GraceKennedy (TTSE:GKC) - Share price, News & Analysis

GKC fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	4/6
Financial Health	5/6
Dividends	0/6

GKC Stock Overview

GraceKennedy Limited engages in food trading and financial services businesses.

Rewards

Trading at 57.8% below our estimate of its fair value

Earnings have grown 15.1% per year over the past 5 years

Risk Analysis

Highly volatile share price over the past 3 months

GraceKennedy Competitors

Nestlé Lanka

COSE:NEST.N0000

LK₨52.5b

Jamaican Teas

JMSE:JAMT

JA$7.6b

S&P International Holding

SEHK:1695

HK$67.0m

Price History & Performance

Summary of all time highs, changes and price drops for GraceKennedy
Historical stock prices
Current Share Price	JA$6.00
52 Week High	JA$6.40
52 Week Low	JA$4.85
Beta	0.30
1 Month Change	-0.33%
3 Month Change	-2.44%
1 Year Change	20.72%
3 Year Change	81.82%
5 Year Change	117.39%
Change since IPO	1,711.02%

Shareholder Returns

	GKC	TT Consumer Retailing	TT Market
7D	9.5%	0%	0%
1Y	20.7%	0%	0%

Return vs Industry: GKC exceeded the TT Consumer Retailing industry which returned 1.6% over the past year.

Return vs Market: GKC exceeded the TT Market which returned 13.5% over the past year.

Price Volatility

Is GKC's price volatile compared to industry and market?
GKC volatility
GKC Average Weekly Movement	6.3%
Consumer Retailing Industry Average Movement	0%
Market Average Movement	0%
10% most volatile stocks in TT Market	0%
10% least volatile stocks in TT Market	0%

Stable Share Price: GKC is more volatile than 90% of TT stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: GKC's weekly volatility (6%) has been stable over the past year, but is still higher than 75% of TT stocks.

About the Company

Founded	Employees	CEO	Website
1922	n/a	Don Wehby	https://www.gracekennedy.com

GraceKennedy Limited engages in food trading and financial services businesses. It operates through four segments: Food Trading, Banking and Investments, Insurance, and Money Services. The Food Trading segment engages in the merchandising of general goods and food products; processing and distribution of food products; and operation of a chain of supermarkets.

GraceKennedy Fundamentals Summary

How do GraceKennedy's earnings and revenue compare to its market cap?
GKC fundamental statistics
Market Cap	JA$103.97b
Earnings (TTM)	JA$8.19b
Revenue (TTM)	JA$129.31b

12.7x

P/E Ratio

0.8x

P/S Ratio

Is GKC overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
GKC income statement (TTM)
Revenue	JA$129.31b
Cost of Revenue	JA$69.96b
Gross Profit	JA$59.35b
Other Expenses	JA$51.16b
Earnings	JA$8.19b

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	8.27
Gross Margin	45.90%
Net Profit Margin	6.33%
Debt/Equity Ratio	36.7%

How did GKC perform over the long term?

See historical performance and comparison

Dividends

1.8%

Current Dividend Yield

23%

Payout Ratio

Valuation

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

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: GKC (TTD6) is trading below our estimate of fair value (TTD14.21)

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

Price To Earnings Ratio

PE vs Industry: GKC is good value based on its PE Ratio (12.7x) compared to the South American Consumer Retailing industry average (15.3x).

PE vs Market: GKC is good value based on its PE Ratio (12.7x) compared to the TT market (16.7x).

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate GKC's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: GKC's PB Ratio (1.5x) is in line with the XS Consumer Retailing industry average.

Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

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 GraceKennedy 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.

Past Performance

How has GraceKennedy performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

15.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: GKC has high quality earnings.

Growing Profit Margin: GKC's current net profit margins (6.3%) are higher than last year (5.4%).

Past Earnings Growth Analysis

Earnings Trend: GKC's earnings have grown by 15.1% per year over the past 5 years.

Accelerating Growth: GKC's earnings growth over the past year (31.7%) exceeds its 5-year average (15.1% per year).

Earnings vs Industry: GKC earnings growth over the past year (31.7%) underperformed the Consumer Retailing industry 31.7%.

Return on Equity

High ROE: GKC's Return on Equity (12.6%) is considered low.

Financial Health

How is GraceKennedy's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: GKC's short term assets (JMD104.6B) exceed its short term liabilities (JMD59.3B).

Long Term Liabilities: GKC's short term assets (JMD104.6B) exceed its long term liabilities (JMD69.5B).

Debt to Equity History and Analysis

Debt Level: GKC has more cash than its total debt.

Reducing Debt: GKC's debt to equity ratio has reduced from 58.6% to 36.7% over the past 5 years.

Debt Coverage: GKC's debt is well covered by operating cash flow (65.4%).

Interest Coverage: GKC's interest payments on its debt are not well covered by EBIT (2x coverage).

Balance Sheet

Dividend

What is GraceKennedy current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.84%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: GKC's dividend (1.84%) isn’t notable compared to the bottom 25% of dividend payers in the TT market (2.54%).

High Dividend: GKC's dividend (1.84%) is low compared to the top 25% of dividend payers in the TT market (4.15%).

Stability and Growth of Payments

Stable Dividend: GKC is not paying a notable dividend for the TT market, therefore no need to check if payments are stable.

Growing Dividend: GKC is not paying a notable dividend for the TT market, therefore no need to check if payments are increasing.

Earnings Payout to Shareholders

Earnings Coverage: GKC is not paying a notable dividend for the TT market.

Cash Payout to Shareholders

Cash Flow Coverage: GKC is not paying a notable dividend for the TT market.

Next Steps

Explore strong dividend paying companies in the Consumer Retailing industry.

Management

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

3.3yrs

Average management tenure

CEO

Don Wehby

10.75yrs

Tenure

Senator Donald G. Wehby, also known as Don, BSc (Hons.), MSc (Acctg.), FCA, CD serves as Non-Executive Chairman of Key Insurance Company Ltd. since March 2020. He has been the Group Chief Executive Officer...

Leadership Team

Experienced Management: GKC's management team is considered experienced (3.3 years average tenure).

Board Members

Experienced Board: GKC's board of directors are considered experienced (9.6 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.

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/04/30 00:00
End of Day Share Price	2022/04/29 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31