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

Fundamentals

Good value 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


Market Performance


7 Day Return

0.7%

CMO

1.0%

NZ Specialty Retail

0.6%

NZ Market


1 Year Return

8.0%

CMO

10.5%

NZ Specialty Retail

20.5%

NZ Market

Return vs Industry: CMO underperformed the NZ Specialty Retail industry which returned 10.5% over the past year.

Return vs Market: CMO underperformed the NZ Market which returned 20.5% over the past year.


Shareholder returns

CMOIndustryMarket
7 Day0.7%1.0%0.6%
30 Day-0.8%0.1%3.0%
90 Day-2.1%17.7%2.2%
1 Year14.8%8.0%22.0%10.5%25.7%20.5%
3 Year55.7%27.5%54.6%23.7%55.8%35.4%
5 Year108.9%49.2%81.0%26.2%100.9%55.6%

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$8.8) is trading below our estimate of fair value (NZ$29.59)

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


Price To Earnings Ratio

PE vs Industry: CMO is poor value based on its PE Ratio (13.1x) compared to the Specialty Retail industry average (12.8x).

PE vs Market: CMO is good value based on its PE Ratio (13.1x) compared to the NZ market (19.6x).


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 (1.4x) compared to the NZ Specialty Retail industry average (1.6x).


Next Steps

Future Growth

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

6.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CMO's forecast earnings growth (6% per year) is above the savings rate (2.4%).

Earnings vs Market: CMO's earnings (6% per year) are forecast to grow slower than the NZ market (6.8% per year).

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

Revenue vs Market: Insufficient data to determine if CMO's revenue is forecast to grow faster than the NZ market.

High Growth Revenue: Insufficient data to determine if CMO's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Colonial Motor performed over the past 5 years?

6.0%

Historical annual earnings growth


Earnings and Revenue History


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 (-1.2%).


Return on Equity

High ROE: CMO's Return on Equity (11.1%) is considered low.


Return on Assets

ROA vs Industry: CMO's Return on Assets is below or equal to the Specialty Retail industry average last year.


Return on Capital Employed

ROCE Improving: CMO's Return on Capital Employed has declined over the past 3 years.


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) exceeds its short term liabilities (NZ$169.1M)

Long Term Liabilities: CMO's short term assets (232.7M) exceeds its long term liabilities (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 1.892070x debt).


Next Steps

Dividend

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

5.11%

Current Dividend Yield


Dividend Yield vs Market

company5.1%marketbottom25%2.9%markettop25%5.5%industryaverage5.6%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: CMO's dividend (5.11%) is higher than the bottom 25% of dividend payers in the NZ market (2.93%).

High Dividend: CMO's dividend (5.11%) is low compared to the top 25% of dividend payers in the NZ market (5.5%).

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

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

5.6yrs

Average board tenure


CEO

Graeme Gibbons 0

0yrs

Tenure

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 ($USD0.00) is too low to compare against companies of similar size in the NZ market ($USD0.00).

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


Board Age and Tenure

5.6yrs

Average Tenure

Experienced Board: CMO's board of directors are considered experienced (5.6 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Nick Bartle

    Company Secretary

    • Tenure: 11.1yrs
  • Graeme Gibbons

    CEO & Executive Director

    • Tenure: 0yrs
  • Matthew Newman

    Executive Director

    • Tenure: 5.9yrs
  • Paul Stephenson

    Finance Manager

    • Tenure: 0yrs

Board Members

  • Ashley Waugh

    Independent Director

    • Tenure: 3.9yrs
    • Compensation: NZ$54.50k
  • Graeme Gibbons

    CEO & Executive Director

    • Tenure: 0yrs
  • Leslie Wood (68yo)

    Director

    • Tenure: 7.9yrs
    • Compensation: NZ$57.68k
  • Jim Gibbons

    Chairman

    • Tenure: 8.7yrs
    • Compensation: NZ$114.13k
  • Stuart Gibbons

    Director

    • Tenure: 5.3yrs
  • Matthew Newman

    Executive Director

    • Tenure: 5.9yrs
  • John Michael Journee

    Director

    • Tenure: 0.8yrs
    • Compensation: NZ$31.79k

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$286.078m
  • 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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 10:33
End of Day Share Price2019/10/23 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.