NZSE:CMO

Stock Analysis Report

Executive Summary

The Colonial Motor Company Limited, together with its subsidiaries, owns and operates franchised motor vehicle dealerships in New Zealand.


Snowflake Analysis

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.


Market Performance


7 Day Return

-1.2%

CMO

0.9%

NZ Specialty Retail

0.2%

NZ Market


1 Year Return

3.8%

CMO

28.1%

NZ Specialty Retail

20.9%

NZ Market

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.


Shareholder returns

CMOIndustryMarket
7 Day-1.2%0.9%0.2%
30 Day0%1.6%-0.6%
90 Day-2.2%9.0%7.2%
1 Year10.3%3.8%39.3%28.1%25.9%20.9%
3 Year36.5%11.8%50.1%21.7%60.1%39.3%
5 Year83.2%30.8%117.7%55.4%96.9%53.1%

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

Valuation

Is Colonial Motor 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: 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).


Next Steps

Future Growth

How is Colonial Motor forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

15.6%

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.


Next Steps

Past Performance

How has Colonial Motor performed over the past 5 years?

6.0%

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


Next Steps

Financial Health

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).


Balance Sheet

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).


Next Steps

Dividend

What is Colonial Motor's current dividend yield, its reliability and sustainability?

5.29%

Current Dividend Yield


Dividend Yield vs Market

company5.3%marketbottom25%2.9%markettop25%5.6%industryaverage5.2%forecastin3Yearsn/a

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.


Next Steps

Management

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

5.6yrs

Average board tenure


CEO

Graeme Gibbons 0

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.


Board Members

NamePositionTenureCompensationOwnership
Graeme Gibbons
CEO & Executive Director0yrsno data5.7% NZ$15.9m
Matthew Newman
Executive Director6.3yrsno data0.092% NZ$255.0k
Ashley Waugh
Independent Director4.3yrsNZ$54.50k0.015% NZ$41.0k
James Gibbons
Chairman9yrsNZ$114.13k7.42% NZ$20.6m
Stuart Gibbons
Director5.6yrsno data6.44% NZ$17.9m
John Michael Journee
Director1.2yrsNZ$31.79k0.0080% NZ$22.2k

5.6yrs

Average Tenure

Experienced Board: CMO's board of directors are considered experienced (5.6 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

The Colonial Motor Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • 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


Location

  • The Colonial Motor Company Limited
  • 57 Courtenay Place
  • Level 6
  • Wellington
  • 6141
  • New Zealand

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CMONZSE (New Zealand Stock Exchange)YesOrdinary SharesNZNZDJan 1992

Biography

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 10:34
End of Day Share Price2020/02/17 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.