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CVT

ComvitaNZSE:CVT Stock Report

Market Cap

NZ$261.4m

7D

0%

1Y

11.3%

Updated

25 Oct, 2021

Data

Company Financials +
CVT fundamental analysis
Snowflake Score
Valuation1/6
Future Growth3/6
Past Performance2/6
Financial Health6/6
Dividends0/6

CVT Overview

Comvita Limited, together with its subsidiaries, engages in manufacturing and marketing natural health products in Australia, New Zealand, China, rest of Asia, North America, Europe, the Middle East, Africa, and internationally.

Rewards

Earnings are forecast to grow 17.75% per year

Became profitable this year

Risk Analysis

No risks detected for CVT from our risk checks.

Price History & Performance

Summary of all time highs, changes and price drops for Comvita
Historical stock prices
Current Share PriceNZ$3.73
52 Week HighNZ$3.06
52 Week LowNZ$3.80
Beta1.03
1 Month Change3.32%
3 Month Change13.03%
1 Year Change11.34%
3 Year Change-36.57%
5 Year Change-60.53%
Change since IPO69.55%

Recent News & Updates

Mar 25
These 4 Measures Indicate That Comvita (NZSE:CVT) Is Using Debt Reasonably Well

These 4 Measures Indicate That Comvita (NZSE:CVT) Is Using Debt Reasonably Well

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Shareholder Returns

CVTNZ Personal ProductsNZ Market
7D0%0.6%0.4%
1Y11.3%23.0%2.1%

Return vs Industry: CVT underperformed the NZ Personal Products industry which returned 23% over the past year.

Return vs Market: CVT exceeded the NZ Market which returned 2.1% over the past year.

Price Volatility

Is CVT's price volatile compared to industry and market?
CVT volatility
CVT Beta1.03
Industry Beta0.72
Market Beta1

Stable Share Price: CVT is not significantly more volatile than the rest of NZ stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: CVT's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1974552David Banfieldhttps://www.comvita.co.nz

Comvita Limited, together with its subsidiaries, engages in manufacturing and marketing natural health products in Australia, New Zealand, China, rest of Asia, North America, Europe, the Middle East, Africa, and internationally. The company offers Manuka honey, propolis, olive leaf extract, medihoney and skincare, gourmet honey, elixirs and lozenges, and cider vinegar products, as well as oral and kids health products. It also provides solutions for digestive health, eczema prone skin, energy, heart health, and immune support, as well as for summer and travel essentials.

Comvita Fundamentals Summary

How do Comvita's earnings and revenue compare to its market cap?
CVT fundamental statistics
Market CapNZ$261.36m
Earnings (TTM)NZ$9.48m
Revenue (TTM)NZ$191.73m

27.6x

P/E Ratio

1.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CVT income statement (TTM)
RevenueNZ$191.73m
Cost of RevenueNZ$88.31m
Gross ProfitNZ$103.42m
ExpensesNZ$93.95m
EarningsNZ$9.48m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.14
Gross Margin53.94%
Net Profit Margin4.94%
Debt/Equity Ratio9.4%

How did CVT perform over the long term?

See historical performance and comparison

Dividends

1.1%

Current Dividend Yield

29%

Payout Ratio

Valuation

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

27.57x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CVT (NZ$3.73) is trading above our estimate of fair value (NZ$1.04)

Significantly Below Fair Value: CVT is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CVT is poor value based on its PE Ratio (27.6x) compared to the Global Personal Products industry average (26.1x).

PE vs Market: CVT is poor value based on its PE Ratio (27.6x) compared to the NZ market (22.2x).


Price to Earnings Growth Ratio

PEG Ratio: CVT is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: CVT is good value based on its PB Ratio (1.2x) compared to the XO Personal Products industry average (2.1x).


Future Growth

How is Comvita forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

17.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CVT's forecast earnings growth (17.8% per year) is above the savings rate (2.1%).

Earnings vs Market: CVT's earnings (17.8% per year) are forecast to grow faster than the NZ market (9.2% per year).

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

Revenue vs Market: CVT's revenue (5.4% per year) is forecast to grow faster than the NZ market (5.3% per year).

High Growth Revenue: CVT's revenue (5.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CVT's Return on Equity is forecast to be low in 3 years time (6.7%).


Past Performance

How has Comvita performed over the past 5 years?

-34.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CVT has high quality earnings.

Growing Profit Margin: CVT became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: CVT's earnings have declined by 34.2% per year over the past 5 years.

Accelerating Growth: CVT has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: CVT has become profitable in the last year, making it difficult to compare its past year earnings growth to the Personal Products industry (23%).


Return on Equity

High ROE: CVT's Return on Equity (4.3%) is considered low.


Financial Health

How is Comvita's financial position?


Financial Position Analysis

Short Term Liabilities: CVT's short term assets (NZ$154.3M) exceed its short term liabilities (NZ$31.4M).

Long Term Liabilities: CVT's short term assets (NZ$154.3M) exceed its long term liabilities (NZ$33.3M).


Debt to Equity History and Analysis

Debt Level: CVT's debt to equity ratio (9.4%) is considered satisfactory.

Reducing Debt: CVT's debt to equity ratio has reduced from 65.8% to 9.4% over the past 5 years.

Debt Coverage: CVT's debt is well covered by operating cash flow (119.1%).

Interest Coverage: CVT's interest payments on its debt are well covered by EBIT (6.3x coverage).


Balance Sheet


Dividend

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

1.07%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CVT's dividend (1.07%) isn’t notable compared to the bottom 25% of dividend payers in the NZ market (2.41%).

High Dividend: CVT's dividend (1.07%) is low compared to the top 25% of dividend payers in the NZ market (4.9%).


Stability and Growth of Payments

Stable Dividend: CVT is not paying a notable dividend for the NZ market, therefore no need to check if payments are stable.

Growing Dividend: CVT is not paying a notable dividend for the NZ market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: CVT is not paying a notable dividend for the NZ market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CVT'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?

1.7yrs

Average management tenure


CEO

David Banfield

1.75yrs

Tenure

Mr. David Banfield has been the Chief Executive Officer of Comvita Limited since joining on January 20, 2020. Mr. Banfield has been a Director of Methven Limited since May 25, 2015 and serves as its Managi...


Leadership Team

Experienced Management: CVT's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

Experienced Board: CVT's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Comvita Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Comvita Limited
  • Ticker: CVT
  • Exchange: NZSE
  • Founded: 1974
  • Industry: Personal Products
  • Sector: Household
  • Market Cap: NZ$261.361m
  • Shares outstanding: 70.07m
  • Website: https://www.comvita.co.nz

Number of Employees


Location

  • Comvita Limited
  • 23 Wilson Road South
  • Paengaroa
  • Te Puke
  • 3153
  • New Zealand

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/25 06:01
End of Day Share Price2021/10/22 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.