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Namoi Cotton

ASX:NAM
Snowflake Description

High growth potential and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
NAM
ASX
A$50M
Market Cap
  1. Home
  2. AU
  3. Commercial Services
Company description

Namoi Cotton Limited, together with its subsidiaries, engages in the ginning and marketing of cotton in Australia and Asia. The last earnings update was 22 days ago. More info.


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NAM Share Price and Events
7 Day Returns
9.2%
ASX:NAM
2.2%
AU Commercial Services
0%
AU Market
1 Year Returns
-12.3%
ASX:NAM
15%
AU Commercial Services
15.3%
AU Market
NAM Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Namoi Cotton (NAM) 9.2% 6% 10.9% -12.3% -13.4% 0%
AU Commercial Services 2.2% 3.1% -1.5% 15% 15.8% 38.7%
AU Market 0% 0.5% 4.7% 15.3% 21.6% 20.7%
1 Year Return vs Industry and Market
  • NAM underperformed the Commercial Services industry which returned 15% over the past year.
  • NAM underperformed the Market in Australia which returned 15.3% over the past year.
Price Volatility
NAM
Industry
5yr Volatility vs Market

Value

 Is Namoi Cotton 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 Namoi Cotton 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 Namoi Cotton.

ASX:NAM Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 1 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.3%

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 ASX:NAM
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
Commercial Services Unlevered Beta Simply Wall St/ S&P Global 0.66
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.659 (1 + (1- 30%) (111.03%))
1.115
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.11
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (1.115 * 5.96%)
8.96%

Discounted Cash Flow Calculation for ASX:NAM using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Namoi Cotton 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.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

ASX:NAM DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (AUD, Millions) Source Present Value
Discounted (@ 8.96%)
2020 -4.80 Analyst x1 -4.41
2021 -10.80 Analyst x1 -9.10
2022 8.70 Analyst x1 6.73
2023 13.32 Est @ 53.07% 9.45
2024 18.36 Est @ 37.84% 11.96
2025 23.35 Est @ 27.18% 13.96
2026 27.95 Est @ 19.72% 15.33
2027 32.01 Est @ 14.5% 16.11
2028 35.48 Est @ 10.84% 16.39
2029 38.42 Est @ 8.28% 16.29
Present value of next 10 years cash flows A$92.00
ASX:NAM DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= A$38.42 × (1 + 2.31%) ÷ (8.96% – 2.31%)
A$591.56
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= A$591.56 ÷ (1 + 8.96%)10
A$250.89
ASX:NAM Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= A$92.00 + A$250.89
A$342.89
Equity Value per Share
(AUD)
= Total value / Shares Outstanding
= A$342.89 / 140.27
A$2.44
ASX:NAM Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$2.44
Current discount Discount to share price of A$0.36
= -1 x (A$0.36 - A$2.44) / A$2.44
85.5%

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

Current Discount
Amount off the current price Namoi Cotton is available for.
Intrinsic value
>50%
Share price is A$0.36 vs Future cash flow value of A$2.44
Current Discount Checks
For Namoi Cotton to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Namoi Cotton's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Namoi Cotton's share price is below the future cash flow value, and at a substantial discount (> 40%).
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 Namoi Cotton's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Namoi Cotton's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:NAM PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-08-31) in AUD A$-0.14
ASX:NAM Share Price ** ASX (2019-11-13) in AUD A$0.36
Australia Commercial Services Industry PE Ratio Median Figure of 12 Publicly-Listed Commercial Services Companies 18.07x
Australia Market PE Ratio Median Figure of 519 Publicly-Listed Companies 18.45x

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

** Primary Listing of Namoi Cotton.

ASX:NAM PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:NAM Share Price ÷ EPS (both in AUD)

= 0.36 ÷ -0.14

-2.61x

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

  • Namoi Cotton is loss making, we can't compare its value to the AU Commercial Services industry average.
  • Namoi Cotton is loss making, we can't compare the value of its earnings to the Australia market.
Price based on expected Growth
Does Namoi Cotton's expected growth come at a high price?
Raw Data
ASX:NAM PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -2.61x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts
72.4%per year
Australia Commercial Services Industry PEG Ratio Median Figure of 9 Publicly-Listed Commercial Services Companies 2.36x
Australia Market PEG Ratio Median Figure of 346 Publicly-Listed Companies 1.59x

*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 Namoi Cotton, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Namoi Cotton's assets?
Raw Data
ASX:NAM PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-08-31) in AUD A$0.91
ASX:NAM Share Price * ASX (2019-11-13) in AUD A$0.36
Australia Commercial Services Industry PB Ratio Median Figure of 27 Publicly-Listed Commercial Services Companies 2.46x
Australia Market PB Ratio Median Figure of 1,585 Publicly-Listed Companies 1.71x
ASX:NAM PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:NAM Share Price ÷ Book Value per Share (both in AUD)

= 0.36 ÷ 0.91

0.39x

* Primary Listing of Namoi Cotton.

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

  • Namoi Cotton is good value based on assets compared to the AU Commercial Services industry average.
X
Value checks
We assess Namoi Cotton'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 Commercial Services 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 Commercial Services industry average (and greater than 0)? (1 check)
  5. Namoi Cotton has a total score of 3/6, 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.

Future Performance

 How is Namoi Cotton expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

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
72.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Namoi Cotton expected to grow at an attractive rate?
  • Namoi Cotton's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
  • Namoi Cotton's earnings growth is expected to exceed the Australia market average.
  • Namoi Cotton's revenue growth is expected to exceed the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:NAM Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:NAM Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts 72.4%
ASX:NAM Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 1 Analysts 60.9%
Australia Commercial Services Industry Earnings Growth Rate Market Cap Weighted Average 11%
Australia Commercial Services Industry Revenue Growth Rate Market Cap Weighted Average 5.5%
Australia Market Earnings Growth Rate Market Cap Weighted Average 9.8%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3.6%

*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
ASX:NAM Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:NAM Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-02-28 483 13 6 1
2021-02-28 80 -8 -12 1
2020-02-29 255 -2 -14 1
2019-11-15
ASX:NAM Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2019-08-31 46 -10 -19
2019-05-31 68 5 -10
2019-02-28 89 21 -1
2018-11-30 -299 22 2
2018-08-31 -250 22 5
2018-05-31 -83 20 6
2018-02-28 84 17 7
2017-11-30 276 15 8
2017-08-31 469 12 9
2017-05-31 412 9 4
2017-02-28 355 5 0
2016-11-30 349 8 -2

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Namoi Cotton's earnings are expected to grow significantly at over 20% yearly.
  • Namoi Cotton's revenue is expected to grow significantly at over 20% yearly.
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
ASX:NAM Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below

All data from Namoi Cotton Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:NAM Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-02-28 0.05 0.05 0.05 1.00
2021-02-28 -0.09 -0.09 -0.09 1.00
2020-02-29
2019-11-15
ASX:NAM Past Financials Data
Date (Data in AUD Millions) EPS *
2019-08-31 -0.14
2019-05-31 -0.07
2019-02-28 0.00
2018-11-30 0.02
2018-08-31 0.04
2018-05-31 0.05
2018-02-28 0.05
2017-11-30 0.06
2017-08-31 0.06
2017-05-31 0.03
2017-02-28 0.00
2016-11-30 -0.02

*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 Namoi Cotton will efficiently use shareholders’ funds in the future (Return on Equity greater than 20%) as it is not expected to be profitable.
X
Future performance checks
We assess Namoi Cotton'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 Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia 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.
Namoi Cotton has a total score of 5/6, 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.

Past Performance

  How has Namoi Cotton 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 Namoi Cotton's growth in the last year to its industry (Commercial Services).
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.
  • Namoi Cotton does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Namoi Cotton's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Namoi Cotton's 1-year growth to the AU Commercial Services industry average as it is not currently profitable.
Earnings and Revenue History
Namoi Cotton'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 Namoi Cotton Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:NAM Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-08-31 45.74 -18.86 21.90
2019-05-31 67.51 -9.71 25.25
2019-02-28 89.28 -0.56 28.61
2018-11-30 -298.70 2.37 27.77
2018-08-31 -249.69 5.31 27.26
2018-05-31 -83.09 6.04 26.72
2018-02-28 83.51 6.77 26.19
2017-11-30 276.30 7.69 25.72
2017-08-31 469.09 8.62 25.25
2017-05-31 412.22 4.45 22.06
2017-02-28 355.34 0.28 18.86
2016-11-30 349.31 -1.97 18.70
2016-08-31 343.28 -4.21 18.53
2016-05-31 311.50 -5.89 17.64
2016-02-29 279.71 -7.56 16.75
2015-11-30 292.30 -6.45 17.89
2015-08-31 304.89 -5.35 19.03
2015-05-31 362.66 0.48 21.55
2015-02-28 420.44 6.31 24.08
2014-11-30 434.19 7.45 23.63
2014-08-31 447.94 8.59 23.18
2014-05-31 477.64 6.95 23.86
2014-02-28 507.34 5.31 24.54
2013-11-30 561.31 4.64 26.28
2013-08-31 615.29 3.97 28.02
2013-05-31 597.66 1.93 29.03
2013-02-28 580.03 -0.11 30.04
2012-11-30 640.64 -1.23 28.78

*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.
  • It is difficult to establish if Namoi Cotton has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Namoi Cotton has efficiently used its assets last year compared to the AU Commercial Services industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Namoi Cotton improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Namoi Cotton'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 Commercial Services 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.
Namoi Cotton has a total score of 0/6, 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.

Health

 How is Namoi Cotton'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 Namoi Cotton's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Namoi Cotton is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Namoi Cotton's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Namoi Cotton'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 1.2x 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 Namoi Cotton Company Filings, last reported 2 months ago.

ASX:NAM Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-08-31 127.80 52.12 2.42
2019-05-31 127.80 52.12 2.42
2019-02-28 129.82 42.06 5.83
2018-11-30 129.82 42.06 5.83
2018-08-31 143.41 42.05 7.55
2018-05-31 143.41 42.05 7.55
2018-02-28 131.76 48.07 1.49
2017-11-30 131.76 48.07 1.49
2017-08-31 139.58 49.57 6.06
2017-05-31 139.58 49.57 6.06
2017-02-28 123.83 57.80 2.26
2016-11-30 123.83 57.80 2.26
2016-08-31 130.97 52.16 2.94
2016-05-31 130.97 52.16 2.94
2016-02-29 123.55 58.84 1.79
2015-11-30 123.55 58.84 1.79
2015-08-31 128.68 59.79 2.09
2015-05-31 128.68 59.79 2.09
2015-02-28 124.60 57.15 0.17
2014-11-30 124.60 57.15 0.17
2014-08-31 134.03 56.67 2.00
2014-05-31 134.03 56.67 2.00
2014-02-28 118.84 54.31 0.42
2013-11-30 118.84 54.31 0.42
2013-08-31 125.99 67.66 0.07
2013-05-31 125.99 67.66 0.07
2013-02-28 109.87 141.14 0.26
2012-11-30 109.87 141.14 0.26
  • Namoi Cotton's level of debt (40.8%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (42.3% vs 40.8% today).
  • Operating cash flow is negative therefore debt is not well covered.
  • Unable to confirm if the interest payments on Namoi Cotton's debt are well covered by earnings due to lack of past financial data.
X
Financial health checks
We assess Namoi Cotton'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. Namoi Cotton has a total score of 3/6, 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.

Dividends

 What is Namoi Cotton'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
0%
Current annual income from Namoi Cotton dividends. Estimated to be 1.68% next year.
If you bought A$2,000 of Namoi Cotton shares you are expected to receive A$0 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?
  • Unable to evaluate Namoi Cotton's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Namoi Cotton's dividend against the top 25% market benchmark as the company has not reported any payouts.
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
ASX:NAM 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 1 Analyst Estimates (S&P Global) See Below
Australia Commercial Services Industry Average Dividend Yield Market Cap Weighted Average of 12 Stocks 2.6%
Australia Market Average Dividend Yield Market Cap Weighted Average of 391 Stocks 4.1%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.5%
Australia Bottom 25% Dividend Yield 25th Percentile 2.4%
Australia Top 25% Dividend Yield 75th Percentile 5.6%

Industry and Market average data is calculated daily.

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

ASX:NAM Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2022-02-28 0.02 1.00
2021-02-28 0.00 1.00
2020-02-29 0.00 1.00
2019-11-15
ASX:NAM Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2019-10-25 0.000 0.000
2019-04-30 0.000 0.000
2018-04-24 0.019 4.355
2016-04-27 0.000 0.000
2015-10-29 0.000 0.000
2015-04-28 0.000 0.000
2014-10-21 0.010 3.190
2014-08-13 0.005 1.484
2011-06-28 0.000 0.000
2010-10-19 0.000 0.000
2010-06-18 0.000 0.000
2010-04-21 0.000 0.000
2009-10-20 0.035 8.208
2009-04-21 0.040 9.526

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

  • Unable to perform a dividend volatility check as Namoi Cotton has not reported any payouts.
  • Unable to verify if Namoi Cotton's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Namoi Cotton's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Namoi Cotton has not reported any payouts.
Future Payout to shareholders
  • The company is expected to pay a dividend in 3 years whilst incurring a loss, therefore the dividend is not expected to be well covered.
X
Income/ dividend checks
We assess Namoi Cotton's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.5%) - 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 Namoi Cotton afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Namoi Cotton has a total score of 0/6, see the detailed checks below.


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

Management

 What is the CEO of Namoi Cotton'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
Michael Renehan
TENURE AS CEO 0.2 years
CEO Bio

Mr. Michael Renehan, MEng Chemical, MBA, MAICD, has been Chief Executive Officer of Namoi Cotton Limited since September 01, 2019. Mr. Renehan had been the Chief Executive Officer of Murray Irrigation Limited since June 2015 until 2019 and also served as its Company Secretary since July 14, 2015 until 2019. Mr. Renehan served as Group Executive of Testing at Coffey International Limited until February 28, 2014 and also served as its Chief Information Officer. He served as General Manager of LabMark Environmental Laboratories of Bureau Veritas Minerals Pty Ltd. He served as Group Executive Information at Coffey International Ltd. He has a wealth of Operational Management experience having started his working life as a chemical engineer, being promoted through production and sales management roles. He has gained his technical, OHS&E and operations experience at well known technical companies such as ICI and Rohm & Hass. He served as Managing Director of Delta EMD businesses at Delta EMD Limited since July 1, 2006 and also served as its Executive Director since July 3, 2006. He holds a Master of Business Administration from Deakin University and a Masters in Chemical Engineering from RMIT.

CEO Compensation
  • Insufficient data for Michael to compare compensation growth.
  • Insufficient data for Michael to establish whether their remuneration is reasonable compared to companies of similar size in Australia.
Management Team Tenure

Average tenure of the Namoi Cotton management team in years:

4.2
Average Tenure
  • The tenure for the Namoi Cotton management team is about average.
Management Team

Stuart Greenwood

TITLE
Chief Financial Officer
COMPENSATION
A$327K
TENURE
11.8 yrs

Shane McGregor

TITLE
Chief Operations Officer
COMPENSATION
A$364K
TENURE
6.8 yrs

Alex Mehl

TITLE
Chief Information Officer
COMPENSATION
A$288K
TENURE
1.5 yrs

Bailey Garcha

TITLE
General Counsel & Company Secretary
COMPENSATION
A$340K
AGE
45

Michael Renehan

TITLE
Chief Executive Officer
TENURE
0.2 yrs
Board of Directors Tenure

Average tenure and age of the Namoi Cotton board of directors in years:

1.4
Average Tenure
62
Average Age
  • The average tenure for the Namoi Cotton board of directors is less than 3 years, this suggests a new board.
Board of Directors

Tim Watson

TITLE
Chairman
COMPENSATION
A$103K
AGE
57
TENURE
1.3 yrs

Robert Green

TITLE
Non-Executive Director
COMPENSATION
A$86K
AGE
62
TENURE
6.5 yrs

James Jackson

TITLE
Non-Executive Director
COMPENSATION
A$56K
AGE
57
TENURE
1.4 yrs

Stuart Boydell

TITLE
Non-Executive Director
COMPENSATION
A$99K
AGE
72
TENURE
25.4 yrs

Glen Price

TITLE
Non Executive Director
COMPENSATION
A$77K
AGE
64
TENURE
10.3 yrs

Juanita Hamparsum

TITLE
Non-Executive Director
COMPENSATION
A$56K
AGE
48
TENURE
1.4 yrs

Joe Di Leo

TITLE
Non-Executive Director
COMPENSATION
A$56K
AGE
62
TENURE
1.4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
12. Jun 19 Buy Tim Watson Individual 12. Jun 19 12. Jun 19 513,943 A$0.40 A$205,475
12. Jun 19 Buy Tim Watson Individual 11. Jun 19 11. Jun 19 13,835 A$0.34 A$4,704
10. Jun 19 Buy Tim Watson Individual 05. Jun 19 05. Jun 19 250,000 A$0.36 A$90,300
10. Jun 19 Buy Tim Watson Individual 06. Jun 19 06. Jun 19 198,424 A$0.37 A$73,417
X
Management checks
We assess Namoi Cotton'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. Namoi Cotton 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.

News

Simply Wall St News

What Do You Get For Owning Namoi Cotton Limited (ASX:NAM)?

and looking to gauge the potential return on investment in Namoi Cotton Limited (ASX:NAM). … You need to pay attention to this because your return on investment is linked to dividends and internal investments to improve the business, which can only occur if the company is expected to produce adequate earnings with the capital that has been provided. … To understand Namoi Cotton’s capital returns we will look at a useful metric called return on capital employed.

Simply Wall St -

Is Namoi Cotton Limited (ASX:NAM) A Sell At Its Current PE Ratio?

NAM is priced at a small multiple of 9.51x based on its prior year’s earnings,. … which is -217.66010363130312 lower than 20.79x average multiple of the AU Commercial Services. … Yes, this cheaper multiple can initially be attractive, but there are many company-specific elements which are not captured in such a static ratio – such as its growth outlook and debt obligations

Simply Wall St -

Namoi Cotton Limited (ASX:NAM): Dividend Is Coming In 2 Days, Should You Buy?

On the 24 July 2018, Namoi Cotton Limited (ASX:NAM) will be paying shareholders an upcoming dividend amount of AU$0.019 per share. … However, investors must have bought the company's stock before 02 July 2018 in order to qualify for the payment. … Below, I'm going to look at the latest data and analyze the stock and its dividend property in further detail.

Simply Wall St -

Should You Be Tempted To Buy Namoi Cotton Limited (ASX:NAM) Because Of Its PE Ratio?

The content of this article will benefit those of you who are starting to educate yourself about investing in the stock market. … and want to better understand how you can grow your money by investing in Namoi Cotton Limited (ASX:NAM). … Namoi Cotton Limited (ASX:NAM) is trading with a trailing P/E of 9.8x, which is lower than the industry average of 16x.

Simply Wall St -

Is Namoi Cotton Limited (ASX:NAM) A Smart Pick For Income Investors?

Over the past 10 years, Namoi Cotton Limited (ASX:NAM) has returned an average of 3.00% per year to shareholders in terms of dividend yield. … Check out our latest analysis for Namoi Cotton … 5 questions I ask before picking a dividend stock

Simply Wall St -

What Should We Expect From Namoi Cotton Limited's (ASX:NAM) Earnings Over The Next Few Years?

The most recent earnings announcement Namoi Cotton Limited's (ASX:NAM) released in February 2018 showed that the company benefited from a significant tailwind, more than doubling its earnings from the prior year. … Today I want to provide a brief commentary on how market analysts view Namoi Cotton's earnings growth outlook over the next couple of years and whether the future looks even brighter than the past. … View our latest analysis for Namoi Cotton Analysts' outlook for this coming year seems rather subdued, with earnings climbing by a single digit 0.46%.

Simply Wall St -

Should Namoi Cotton Limited (ASX:NAM) Be Part Of Your Portfolio?

Check out our latest analysis for Namoi Cotton 5 checks you should do on a dividend stock When researching a dividend stock, I always follow the following screening criteria: Is its annual yield among the top 25% of dividend-paying companies? … ASX:NAM Historical Dividend Yield May 25th 18 Does Namoi Cotton pass our checks? … Compared to its peers, Namoi Cotton generates a yield of 3.69%, which is high for Commercial Services stocks but still below the market's top dividend payers.Next Steps: With this in mind, I definitely rank Namoi Cotton as a strong dividend stock, and makes it worth further research for anyone who likes steady income generation from their portfolio.

Simply Wall St -

My Concerns Around Namoi Cotton Limited (ASX:NAM)

Namoi Cotton Limited (ASX:NAM) is a company I've been following for a while, and my main concern is around the sustainability of the business going forward. … A consensus of AU commercial services and supplies analysts covering the stock indicates that its revenue level is expected to decline by -8.73% by 2021, negatively impacting earnings, with a bottom-line annual growth rate of -7.64%, on average, over the same time period. … Also, comparing NAM's current share price to its peers based on its industry and earnings level, it's undervalued by 73.34%, with a PE ratio of 9.32x vs.

Simply Wall St -

Top Cheap Stocks To Buy Today

This is the case for Namoi Cotton and Sandfire Resources. … The discrepancy between the price and value means investors have an opportunity to buy shares at a discount. … TB8's stock is currently trading at -95% under its value of $2.48, at a price of AU$0.12, based on its expected future cash flows.

Simply Wall St -

Should You Be Concerned About Namoi Cotton Limited's (ASX:NAM) Investors?

Insider Ownership Insiders form another group of important ownership types as they manage the company's operations and decide the best use of capital. … This size of ownership gives retail investors collective power in deciding on major policy decisions such as executive compensation, appointment of directors and acquisitions of businesses. … This level of ownership gives retail investors the power to sway key policy decisions such as board composition, executive compensation, and potential acquisitions.

Simply Wall St -

Company Info

Description

Namoi Cotton Limited, together with its subsidiaries, engages in the ginning and marketing of cotton in Australia and Asia. The company operates 12 cotton gins in New South Wales and Queensland. It is also involved in the purchase of lint cotton from growers through various forward contracts; and trading and marketing of cottonseeds. In addition, the company procures various grain and pulse crops from growers, and sells into various markets in Australia and internationally; and provides cotton classing services to the cotton industry. Further, it engages in the sale and logistics of plastic waste from ginning activities. The company was formerly known as Namoi Cotton Co-operative Ltd and changed its name to Namoi Cotton Limited in October 2017. Namoi Cotton Limited was founded in 1962 and is headquartered in Wee Waa, Australia.

Details
Name: Namoi Cotton Limited
NAM
Exchange: ASX
Founded: 1962
A$49,794,134
140,265,168
Website: http://www.namoicotton.com.au
Address: Namoi Cotton Limited
Pilliga Road,
Wee Waa,
New South Wales, 2388,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX NAM Ordinary Shares Australian Securities Exchange AU AUD 06. Apr 1998
CHIA NAM Ordinary Shares Chi-X Australia AU AUD 06. Apr 1998
Number of employees
Current staff
Staff numbers
0
Namoi Cotton employees.
Industry
Diversified Support Services
Commercial Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/15 10:32
End of day share price update: 2019/11/13 00:00
Last estimates confirmation: 2019/10/27
Last earnings filing: 2019/10/24
Last earnings reported: 2019/08/31
Last annual earnings reported: 2019/02/28


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.