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ARL

Astral Foods JSE:ARL Stock Report

Last Price

R193.18

Market Cap

R7.4b

7D

1.8%

1Y

10.9%

Updated

01 Oct, 2022

Data

Company Financials +
ARL fundamental analysis
Snowflake Score
Valuation5/6
Future Growth5/6
Past Performance4/6
Financial Health6/6
Dividends4/6

ARL Stock Overview

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

Astral Foods Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Astral Foods
Historical stock prices
Current Share PriceR193.18
52 Week HighR221.66
52 Week LowR132.34
Beta0.23
1 Month Change-7.10%
3 Month Change3.80%
1 Year Change10.90%
3 Year Change30.45%
5 Year Change10.71%
Change since IPO2,392.65%

Recent News & Updates

Shareholder Returns

ARLZA FoodZA Market
7D1.8%1.2%0.7%
1Y10.9%-8.2%-5.6%

Return vs Industry: ARL exceeded the ZA Food industry which returned -8.2% over the past year.

Return vs Market: ARL exceeded the ZA Market which returned -5.6% over the past year.

Price Volatility

Is ARL's price volatile compared to industry and market?
ARL volatility
ARL Average Weekly Movement4.1%
Food Industry Average Movement6.0%
Market Average Movement5.5%
10% most volatile stocks in ZA Market10.2%
10% least volatile stocks in ZA Market3.1%

Stable Share Price: ARL is not significantly more volatile than the rest of ZA stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: ARL's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20019,679Chris 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 CapR7.42b
Earnings (TTM)R781.17m
Revenue (TTM)R17.84b

9.5x

P/E Ratio

0.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ARL income statement (TTM)
RevenueR17.84b
Cost of RevenueR14.28b
Gross ProfitR3.56b
Other ExpensesR2.77b
EarningsR781.17m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)20.34
Gross Margin19.93%
Net Profit Margin4.38%
Debt/Equity Ratio0%

How did ARL perform over the long term?

See historical performance and comparison

Dividends

8.2%

Current Dividend Yield

59%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is ARL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ARL?

Other financial metrics that can be useful for relative valuation.

ARL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.4x
Enterprise Value/EBITDA5.2x
PEG Ratio0.4x

Price to Earnings Ratio vs Peers

How does ARL's PE Ratio compare to its peers?

ARL PE Ratio vs Peers
The above table shows the PE ratio for ARL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average11.1x
RCL RCL Foods
9.7xn/aR9.8b
OCE Oceana Group
13.2x22.6%R6.5b
LBR Libstar Holdings
10.9x33.0%R3.7b
SHG Sea Harvest Group
7.1xn/aR3.4b
ARL Astral Foods
9.5x23.8%R7.4b

Price-To-Earnings vs Peers: ARL is good value based on its Price-To-Earnings Ratio (9.5x) compared to the peer average (11.1x).


Price to Earnings Ratio vs Industry

How does ARL's PE Ratio compare vs other companies in the African Food Industry?

Price-To-Earnings vs Industry: ARL is good value based on its Price-To-Earnings Ratio (9.5x) compared to the African Food industry average (9.5x)


Price to Earnings Ratio vs Fair Ratio

What is ARL's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ARL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9.5x
Fair PE Ratio17.7x

Price-To-Earnings vs Fair Ratio: ARL is good value based on its Price-To-Earnings Ratio (9.5x) compared to the estimated Fair Price-To-Earnings Ratio (17.7x).


Share Price vs Fair Value

What is the Fair Price of ARL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ARL (ZAR193.18) is trading below our estimate of fair value (ZAR573.74)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Future Growth

How is Astral Foods forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


23.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ARL's forecast earnings growth (23.8% per year) is above the savings rate (9%).

Earnings vs Market: ARL's earnings (23.8% per year) are forecast to grow faster than the ZA market (-1.7% per year).

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

Revenue vs Market: ARL's revenue (6.4% per year) is forecast to grow faster than the ZA market (5.3% per year).

High Growth Revenue: ARL's revenue (6.4% 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 high in 3 years time (22.2%)


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Past Performance

How has Astral Foods 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


-10.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ARL has high quality earnings.

Growing Profit Margin: ARL's current net profit margins (4.4%) are higher than last year (2.7%).


Past Earnings Growth Analysis

Earnings Trend: ARL's earnings have declined by 10.4% per year over the past 5 years.

Accelerating Growth: ARL's earnings growth over the past year (100.2%) exceeds its 5-year average (-10.4% per year).

Earnings vs Industry: ARL earnings growth over the past year (100.2%) exceeded the Food industry 7.6%.


Return on Equity

High ROE: ARL's Return on Equity (17.4%) is considered low.


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Financial Health

How is Astral Foods's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: ARL's short term assets (ZAR4.6B) exceed its short term liabilities (ZAR2.5B).

Long Term Liabilities: ARL's short term assets (ZAR4.6B) exceed its long term liabilities (ZAR1.2B).


Debt to Equity History and Analysis

Debt Level: ARL is debt free.

Reducing Debt: ARL has no debt compared to 5 years ago when its debt to equity ratio was 8.6%.

Debt Coverage: ARL has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: ARL has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


8.18%

Current Dividend Yield

Dividend Yield vs Market

Astral Foods Dividend Yield vs Market
How does Astral Foods dividend yield compare to the market?
SegmentDividend Yield
Company (Astral Foods)8.2%
Market Bottom 25% (ZA)3.5%
Market Top 25% (ZA)9.0%
Industry Average (Food)5.4%
Analyst forecast in 3 Years (Astral Foods)8.9%

Notable Dividend: ARL's dividend (8.18%) is higher than the bottom 25% of dividend payers in the ZA market (3.49%).

High Dividend: ARL's dividend (8.18%) is low compared to the top 25% of dividend payers in the ZA market (8.97%).


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 increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (58.7%), ARL's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (62.9%), ARL's dividend payments are covered by cash flows.


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Management

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

4.4yrs

Average management tenure


CEO

Chris Schutte (62 yo)

17.08yrs

Tenure

R16,189,000

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

Chris Schutte's Compensation vs Astral Foods Earnings
How has Chris Schutte's remuneration changed compared to Astral Foods's earnings?
DateTotal Comp.SalaryCompany Earnings
Mar 31 2022n/an/a

R781m

Dec 31 2021n/an/a

R620m

Sep 30 2021R16mR9m

R458m

Mar 31 2021n/an/a

R390m

Dec 31 2020n/an/a

R464m

Sep 30 2020R21mR8m

R537m

Jun 30 2020n/an/a

R601m

Mar 31 2020n/an/a

R645m

Dec 31 2019n/an/a

R644m

Sep 30 2019R24mR8m

R644m

Jun 30 2019n/an/a

R842m

Mar 31 2019n/an/a

R1b

Dec 31 2018n/an/a

R1b

Sep 30 2018R25mR8m

R1b

Jun 30 2018n/an/a

R1b

Mar 31 2018n/an/a

R1b

Dec 31 2017n/an/a

R1b

Sep 30 2017R22mR7m

R760m

Jun 30 2017n/an/a

R485m

Mar 31 2017n/an/a

R209m

Dec 31 2016n/an/a

R291m

Sep 30 2016R11mR5m

R373m

Compensation vs Market: Chris's total compensation ($USD898.55K) is above average for companies of similar size in the ZA market ($USD651.27K).

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 (4.4 years average tenure).


Board Members

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

JSE:ARL Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
14 Mar 22BuyR41,895Christiaan SchutteIndividual300R139.65
10 Mar 22BuyR82,440Willem PotgieterIndividual600R137.40
10 Mar 22BuyR487,585Christiaan SchutteIndividual3,500R139.31
09 Mar 22BuyR1,347,700Daniel FerreiraIndividual10,000R134.77
09 Mar 22BuyR499,093Christiaan SchutteIndividual3,700R134.89
07 Mar 22BuyR205,496Gary ArnoldIndividual1,500R137.00
26 Nov 21BuyR27,260,919Astral Foods Forfeitable Share PlanCompany160,320R176.23

Ownership Breakdown

What is the ownership structure of ARL?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders221,5210.6%
Employee Share Scheme448,6941.2%
Institutions14,945,35538.9%
General Public22,780,99359.3%

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


Top Shareholders

Top 25 shareholders own 39.18% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
12.51%
PPM America, Inc.
4,802,998ZAR927.8m0%0.95%
5.7%
Sanlam Investment Management (Pty) Ltd.
2,189,034ZAR422.9m0%0.36%
3.76%
The Vanguard Group, Inc.
1,444,308ZAR279.0m4.9%no data
2.86%
Truffle Asset Management (Pty) Ltd
1,098,639ZAR212.2m0%1.69%
2.17%
Dimensional Fund Advisors LP
832,856ZAR160.9m0.69%no data
1.66%
BlackRock, Inc.
636,687ZAR123.0m0.08%no data
1.43%
Centaur Asset Management (Pty) Ltd
548,605ZAR106.0m0%2.98%
1.17%
Astral Foods Forfeitable Share Plan
448,694ZAR86.7m0%no data
1.09%
Norges Bank Investment Management
418,076ZAR80.8m0%no data
1.01%
BNY Mellon Asset Management
386,522ZAR74.7m2.14%no data
0.9%
Premier Fund Managers Limited
345,821ZAR66.8m0%0.04%
0.84%
Nordea Investment Management AB
324,412ZAR62.7m-0.43%no data
0.72%
Wellington Management Group LLP
277,384ZAR53.6m-2.94%no data
0.55%
FMR LLC
210,000ZAR40.6m-4.55%no data
0.44%
Daniel Ferreira
168,000ZAR32.5m0%no data
0.41%
STANLIB Multi-Manager Limited
156,126ZAR30.2m0%0.71%
0.34%
State Street Global Advisors, Inc.
128,962ZAR24.9m10.07%no data
0.26%
Prescient Investment Management (Pty) Ltd.
100,640ZAR19.4m0%0.55%
0.22%
Absa Alternative Asset Management Proprietary Ltd.
85,766ZAR16.6m0%1.88%
0.21%
Ashburton Fund Managers (Proprietary) Limited
82,241ZAR15.9m0%0.32%
0.2%
Teachers Insurance and Annuity Association-College Retirement Equities Fund
76,731ZAR14.8m99.18%no data
0.2%
Absa Asset Management (Proprietary) Ltd.
75,000ZAR14.5m0%0.17%
0.18%
Old Mutual Customised Solutions (Pty) Limited
71,006ZAR13.7m0%0.16%
0.18%
Taquanta Asset Managers (Pty) Ltd
69,724ZAR13.5m0%0.13%
0.17%
Grantham Mayo Van Otterloo & Co. LLC
64,343ZAR12.4m0%no data

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
  • Implied Market Cap: R7.417b
  • Shares outstanding: 38.40m
  • Website: https://www.astralfoods.com

Number of Employees


Location

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


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ARLJSE (The Johannesburg Securities Exchange)YesOrdinary SharesZAZARApr 2001
ALFD.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDApr 2001
A9UBST (Boerse-Stuttgart)YesOrdinary SharesDEEURApr 2001

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/01 00:00
End of Day Share Price2022/09/30 00:00
Earnings2022/03/31
Annual Earnings2021/09/30


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.