005 and is based in Rakaia, New Zealand.

Details
Name: Synlait Milk Limited
SML
Exchange: NZSE
Founded: 2005
NZ$2,023,427,986
179,223,028
Website: http://www.synlaitmilk.com
Address: Synlait Milk Limited
1028 Heslerton Road,
RD13,
Rakaia,
7783,
New Zealand
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NZSE SML Ordinary Shares New Zealand Stock Exchange NZ NZD 23. Jul 2013
ASX SM1 Ordinary Shares Australian Securities Exchange AU AUD 23. Jul 2013
CHIA SM1 Ordinary Shares Chi-X Australia AU AUD 23. Jul 2013
Number of employees
Current staff
Staff numbers
682
Synlait Milk employees.
Industry
Packaged Foods and Meats
Food, Beverage & Tobacco
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/20 10:34
End of day share price update: 2019/03/20 00:00
Last estimates confirmation: 2019/03/20
Last earnings filing: 2019/03/19
Last earnings reported: 2019/01/31
Last annual earnings reported: 2018/07/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.