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ARB

ArborGen HoldingsNZSE:ARB Stock Report

Market Cap

NZ$142.5m

7D

-10.0%

1Y

95.7%

Updated

18 Oct, 2021

Data

Company Financials +
ARB fundamental analysis
Snowflake Score
Valuation4/6
Future Growth4/6
Past Performance2/6
Financial Health6/6
Dividends0/6

ARB Overview

ArborGen Holdings Limited engages in the forestry genetics business.

Price History & Performance

Summary of all time highs, changes and price drops for ArborGen Holdings
Historical stock prices
Current Share PriceNZ$0.27
52 Week HighNZ$0.13
52 Week LowNZ$0.34
Beta0.56
1 Month Change-12.90%
3 Month Change-10.00%
1 Year Change95.65%
3 Year Change10.20%
5 Year Change14.89%
Change since IPO-44.90%

Recent News & Updates

May 14
ArborGen Holdings (NZSE:ARB) Hasn't Managed To Accelerate Its Returns

ArborGen Holdings (NZSE:ARB) Hasn't Managed To Accelerate Its Returns

There are a few key trends to look for if we want to identify the next multi-bagger. One common approach is to try and...

Feb 13
What Do The Returns On Capital At ArborGen Holdings (NZSE:ARB) Tell Us?

What Do The Returns On Capital At ArborGen Holdings (NZSE:ARB) Tell Us?

Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Ideally, a business...

Jan 17
Does ArborGen Holdings (NZSE:ARB) Have A Healthy Balance Sheet?

Does ArborGen Holdings (NZSE:ARB) Have A Healthy Balance Sheet?

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Shareholder Returns

ARBNZ ForestryNZ Market
7D-10.0%-4.8%-0.5%
1Y95.7%36.0%2.2%

Return vs Industry: ARB exceeded the NZ Forestry industry which returned 36% over the past year.

Return vs Market: ARB exceeded the NZ Market which returned 2.2% over the past year.

Price Volatility

Is ARB's price volatile compared to industry and market?
ARB volatility
ARB Beta0.56
Industry Beta0.60
Market Beta1

Stable Share Price: ARB is more volatile than 90% of NZ stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: ARB's weekly volatility (7%) has been stable over the past year, but is still higher than 75% of NZ stocks.

About the Company

FoundedEmployeesCEOWebsite
n/an/aAndrew Baumhttps://www.rubicon-nz.com

ArborGen Holdings Limited engages in the forestry genetics business. The company provides its tree seedlings under the ArborGen brand name to forestry markets primarily in the United States, Brazil, New Zealand, and Australia. The company was formerly known as Rubicon Limited and changed its name to ArborGen Holdings Limited in September 2019.

ArborGen Holdings Fundamentals Summary

How do ArborGen Holdings's earnings and revenue compare to its market cap?
ARB fundamental statistics
Market CapUS$100.85m
Earnings (TTM)US$3.20m
Revenue (TTM)US$52.70m

29.9x

P/E Ratio

1.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ARB income statement (TTM)
RevenueUS$52.70m
Cost of RevenueUS$34.60m
Gross ProfitUS$18.10m
ExpensesUS$14.90m
EarningsUS$3.20m

Last Reported Earnings

Mar 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.0064
Gross Margin34.35%
Net Profit Margin6.07%
Debt/Equity Ratio22.9%

How did ARB perform over the long term?

See historical performance and comparison

Valuation

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

46.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ARB (NZ$0.27) is trading below our estimate of fair value (NZ$0.5)

Significantly Below Fair Value: ARB is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ARB is poor value based on its PE Ratio (29.9x) compared to the Global Forestry industry average (13.5x).

PE vs Market: ARB is poor value based on its PE Ratio (29.9x) compared to the NZ market (22.5x).


Price to Earnings Growth Ratio

PEG Ratio: ARB is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: ARB is good value based on its PB Ratio (0.6x) compared to the XO Forestry industry average (0.9x).


Future Growth

How is ArborGen Holdings forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

34.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ARB's forecast earnings growth (34.1% per year) is above the savings rate (2.1%).

Earnings vs Market: ARB's earnings (34.1% per year) are forecast to grow faster than the NZ market (9.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ARB's revenue (12.7% per year) is forecast to grow faster than the NZ market (5.2% per year).

High Growth Revenue: ARB's revenue (12.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if ARB's Return on Equity is forecast to be high in 3 years time


Past Performance

How has ArborGen Holdings performed over the past 5 years?

15.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ARB has a large one-off gain of $2.0M impacting its March 31 2021 financial results.

Growing Profit Margin: ARB became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: ARB has become profitable over the past 5 years, growing earnings by 15.4% per year.

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

Earnings vs Industry: ARB has become profitable in the last year, making it difficult to compare its past year earnings growth to the Forestry industry (44.3%).


Return on Equity

High ROE: ARB's Return on Equity (2.2%) is considered low.


Financial Health

How is ArborGen Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: ARB's short term assets ($52.9M) exceed its short term liabilities ($15.9M).

Long Term Liabilities: ARB's short term assets ($52.9M) exceed its long term liabilities ($39.2M).


Debt to Equity History and Analysis

Debt Level: ARB's debt to equity ratio (22.9%) is considered satisfactory.

Reducing Debt: ARB's debt to equity ratio has reduced from 35.6% to 22.9% over the past 5 years.

Debt Coverage: ARB's debt is well covered by operating cash flow (29.2%).

Interest Coverage: ARB's interest payments on its debt are well covered by EBIT (8.7x coverage).


Balance Sheet


Dividend

What is ArborGen Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate ARB's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate ARB'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 ARB's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ARB'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 ARB'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?

3.3yrs

Average board tenure


CEO

Andrew Baum (65 yo)

2.08yrs

Tenure

US$422,616

Compensation

Mr. Andrew Baum serves as the Chief Executive Officer at ArborGen Holdings Limited (formerly known as Rubicon Limited) since September 2019 and serves as its President. Mr. Baum has been the Chief Executiv...


CEO Compensation Analysis

Compensation vs Market: Andrew's total compensation ($USD422.62K) is about average for companies of similar size in the NZ market ($USD370.74K).

Compensation vs Earnings: Andrew's compensation has been consistent with company performance over the past year.


Board Members

Experienced Board: ARB's board of directors are considered experienced (3.3 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.


Ownership Breakdown

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


Top Shareholders

Company Information

ArborGen Holdings Limited's employee growth, exchange listings and data sources


Key Information

  • Name: ArborGen Holdings Limited
  • Ticker: ARB
  • Exchange: NZSE
  • Founded: NaN
  • Industry: Forest Products
  • Sector: Materials
  • Market Cap: NZ$142.537m
  • Shares outstanding: 500.13m
  • Website: https://www.rubicon-nz.com

Location

  • ArborGen Holdings Limited
  • 100 Parnell Road
  • Suite 107
  • Auckland
  • 10
  • New Zealand

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/18 06:00
End of Day Share Price2021/10/18 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


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.