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Elders

ASX:ELD
Snowflake Description

Undervalued with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ELD
ASX
A$867M
Market Cap
  1. Home
  2. AU
  3. Food, Beverage & Tobacco
Company description

Elders Limited provides livestock, real estate, and wool agency services to rural and regional customers primarily in Australia. The last earnings update was 147 days ago. More info.


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ELD Share Price and Events
7 Day Returns
-1.4%
ASX:ELD
-0.4%
AU Food
1.3%
AU Market
1 Year Returns
-12.9%
ASX:ELD
-10%
AU Food
9.9%
AU Market
ELD Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Elders (ELD) -1.4% -10.4% -0.2% -12.9% 53% 260%
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
  • ELD underperformed the Food industry which returned -10% over the past year.
  • ELD underperformed the Market in Australia which returned 9.9% over the past year.
Price Volatility
ELD
Industry
5yr Volatility vs Market

ELD Value

 Is Elders 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 Elders 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 Elders.

ASX:ELD Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 3 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:ELD
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%) (23.84%))
0.754
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:ELD using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Elders 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:ELD DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (AUD, Millions) Source Present Value
Discounted (@ 7.08%)
2020 40.10 Analyst x1 37.45
2021 56.30 Analyst x1 49.10
2022 68.88 Est @ 22.35% 56.10
2023 80.14 Est @ 16.34% 60.96
2024 89.86 Est @ 12.13% 63.83
2025 98.12 Est @ 9.19% 65.09
2026 105.10 Est @ 7.12% 65.11
2027 111.07 Est @ 5.68% 64.26
2028 116.26 Est @ 4.67% 62.81
2029 120.87 Est @ 3.96% 60.99
Present value of next 10 years cash flows A$585.00
ASX:ELD DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= A$120.87 × (1 + 2.31%) ÷ (7.08% – 2.31%)
A$2,593.58
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= A$2,593.58 ÷ (1 + 7.08%)10
A$1,308.63
ASX:ELD Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= A$585.00 + A$1,308.63
A$1,893.63
Equity Value per Share
(AUD)
= Total value / Shares Outstanding
= A$1,893.63 / 141.65
A$13.37
ASX:ELD Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$13.37
Current discount Discount to share price of A$6.12
= -1 x (A$6.12 - A$13.37) / A$13.37
54.2%

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

Current Discount
Amount off the current price Elders is available for.
Intrinsic value
>50%
Share price is A$6.12 vs Future cash flow value of A$13.37
Current Discount Checks
For Elders to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Elders's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Elders'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 Elders's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Elders's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:ELD PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in AUD A$0.51
ASX:ELD Share Price ** ASX (2019-10-11) in AUD A$6.12
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 Elders.

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

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

= 6.12 ÷ 0.51

11.89x

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

  • Elders is good value based on earnings compared to the AU Food industry average.
  • Elders is good value based on earnings compared to the Australia market.
Price based on expected Growth
Does Elders's expected growth come at a high price?
Raw Data
ASX:ELD PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 11.89x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
17.6%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:ELD PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 11.89x ÷ 17.6%

0.67x

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

  • Elders is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Elders's assets?
Raw Data
ASX:ELD PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in AUD A$2.78
ASX:ELD Share Price * ASX (2019-10-11) in AUD A$6.12
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:ELD PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 6.12 ÷ 2.78

2.2x

* Primary Listing of Elders.

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

  • Elders is overvalued based on assets compared to the AU Food industry average.
X
Value checks
We assess Elders'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. Elders has a total score of 5/6, 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.

ELD Future Performance

 How is Elders expected to perform in the next 1 to 3 years based on estimates from 3 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
17.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Elders expected to grow at an attractive rate?
  • Elders's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
  • Elders's earnings growth is expected to exceed the Australia market average.
  • Elders's revenue growth is expected to exceed the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:ELD Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:ELD Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts 17.6%
ASX:ELD Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts 5.3%
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:ELD Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:ELD Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-09-30 1,985 114 116 1
2022-09-30 1,917 108 109 1
2021-09-30 1,945 113 109 2
2020-09-30 1,815 50 85 2
2019-10-13
2019-09-30 1,638 41 61 3
ASX:ELD Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2019-03-31 1,601 -51 60
2018-12-31 1,607 -32 69
2018-09-30 1,613 -12 79
2018-03-31 1,598 113 120
2017-12-31 1,590 97 116
2017-09-30 1,583 82 112
2017-03-31 1,511 30 76
2016-12-31 1,515 39 69
2016-09-30 1,519 49 62
2016-06-30 1,637 24 49

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Elders's earnings are expected to grow by 17.6% yearly, however this is not considered high growth (20% yearly).
  • Elders's revenue is expected to grow by 5.3% 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:ELD Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from Elders Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:ELD Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-09-30 0.72 0.72 0.72 1.00
2022-09-30 0.70 0.70 0.70 1.00
2021-09-30 0.70 0.79 0.65 3.00
2020-09-30 0.56 0.59 0.50 3.00
2019-10-13
2019-09-30 0.51 0.53 0.49 3.00
ASX:ELD Past Financials Data
Date (Data in AUD Millions) EPS *
2019-03-31 0.51
2018-12-31 0.60
2018-09-30 0.68
2018-03-31 1.04
2017-12-31 1.01
2017-09-30 0.98
2017-03-31 0.72
2016-12-31 0.71
2016-09-30 0.69
2016-06-30 0.57

*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.
  • Elders is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Elders'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.
Elders has a total score of 3/6, 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.

ELD Past Performance

  How has Elders 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 Elders'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.
  • Elders has delivered over 20% year on year earnings growth in the past 5 years.
  • Elders's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Elders's 1-year earnings growth is negative, it can't be compared to the AU Food industry average.
Earnings and Revenue History
Elders'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 Elders Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:ELD Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 1,600.92 59.79 287.91
2018-12-31 1,607.10 69.24 284.18
2018-09-30 1,613.28 78.68 280.45
2018-03-31 1,597.87 119.70 275.63
2017-12-31 1,590.19 115.90 271.12
2017-09-30 1,582.52 112.09 266.62
2017-03-31 1,510.63 76.36 251.49
2016-12-31 1,514.98 69.33 251.80
2016-09-30 1,519.34 62.30 252.10
2016-06-30 1,637.46 49.29 257.09
2016-03-31 1,616.67 47.00 256.37
2015-12-31 1,559.34 42.65 255.01
2015-09-30 1,502.01 38.29 253.64
2015-03-31 1,428.75 25.97 251.79
2014-12-31 1,430.14 22.03 251.68
2014-09-30 1,431.54 18.09 251.56
2014-03-31 1,396.69 -188.22 225.70
2013-12-31 1,409.37 -270.17 252.73
2013-09-30 1,422.06 -352.12 279.76
2013-03-31 1,609.45 -221.55 406.85
2012-12-31 1,711.33 -118.72 414.65

*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.
  • Elders has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Elders used its assets more efficiently than the AU Food industry average last year based on Return on Assets.
  • Elders's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Elders'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.
Elders has a total score of 2/6, 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.

ELD Health

 How is Elders'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 Elders's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Elders is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Elders's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Elders'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 3.2x 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 Elders Company Filings, last reported 6 months ago.

ASX:ELD Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 325.68 205.60 1.76
2018-12-31 325.68 205.60 1.76
2018-09-30 308.55 183.45 11.64
2018-03-31 286.25 159.10 67.24
2017-12-31 286.25 159.10 67.24
2017-09-30 257.68 129.87 35.19
2017-03-31 179.04 172.24 1.81
2016-12-31 179.04 172.24 1.81
2016-09-30 186.50 120.70 35.15
2016-06-30 186.50 120.70 35.15
2016-03-31 128.10 141.81 15.83
2015-12-31 128.10 141.81 15.83
2015-09-30 111.63 136.47 0.67
2015-03-31 118.35 113.64 27.22
2014-12-31 118.35 113.64 27.22
2014-09-30 57.03 159.68 22.48
2014-03-31 38.01 241.88 5.96
2013-12-31 38.01 241.88 5.96
2013-09-30 46.20 294.28 39.93
2013-03-31 251.06 385.73 73.27
2012-12-31 251.06 385.73 73.27
  • Elders's level of debt (63%) 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 (633.7% vs 63% today).
  • Operating cash flow is negative therefore debt is not well covered.
  • Interest payments on debt are well covered by earnings (EBIT is 7x coverage).
X
Financial health checks
We assess Elders'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. Elders has a total score of 4/6, 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.

ELD Dividends

 What is Elders'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
2.94%
Current annual income from Elders dividends. Estimated to be 3.54% next year.
If you bought A$2,000 of Elders shares you are expected to receive A$59 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?
  • Elders's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.5%).
  • Elders'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:ELD 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 3 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:ELD Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2023-09-30 0.24 1.00
2022-09-30 0.23 1.00
2021-09-30 0.23 4.00
2020-09-30 0.19 4.00
2019-10-13
2019-09-30 0.18 4.00
ASX:ELD Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2019-05-20 0.180 2.785
2018-11-12 0.180 2.781
2018-05-14 0.180 2.389
2017-11-13 0.075 1.027
2010-05-17 0.000 0.000
2009-11-16 0.000 0.000
2009-09-07 0.000 0.000
2009-02-17 0.000 0.000

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

  • Whilst dividend payments have been stable, Elders has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Elders only paid a dividend in the past 2 years.
Current Payout to shareholders
What portion of Elders's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.9x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3x coverage).
X
Income/ dividend checks
We assess Elders'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 Elders afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Elders has a total score of 3/6, see the detailed checks below.


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

ELD Management

 What is the CEO of Elders'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
Mark Allison
COMPENSATION A$2,757,793
AGE 59
TENURE AS CEO 5.4 years
CEO Bio

Mr. Mark Charles Allison, BAgrSc, BEcon, GDM, FAICD, has been the Chief Executive Officer and Managing Director of Elders Limited since May 1, 2014 and also has been its Executive Director since November 10, 2009. Mr. Allison has extensive experience in the agribusiness sector. He served as the Managing Director and Chief Executive Officer of Jeminex Limited from 2007 to 2008. He served as Managing Director of Makhteshim Agan Australasia Pty Ltd from 2005 to 2007. He served as the Managing Director of Rural Services of Wesfarmers Limited from July 1, 2003 to August 29, 2003. He served as Managing Director of Farmoz, Wesfarmers Landmark Limited and Wesfarmers CSBP Limited and is Executive Director of GrainGrowers Limited and Chairman of Agribusiness Australia. He appointed at Wesfarmers in 2001. Mr. Allison held senior positions with Orica Limited as General Manager of Crop Care Australasia and with Incitec Limited as General Manager of Fertilisers. From 1982 to 1996, he performed a series of senior sales, marketing and technical roles in the Crop Protection, Animal Health and Fertiliser industries. He served as the Chairman of Elders Limited from June 27, 2013 to April 30, 2014. He serves as a Director of Elders Rural Holdings Limited. He served as a Director of Jeminex Limited. He holds AMP (HBS). He introduced and implemented the Eight Point Plan which returned Elders to its core business offerings and resulted in the first shareholder distribution in nearly a decade. The second Eight Point Plan is on track to lead the business to 2020, with the goal of building a business that can withstand seasonal, market demand and commodity price vagaries as well as the impacts of a variable climate and production constraints.

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

Average tenure of the Elders management team in years:

6.1
Average Tenure
  • The average tenure for the Elders management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Mark Allison

TITLE
CEO, MD & Executive Director
COMPENSATION
A$3M
AGE
59
TENURE
5.4 yrs

Richard Davey

TITLE
Chief Financial Officer
COMPENSATION
A$996K
TENURE
6.8 yrs

James Cornish

TITLE
General Manager of West Zone
COMPENSATION
A$717K
TENURE
8.8 yrs

Malcolm Hunt

TITLE
General Manager of South Zone
COMPENSATION
A$867K
TENURE
7.8 yrs

Peter Hastings

TITLE
General Counsel & Company Secretary
TENURE
9.7 yrs

Sanjeeta Singh

TITLE
Joint Company Secretary
TENURE
3.6 yrs

Tom Russo

TITLE
General Manager of Real Estate
TENURE
3.8 yrs

Karen Ross

TITLE
General Manager of Digital
TENURE
3.5 yrs
Board of Directors Tenure

Average tenure and age of the Elders board of directors in years:

1.9
Average Tenure
60.5
Average Age
  • The average tenure for the Elders board of directors is less than 3 years, this suggests a new board.
Board of Directors

Ian Wilton

TITLE
Chairman
COMPENSATION
A$164K
AGE
67
TENURE
0.1 yrs

Mark Allison

TITLE
CEO, MD & Executive Director
COMPENSATION
A$3M
AGE
59
TENURE
9.9 yrs

Robyn Clubb

TITLE
Non-Executive Director
COMPENSATION
A$153K
AGE
62
TENURE
4.1 yrs

Diana Eilert

TITLE
Non-Executive Director
COMPENSATION
A$128K
AGE
59
TENURE
1.9 yrs

Mike Carroll

TITLE
Non-Executive Director
COMPENSATION
A$12K
TENURE
1.1 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Elders individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
27. Sep 19 Sell Schroder Investment Management Limited Company 25. Jun 19 27. Sep 19 -706,753 A$6.47 A$-4,575,891
27. Sep 19 Buy Schroder Investment Management Limited Company 25. Jun 19 27. Sep 19 982,189 A$5.55 A$5,454,240
14. Aug 19 Buy Mark Allison Individual 12. Aug 19 13. Aug 19 136,470 A$5.55 A$754,633
20. Aug 19 Sell Yarra Funds Management Limited Company 16. Aug 19 16. Aug 19 -846,660 A$6.70 A$-5,670,539
16. Aug 19 Buy Diana Eilert Individual 12. Aug 19 12. Aug 19 1,269 A$5.55 A$7,043
13. Aug 19 Buy Michael Carroll Individual 12. Aug 19 12. Aug 19 1,087 A$5.55 A$6,033
13. Aug 19 Buy Michael Carroll Individual 12. Aug 19 12. Aug 19 11,838 A$6.75 A$79,906
13. Aug 19 Buy Ian Wilton Individual 12. Aug 19 12. Aug 19 16,657 A$5.55 A$92,446
09. Aug 19 Sell Yarra Funds Management Limited Company 21. Mar 19 07. Aug 19 -644,978 A$7.10 A$-4,579,728
09. Aug 19 Buy Yarra Funds Management Limited Company 21. Mar 19 07. Aug 19 1,516,043 A$5.55 A$8,414,037
07. Aug 19 Buy Robyn Clubb Individual 07. Aug 19 07. Aug 19 2,000 A$6.80 A$13,600
07. Aug 19 Buy Michael Carroll Individual 05. Aug 19 05. Aug 19 4,822 A$7.25 A$34,959
26. Jul 19 Sell Pendal Group Limited Company 14. May 19 23. Jul 19 -1,366,557 A$6.46 A$-8,825,246
26. Jul 19 Buy Pendal Group Limited Company 14. May 19 23. Jul 19 1,258,863 A$6.79 A$8,547,530
04. Jun 19 Buy Health Employees Superannuation Trust Australia Company 07. Feb 19 31. May 19 3,012,147 A$6.11 A$18,397,586
15. May 19 Sell Pendal Group Limited Company 14. Jan 19 05. Mar 19 -33,933 A$6.28 A$-211,103
15. May 19 Buy Pendal Group Limited Company 14. Jan 19 13. May 19 3,470,519 A$6.36 A$22,059,444
22. Mar 19 Buy Yarra Funds Management Limited Company 08. Feb 19 20. Mar 19 1,491,651 A$6.11 A$9,117,347
11. Feb 19 Sell Yarra Funds Management Limited Company 08. Dec 18 07. Feb 19 -71,993 A$6.83 A$-491,685
11. Feb 19 Buy Yarra Funds Management Limited Company 08. Dec 18 07. Feb 19 1,276,402 A$6.69 A$8,541,481
06. Jan 19 Sell SichuanHebang Biotechnology Co.,Ltd. Company 02. Jan 19 04. Jan 19 -190,000 A$7.20 A$-1,368,000
28. Dec 18 Sell SichuanHebang Biotechnology Co.,Ltd. Company 06. Nov 18 27. Dec 18 -1,219,000 A$8.90 A$-10,849,101
21. Dec 18 Buy Realindex Investments Pty Limited Company 12. Nov 18 14. Dec 18 282,375 A$7.70 A$2,175,411
21. Dec 18 Sell Colonial First State Asset Management (Australia) Limited Company 15. Nov 18 14. Dec 18 -455,282 A$7.26 A$-3,304,529
21. Dec 18 Buy Colonial First State Asset Management (Australia) Limited Company 15. Nov 18 14. Dec 18 248,049 A$7.10 A$1,760,364
12. Dec 18 Buy Yarra Funds Management Limited Company 08. Aug 18 07. Dec 18 2,958,642 A$7.15 A$21,143,324
07. Dec 18 Buy Robyn Clubb Individual 04. Dec 18 04. Dec 18 5,000 A$7.00 A$34,999
06. Dec 18 Buy Diana Eilert Individual 05. Dec 18 05. Dec 18 8,500 A$6.91 A$58,703
04. Dec 18 Buy Michael Carroll Individual 03. Dec 18 03. Dec 18 7,280 A$6.86 A$49,941
21. Nov 18 Sell Vinva Investment Management Company 25. Sep 18 19. Nov 18 -268,709 A$7.48 A$-2,010,838
21. Nov 18 Buy Vinva Investment Management Company 25. Sep 18 19. Nov 18 118,098 A$7.17 A$847,158
12. Nov 18 Buy Realindex Investments Pty Limited Company 07. Nov 18 08. Nov 18 23,674 A$7.72 A$181,471
12. Nov 18 Buy Colonial First State Asset Management (Australia) Limited Company 02. Nov 18 09. Nov 18 192,327 A$7.71 A$1,448,911
02. Nov 18 Buy Realindex Investments Pty Limited Company 31. Oct 18 31. Oct 18 4,373 A$7.29 A$31,879
01. Nov 18 Buy Realindex Investments Pty Limited Company 09. Oct 18 25. Oct 18 104,317 A$7.44 A$751,371
01. Nov 18 Buy Colonial First State Asset Management (Australia) Limited Company 11. Oct 18 25. Oct 18 40,536 A$7.31 A$281,888
X
Management checks
We assess Elders'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. Elders 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.

ELD News

Simply Wall St News

What To Know Before Buying Elders Limited (ASX:ELD) For Its Dividend

Today we'll take a closer look at Elders Limited (ASX:ELD) from a dividend investor's perspective. Owning a strong business and reinvesting the dividends is widely seen as an attractive way of growing your wealth. If you are hoping to live on the income from dividends, it's important to be a lot more stringent with your investments than the average punter. Some readers mightn't know much about Elders's 2.7% dividend, as it has only been paying distributions for the last two years. While it may not look like much, if earnings are growing it could become quite interesting. Some simple analysis can offer a lot of insights when buying a company for its dividend, and we'll go through this below. Click the interactive chart for our full dividend analysis ASX:ELD Historical Dividend Yield, September 3rd 2019Payout ratios Dividends are typically paid from company earnings. If a company pays more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Comparing dividend payments to a company's net profit after tax is a simple way of reality-checking whether a dividend is sustainable. Looking at the data, we can see that 35% of Elders's profits were paid out as dividends in the last 12 months. A medium payout ratio strikes a good balance between paying dividends, and keeping enough back to invest in the business. Besides, if reinvestment opportunities dry up, the company has room to increase the dividend. In addition to comparing dividends against profits, we should inspect whether the company generated enough cash to pay its dividend. Last year, Elders paid a dividend while reporting negative free cash flow. While there may be an explanation, we think this behaviour is generally not sustainable. Is Elders's Balance Sheet Risky? As Elders has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) net interest cover. Net debt to EBITDA is a measure of a company's total debt. Net interest cover measures the ability to meet interest payments. Essentially we check that a) the company does not have too much debt, and b) that it can afford to pay the interest. … We're not overly excited about the relatively short history of dividend payments, however the dividend is growing at a nice rate and we might take a closer look. … Dividend Growth Potential Dividend payments have been consistent over the past few years, but we should always check if earnings per share (EPS) are growing, as this will help maintain the purchasing power of the dividend.

Simply Wall St -

Elders Limited (ASX:ELD): Is It A Smart Long Term Opportunity?

In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for Elders in the longer term. … To reduce the year-on-year volatility of analyst earnings forecast, I've inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line. … ASX:ELD Past and Future Earnings, August 24th 2019 By 2022, ELD's earnings should reach AU$139m, from current levels of AU$79m, resulting in an annual growth rate of 17%.

Simply Wall St -

The Non-Executive Director of Elders Limited (ASX:ELD), Ian Wilton, Just Bought 14.926028% More Shares

View our latest analysis for Elders Elders Insider Transactions Over The Last Year In fact, the recent purchase by Ian Wilton was the biggest purchase of Elders shares made by an insider individual in the last twelve months, according to our records. … That means that an insider was happy to buy shares at around the current price of AU$6.73. … Insiders likely see value in Elders shares, given these transactions (along with notable insider ownership of the company).

Simply Wall St -

Boasting A 19% Return On Equity, Is Elders Limited (ASX:ELD) A Top Quality Stock?

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Elders: 19% = AU$60m ÷ AU$326m (Based on the trailing twelve months to March 2019.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … Does Elders Have A Good Return On Equity? … Companies that can achieve high returns on equity without too much debt are generally of good quality.

Simply Wall St -

What Kind Of Shareholder Appears On The Elders Limited's (ASX:ELD) Shareholder Register?

Elders is a smaller company with a market capitalization of AU$892m, so it may still be flying under the radar of many institutional investors. … Check out our latest analysis for Elders ASX:ELD Ownership Summary, August 3rd 2019 What Does The Institutional Ownership Tell Us About Elders? … General Public Ownership The general public, with a 46% stake in the company, will not easily be ignored.

Simply Wall St -

Elders Limited (ASX:ELD): Is Growth Priced In?

This tells us the stock is undervalued relative to the current AU market average of 16.17x , and undervalued based on its latest annual earnings update compared to the Food average of 19.22x. … But, to be able to properly assess the value of a high-growth stock such as Elders, we must incorporate its earnings growth in our valuation. … So, when we include the growth factor in our analysis, Elders appears slightly overvalued , based on fundamental analysis.

Simply Wall St -

Is Elders Limited's (ASX:ELD) CEO Being Overpaid?

View our latest analysis for Elders How Does Mark Allison's Compensation Compare With Similar Sized Companies? … Thus we can conclude that Mark Allison receives more in total compensation than the median of a group of companies in the same market, and of similar size to Elders Limited. … We compared total CEO remuneration at Elders Limited with the amount paid at companies with a similar market capitalization.

Simply Wall St -

Here's Why Elders (ASX:ELD) Has A Meaningful Debt Burden

The first step when considering a company's debt levels is to consider its cash and debt together. … Either way, since Elders does have more debt than cash, it's worth keeping an eye on its balance sheet. … In light of our reservations about the company's balance sheet, it seems sensible to check if insiders have been selling shares recently.

Simply Wall St -

Have Insiders Been Buying Elders Limited (ASX:ELD) Shares?

As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.' Check out our latest analysis for Elders Elders Insider Transactions Over The Last Year While no particular insider transaction stood out, we can still look at the overall trading. … ASX:ELD Recent Insider Trading, June 23rd 2019 Elders is not the only stock that insiders are buying. … Insider Ownership of Elders For a common shareholder, it is worth checking how many shares are held by company insiders.

Simply Wall St -

Announcing: Elders (ASX:ELD) Stock Soared An Exciting 331% In The Last Five Years

One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … During the five years of share price growth, Elders moved from a loss to profitability. … Sometimes, the start of profitability is a major inflection point that can signal fast earnings growth to come, which in turn justifies very strong share price gains.

Simply Wall St -

ELD Company Info

Description

Elders Limited provides livestock, real estate, and wool agency services to rural and regional customers primarily in Australia. It operates through Network, Feed and Processing, and Other segments. The company offers rural farm inputs, such as seeds, fertilizers, agricultural chemicals, animal health products, and general rural merchandise, as well as professional production and cropping advisory services. It also provides on-farm sales to third parties, regular physical, and online public livestock auctions, as well as directly sells through its owned and third-party feedlots and livestock exporters; agency services for the sale of greasy wool; brokering services for wool growers; and grain marketing services. In addition, the company offers farms, stations, and lifestyle estates marketing; residential real estate agency and property management; and water and home loan broking services. Further, it provides a range of banking, insurance, and financial planning products and services. Additionally, it operates a beef cattle feedlot; and imports, processes, and distributes Australian meat in China and Indonesia. The company is involved in the investment activities. Elders Limited was founded in 1839 and is headquartered in Adelaide, Australia.

Details
Name: Elders Limited
ELD
Exchange: ASX
Founded: 1839
A$866,901,800
141,650,621
Website: http://elders.com.au
Address: Elders Limited
80 Grenfell Street,
Level 10,
Adelaide,
South Australia, 5000,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX ELD Ordinary Shares Australian Securities Exchange AU AUD 02. Jan 1992
DB FTZ Ordinary Shares Deutsche Boerse AG DE EUR 02. Jan 1992
CHIA ELD Ordinary Shares Chi-X Australia AU AUD 02. Jan 1992
Number of employees
Current staff
Staff numbers
2,000
Elders employees.
Industry
Agricultural Products
Food, Beverage & Tobacco
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/10/13 10:33
End of day share price update: 2019/10/11 00:00
Last estimates confirmation: 2019/10/08
Last earnings filing: 2019/05/19
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/09/30


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.