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Bega Cheese

ASX:BGA
Snowflake Description

Excellent balance sheet with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
BGA
ASX
A$949M
Market Cap
  1. Home
  2. AU
  3. Food, Beverage & Tobacco
Company description

Bega Cheese Limited engages in receiving, processing, manufacturing, and distributing dairy and other food-related products primarily in Australia. The last earnings update was 46 days ago. More info.


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BGA Share Price and Events
7 Day Returns
0.5%
ASX:BGA
-0.4%
AU Food
1.3%
AU Market
1 Year Returns
-29.5%
ASX:BGA
-10%
AU Food
9.9%
AU Market
BGA Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Bega Cheese (BGA) 0.5% 1.6% -1.1% -29.5% -32.5% -8.3%
AU Food -0.4% 2.4% -2.3% -10% -6.5% 31.9%
AU Market 1.3% -0.6% -1% 9.9% 17.6% 17.8%
1 Year Return vs Industry and Market
  • BGA underperformed the Food industry which returned -10% over the past year.
  • BGA underperformed the Market in Australia which returned 9.9% over the past year.
Price Volatility
BGA
Industry
5yr Volatility vs Market

Value

 Is Bega Cheese 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 Bega Cheese 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 Bega Cheese.

ASX:BGA Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 7 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.1%
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:BGA
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
Food Unlevered Beta Simply Wall St/ S&P Global 0.54
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.542 (1 + (1- 30%) (33.3%))
0.778
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (0.8 * 5.96%)
7.08%

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

The calculations below outline how an intrinsic value for Bega Cheese 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:BGA DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (AUD, Millions) Source Present Value
Discounted (@ 7.08%)
2020 19.83 Analyst x3 18.52
2021 55.30 Analyst x4 48.23
2022 55.20 Analyst x3 44.96
2023 104.00 Analyst x1 79.10
2024 103.00 Analyst x1 73.16
2025 103.07 Est @ 0.07% 68.38
2026 103.84 Est @ 0.74% 64.33
2027 105.10 Est @ 1.21% 60.81
2028 106.73 Est @ 1.54% 57.66
2029 108.62 Est @ 1.77% 54.81
Present value of next 10 years cash flows A$569.00
ASX:BGA DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= A$108.62 × (1 + 2.31%) ÷ (7.08% – 2.31%)
A$2,330.78
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= A$2,330.78 ÷ (1 + 7.08%)10
A$1,176.03
ASX:BGA Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= A$569.00 + A$1,176.03
A$1,745.03
Equity Value per Share
(AUD)
= Total value / Shares Outstanding
= A$1,745.03 / 214.24
A$8.15
ASX:BGA Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$8.15
Current discount Discount to share price of A$4.43
= -1 x (A$4.43 - A$8.15) / A$8.15
45.6%

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

Current Discount
Amount off the current price Bega Cheese is available for.
Intrinsic value
46%
Share price is A$4.43 vs Future cash flow value of A$8.15
Current Discount Checks
For Bega Cheese to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Bega Cheese's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Bega Cheese'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 Bega Cheese's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Bega Cheese's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:BGA PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in AUD A$0.06
ASX:BGA Share Price ** ASX (2019-10-11) in AUD A$4.43
Australia Food Industry PE Ratio Median Figure of 21 Publicly-Listed Food Companies 25.25x
Australia Market PE Ratio Median Figure of 557 Publicly-Listed Companies 17.93x

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

** Primary Listing of Bega Cheese.

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

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

= 4.43 ÷ 0.06

77.67x

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

  • Bega Cheese is overvalued based on earnings compared to the AU Food industry average.
  • Bega Cheese is overvalued based on earnings compared to the Australia market.
Price based on expected Growth
Does Bega Cheese's expected growth come at a high price?
Raw Data
ASX:BGA PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 77.67x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts
30.2%per year
Australia Food Industry PEG Ratio Median Figure of 13 Publicly-Listed Food Companies 1.47x
Australia Market PEG Ratio Median Figure of 357 Publicly-Listed Companies 1.69x

*Line of best fit is calculated by linear regression .

ASX:BGA PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 77.67x ÷ 30.2%

2.57x

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

  • Bega Cheese is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Bega Cheese's assets?
Raw Data
ASX:BGA PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in AUD A$3.86
ASX:BGA Share Price * ASX (2019-10-11) in AUD A$4.43
Australia Food Industry PB Ratio Median Figure of 43 Publicly-Listed Food Companies 1.24x
Australia Market PB Ratio Median Figure of 1,705 Publicly-Listed Companies 1.8x
ASX:BGA PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 4.43 ÷ 3.86

1.15x

* Primary Listing of Bega Cheese.

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

  • Bega Cheese is good value based on assets compared to the AU Food industry average.
X
Value checks
We assess Bega Cheese'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 Food 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 Food industry average (and greater than 0)? (1 check)
  5. Bega Cheese 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 Bega Cheese expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

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
30.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Bega Cheese expected to grow at an attractive rate?
  • Bega Cheese's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
  • Bega Cheese's earnings growth is expected to exceed the Australia market average.
  • Bega Cheese's revenue growth is expected to exceed the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:BGA Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:BGA Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts 30.2%
ASX:BGA Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts 6.4%
Australia Food Industry Earnings Growth Rate Market Cap Weighted Average 35.7%
Australia Food Industry Revenue Growth Rate Market Cap Weighted Average 9.1%
Australia Market Earnings Growth Rate Market Cap Weighted Average 10.2%
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:BGA Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:BGA Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-06-30 2,045 171 113 1
2023-06-30 1,936 172 105 1
2022-06-30 1,671 109 69 6
2021-06-30 1,608 95 56 7
2020-06-30 1,497 80 40 7
2019-10-13
ASX:BGA Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2019-06-30 1,420 100 12
2019-03-31 1,354 13 13
2018-12-30 1,474 -75 13
2018-09-30 1,456 -8 21
2018-06-30 1,252 59 29
2018-03-31 1,236 63 86
2017-12-31 1,219 67 144
2017-09-30 1,223 68 141
2017-06-30 1,227 70 139
2017-03-31 1,241 66 84
2016-12-25 1,256 62 30
2016-09-25 1,226 60 29

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Bega Cheese's earnings are expected to grow significantly at over 20% yearly.
  • Bega Cheese's revenue is expected to grow by 6.4% yearly, however this is not considered high growth (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:BGA Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below

All data from Bega Cheese Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:BGA Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-06-30 0.52 0.52 0.52 1.00
2023-06-30 0.48 0.48 0.48 1.00
2022-06-30 0.32 0.41 0.26 5.00
2021-06-30 0.26 0.34 0.23 6.00
2020-06-30 0.19 0.23 0.12 6.00
2019-10-13
ASX:BGA Past Financials Data
Date (Data in AUD Millions) EPS *
2019-06-30 0.06
2019-03-31 0.06
2018-12-30 0.07
2018-09-30 0.11
2018-06-30 0.16
2018-03-31 0.49
2017-12-31 0.85
2017-09-30 0.88
2017-06-30 0.91
2017-03-31 0.55
2016-12-25 0.20
2016-09-25 0.19

*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.
  • Bega Cheese is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Bega Cheese'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.
Bega Cheese has a total score of 4/6, 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 Bega Cheese 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 Bega Cheese's growth in the last year to its industry (Food).
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.
  • Bega Cheese's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • Bega Cheese's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Bega Cheese's 1-year earnings growth is negative, it can't be compared to the AU Food industry average.
Earnings and Revenue History
Bega Cheese'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 Bega Cheese Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:BGA Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 1,419.95 11.82 237.57
2019-03-31 1,353.85 12.51 226.37
2018-12-30 1,473.98 13.20 215.17
2018-09-30 1,456.13 20.98 210.55
2018-06-30 1,252.04 28.77 205.94
2018-03-31 1,235.52 86.20 185.21
2017-12-31 1,219.00 143.62 164.47
2017-09-30 1,222.83 141.19 144.39
2017-06-30 1,226.66 138.75 124.30
2017-03-31 1,241.19 84.36 123.64
2016-12-25 1,255.73 29.97 122.98
2016-09-25 1,225.85 29.37 120.42
2016-06-30 1,195.97 28.78 117.86
2016-03-31 1,158.74 24.82 106.49
2015-12-27 1,121.50 20.85 95.12
2015-09-27 1,117.07 16.63 102.09
2015-06-30 1,112.63 12.41 109.05
2015-03-31 1,111.95 32.89 109.78
2014-12-28 1,111.28 53.38 110.52
2014-09-28 1,090.33 59.72 107.37
2014-06-30 1,069.39 66.06 104.22
2014-03-31 1,046.98 47.17 101.06
2013-12-29 1,024.56 28.29 97.90
2013-09-29 1,014.48 26.87 97.42
2013-06-30 1,004.39 25.45 96.94
2013-03-31 989.77 23.89 95.27
2012-12-30 975.15 22.34 93.60

*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.
  • Bega Cheese has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Bega Cheese used its assets less efficiently than the AU Food industry average last year based on Return on Assets.
  • Bega Cheese's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Bega Cheese'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 Food 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.
Bega Cheese has a total score of 1/6, 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 Bega Cheese'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 Bega Cheese's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Bega Cheese is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Bega Cheese's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Bega Cheese'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 1.5x 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 Bega Cheese Company Filings, last reported 3 months ago.

ASX:BGA Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 825.94 316.06 28.76
2019-03-31 825.94 316.06 28.76
2018-12-30 827.38 508.71 40.65
2018-09-30 827.38 508.71 40.65
2018-06-30 631.99 266.99 21.67
2018-03-31 631.99 266.99 21.67
2017-12-31 634.30 292.10 18.68
2017-09-30 634.30 292.10 18.68
2017-06-30 572.67 215.34 475.53
2017-03-31 572.67 215.34 475.53
2016-12-25 335.02 85.14 14.51
2016-09-25 335.02 85.14 14.51
2016-06-30 327.84 62.74 9.66
2016-03-31 327.84 62.74 9.66
2015-12-27 320.81 92.35 17.32
2015-09-27 320.81 92.35 17.32
2015-06-30 312.67 68.97 10.28
2015-03-31 312.67 68.97 10.28
2014-12-28 310.86 85.60 30.71
2014-09-28 310.86 85.60 30.71
2014-06-30 314.39 20.59 28.63
2014-03-31 314.39 20.59 28.63
2013-12-29 317.46 121.39 14.59
2013-09-29 317.46 121.39 14.59
2013-06-30 261.95 110.90 22.70
2013-03-31 261.95 110.90 22.70
2012-12-30 258.92 135.30 13.99
  • Bega Cheese's level of debt (38.3%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (6.8% vs 38.3% today).
  • Debt is well covered by operating cash flow (31.7%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 3.8x coverage).
X
Financial health checks
We assess Bega Cheese'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. Bega Cheese has a total score of 5/6, 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 Bega Cheese'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
2.48%
Current annual income from Bega Cheese dividends. Estimated to be 3.32% next year.
If you bought A$2,000 of Bega Cheese shares you are expected to receive A$50 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?
  • Bega Cheese's pays a lower dividend yield than the bottom 25% of dividend payers in Australia (2.5%).
  • Bega Cheese's dividend is below the markets top 25% of dividend payers in Australia (5.6%).
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:BGA 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 7 Analyst Estimates (S&P Global) See Below
Australia Food Industry Average Dividend Yield Market Cap Weighted Average of 13 Stocks 3.1%
Australia Market Average Dividend Yield Market Cap Weighted Average of 407 Stocks 4.2%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.6%
Australia Bottom 25% Dividend Yield 25th Percentile 2.5%
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:BGA Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2024-06-30 0.31 1.00
2023-06-30 0.29 1.00
2022-06-30 0.15 6.00
2021-06-30 0.13 7.00
2020-06-30 0.11 7.00
2019-10-13
ASX:BGA Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2019-08-28 0.110 2.526
2019-02-26 0.110 2.355
2018-08-28 0.110 1.912
2018-02-27 0.110 1.534
2017-08-22 0.100 1.389
2017-02-21 0.100 1.605
2016-08-23 0.100 1.904
2016-02-24 0.090 1.515
2015-08-26 0.090 1.635
2015-02-17 0.095 2.024
2014-08-22 0.090 1.776
2014-02-18 0.080 1.566
2013-08-22 0.080 1.951
2013-03-07 0.070 2.572
2012-08-24 0.070 3.616
2012-02-23 0.060 3.649

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

  • Whilst dividend payments have been stable, Bega Cheese has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Bega Cheese only paid a dividend in the past 8 years.
Current Payout to shareholders
What portion of Bega Cheese's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2x coverage).
X
Income/ dividend checks
We assess Bega Cheese's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.6%) - 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 Bega Cheese afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Bega Cheese has a total score of 1/6, 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 Bega Cheese'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
Paul van Heerwaarden
COMPENSATION A$964,188
TENURE AS CEO 2.7 years
CEO Bio

Mr. Paul van Heerwaarden, MBA, CPA, BBus (Acct), has been Chief Executive Officer of Bega Cheese Limited since February 1, 2017. Mr. van Heerwaarden served as Chief Operating Officer at Bega Cheese Limited from June 2016 to January 31, 2017. He served as General Manager of Sales & Marketing at Bega Cheese Limited from 2012 to June 2016. He served as an Executive General Manager of Tatura Milk Industries Limited, a subsidiary of Bega Cheese Limited since May 10, 2011 and served as its General Manager of Sales & Marketing. He served as the Chief Financial Officer at Tatura Milk Industries Limited from 2009 to May 10, 2011 and was its Executive Director. Previously, he worked in senior financial and management positions with a number of Australian and international agribusinesses. He was a Director at Bemore. Mr. van Heerwaarden has an MBA from the Melbourne Business School and a Bachelor of Business (Accounting), RMIT and is a CPA. In 2014, he completed the Advance Management program at Harvard Business School.

CEO Compensation
  • Paul's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Paul's remuneration is lower than average for companies of similar size in Australia.
Management Team Tenure

Average tenure of the Bega Cheese management team in years:

2.9
Average Tenure
  • The tenure for the Bega Cheese management team is about average.
Management Team

Paul van Heerwaarden

TITLE
Chief Executive Officer
COMPENSATION
A$964K
TENURE
2.7 yrs

Barry Irvin

TITLE
Executive Chairman (Leave of Absence)
COMPENSATION
A$729K

Colin Griffin

TITLE
CFO & Company Secretary
COMPENSATION
A$638K

Antonietta Timms

TITLE
Executive General Manager of Operational Excellence
TENURE
1.8 yrs

David McKinnon

TITLE
Executive General Manager of Human Resources

Hamish Reid

TITLE
Executive General Manager of Nutritionals
TENURE
3.3 yrs

Mark McDonald

TITLE
Executive General Manager of Dairy Ingredients
TENURE
3.2 yrs

Adam McNamara

TITLE
Executive General Manager of Bega Foods
TENURE
2 yrs

Stephen Rae

TITLE
Executive General Manager of Strategy

Brett Kelly

TITLE
Company Secretary
TENURE
17.8 yrs
Board of Directors Tenure

Average tenure of the Bega Cheese board of directors in years:

2.1
Average Tenure
  • The average tenure for the Bega Cheese board of directors is less than 3 years, this suggests a new board.
Board of Directors

Max Roberts

TITLE
Chairman of the Board
COMPENSATION
A$116K
TENURE
0.4 yrs

Jeff Odgers

TITLE
Non-Executive Director
COMPENSATION
A$99K
TENURE
1.8 yrs

Raelene Murphy

TITLE
Independent Director
COMPENSATION
A$109K
AGE
59
TENURE
4.3 yrs

Terry O’Brien

TITLE
Independent Director
COMPENSATION
A$105K
TENURE
2.1 yrs

Richard Parbery

TITLE
Non-Executive Director
COMPENSATION
A$99K
TENURE
31.1 yrs

Rick Cross

TITLE
Non-Executive Director
COMPENSATION
A$98K
TENURE
7.8 yrs

Patria Mann

TITLE
Non-Executive Director
TENURE
0.1 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Bega Cheese individual insiders in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
29. Sep 19 Sell The Vanguard Group, Inc. Company 05. Jun 19 29. Aug 19 -9,888 A$5.05 A$-49,898
29. Sep 19 Buy The Vanguard Group, Inc. Company 29. May 19 25. Sep 19 309,524 A$5.09 A$1,575,477
01. Oct 19 Sell The Vanguard Group, Inc. Company 27. Sep 19 27. Sep 19 -7,467 A$4.57 A$-34,124
01. Oct 19 Buy The Vanguard Group, Inc. Company 27. Sep 19 27. Sep 19 5,937 A$4.55 A$27,013
03. Sep 19 Buy Terrence O’Brien Individual 02. Sep 19 02. Sep 19 2,880 A$4.00 A$11,520
03. Sep 19 Buy Ethical Partners Management Fund Managment Pty Ltd Company 19. Jul 19 30. Aug 19 3,340,231 A$4.12 A$13,776,311
02. Sep 19 Sell Perpetual Limited Company 09. Apr 19 29. Aug 19 -3,422,741 A$4.62 A$-15,805,837
02. Sep 19 Buy Perpetual Limited Company 11. Apr 19 29. Aug 19 8,931,131 A$4.19 A$37,466,071
29. Aug 19 Sell Cooper Investors Pty Limited Company 02. Aug 19 29. Aug 19 -3,517,594 A$4.31 A$-14,097,677
05. Aug 19 Sell Cooper Investors Pty Limited Company 15. Jul 19 01. Aug 19 -2,158,279 A$4.64 A$-9,913,522
22. Jul 19 Buy Ethical Partners Management Fund Managment Pty Ltd Company 25. Jun 19 18. Jul 19 2,385,014 A$4.90 A$10,851,218
16. Jul 19 Sell Cooper Investors Pty Limited Company 01. Jul 19 12. Jul 19 -2,223,737 A$4.81 A$-10,217,567
02. Jul 19 Sell Cooper Investors Pty Limited Company 17. Sep 18 28. Jun 19 -5,109,905 A$7.08 A$-25,446,151
02. Jul 19 Buy Cooper Investors Pty Limited Company 14. Sep 18 10. May 19 2,859,078 A$7.27 A$16,372,134
26. Jun 19 Buy Ethical Partners Management Fund Managment Pty Ltd Company 28. Feb 19 24. Jun 19 7,669,545 A$4.90 A$37,591,037
05. Apr 19 Sell Perpetual Limited Company 08. Feb 19 03. Apr 19 -5,508,757 A$4.96 A$-27,333,571
05. Apr 19 Buy Perpetual Limited Company 28. Feb 19 02. Apr 19 2,278,117 A$4.71 A$10,729,455
06. Mar 19 Buy Terrence O’Brien Individual 06. Mar 19 06. Mar 19 2,143 A$4.51 A$9,654
11. Feb 19 Sell Perpetual Limited Company 13. Dec 18 07. Feb 19 -3,304,637 A$5.01 A$-16,563,871
11. Feb 19 Buy Perpetual Limited Company 29. Nov 18 17. Jan 19 88,884 A$5.48 A$487,252
23. Nov 18 Sell Perpetual Limited Company 16. Oct 18 23. Oct 18 -672,425 A$6.36 A$-4,274,217
23. Nov 18 Buy Perpetual Limited Company 12. Oct 18 21. Nov 18 2,876,901 A$6.09 A$17,511,281
X
Management checks
We assess Bega Cheese'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. Bega Cheese 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

We Wouldn't Be Too Quick To Buy Bega Cheese Limited (ASX:BGA) Before It Goes Ex-Dividend

View our latest analysis for Bega Cheese If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. … It's disappointing to see that the dividend was not covered by profits, but cash is more important from a dividend sustainability perspective, and Bega Cheese fortunately did generate enough cash to fund its dividend. … Bega Cheese is already paying out 193% of its profits, and with shrinking earnings we think it's unlikely that this dividend will grow quickly in the future.

Simply Wall St -

Should You Be Worried About Bega Cheese Limited's (ASX:BGA) 1.4% Return On Equity?

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Bega Cheese: 1.4% = AU$12m ÷ AU$826m (Based on the trailing twelve months to June 2019.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … Combining Bega Cheese's Debt And Its 1.4% Return On Equity Bega Cheese has a debt to equity ratio of 0.38, which is far from excessive. … In my book the highest quality companies have high return on equity, despite low debt.

Simply Wall St -

What Kind Of Shareholder Owns Most Bega Cheese Limited (ASX:BGA) Stock?

See our latest analysis for Bega Cheese ASX:BGA Ownership Summary, August 19th 2019 What Does The Institutional Ownership Tell Us About Bega Cheese? … Insider Ownership Of Bega Cheese While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. … Private Company Ownership Our data indicates that Private Companies hold 3.4%, of the company's shares.

Simply Wall St -

Is Bega Cheese Limited's (ASX:BGA) CEO Being Overpaid?

According to our data, Bega Cheese Limited has a market capitalization of AU$853m, and pays its CEO total annual compensation worth AU$1.3m. … It would therefore appear that Bega Cheese Limited pays Paul van Heerwaarden more than the median CEO remuneration at companies of a similar size, in the same market. … We compared the total CEO remuneration paid by Bega Cheese Limited, and compared it to remuneration at a group of similar sized companies.

Simply Wall St -

Why We’re Not Impressed By Bega Cheese Limited’s (ASX:BGA) 4.0% ROCE

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Bega Cheese: 0.04 = AU$55m ÷ (AU$1.7b - AU$361m) (Based on the trailing twelve months to December 2018.) So, Bega Cheese has an ROCE of 4.0%. … What Are Current Liabilities, And How Do They Affect Bega Cheese's ROCE? … The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise.

Simply Wall St -

Some Bega Cheese (ASX:BGA) Shareholders Are Down 35%

Investors in Bega Cheese Limited (ASX:BGA) have tasted that bitter downside in the last year, as the share price dropped 35%. … Investors should note that there's a difference between Bega Cheese's total shareholder return (TSR) and its share price change, which we've covered above. … Dividends have been really beneficial for Bega Cheese shareholders, and that cash payout explains why its total shareholder loss of 34%, over the last year, isn't as bad as the share price return.

Simply Wall St -

Is There An Opportunity With Bega Cheese Limited's (ASX:BGA) 49% Undervaluation?

In this article we are going to estimate the intrinsic value of Bega Cheese Limited (ASX:BGA) by projecting its future cash flows and then discounting them to today's value. … Generally we assume that a dollar today is more valuable than a dollar in the future, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) estimate 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF (A$, Millions) A$24.77 A$35.00 A$59.90 A$75.00 A$92.00 A$105.76 A$117.56 A$127.56 A$136.04 A$143.32 Growth Rate Estimate Source Analyst x3 Analyst x3 Analyst x3 Analyst x1 Analyst x1 Est @ 14.95% Est @ 11.16% Est @ 8.51% Est @ 6.65% Est @ 5.35% Present Value (A$, Millions) Discounted @ 7.17% A$23.11 A$30.47 A$48.66 A$56.85 A$65.07 A$69.79 A$72.39 A$73.29 A$72.93 A$71.69 Present Value of 10-year Cash Flow (PVCF)= A$584.24m "Est" = FCF growth rate estimated by Simply Wall St The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … ASX:BGA Intrinsic value, June 20th 2019 The assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows.

Simply Wall St -

Does Bega Cheese Limited (ASX:BGA) Have A High Beta?

Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … Check out our latest analysis for Bega Cheese What BGA's beta value tells investors With a beta of 0.92, (which is quite close to 1) the share price of Bega Cheese has historically been about as voltile as the broader market. … What this means for you: Bega Cheese has a beta value quite close to that of the overall market.

Simply Wall St -

Does Bega Cheese Limited (ASX:BGA) Have A High Beta?

If you're interested in Bega Cheese Limited (ASX:BGA), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … Beta is a widely used metric to measure a stock's exposure to market risk (volatility). … Any stock with a beta of greater than one is considered more volatile than the market, while those with a beta below one are either less volatile or poorly correlated with the market.

Simply Wall St -

Could Bega Cheese Limited's (ASX:BGA) Investor Composition Influence The Stock Price?

The big shareholder groups in Bega Cheese Limited (ASX:BGA) have power over the company. … Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. … Bega Cheese is not a large company by global standards.

Simply Wall St -

Company Info

Description

Bega Cheese Limited engages in receiving, processing, manufacturing, and distributing dairy and other food-related products primarily in Australia. The company operates in two segments, Bega Cheese and Tatura Milk. The Bega Cheese segment manufactures, packages, and sells natural and processed cheese, powders, butter, and branded food products. The Tatura Milk segment manufactures, packages, and sells cream cheese, commodity powders, butter, and nutritional powders. The company also operates as a contract packer of natural cheddar and processed cheddar cheese products for corporations. In addition, it is involved in contract packaging for private proprietary brands, supermarket house brands, and QSR raw material inputs, as well as products for other dairy companies into their brands. The company also exports its products to approximately 40 countries across the Middle East, Southeast Asia, North Asia, Central and South America, and the Pacific Islands. Bega Cheese Limited was founded in 1899 and is headquartered in Bega, Australia.

Details
Name: Bega Cheese Limited
BGA
Exchange: ASX
Founded: 1899
A$949,104,836
214,244,884
Website: http://www.begacheese.com.au
Address: Bega Cheese Limited
23-45 Ridge Street,
Bega,
New South Wales, 2550,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX BGA Ordinary Shares Australian Securities Exchange AU AUD 19. Aug 2011
DB B6G Ordinary Shares Deutsche Boerse AG DE EUR 19. Aug 2011
CHIA BGA Ordinary Shares Chi-X Australia AU AUD 19. Aug 2011
Number of employees
Current staff
Staff numbers
0
Bega Cheese employees.
Industry
Packaged Foods and Meats
Food, Beverage & Tobacco
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/10/13 10:38
End of day share price update: 2019/10/11 00:00
Last estimates confirmation: 2019/09/13
Last earnings filing: 2019/08/28
Last earnings reported: 2019/06/30
Last annual earnings reported: 2019/06/30


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.