NYSE:CGA

Stock Analysis Report

China Green Agriculture

Executive Summary

China Green Agriculture, Inc., through its subsidiaries, engages in the research, development, production, and sale of various types of fertilizers and agricultural products.

Risk Analysis

Earnings have declined by -44.87% per year over past 5 years

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year

Does not have a meaningful market cap ($17M)



Snowflake Analysis

Adequate balance sheet and overvalued.


Similar Companies

Share Price & News

How has China Green Agriculture's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CGA's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-7.6%

CGA

1.6%

US Chemicals

1.5%

US Market


1 Year Return

-56.2%

CGA

-3.7%

US Chemicals

20.1%

US Market

Return vs Industry: CGA underperformed the US Chemicals industry which returned -3.7% over the past year.

Return vs Market: CGA underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

CGAIndustryMarket
7 Day-7.6%1.6%1.5%
30 Day-22.8%-1.2%1.4%
90 Day-15.1%0.2%8.7%
1 Year-56.2%-56.2%10.1%-3.7%22.7%20.1%
3 Year-82.7%-82.7%29.9%5.2%50.1%40.5%
5 Year-87.3%-87.3%38.3%8.3%73.1%54.1%

Price Volatility Vs. Market

How volatile is China Green Agriculture's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is China Green Agriculture undervalued compared to its fair value and its price relative to the market?

0.047x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate CGA's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate CGA's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: CGA is unprofitable, so we can't compare its PE Ratio to the Chemicals industry average.

PE vs Market: CGA is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: CGA is good value based on its PB Ratio (0x) compared to the US Chemicals industry average (2.2x).


Next Steps

Future Growth

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

24.3%

Forecasted Materials 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 China Green Agriculture 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 China Green Agriculture performed over the past 5 years?

-44.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CGA is currently unprofitable.

Growing Profit Margin: CGA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CGA is unprofitable, and losses have increased over the past 5 years at a rate of -44.9% per year.

Accelerating Growth: Unable to compare CGA's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CGA is unprofitable, making it difficult to compare its past year earnings growth to the Chemicals industry (-14.6%).


Return on Equity

High ROE: CGA has a negative Return on Equity (-9.26%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is China Green Agriculture's financial position?


Financial Position Analysis

Short Term Liabilities: CGA's short term assets ($383.3M) exceed its short term liabilities ($74.4M).

Long Term Liabilities: CGA has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: CGA's debt to equity ratio (1.5%) is considered satisfactory.

Reducing Debt: CGA's debt to equity ratio has reduced from 7.1% to 1.5% over the past 5 years.


Balance Sheet

Inventory Level: CGA has a high level of physical assets or inventory.

Debt Coverage by Assets: CGA's debt is covered by short term assets (assets are 66.9x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: CGA has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: CGA has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

What is China Green Agriculture's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage2.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate CGA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate CGA's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CGA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CGA's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: CGA is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CGA's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

5.2yrs

Average management tenure


CEO

Richard Li (27yo)

2.2yrs

Tenure

US$420,000

Compensation

Mr. Zhuoyu Li, also known as Richard, has been Chairman of Kingtone Wirelessinfo Solution Holding Ltd. since December 21, 2017. Mr. Li had been the President at China Green Agriculture, Inc. (“China Green  ...


CEO Compensation Analysis

Compensation vs Market: Richard's total compensation ($USD420.00K) is about average for companies of similar size in the US market ($USD521.92K).

Compensation vs Earnings: Richard's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Zhuoyu Li
Chairman2.2yrsUS$420.00k16.27% $2.8m
Yongcheng Yang
Chief Financial Officer2.2yrsUS$243.00kno data
Xin Jiang Qing
New Business Development & Operation Manager8.2yrsno datano data
Ting Shi
Secretary0yrsno datano data
Hao Yu
Vice President8.2yrsUS$7.75kno data

5.2yrs

Average Tenure

51.5yo

Average Age

Experienced Management: CGA's management team is seasoned and experienced (5.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Zhuoyu Li
Chairman2.2yrsUS$420.00k16.27% $2.8m
Lianfu Liu
Independent Director12.2yrsUS$26.00k0.17% $29.4k
Ale Fan
Director4.7yrsno datano data
Daqing Zhu
Independent Director2.8yrsUS$26.00kno data
Jinjun Lu
Independent Director2.5yrsUS$18.00kno data

2.8yrs

Average Tenure

46yo

Average Age

Experienced Board: CGA's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


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 been diluted in the past year, with total shares outstanding growing by 29.9%.


Top Shareholders

Company Information

China Green Agriculture, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Green Agriculture, Inc.
  • Ticker: CGA
  • Exchange: NYSE
  • Founded:
  • Industry: Fertilizers and Agricultural Chemicals
  • Sector: Materials
  • Market Cap: US$17.440m
  • Shares outstanding: 5.97m
  • Website: https://www.cgagri.com

Number of Employees


Location

  • China Green Agriculture, Inc.
  • Borough A
  • Third Floor
  • Xi'an
  • Shaanxi Province
  • 710065
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CGANYSE (New York Stock Exchange)YesCommon StockUSUSDDec 2007
GR0ADB (Deutsche Boerse AG)YesCommon StockDEEURDec 2007

Biography

China Green Agriculture, Inc., through its subsidiaries, engages in the research, development, production, and sale of various types of fertilizers and agricultural products. The company operates in three segments: Jinong, Gufeng, and Yuxing. Its fertilizer products include humic acid-based compound fertilizers, compound fertilizers, blended fertilizers, organic compound fertilizers, slow-release fertilizers, highly-concentrated water-soluble fertilizers, and mixed organic-inorganic compound fertilizers. The company markets its fertilizer products to private wholesalers and retailers of agricultural farm products. It also develops, produces, and markets fruits, vegetables, flowers, and colored seedlings. The company sells its decorative flowers to end-users, such as flower shops, luxury hotels, and government agencies; fruits and vegetables to supermarkets and upscale restaurants; and seedlings to city planning departments. As of June 30, 2019, it operated a network of 1,959 regional distributors covering 22 provinces, 4 autonomous regions, and 4 central government-controlled municipalities in China. The company also exports its products through contracted distributors to various countries, including India and Africa. China Green Agriculture, Inc. is based in Xi'an, the People’s Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 00:32
End of Day Share Price2020/02/14 00:00
Earnings2019/12/31
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.