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Costa Group Holdings

ASX:CGC
Snowflake Description

Reasonable growth potential and slightly overvalued.

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

Costa Group Holdings Limited produces, packs, and markets fruits and vegetables to food retailers and FMCG companies in Australia. The last earnings update was 52 days ago. More info.


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CGC Share Price and Events
7 Day Returns
-0.3%
ASX:CGC
-0.4%
AU Food
1.3%
AU Market
1 Year Returns
-46.5%
ASX:CGC
-10%
AU Food
9.9%
AU Market
CGC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Costa Group Holdings (CGC) -0.3% -3.9% -18.1% -46.5% 16.3% -
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
  • CGC underperformed the Food industry which returned -10% over the past year.
  • CGC underperformed the Market in Australia which returned 9.9% over the past year.
Price Volatility
CGC
Industry
5yr Volatility vs Market

CGC Value

 Is Costa Group Holdings 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 Costa Group Holdings 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 Costa Group Holdings.

ASX:CGC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 8 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.3%
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:CGC
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%) (58.57%))
0.842
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.84
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (0.842 * 5.96%)
7.33%

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

The calculations below outline how an intrinsic value for Costa Group Holdings 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:CGC DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (AUD, Millions) Source Present Value
Discounted (@ 7.33%)
2020 23.90 Analyst x1 22.27
2021 56.70 Analyst x1 49.22
2022 86.83 Est @ 53.14% 70.23
2023 119.73 Est @ 37.89% 90.23
2024 152.32 Est @ 27.22% 106.95
2025 182.40 Est @ 19.75% 119.32
2026 208.87 Est @ 14.52% 127.31
2027 231.54 Est @ 10.85% 131.49
2028 250.74 Est @ 8.29% 132.67
2029 267.04 Est @ 6.5% 131.64
Present value of next 10 years cash flows A$981.00
ASX:CGC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= A$267.04 × (1 + 2.31%) ÷ (7.33% – 2.31%)
A$5,445.76
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= A$5,445.76 ÷ (1 + 7.33%)10
A$2,684.66
ASX:CGC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= A$981.00 + A$2,684.66
A$3,665.66
Equity Value per Share
(AUD)
= Total value / Shares Outstanding
= A$3,665.66 / 320.63
A$11.43
ASX:CGC Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$11.43
Current discount Discount to share price of A$3.49
= -1 x (A$3.49 - A$11.43) / A$11.43
69.5%

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

Current Discount
Amount off the current price Costa Group Holdings is available for.
Intrinsic value
>50%
Share price is A$3.49 vs Future cash flow value of A$11.43
Current Discount Checks
For Costa Group Holdings to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Costa Group Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Costa Group Holdings'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 Costa Group Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Costa Group Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:CGC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in AUD A$0.03
ASX:CGC Share Price ** ASX (2019-10-11) in AUD A$3.49
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 Costa Group Holdings.

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

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

= 3.49 ÷ 0.03

123.37x

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

  • Costa Group Holdings is overvalued based on earnings compared to the AU Food industry average.
  • Costa Group Holdings is overvalued based on earnings compared to the Australia market.
Price based on expected Growth
Does Costa Group Holdings's expected growth come at a high price?
Raw Data
ASX:CGC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 123.37x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts
38.3%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:CGC PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 123.37x ÷ 38.3%

3.22x

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

  • Costa Group Holdings is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Costa Group Holdings's assets?
Raw Data
ASX:CGC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in AUD A$1.48
ASX:CGC Share Price * ASX (2019-10-11) in AUD A$3.49
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:CGC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 3.49 ÷ 1.48

2.37x

* Primary Listing of Costa Group Holdings.

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

  • Costa Group Holdings is overvalued based on assets compared to the AU Food industry average.
X
Value checks
We assess Costa Group Holdings'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. Costa Group Holdings has a total score of 2/6, 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.

CGC Future Performance

 How is Costa Group Holdings expected to perform in the next 1 to 3 years based on estimates from 8 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
38.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Costa Group Holdings expected to grow at an attractive rate?
  • Costa Group Holdings's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
  • Costa Group Holdings's earnings growth is expected to exceed the Australia market average.
  • Costa Group Holdings's revenue growth is expected to exceed the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:CGC Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:CGC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts 38.3%
ASX:CGC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 8 Analysts 9.9%
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:CGC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:CGC Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 1,329 126 82 6
2020-12-31 1,193 111 66 7
2019-12-31 1,103 98 52 7
2019-10-13
ASX:CGC Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2019-06-30 1,016 7 9
2019-03-31 986 26 9
2018-12-30 955 44 9
2018-07-01 1,002 104 115
2018-04-01 977 88 112
2017-12-31 953 71 108
2017-09-30 931 80 83
2017-06-25 909 89 58
2017-03-25 884 49
2016-12-25 859 89 41
2016-09-25 840 76 33

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Costa Group Holdings's earnings are expected to grow significantly at over 20% yearly.
  • Costa Group Holdings's revenue is expected to grow by 9.9% 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:CGC 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 8 Analyst Estimates (S&P Global) See Below

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

ASX:CGC Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 0.26 0.28 0.24 3.00
2020-12-31 0.21 0.23 0.18 4.00
2019-12-31 0.17 0.18 0.16 3.00
2019-10-13
ASX:CGC Past Financials Data
Date (Data in AUD Millions) EPS *
2019-06-30 0.03
2019-03-31 0.03
2018-12-30 0.03
2018-07-01 0.36
2018-04-01 0.35
2017-12-31 0.34
2017-09-30 0.26
2017-06-25 0.18
2017-03-25 0.16
2016-12-25 0.13
2016-09-25 0.11

*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.
  • Costa Group Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Costa Group Holdings'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.
Costa Group Holdings 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.

CGC Past Performance

  How has Costa Group Holdings 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 Costa Group Holdings'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.
  • Costa Group Holdings has delivered over 20% year on year earnings growth in the past 5 years.
  • Costa Group Holdings's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Costa Group Holdings's 1-year earnings growth is negative, it can't be compared to the AU Food industry average.
Earnings and Revenue History
Costa Group Holdings'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 Costa Group Holdings Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:CGC 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 1,015.96 9.06 518.44
2019-03-31 985.58 8.85 514.16
2018-12-30 955.21 8.65 509.88
2018-07-01 1,002.03 115.16 465.97
2018-04-01 977.44 111.59 456.30
2017-12-31 952.92 108.02 446.63
2017-09-30 931.01 82.87 431.84
2017-06-25 909.05 57.71 417.05
2017-03-25 883.83 49.46 406.32
2016-12-25 858.60 41.22 395.59
2016-09-25 840.23 33.09 391.57
2016-06-26 821.86 24.96 387.56
2016-03-26 802.19 16.35 376.96
2015-12-27 782.52 7.74 366.36
2015-09-27 759.37 3.98 356.40
2015-06-28 736.23 0.22 346.43
2015-03-28 722.98 -6.58 340.39
2014-12-28 709.74 -13.38 334.34
2014-09-28 710.43 -7.63 323.40
2014-06-29 711.12 -1.89 312.46
2013-06-30 596.69 -39.26 253.68

*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.
  • Costa Group Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Costa Group Holdings used its assets less efficiently than the AU Food industry average last year based on Return on Assets.
  • Costa Group Holdings's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Costa Group Holdings'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.
Costa Group Holdings 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.

CGC Health

 How is Costa Group Holdings'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 Costa Group Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Costa Group Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Costa Group Holdings's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Costa Group Holdings'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 not covered by short term assets, assets are 0.8x 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 Costa Group Holdings Company Filings, last reported 3 months ago.

ASX:CGC Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 493.76 354.82 50.37
2019-03-31 493.76 354.82 50.37
2018-12-30 463.00 290.69 45.80
2018-07-01 479.27 236.73 60.39
2018-04-01 479.27 236.73 60.39
2017-12-31 433.21 215.10 37.51
2017-09-30 433.21 215.10 37.51
2017-06-25 396.18 106.78 22.58
2017-03-25 396.18 106.78 22.58
2016-12-25 361.66 107.41 16.40
2016-09-25 361.66 107.41 16.40
2016-06-26 359.60 103.77 4.00
2016-03-26 359.60 103.77 4.00
2015-12-27 344.43 114.12 2.02
2015-09-27 344.43 114.12 2.02
2015-06-28 197.44 237.34 9.50
2015-03-28 197.44 237.34 9.50
2014-12-28 186.29 223.58 20.70
2014-09-28 186.29 223.58 20.70
2014-06-29 191.81 214.03 26.23
2013-06-30 193.49 207.21 9.51
  • Costa Group Holdings's level of debt (71.9%) 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 (111.8% vs 71.9% today).
  • Debt is not well covered by operating cash flow (2%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 1x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Costa Group Holdings'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. Costa Group Holdings has a total score of 2/6, 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.

CGC Dividends

 What is Costa Group Holdings'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
2.44%
Current annual income from Costa Group Holdings dividends. Estimated to be 3.31% next year.
If you bought A$2,000 of Costa Group Holdings shares you are expected to receive A$49 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?
  • Costa Group Holdings's pays a lower dividend yield than the bottom 25% of dividend payers in Australia (2.5%).
  • Costa Group Holdings'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:CGC 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 8 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:CGC Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.13 8.00
2020-12-31 0.12 9.00
2019-12-31 0.10 9.00
2019-10-13
ASX:CGC Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2019-08-22 0.085 2.450
2019-02-26 0.135 2.991
2018-08-23 0.135 2.139
2017-08-23 0.110 1.641
2017-02-22 0.100 2.193
2016-08-24 0.120 3.833
2016-02-24 0.060 2.082

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

  • Costa Group Holdings has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Dividend payments have increased, but Costa Group Holdings only paid a dividend in the past 4 years.
Current Payout to shareholders
What portion of Costa Group Holdings's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.8x coverage).
X
Income/ dividend checks
We assess Costa Group Holdings'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 Costa Group Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Costa Group Holdings 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.

CGC Management

 What is the CEO of Costa Group Holdings'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
Harry Debney
COMPENSATION A$1,276,498
TENURE AS CEO 9.1 years
CEO Bio

Mr. Harry George Debney, BAppSc (Hons) has been the Chief Executive Officer of Costa Group Holdings Limited since September 2010 and also its Managing Director since July 24, 2015. Mr. Debney is responsible for leading the CostaExchange and Costa Logistics businesses. He serves as a Non-Executive Director Non-executive director of The Yield Pty Ltd. He has an extensive track record in change management and improving business performance. He is also closely involved in developing the talent and potential of Costa Group's key personnel. He served as Chief Executive Officer of Visy Industries Australia Pty Ltd. and VIP Packaging (Formerly Visy Industrial Packaging). He served as Chief Executive Officer of Visypak Operations Pty Limited, Visy Oy and Visy Industries Holdings Pty. Ltd. (also known as Visy Industries) .Having worked as an Assistant General Manager for Queensland Fruit and Vegetable Growers, Mr. Debney has a detailed knowledge and understanding of fresh produce wholesaling and distribution. He has been an Independent Non-Executive Director at Kogan.com Limited since May 2016. He spent 24 years at Visy Industries, including eight years as Chief Executive Officer. During this time, he substantially grew the Visy business, both organically and through acquisitions. He serves as a Director of Polar Fresh Cold Chain Services Pty Ltd., Driscolls Australia Pty Ltd. and Wadda Plantation. He has been Director of Costa Group Holdings Limited since January 5, 2012. He serves as a Director of Costa Group of Companies Pty Ltd. Mr. Debney has an Honours degree in Applied Science and was awarded the University of Queensland Gatton Gold Medal in 2001.

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

Average tenure of the Costa Group Holdings management team in years:

7
Average Tenure
  • The average tenure for the Costa Group Holdings management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Harry Debney

TITLE
CEO, MD & Executive Director
COMPENSATION
A$1M
TENURE
9.1 yrs

Linda Kow

TITLE
Chief Financial Officer
COMPENSATION
A$663K
TENURE
7.1 yrs

Sean Hallahan

TITLE
Chief Operating Officer
COMPENSATION
A$692K
TENURE
2 yrs

David Thomas

TITLE
General Counsel & Company Secretary
TENURE
7.3 yrs

Carl Phillips

TITLE
General Manager of HR
TENURE
5.3 yrs

Tony Di Paolo

TITLE
Chief Procurement Officer
TENURE
6.9 yrs
Board of Directors Tenure

Average tenure and age of the Costa Group Holdings board of directors in years:

3.7
Average Tenure
59.5
Average Age
  • The tenure for the Costa Group Holdings board of directors is about average.
Board of Directors

Neil Chatfield

TITLE
Independent Chairman
COMPENSATION
A$125K
AGE
65
TENURE
4.3 yrs

Harry Debney

TITLE
CEO, MD & Executive Director
COMPENSATION
A$1M
TENURE
7.8 yrs

Peter Margin

TITLE
Independent Non-Executive Director
COMPENSATION
A$68K
AGE
59
TENURE
4.3 yrs

Tim Goldsmith

TITLE
Independent Non-Executive Director
COMPENSATION
A$43K
AGE
56
TENURE
1.1 yrs

Janette Kendall

TITLE
Independent Non-Executive Director
COMPENSATION
A$60K
TENURE
3 yrs

Elizabeth Wilson

TITLE
Independent Non-Executive Director
AGE
60
TENURE
0.5 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Costa Group Holdings individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
17. Sep 19 Buy Lazard Asset Management LLC Company 06. Sep 19 12. Sep 19 3,590,718 A$3.62 A$12,906,849
10. Jun 19 Buy Elizabeth Wilson Individual 06. Jun 19 07. Jun 19 15,000 A$3.67 A$55,073
09. Sep 19 Buy Lazard Asset Management LLC Company 16. May 19 05. Sep 19 17,803,347 A$5.19 A$76,669,029
05. Sep 19 Sell Ec Poly & Co Pty Ltd Company 13. May 19 03. Sep 19 -14,714 A$3.85 A$-56,671
05. Sep 19 Buy ECP Asset Management Pty Ltd Company 10. May 19 03. Sep 19 16,056,871 A$4.57 A$70,717,748
28. Aug 19 Buy Neil Chatfield Individual 27. Aug 19 27. Aug 19 40,000 A$2.99 A$119,600
28. Aug 19 Buy Peter Margin Individual 27. Aug 19 27. Aug 19 10,000 A$2.99 A$29,900
19. Aug 19 Sell Pendal Group Limited Company 15. Aug 19 15. Aug 19 -66,541 A$3.61 A$-240,213
14. Aug 19 Sell Realindex Investments Pty Limited Company 18. Jun 19 25. Jul 19 -218,919 A$3.84 A$-841,439
14. Aug 19 Buy Realindex Investments Pty Limited Company 18. Jun 19 22. Jul 19 179,122 A$3.88 A$695,843
14. Aug 19 Buy ASB Group Investments Ltd. Company 21. Jun 19 26. Jun 19 295,100 A$3.95 A$1,165,134
14. Aug 19 Sell Colonial First State Asset Management (Australia) Limited Company 13. Jun 19 12. Aug 19 -5,080,149 A$3.93 A$-19,801,013
14. Aug 19 Buy Colonial First State Asset Management (Australia) Limited Company 12. Jun 19 09. Aug 19 1,600,026 A$4.20 A$6,533,182
09. Aug 19 Sell Pendal Group Limited Company 02. Aug 19 02. Aug 19 -18,686 A$3.86 A$-72,128
09. Aug 19 Buy Pendal Group Limited Company 07. Aug 19 07. Aug 19 218,203 A$3.68 A$802,987
26. Jul 19 Sell Pendal Group Limited Company 21. Jun 19 24. Jul 19 -308,431 A$4.14 A$-988,717
14. Jun 19 Sell Pendal Group Limited Company 21. Feb 19 05. Jun 19 -3,354,930 A$5.20 A$-17,018,772
14. Jun 19 Buy Pendal Group Limited Company 21. Feb 19 12. Jun 19 4,021,399 A$4.14 A$16,387,551
13. Jun 19 Sell Realindex Investments Pty Limited Company 02. Oct 18 05. Jun 19 -467,550 A$5.86 A$-2,737,522
13. Jun 19 Buy Realindex Investments Pty Limited Company 27. Sep 18 05. Jun 19 725,929 A$6.20 A$4,502,249
13. Jun 19 Buy ASB Group Investments Ltd. Company 30. May 19 30. May 19 157,700 A$4.04 A$637,471
13. Jun 19 Sell Colonial First State Asset Management (Australia) Limited Company 27. Sep 18 12. Jun 19 -9,904,547 A$6.37 A$-50,541,006
13. Jun 19 Buy Colonial First State Asset Management (Australia) Limited Company 01. Oct 18 12. Jun 19 5,620,300 A$6.46 A$28,826,778
10. Jun 19 Buy Timothy Goldsmith Individual 03. Jun 19 03. Jun 19 20,000 A$3.83 A$76,690
06. Jun 19 Buy Janette Kendall Individual 03. Jun 19 03. Jun 19 6,445 A$3.89 A$25,071
31. May 19 Sell Bennelong Australian Equity Partners Pty Ltd Company 18. May 19 30. May 19 -8,341,290 A$5.27 A$-43,958,603
26. May 19 Sell The Vanguard Group, Inc. Company 17. Jan 19 14. May 19 -160,525 A$5.75 A$-903,995
26. May 19 Buy The Vanguard Group, Inc. Company 30. Jan 19 15. May 19 1,933,514 A$5.86 A$11,294,872
17. May 19 Sell Bennelong Australian Equity Partners Pty Ltd Company 09. Nov 18 17. May 19 -12,760,875 A$7.63 A$-97,365,479
18. Mar 19 Buy Janette Kendall Individual 13. Mar 19 13. Mar 19 3,802 A$5.22 A$19,846
18. Mar 19 Sell Harry Debney Individual 11. Mar 19 12. Mar 19 -208,056 A$5.29 A$-1,101,496
14. Mar 19 Buy Timothy Goldsmith Individual 11. Mar 19 11. Mar 19 10,000 A$5.39 A$53,900
17. Jan 19 Sell Pendal Group Limited Company 03. Dec 18 15. Jan 19 -1,727,116 A$5.86 A$-10,024,547
17. Jan 19 Buy Pendal Group Limited Company 30. Oct 18 09. Jan 19 585,632 A$6.02 A$3,520,039
03. Dec 18 Buy Janette Kendall Individual 29. Nov 18 29. Nov 18 3,321 A$7.54 A$25,040
12. Nov 18 Buy Bennelong Australian Equity Partners Pty Ltd Company 11. Sep 18 09. Nov 18 3,738,062 A$6.83 A$25,530,964
30. Oct 18 Buy Pendal Group Limited Company 24. Aug 18 25. Oct 18 8,328,791 A$7.24 A$59,442,753
X
Management checks
We assess Costa Group Holdings'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. Costa Group Holdings 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.

CGC News

Simply Wall St News

Trade Alert: The Chairman Of Costa Group Holdings Limited (ASX:CGC), Neil Chatfield, Has Just Spent AU$120k Buying Shares

View our latest analysis for Costa Group Holdings The Last 12 Months Of Insider Transactions At Costa Group Holdings In the last twelve months, the biggest single sale by an insider was when the CEO, MD & Executive Director, Harry Debney, sold AU$1.1m worth of shares at a price of AU$5.29 per share. … ASX:CGC Recent Insider Trading, August 30th 2019 Does Costa Group Holdings Boast High Insider Ownership? … While recent transactions indicate confidence in Costa Group Holdings, insiders don't own enough of the company to overcome our cautiousness about the longer term transactions.

Simply Wall St -

Costa Group Holdings (ASX:CGC) Use Of Debt Could Be Considered Risky

Check out our latest analysis for Costa Group Holdings What Is Costa Group Holdings's Net Debt? … ASX:CGC Historical Debt, August 26th 2019 A Look At Costa Group Holdings's Liabilities Zooming in on the latest balance sheet data, we can see that Costa Group Holdings had liabilities of AU$222.8m due within 12 months and liabilities of AU$612.5m due beyond that. … While we wouldn't worry about Costa Group Holdings's net debt to EBITDA ratio of 4.2, we think its super-low interest cover of 0.18 times is a sign of high leverage.

Simply Wall St -

What Kind Of Shareholder Appears On The Costa Group Holdings Limited's (ASX:CGC) Shareholder Register?

See our latest analysis for Costa Group Holdings ASX:CGC Ownership Summary, August 13th 2019 What Does The Institutional Ownership Tell Us About Costa Group Holdings? … We can see that Costa Group Holdings does have institutional investors; and they hold 54% of the stock. … Insider Ownership Of Costa Group Holdings The definition of company insiders can be subjective, and does vary between jurisdictions.

Simply Wall St -

Did Changing Sentiment Drive Costa Group Holdings's (ASX:CGC) Share Price Down By 49%?

For example, the Costa Group Holdings Limited (ASX:CGC) share price is down 49% in the last year. … There will continue to be wide discrepancies between price and value in the marketplace...' One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … Investors should note that there's a difference between Costa Group Holdings's total shareholder return (TSR) and its share price change, which we've covered above.

Simply Wall St -

Why Costa Group Holdings Limited’s (ASX:CGC) Return On Capital Employed Might Be A Concern

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 Costa Group Holdings: 0.014 = AU$11m ÷ (AU$937m - AU$152m) (Based on the trailing twelve months to December 2018.) Therefore, Costa Group Holdings has an ROCE of 1.4%. … Costa Group Holdings's Current Liabilities And Their Impact On Its ROCE Current liabilities include invoices, such as supplier payments, short-term debt, or a tax bill, that need to be paid within 12 months. … Our Take On Costa Group Holdings's ROCE While that is good to see, Costa Group Holdings has a low ROCE and does not look attractive in this analysis.

Simply Wall St -

Are Dividend Investors Making A Mistake With Costa Group Holdings Limited (ASX:CGC)?

Costa Group Holdings pays a 3.5% dividend yield, and has been paying dividends for the past three years. … Costa Group Holdings has grown distributions at a rapid rate despite cutting the dividend at least once in the past. … Strong earnings per share (EPS) growth might encourage our interest in the company despite fluctuating dividends, which is why it's great to see Costa Group Holdings has grown its earnings per share at 65% per annum over the past five years. The company has been growing its EPS at a very rapid rate, while paying out virtually all of its income as dividends. Generally, a company that is growing rapidly while paying out a majority of its earnings, is seeing its debt burden increase. We'd be conscious of any extra risk added by this practice. Conclusion Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing.

Simply Wall St -

You Might Like Costa Group Holdings Limited (ASX:CGC) But Do You Like Its Debt?

With this rise in debt, the current cash and short-term investment levels stands at AU$46m , ready to be used for running the business. … On top of this, CGC has produced cash from operations of AU$44m during the same period of time, resulting in an operating cash to total debt ratio of 15%, signalling that CGC’s debt is not covered by operating cash. … Next Steps: CGC’s high cash coverage means that, although its debt levels are high, the company is able to utilise its borrowings efficiently in order to generate cash flow.

Simply Wall St -

Who Has Been Selling Costa Group Holdings Limited (ASX:CGC) Shares?

So shareholders might well want to know whether insiders have been buying or selling shares in Costa Group Holdings Limited (ASX:CGC). … Costa Group Holdings Insiders Are Selling The Stock We've seen more insider selling than insider buying at Costa Group Holdings recently. … The insider sales have outweighed the insider buying, at Costa Group Holdings, in the last three months.

Simply Wall St -

Read This Before Judging Costa Group Holdings Limited's (ASX:CGC) ROE

Check out our latest analysis for Costa Group Holdings How Do I Calculate Return On Equity? … The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Costa Group Holdings: 1.7% = AU$8.7m ÷ AU$463m (Based on the trailing twelve months to December 2018.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … Does Costa Group Holdings Have A Good Return On Equity?

Simply Wall St -

Could The Costa Group Holdings Limited (ASX:CGC) Ownership Structure Tell Us Something Useful?

Every investor in Costa Group Holdings Limited (ASX:CGC) should be aware of the most powerful shareholder groups. … With a market capitalization of AU$1.7b, Costa Group Holdings is a decent size, so it is probably on the radar of institutional investors. … View our latest analysis for Costa Group Holdings

Simply Wall St -

CGC Company Info

Description

Costa Group Holdings Limited produces, packs, and markets fruits and vegetables to food retailers and FMCG companies in Australia. The company operates through three segments: Produce, Costa Farms & Logistics, and International. It offers mushrooms, blueberries, raspberries, tomatoes, citrus, avocados, bananas, grapes, and other fruits. The company also provides chilled logistics warehousing and services; and wholesale and marketing services. In addition, it engages in licensing blueberry varieties in Australia, the Americas, China, Africa, and internationally; and berry farming activities in Morocco and China. Costa Group Holdings Limited has approximately 4,000 planted hectares of farmland, 30 hectares of glasshouse facilities, and 7 mushroom growing facilities across Australia. The company primarily exports its products to Asia, North America, and Europe. The company was founded in 1888 and is based in Ravenhall, Australia.

Details
Name: Costa Group Holdings Limited
CGC
Exchange: ASX
Founded: 1888
A$1,118,997,862
320,629,760
Website: http://www.costagroup.com.au
Address: Costa Group Holdings Limited
275 Robinsons Road,
Unit 1,
Ravenhall,
Victoria, 3023,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX CGC Ordinary Shares Australian Securities Exchange AU AUD 24. Jul 2015
OTCPK CTTQ.F Ordinary Shares Pink Sheets LLC US USD 24. Jul 2015
DB 3CH Ordinary Shares Deutsche Boerse AG DE EUR 24. Jul 2015
CHIA CGC Ordinary Shares Chi-X Australia AU AUD 24. Jul 2015
Number of employees
Current staff
Staff numbers
0
Costa Group Holdings employees.
Industry
Agricultural Products
Food, Beverage & Tobacco
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/10/13 10:45
End of day share price update: 2019/10/11 00:00
Last estimates confirmation: 2019/10/01
Last earnings filing: 2019/08/22
Last earnings reported: 2019/06/30
Last annual earnings reported: 2018/12/30


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.