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ARL

Astral FoodsJSE:ARL Stock Report

Market Cap

R7.2b

7D

1.9%

1Y

34.5%

Updated

15 Oct, 2021

Data

Company Financials +
ARL fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance2/6
Financial Health6/6
Dividends2/6

ARL Overview

Astral Foods Limited operates as an integrated poultry producer in South Africa and internationally.

Price History & Performance

Summary of all time highs, changes and price drops for Astral Foods
Historical stock prices
Current Share PriceR186.88
52 Week HighR110.79
52 Week LowR189.50
Beta0.23
1 Month Change19.60%
3 Month Change22.76%
1 Year Change34.51%
3 Year Change-1.44%
5 Year Change46.88%
Change since IPO2,311.36%

Recent News & Updates

Shareholder Returns

ARLZA FoodZA Market
7D1.9%-0.9%1.6%
1Y34.5%6.1%21.3%

Return vs Industry: ARL exceeded the ZA Food industry which returned 5.8% over the past year.

Return vs Market: ARL exceeded the ZA Market which returned 21.2% over the past year.

Price Volatility

Is ARL's price volatile compared to industry and market?
ARL volatility
ARL Beta0.23
Industry Beta0.32
Market Beta1

Stable Share Price: ARL is not significantly more volatile than the rest of ZA stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: ARL's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20019,067Chris Schuttehttps://www.astralfoods.com

Astral Foods Limited operates as an integrated poultry producer in South Africa and internationally. It operates through three segments: Poultry, Feed, and Other Africa. The company engages in the breeding operations; sale of day-old chicks and hatching eggs; broiler production; abattoirs; and processing, marketing, sale, and distribution of poultry products.

Astral Foods Fundamentals Summary

How do Astral Foods's earnings and revenue compare to its market cap?
ARL fundamental statistics
Market CapR7.21b
Earnings (TTM)R415.87m
Revenue (TTM)R14.58b

17.3x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ARL income statement (TTM)
RevenueR14.58b
Cost of RevenueR11.98b
Gross ProfitR2.60b
ExpensesR2.18b
EarningsR415.87m

Last Reported Earnings

Mar 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)10.79
Gross Margin17.81%
Net Profit Margin2.85%
Debt/Equity Ratio0.2%

How did ARL perform over the long term?

See historical performance and comparison

Dividends

3.2%

Current Dividend Yield

100%

Payout Ratio

Valuation

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

42.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ARL (ZAR186.88) is trading below our estimate of fair value (ZAR322.41)

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


Price To Earnings Ratio

PE vs Industry: ARL is poor value based on its PE Ratio (17.3x) compared to the ZA Food industry average (10.9x).

PE vs Market: ARL is poor value based on its PE Ratio (17.3x) compared to the ZA market (11.4x).


Price to Earnings Growth Ratio

PEG Ratio: ARL is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: ARL is overvalued based on its PB Ratio (1.8x) compared to the ZA Food industry average (1.2x).


Future Growth

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

33.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ARL's forecast earnings growth (33.4% per year) is above the savings rate (8.8%).

Earnings vs Market: ARL's earnings (33.4% per year) are forecast to grow faster than the ZA market (12.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ARL's revenue (4.8% per year) is forecast to grow slower than the ZA market (6.2% per year).

High Growth Revenue: ARL's revenue (4.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ARL's Return on Equity is forecast to be low in 3 years time (16%).


Past Performance

How has Astral Foods performed over the past 5 years?

1.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ARL has high quality earnings.

Growing Profit Margin: ARL's current net profit margins (2.9%) are lower than last year (4.7%).


Past Earnings Growth Analysis

Earnings Trend: ARL's earnings have grown by 1.3% per year over the past 5 years.

Accelerating Growth: ARL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ARL had negative earnings growth (-35.5%) over the past year, making it difficult to compare to the Food industry average (0.6%).


Return on Equity

High ROE: ARL's Return on Equity (10.5%) is considered low.


Financial Health

How is Astral Foods's financial position?


Financial Position Analysis

Short Term Liabilities: ARL's short term assets (ZAR3.7B) exceed its short term liabilities (ZAR2.4B).

Long Term Liabilities: ARL's short term assets (ZAR3.7B) exceed its long term liabilities (ZAR1.1B).


Debt to Equity History and Analysis

Debt Level: ARL's debt to equity ratio (0.2%) is considered satisfactory.

Reducing Debt: ARL's debt to equity ratio has reduced from 17.9% to 0.2% over the past 5 years.

Debt Coverage: ARL's debt is well covered by operating cash flow (13455.4%).

Interest Coverage: ARL's interest payments on its debt are well covered by EBIT (13.4x coverage).


Balance Sheet


Dividend

What is Astral Foods's current dividend yield, its reliability and sustainability?

3.21%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ARL's dividend (3.21%) is higher than the bottom 25% of dividend payers in the ZA market (3.05%).

High Dividend: ARL's dividend (3.21%) is low compared to the top 25% of dividend payers in the ZA market (8.04%).


Stability and Growth of Payments

Stable Dividend: ARL's dividend payments have been volatile in the past 10 years.

Growing Dividend: ARL's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (99.9%), ARL's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ARL's dividends in 3 years are forecast to be covered by earnings (56.8% payout ratio).


Next Steps

Management

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

4.8yrs

Average management tenure


CEO

Chris Schutte (61 yo)

12.42yrs

Tenure

R21,436,000

Compensation

Mr. Christiaan Ernst Schutte, also known as Chris, MBA, F.D.P., has been the Chief Executive Officer of Astral Foods Limited since May 1, 2009 and has been its Executive Director since August 18, 2005. Mr....


CEO Compensation Analysis

Compensation vs Market: Chris's total compensation ($USD1.47M) is above average for companies of similar size in the ZA market ($USD717.23K).

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


Leadership Team

Experienced Management: ARL's management team is considered experienced (4.8 years average tenure).


Board Members

Experienced Board: ARL's board of directors are considered experienced (7.8 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

Astral Foods Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Astral Foods Limited
  • Ticker: ARL
  • Exchange: JSE
  • Founded: 2001
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: R7.206b
  • Shares outstanding: 38.56m
  • Website: https://www.astralfoods.com

Number of Employees


Location

  • Astral Foods Limited
  • 92 Koranna Avenue
  • Doringkloof
  • Centurion
  • Gauteng
  • 157
  • South Africa

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/15 22:40
End of Day Share Price2021/10/15 00:00
Earnings2021/03/31
Annual Earnings2020/09/30


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.