The Colonial Motor Company Limited, together with its subsidiaries, owns and operates franchised motor vehicle dealerships in New Zealand.
Undervalued with adequate balance sheet and pays a dividend.
Share Price & News
How has Colonial Motor's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: CMO has not had significant price volatility in the past 3 months.
7 Day Return
NZ Specialty Retail
1 Year Return
NZ Specialty Retail
Return vs Industry: CMO underperformed the NZ Specialty Retail industry which returned 28.1% over the past year.
Return vs Market: CMO underperformed the NZ Market which returned 20.9% over the past year.
Price Volatility Vs. Market
How volatile is Colonial Motor's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall StThe Colonial Motor (NZSE:CMO) Share Price Has Gained 33% And Shareholders Are Hoping For More
1 month ago | Simply Wall StWith A -12% Earnings Drop, Did The Colonial Motor Company Limited (NZSE:CMO) Really Underperform?
1 month ago | Simply Wall StIs The Colonial Motor Company Limited's (NZSE:CMO) 5.1% Dividend Worth Your Time?
Is Colonial Motor 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: CMO (NZ$8.5) is trading below our estimate of fair value (NZ$33.95)
Significantly Below Fair Value: CMO is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: CMO is good value based on its PE Ratio (12.7x) compared to the Specialty Retail industry average (13.4x).
PE vs Market: CMO is good value based on its PE Ratio (12.7x) compared to the NZ market (19.9x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate CMO's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: CMO is good value based on its PB Ratio (1.3x) compared to the NZ Specialty Retail industry average (1.8x).
How is Colonial Motor forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
Forecasted Retail industry annual growth in earnings
In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Colonial Motor has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.
This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.
- Examine whether Colonial Motor is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
- Colonial Motor competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Retail industry.
How has Colonial Motor performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CMO has high quality earnings.
Growing Profit Margin: CMO's current net profit margins (2.4%) are lower than last year (2.8%).
Past Earnings Growth Analysis
Earnings Trend: CMO's earnings have grown by 6% per year over the past 5 years.
Accelerating Growth: CMO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: CMO had negative earnings growth (-12.3%) over the past year, making it difficult to compare to the Specialty Retail industry average (-3.6%).
Return on Equity
High ROE: CMO's Return on Equity (11.1%) is considered low.
Return on Assets
Return on Capital Employed
How is Colonial Motor's financial position?
Financial Position Analysis
Short Term Liabilities: CMO's short term assets (NZ$232.7M) exceed its short term liabilities (NZ$169.1M).
Long Term Liabilities: CMO's short term assets (NZ$232.7M) exceed its long term liabilities (NZ$6.3M).
Debt to Equity History and Analysis
Debt Level: CMO's debt to equity ratio (57.9%) is considered high.
Reducing Debt: CMO's debt to equity ratio has increased from 38.7% to 57.9% over the past 5 years.
Debt Coverage: CMO's debt is well covered by operating cash flow (29.7%).
Interest Coverage: CMO's interest payments on its debt are well covered by EBIT (7.8x coverage).
Inventory Level: CMO has a high level of physical assets or inventory.
Debt Coverage by Assets: CMO's debt is covered by short term assets (assets are 1.9x debt).
What is Colonial Motor's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: CMO's dividend (5.29%) is higher than the bottom 25% of dividend payers in the NZ market (2.88%).
High Dividend: CMO's dividend (5.29%) is low compared to the top 25% of dividend payers in the NZ market (5.59%).
Stability and Growth of Payments
Stable Dividend: CMO's dividends per share have been stable in the past 10 years.
Growing Dividend: CMO's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (67.2%), CMO's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
How experienced are the management team and are they aligned to shareholders interests?
Average board tenure
Graeme Gibbons 0
Mr. Graeme Durrad Gibbons, B.Com., CA, serves as the Chief Executive Officer of The Colonial Motor Company Limited. Mr. Gibbons served as a Director of Motor Trade Finance Limited since 1990 until March 15 ...
CEO Compensation Analysis
Compensation vs Market: Graeme's total compensation ($USD0.00) is below average for companies of similar size in the NZ market ($USD500.49K).
Compensation vs Earnings: Graeme's compensation has been consistent with company performance over the past year.
|CEO & Executive Director||0yrs||no data||5.7% NZ$15.9m|
|Executive Director||6.3yrs||no data||0.092% NZ$255.0k|
|Independent Director||4.3yrs||NZ$54.50k||0.015% NZ$41.0k|
|Director||5.6yrs||no data||6.44% NZ$17.9m|
Experienced Board: CMO's board of directors are considered experienced (5.6 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 not been meaningfully diluted in the past year.
The Colonial Motor Company Limited's company bio, employee growth, exchange listings and data sources
- Name: The Colonial Motor Company Limited
- Ticker: CMO
- Exchange: NZSE
- Founded: 1859
- Industry: Automotive Retail
- Sector: Retail
- Market Cap: NZ$277.904m
- Shares outstanding: 32.69m
- Website: https://www.colmotor.co.nz
Number of Employees
- The Colonial Motor Company Limited
- 57 Courtenay Place
- Level 6
- New Zealand
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|CMO||NZSE (New Zealand Stock Exchange)||Yes||Ordinary Shares||NZ||NZD||Jan 1992|
The Colonial Motor Company Limited, together with its subsidiaries, owns and operates franchised motor vehicle dealerships in New Zealand. The company operates 12 Ford motor vehicle dealerships, including 7 Mazda franchises. It also distributes and retails Kenworth and DAF heavy duty trucks; and retails New Holland, Case IH, and Kubota tractors and equipment. The Colonial Motor Company Limited was founded in 1859 and is based in Wellington, New Zealand.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/17 10:34|
|End of Day Share Price||2020/02/17 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.