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Colonial Motor

NZSE:CMO
Snowflake Description

Adequate balance sheet average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CMO
NZSE
NZ$288M
Market Cap
  1. Home
  2. NZ
  3. Retail
Company description

The Colonial Motor Company Limited, together with its subsidiaries, owns and operates franchised motor vehicle dealerships in New Zealand. The last earnings update was 148 days ago. More info.


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CMO Share Price and Events
7 Day Returns
-1.7%
NZSE:CMO
0.3%
NZ Specialty Retail
0%
NZ Market
1 Year Returns
6.7%
NZSE:CMO
-11.7%
NZ Specialty Retail
12.1%
NZ Market
CMO Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Colonial Motor (CMO) -1.7% 0.9% 3.5% 6.7% 33.3% 66%
NZ Specialty Retail 0.3% 1.3% -0.2% -11.7% 13.8% 8%
NZ Market 0% 4.1% 5.7% 12.1% 27.2% 56.3%
1 Year Return vs Industry and Market
  • CMO outperformed the Specialty Retail industry which returned -11.7% over the past year.
  • CMO underperformed the Market in New Zealand which returned 12.1% over the past year.
Price Volatility
CMO
Industry
5yr Volatility vs Market

CMO Value

 Is Colonial Motor undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Colonial Motor to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Colonial Motor.

NZSE:CMO Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 8.6%
Perpetual Growth Rate 10-Year NZ Government Bond Rate 2.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NZSE:CMO
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year NZ Govt Bond Rate 2.4%
Equity Risk Premium S&P Global 6%
Specialty Retail Unlevered Beta Simply Wall St/ S&P Global 0.83
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.833 (1 + (1- 28%) (37.93%))
1.041
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.04
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.37% + (1.041 * 5.96%)
8.57%

Discounted Cash Flow Calculation for NZSE:CMO using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Colonial Motor is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NZSE:CMO DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (NZD, Millions) Source Present Value
Discounted (@ 8.57%)
2020 12.89 Est @ -24.76% 11.87
2021 10.74 Est @ -16.62% 9.11
2022 9.57 Est @ -10.92% 7.48
2023 8.91 Est @ -6.93% 6.41
2024 8.54 Est @ -4.14% 5.66
2025 8.35 Est @ -2.19% 5.10
2026 8.28 Est @ -0.82% 4.66
2027 8.29 Est @ 0.14% 4.30
2028 8.36 Est @ 0.81% 3.99
2029 8.47 Est @ 1.28% 3.72
Present value of next 10 years cash flows NZ$62.29
NZSE:CMO DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= NZ$8.47 × (1 + 2.37%) ÷ (8.57% – 2.37%)
NZ$139.73
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= NZ$139.73 ÷ (1 + 8.57%)10
NZ$61.38
NZSE:CMO Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= NZ$62.29 + NZ$61.38
NZ$123.68
Equity Value per Share
(NZD)
= Total value / Shares Outstanding
= NZ$123.68 / 32.69
NZ$3.78
NZSE:CMO Discount to Share Price
Calculation Result
Value per share (NZD) From above. NZ$3.78
Current discount Discount to share price of NZ$8.80
= -1 x (NZ$8.80 - NZ$3.78) / NZ$3.78
-132.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Colonial Motor is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Colonial Motor's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Colonial Motor's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NZSE:CMO PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in NZD NZ$0.73
NZSE:CMO Share Price ** NZSE (2019-07-16) in NZD NZ$8.8
New Zealand Specialty Retail Industry PE Ratio Median Figure of 6 Publicly-Listed Specialty Retail Companies 11.65x
New Zealand Market PE Ratio Median Figure of 89 Publicly-Listed Companies 17.77x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Colonial Motor.

NZSE:CMO PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NZSE:CMO Share Price ÷ EPS (both in NZD)

= 8.8 ÷ 0.73

12.05x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Colonial Motor is overvalued based on earnings compared to the NZ Specialty Retail industry average.
  • Colonial Motor is good value based on earnings compared to the New Zealand market.
Price based on expected Growth
Does Colonial Motor's expected growth come at a high price?
Raw Data
NZSE:CMO PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 12.05x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
6.6%per year
Oceania Specialty Retail Industry PEG Ratio Median Figure of 22 Publicly-Listed Specialty Retail Companies 1.75x
New Zealand Market PEG Ratio Median Figure of 64 Publicly-Listed Companies 1.41x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Colonial Motor, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Colonial Motor's assets?
Raw Data
NZSE:CMO PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in NZD NZ$5.97
NZSE:CMO Share Price * NZSE (2019-07-16) in NZD NZ$8.8
New Zealand Specialty Retail Industry PB Ratio Median Figure of 7 Publicly-Listed Specialty Retail Companies 1.47x
New Zealand Market PB Ratio Median Figure of 127 Publicly-Listed Companies 1.58x
NZSE:CMO PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NZSE:CMO Share Price ÷ Book Value per Share (both in NZD)

= 8.8 ÷ 5.97

1.47x

* Primary Listing of Colonial Motor.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Colonial Motor is good value based on assets compared to the NZ Specialty Retail industry average.
X
Value checks
We assess Colonial Motor's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Specialty Retail industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Specialty Retail industry average (and greater than 0)? (1 check)
  5. Colonial Motor has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

CMO Future Performance

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

  • No analysts cover Colonial Motor, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
6.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Colonial Motor expected to grow at an attractive rate?
  • Colonial Motor's earnings growth is expected to exceed the low risk savings rate of 2.4%.
Growth vs Market Checks
  • Colonial Motor's earnings growth is positive but not above the New Zealand market average.
  • Unable to compare Colonial Motor's revenue growth to the New Zealand market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
NZSE:CMO Future Growth Rates Data Sources
Data Point Source Value (per year)
NZSE:CMO Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts 6.6%
New Zealand Specialty Retail Industry Earnings Growth Rate Market Cap Weighted Average 0.2%
Oceania Specialty Retail Industry Revenue Growth Rate Market Cap Weighted Average 5.6%
New Zealand Market Earnings Growth Rate Market Cap Weighted Average 7.6%
New Zealand Market Revenue Growth Rate Market Cap Weighted Average 4.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NZSE:CMO Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in NZD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NZSE:CMO Past Financials Data
Date (Data in NZD Millions) Revenue Cash Flow Net Income *
2018-12-31 921 30 24
2018-09-30 912 9 24
2018-06-30 902 -11 25
2018-03-31 889 -6 25
2017-12-31 878 -1 24
2017-09-30 866 7 23
2017-06-30 853 16 22
2017-03-31 859 30 22
2016-12-31 866 44 21
2016-09-30 866 41 21
2016-06-30 867 38 21
2016-03-31 842 30 21

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Colonial Motor's earnings are expected to grow by 6.6% yearly, however this is not considered high growth (20% yearly).
  • Unable to determine if Colonial Motor is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NZSE:CMO Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Colonial Motor Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NZSE:CMO Past Financials Data
Date (Data in NZD Millions) EPS *
2018-12-31 0.73
2018-09-30 0.75
2018-06-30 0.76
2018-03-31 0.75
2017-12-31 0.74
2017-09-30 0.71
2017-06-30 0.68
2017-03-31 0.66
2016-12-31 0.64
2016-09-30 0.65
2016-06-30 0.66
2016-03-31 0.63

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Colonial Motor will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Colonial Motor's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the New Zealand market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Oceania market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Colonial Motor has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

CMO Past Performance

  How has Colonial Motor performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Colonial Motor's growth in the last year to its industry (Specialty Retail).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Colonial Motor's year on year earnings growth rate has been positive over the past 5 years.
  • Colonial Motor's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Colonial Motor's 1-year earnings growth is negative, it can't be compared to the NZ Specialty Retail industry average.
Earnings and Revenue History
Colonial Motor's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Colonial Motor Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NZSE:CMO Past Revenue, Cash Flow and Net Income Data
Date (Data in NZD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 921.08 23.87 85.76
2018-09-30 911.58 24.43 84.68
2018-06-30 902.08 24.99 83.60
2018-03-31 889.19 24.59 82.33
2017-12-31 877.98 24.20 81.06
2017-09-30 866.26 23.22 81.54
2017-06-30 852.86 22.23 82.03
2017-03-31 859.27 21.59 83.36
2016-12-31 865.67 20.94 84.69
2016-09-30 866.36 21.21 84.07
2016-06-30 867.06 21.48 83.45
2016-03-31 842.38 20.60 81.45
2015-12-31 817.70 19.73 79.46
2015-09-30 803.47 18.66 77.73
2015-06-30 789.25 17.60 76.00
2015-03-31 771.42 18.25 72.95
2014-12-31 753.60 18.91 69.90
2014-09-30 726.44 19.03 66.89
2014-06-30 699.28 19.15 63.88
2014-03-31 685.85 17.78 63.05
2013-12-31 672.42 16.42 62.22
2013-09-30 643.38 15.16 61.23
2013-06-30 614.34 13.90 60.24
2013-03-31 593.21 15.05 59.42
2012-12-31 572.09 16.20 58.59
2012-09-30 557.59 15.66 57.42

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Colonial Motor has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Colonial Motor used its assets less efficiently than the NZ Specialty Retail industry average last year based on Return on Assets.
  • Colonial Motor has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Colonial Motor's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Specialty Retail industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Colonial Motor has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

CMO Health

 How is Colonial Motor's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Colonial Motor's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Colonial Motor is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Colonial Motor's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Colonial Motor's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Colonial Motor Company Filings, last reported 6 months ago.

NZSE:CMO Past Debt and Equity Data
Date (Data in NZD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 197.79 109.13 8.85
2018-09-30 197.79 109.13 8.85
2018-06-30 199.75 130.33 10.25
2018-03-31 199.75 130.33 10.25
2017-12-31 186.16 107.70 8.26
2017-09-30 186.16 107.70 8.26
2017-06-30 182.89 88.72 8.06
2017-03-31 182.89 88.72 8.06
2016-12-31 167.61 82.58 9.48
2016-09-30 167.61 82.58 9.48
2016-06-30 165.81 88.90 15.40
2016-03-31 165.81 88.90 15.40
2015-12-31 154.57 104.42 4.60
2015-09-30 154.57 104.42 4.60
2015-06-30 152.58 117.70 5.78
2015-03-31 152.58 73.67 5.78
2014-12-31 143.53 89.08 6.11
2014-09-30 143.53 89.08 6.11
2014-06-30 142.62 54.77 7.13
2014-03-31 142.62 54.77 7.13
2013-12-31 135.62 52.01 6.83
2013-09-30 135.62 52.01 6.83
2013-06-30 133.68 51.61 3.94
2013-03-31 133.68 51.61 3.94
2012-12-31 125.26 64.68 7.20
2012-09-30 125.26 64.68 7.20
  • Colonial Motor's level of debt (55.2%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (38.3% vs 55.2% today).
  • Debt is well covered by operating cash flow (27.3%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 8.5x coverage).
X
Financial health checks
We assess Colonial Motor's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Colonial Motor has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

CMO Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5.68%
Current annual income from Colonial Motor dividends.
If you bought NZ$2,000 of Colonial Motor shares you are expected to receive NZ$114 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Colonial Motor's pays a higher dividend yield than the bottom 25% of dividend payers in New Zealand (3.21%).
  • Colonial Motor's dividend is below the markets top 25% of dividend payers in New Zealand (5.84%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NZSE:CMO Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
New Zealand Specialty Retail Industry Average Dividend Yield Market Cap Weighted Average of 6 Stocks 6.7%
New Zealand Market Average Dividend Yield Market Cap Weighted Average of 73 Stocks 3.6%
New Zealand Minimum Threshold Dividend Yield 10th Percentile 2.3%
New Zealand Bottom 25% Dividend Yield 25th Percentile 3.2%
New Zealand Top 25% Dividend Yield 75th Percentile 5.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NZSE:CMO Past Annualized Dividends Data
Date (Data in NZ$) Dividend per share (annual) Avg. Yield (%)
2018-09-25 0.500 6.017
2018-08-24 0.500 6.108
2017-09-22 0.440 5.672
2017-08-16 0.440 5.682
2016-08-19 0.400 5.476
2015-09-24 0.330 5.605
2015-08-20 0.330 5.782
2014-08-20 0.350 5.877
2013-08-20 0.300 6.024
2013-02-14 0.250 6.004
2012-09-26 0.250 6.569
2012-08-21 0.250 6.859
2012-02-20 0.210 6.786
2011-09-23 0.190 7.137
2011-08-16 0.190 7.526
2011-02-25 0.160 6.538
2010-08-16 0.150 6.221
2010-02-26 0.150 6.861
2009-08-20 0.128 5.797
2009-06-30 0.128 6.236

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Colonial Motor's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.5x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Colonial Motor's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 2.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Colonial Motor afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Colonial Motor has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

CMO Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Graeme Gibbons
COMPENSATION NZ$0
CEO Bio

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, 2018. He serves as a Director of St Andrews Group Ltd. and The Colonial Motor Company Ltd. and all its associates and subsidiaries.

CEO Compensation
  • Graeme's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Graeme's remuneration is lower than average for companies of similar size in New Zealand.
Management Team

Graeme Gibbons

TITLE
CEO & Executive Director

Matthew Newman

TITLE
Executive Director

Nick Bartle

TITLE
Company Secretary
TENURE
10.8 yrs
Board of Directors Tenure

Average tenure of the Colonial Motor board of directors in years:

5.3
Average Tenure
  • The tenure for the Colonial Motor board of directors is about average.
Board of Directors

Jim Gibbons

TITLE
Chairman
COMPENSATION
NZ$85K
TENURE
8.4 yrs

Graeme Gibbons

TITLE
CEO & Executive Director

Matthew Newman

TITLE
Executive Director
TENURE
5.7 yrs

Leslie Wood

TITLE
Director
COMPENSATION
NZ$52K
AGE
68
TENURE
7.7 yrs

Stuart Gibbons

TITLE
Director
TENURE
5 yrs

Ashley Waugh

TITLE
Independent Director
COMPENSATION
NZ$52K
TENURE
3.7 yrs

John W Journee

TITLE
Director
TENURE
0.5 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (NZ$) Value (NZ$)
X
Management checks
We assess Colonial Motor's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Colonial Motor has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

CMO News

Simply Wall St News

Introducing Colonial Motor (NZSE:CMO), A Stock That Climbed 70% In The Last Five Years

For example, long term The Colonial Motor Company Limited (NZSE:CMO) shareholders have enjoyed a 70% share price rise over the last half decade, well in excess of the market return of around 57% (not including dividends). … See our latest analysis for Colonial Motor To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. … We note that for Colonial Motor the TSR over the last 5 years was 140%, which is better than the share price return mentioned above.

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What Kind Of Shareholders Own The Colonial Motor Company Limited (NZSE:CMO)?

Every investor in The Colonial Motor Company Limited (NZSE:CMO) should be aware of the most powerful shareholder groups. … With a market capitalization of NZ$288m, Colonial Motor is a small cap stock, so it might not be well known by many institutional investors. … See our latest analysis for Colonial Motor NZSE:CMO Ownership Summary, July 3rd 2019 What Does The Institutional Ownership Tell Us About Colonial Motor?

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Three Things You Should Check Before Buying The Colonial Motor Company Limited (NZSE:CMO) For Its Dividend

Could The Colonial Motor Company Limited (NZSE:CMO) be an attractive dividend share to own for the long haul? … Strong earnings per share (EPS) growth might encourage our interest in the company despite fluctuating dividends, which is why it's great to see Colonial Motor has grown its earnings per share at 11% per annum over the past five years. … Colonial Motor's earnings per share have grown rapidly in recent years, although more than half of its profits are being paid out as dividends, which makes us wonder if the company has a limited number of reinvestment opportunities in its business.

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An Examination Of The Colonial Motor Company Limited (NZSE:CMO)

Basically, it is a well-regarded dividend payer that has been able to sustain great financial health over the past. … Adequate balance sheet average dividend payer CMO's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. … NZSE:CMO Historical Dividend Yield, June 5th 2019 Next Steps: For Colonial Motor, I've put together three key factors you should further examine: Future Outlook: What are well-informed industry analysts predicting for CMO’s future growth?

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What Can We Learn From The Colonial Motor Company Limited’s (NZSE:CMO) Investment Returns?

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Colonial Motor: 0.20 = NZ$41m ÷ (NZ$366m - NZ$162m) (Based on the trailing twelve months to December 2018.) Therefore, Colonial Motor has an ROCE of 20%. … Colonial Motor has a middling amount of current liabilities, increasing its ROCE somewhat. … What We Can Learn From Colonial Motor's ROCE With a decent ROCE, the company could be interesting, but remember that the level of current liabilities make the ROCE look better.

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Is The Colonial Motor Company Limited's (NZSE:CMO) High P/E Ratio A Problem For Investors?

We'll look at The Colonial Motor Company Limited's (NZSE:CMO) P/E ratio and reflect on what it tells us about the company's share price. … The formula for P/E is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Colonial Motor: P/E of 11.86 = NZ$8.66 ÷ NZ$0.73 (Based on the year to December 2018.) Is A High Price-to-Earnings Ratio Good? … A higher P/E ratio means that investors are paying a higher price for each NZ$1 of company earnings.

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Has The Colonial Motor Company Limited (NZSE:CMO) Improved Earnings In Recent Times?

After reading The Colonial Motor Company Limited's (NZSE:CMO) most recent earnings announcement (31 December 2018), I found it useful to look back at how the company has performed in the past and compare this against the latest numbers. … As a long-term investor I tend to focus on earnings trend, rather than a single number at one point in time. … Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 7.6%, indicating the rate at which CMO is growing has slowed down

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If You Had Bought Colonial Motor (NZSE:CMO) Stock Five Years Ago, You Could Pocket A 61% Gain Today

For example, long term The Colonial Motor Company Limited (NZSE:CMO) shareholders have enjoyed a 61% share price rise over the last half decade, well in excess of the market return of around 47% (not including dividends). … Over half a decade, Colonial Motor managed to grow its earnings per share at 7.8% a year. … This EPS growth is slower than the share price growth of 9.9% per year, over the same period.

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The Colonial Motor Company Limited (NZSE:CMO): 3 Days To Buy Before The Ex-Dividend Date

The Colonial Motor Company Limited (NZSE:CMO) will be distributing its dividend of NZ$0.18 per share on the 15 April 2019, and will start trading ex-dividend in 3 days time on the 04 April 2019. … Has its dividend been stable over the past (i.e. no missed payments or significant payout cuts)? … Does earnings amply cover its dividend payments

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Should The Colonial Motor Company Limited (NZSE:CMO) Be Part Of Your Dividend Portfolio?

Historically, The Colonial Motor Company Limited (NZSE:CMO) has paid dividends to shareholders, and these days it yields 6.2%. … Does Colonial Motor tick all the boxes of a great dividend stock? … View our latest analysis for Colonial Motor

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CMO Company Info

Description

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.

Details
Name: The Colonial Motor Company Limited
CMO
Exchange: NZSE
Founded: 1859
NZ$287,712,761
32,694,632
Website: http://www.colmotor.co.nz
Address: The Colonial Motor Company Limited
57 Courtenay Place,
Level 6,
Wellington,
6141,
New Zealand
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NZSE CMO Ordinary Shares New Zealand Stock Exchange NZ NZD 02. Jan 1992
Number of employees
Current staff
Staff numbers
0
Colonial Motor employees.
Industry
Automotive Retail
Retail
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/18 10:35
End of day share price update: 2019/07/16 00:00
Last earnings filing: 2019/02/20
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.