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GrainCorp

ASX:GNC
Snowflake Description

Fair value with moderate growth potential.

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

GrainCorp Limited operates as a food ingredients and agribusiness company in Australasia, Asia, North America, Europe, the Middle East, North Africa, and internationally. The last earnings update was 158 days ago. More info.


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GNC Share Price and Events
7 Day Returns
0.1%
ASX:GNC
-0.4%
AU Food
1.3%
AU Market
1 Year Returns
1.8%
ASX:GNC
-10%
AU Food
9.9%
AU Market
GNC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
GrainCorp (GNC) 0.1% -3.5% -5.4% 1.8% -2.4% -5.5%
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
  • GNC outperformed the Food industry which returned -10% over the past year.
  • GNC underperformed the Market in Australia which returned 9.9% over the past year.
Price Volatility
GNC
Industry
5yr Volatility vs Market

Value

 Is GrainCorp 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 GrainCorp 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 GrainCorp.

ASX:GNC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 9 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.1%
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:GNC
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%) (112.44%))
0.979
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.98
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (0.979 * 5.96%)
8.14%

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

The calculations below outline how an intrinsic value for GrainCorp 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:GNC DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (AUD, Millions) Source Present Value
Discounted (@ 8.14%)
2020 93.93 Analyst x3 86.86
2021 73.75 Analyst x2 63.06
2022 180.57 Analyst x1 142.77
2023 229.02 Est @ 26.83% 167.44
2024 273.62 Est @ 19.48% 184.98
2025 312.82 Est @ 14.33% 195.56
2026 346.37 Est @ 10.72% 200.22
2027 374.77 Est @ 8.2% 200.32
2028 398.88 Est @ 6.43% 197.15
2029 419.60 Est @ 5.2% 191.77
Present value of next 10 years cash flows A$1,630.00
ASX:GNC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= A$419.60 × (1 + 2.31%) ÷ (8.14% – 2.31%)
A$7,360.37
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= A$7,360.37 ÷ (1 + 8.14%)10
A$3,363.94
ASX:GNC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= A$1,630.00 + A$3,363.94
A$4,993.94
Equity Value per Share
(AUD)
= Total value / Shares Outstanding
= A$4,993.94 / 228.47
A$21.86
ASX:GNC Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$21.86
Current discount Discount to share price of A$7.89
= -1 x (A$7.89 - A$21.86) / A$21.86
63.9%

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

Current Discount
Amount off the current price GrainCorp is available for.
Intrinsic value
>50%
Share price is A$7.89 vs Future cash flow value of A$21.86
Current Discount Checks
For GrainCorp to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • GrainCorp's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • GrainCorp'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 GrainCorp's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are GrainCorp's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:GNC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in AUD A$-0.11
ASX:GNC Share Price ** ASX (2019-10-11) in AUD A$7.89
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 GrainCorp.

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

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

= 7.89 ÷ -0.11

-73.75x

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

  • GrainCorp is loss making, we can't compare its value to the AU Food industry average.
  • GrainCorp is loss making, we can't compare the value of its earnings to the Australia market.
Price based on expected Growth
Does GrainCorp's expected growth come at a high price?
Raw Data
ASX:GNC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -73.75x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts
87.9%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 .

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

  • Unable to calculate PEG ratio for GrainCorp, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on GrainCorp's assets?
Raw Data
ASX:GNC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in AUD A$8.08
ASX:GNC Share Price * ASX (2019-10-11) in AUD A$7.89
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:GNC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 7.89 ÷ 8.08

0.98x

* Primary Listing of GrainCorp.

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

  • GrainCorp is good value based on assets compared to the AU Food industry average.
X
Value checks
We assess GrainCorp'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. GrainCorp 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 GrainCorp expected to perform in the next 1 to 3 years based on estimates from 9 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
87.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is GrainCorp expected to grow at an attractive rate?
  • GrainCorp's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
  • GrainCorp's earnings growth is expected to exceed the Australia market average.
  • GrainCorp's revenue growth is positive but not above the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:GNC Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:GNC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts 87.9%
ASX:GNC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 9 Analysts 3.2%
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:GNC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:GNC Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-09-30 4,882 97 1
2021-09-30 4,757 212 92 8
2020-09-30 4,371 212 86 9
2019-10-13
2019-09-30 4,389 279 -89 9
ASX:GNC Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2019-03-31 4,759 40 -25
2018-12-31 4,506 112 23
2018-09-30 4,253 183 71
2018-06-30 4,180 205 71
2018-03-31 4,107 227 71
2017-12-31 4,341 264 98
2017-09-30 4,576 301 125
2017-06-30 4,560 285 113
2017-03-31 4,545 270 101
2016-12-31 4,351 211 66
2016-09-30 4,158 152 31
2016-06-30 4,169 167 27

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • GrainCorp's earnings are expected to grow significantly at over 20% yearly.
  • GrainCorp's revenue is expected to grow by 3.2% 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:GNC 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 9 Analyst Estimates (S&P Global) See Below

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

ASX:GNC Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-09-30 0.42 0.42 0.42 1.00
2021-09-30 0.43 0.50 0.34 5.00
2020-09-30 0.38 0.69 0.21 6.00
2019-10-13
2019-09-30 -0.39 -0.32 -0.44 4.00
ASX:GNC Past Financials Data
Date (Data in AUD Millions) EPS *
2019-03-31 -0.11
2018-12-31 0.10
2018-09-30 0.31
2018-06-30 0.31
2018-03-31 0.31
2017-12-31 0.43
2017-09-30 0.55
2017-06-30 0.49
2017-03-31 0.44
2016-12-31 0.29
2016-09-30 0.14
2016-06-30 0.12

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

Past Performance

  How has GrainCorp 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 GrainCorp'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.
  • GrainCorp does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare GrainCorp's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare GrainCorp's 1-year growth to the AU Food industry average as it is not currently profitable.
Earnings and Revenue History
GrainCorp'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 GrainCorp Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:GNC 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 4,759.20 -24.50 397.90
2018-12-31 4,506.15 23.00 403.95
2018-09-30 4,253.10 70.50 410.00
2018-06-30 4,179.90 70.90 422.05
2018-03-31 4,106.70 71.30 434.10
2017-12-31 4,341.20 98.25 454.20
2017-09-30 4,575.70 125.20 474.30
2017-06-30 4,560.15 112.85 467.00
2017-03-31 4,544.60 100.50 459.70
2016-12-31 4,351.45 65.70 438.75
2016-09-30 4,158.30 30.90 417.80
2016-06-30 4,169.10 26.60 410.80
2016-03-31 4,179.90 22.30 403.80
2015-12-31 4,132.70 27.20 398.40
2015-09-30 4,085.50 32.10 393.00
2015-06-30 4,049.60 31.30 387.10
2015-03-31 4,013.70 30.50 381.20
2014-12-31 4,053.90 40.40 383.95
2014-09-30 4,094.10 50.30 386.70
2014-06-30 4,125.15 76.50 398.65
2014-03-31 4,156.20 102.70 410.60
2013-12-31 4,309.10 121.80 417.05
2013-09-30 4,462.00 140.90 423.50
2013-06-30 4,233.40 150.15 404.60
2013-03-31 4,004.80 159.40 385.70
2012-12-31 3,667.10 182.15 369.45

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if GrainCorp has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • GrainCorp used its assets less efficiently than the AU Food industry average last year based on Return on Assets.
  • It is difficult to establish if GrainCorp improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess GrainCorp'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.
GrainCorp has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

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

Health

 How is GrainCorp'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 GrainCorp's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • GrainCorp is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • GrainCorp's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of GrainCorp'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 1.3x 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 GrainCorp Company Filings, last reported 6 months ago.

ASX:GNC Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 1,851.50 2,018.20 282.80
2018-12-31 1,851.50 2,018.20 282.80
2018-09-30 1,942.20 1,295.20 370.90
2018-06-30 1,942.20 1,295.20 370.90
2018-03-31 1,874.10 1,649.50 292.70
2017-12-31 1,874.10 1,649.50 292.70
2017-09-30 1,860.40 1,081.00 388.90
2017-06-30 1,860.40 1,081.00 388.90
2017-03-31 1,833.20 1,716.10 461.30
2016-12-31 1,833.20 1,716.10 461.30
2016-09-30 1,742.00 1,185.40 307.60
2016-06-30 1,742.00 1,185.40 307.60
2016-03-31 1,786.00 1,573.50 248.30
2015-12-31 1,786.00 1,573.50 248.30
2015-09-30 1,821.80 1,118.20 374.00
2015-06-30 1,821.80 1,118.20 374.00
2015-03-31 1,801.30 1,385.80 227.30
2014-12-31 1,801.30 1,385.80 227.30
2014-09-30 1,744.50 944.40 206.20
2014-06-30 1,744.50 944.40 206.20
2014-03-31 1,755.00 1,373.70 134.30
2013-12-31 1,755.00 1,373.70 134.30
2013-09-30 1,758.60 822.50 255.00
2013-06-30 1,758.60 822.50 255.00
2013-03-31 1,701.20 1,123.60 221.70
2012-12-31 1,701.20 1,123.60 221.70
  • GrainCorp's level of debt (109%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (78% vs 109% today).
  • Debt is not well covered by operating cash flow (2%, less than 20% of total debt).
  • GrainCorp is making a loss, therefore interest payments are not well covered by earnings.
X
Financial health checks
We assess GrainCorp'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. GrainCorp 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.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from GrainCorp dividends. Estimated to be 2.29% next year.
If you bought A$2,000 of GrainCorp shares you are expected to receive A$0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate GrainCorp's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate GrainCorp's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:GNC 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 9 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:GNC Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2022-09-30 0.21 1.00
2021-09-30 0.21 8.00
2020-09-30 0.15 8.00
2019-10-13
2019-09-30 0.00 6.00
ASX:GNC Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2019-05-08 0.000 0.000
2018-11-14 0.160 1.771
2018-05-10 0.230 2.936
2017-11-20 0.300 3.744
2017-05-10 0.185 2.075
2016-11-15 0.110 1.210
2015-11-11 0.100 1.220
2015-05-13 0.125 1.430
2014-11-12 0.200 2.210
2014-05-14 0.300 3.466
2013-11-13 0.450 5.268
2013-05-15 0.600 4.845
2012-11-15 0.700 5.775
2012-05-22 0.650 6.781
2011-11-24 0.550 6.655
2011-05-26 0.300 3.878
2010-11-25 0.250 3.393
2010-05-26 0.300 4.603
2009-11-25 0.073 1.218
2009-05-19 0.000 0.000
2009-01-20 0.000 0.000
2008-11-19 0.000 0.000

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

  • Unable to perform a dividend volatility check as GrainCorp has not reported any payouts.
  • Unable to verify if GrainCorp's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of GrainCorp's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as GrainCorp has not reported any payouts.
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2x coverage).
X
Income/ dividend checks
We assess GrainCorp'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 GrainCorp afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. GrainCorp 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 GrainCorp'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 Palmquist
COMPENSATION A$2,954,000
AGE 62
TENURE AS CEO 5 years
CEO Bio

Mr. Mark L. Palmquist, BBus, GAICD, has been the Chief Executive Officer of GrainCorp Limited since October 1, 2014. He served as Managing Director of GrainCorp Limited from October 1, 2014 to April 2019. Mr. Palmquist is responsible for all global ag-related business units including crop nutrients, grain marketing, terminal operations, exports, logistics and transportation, along with soybean processing operations and protein food operations. He served as the Chief Operating Officer of Ag business at CHS, Inc. from 2005 to August 31, 2014 and served as its Executive Vice President from 2000 to August 31, 2014. Mr. Palmquist was responsible for all related areas of grains including country operations, terminal operations, exports, logistics, transportation and grain marketing joint ventures. He was responsible for the operations of wheat milling, oilseed processing and refining and food manufacturing and packaging. He served as Chief Operating Officer, Grains and Foods of CHS Inc. since 2000. Mr. Palmquist joined CHS in 1979 and has held a series of management positions of increasing responsibility with CHS. Starting as a grain buyer and moving into merchandising, he has traded many different commodities including corn, soybeans and spring wheat. In 1990, he assumed the role of Vice President and director of Grain Marketing and then in 1993, was promoted to Senior Vice President, which he held until 2000 when he was named to his current position. Mr. Palmquist serves on Ventura Foods LLC board of directors. Mr. Palmquist served as an Executive Director at GrainCorp Limited from October 1, 2014 to April 26, 2019. He has been a Director of Allied Pinnacle Australia Pty Limited since October 27, 2014. He serves as Director of Ardent Mills. He serves as Director of Minneapolis Grain Exchange and the Chicago Mercantile Exchange. He served as a Director of Horizon Milling, LLC. He served as an Independent Director of Schnitzer Steel Industries Inc. from January 2006 to October 22, 2008. Mr. Palmquist attended Gustavus Adolphus College in St. Peter, Minnesota, graduating in 1979. He earned a bachelor's degree in business from Gustavus Adolphus College and attended the Master of Business Administration program at the University of Minnesota.

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 GrainCorp management team in years:

0.8
Average Tenure
  • The average tenure for the GrainCorp management team is less than 2 years, this suggests a new team.
Management Team

Mark Palmquist

TITLE
Chief Executive Officer
COMPENSATION
A$3M
AGE
62
TENURE
5 yrs

Alistair Bell

TITLE
Group Chief Financial Officer
COMPENSATION
A$1M
TENURE
8.9 yrs

Klaus Pamminger

TITLE
Chief Operating Officer
COMPENSATION
A$1M
TENURE
0.5 yrs

Luke Thrum

TITLE
Investor Relations Manager

Stephanie Belton

TITLE
Group General Counsel & Joint Company Secretary
TENURE
0.7 yrs

Angus Trigg

TITLE
Director of Corporate Affairs

Cate Hathaway

TITLE
Interim Group General Manager Human Resources & SHE
TENURE
1.3 yrs

Annerly Squires

TITLE
Joint Company Secretary
TENURE
0.8 yrs

Darren Smith

TITLE
President of GrainCorp Malt
TENURE
0.8 yrs
Board of Directors Tenure

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

9.2
Average Tenure
70
Average Age
  • The tenure for the GrainCorp board of directors is about average.
Board of Directors

Graham Bradley

TITLE
Chairman of the Board
COMPENSATION
A$370K
AGE
70
TENURE
2.4 yrs

Peter Richards

TITLE
Deputy Chairman
COMPENSATION
A$164K
AGE
60
TENURE
0.3 yrs

Dan Mangelsdorf

TITLE
Non-Executive Director
COMPENSATION
A$175K
TENURE
10.7 yrs

Peter Housden

TITLE
Non-Executive Director
COMPENSATION
A$181K
AGE
72
TENURE
11 yrs

Barbara Gibson

TITLE
Non-Executive Director
COMPENSATION
A$172K
AGE
71
TENURE
8.6 yrs

Rebecca Dee-Bradbury

TITLE
Non-Executive Director
COMPENSATION
A$175K
AGE
51
TENURE
5.1 yrs

Donald McGauchie

TITLE
Non-Executive Director
COMPENSATION
A$150K
AGE
69
TENURE
9.8 yrs

Simon Tregoning

TITLE
Non-Executive Director
COMPENSATION
A$162K
AGE
71
TENURE
10.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
09. Oct 19 Sell United Super Pty Ltd Company 06. Jun 19 19. Sep 19 -585,961 A$8.28 A$-4,853,267
09. Oct 19 Buy United Super Pty Ltd Company 07. Jun 19 04. Oct 19 748,344 A$8.23 A$6,155,669
29. Aug 19 Sell The Vanguard Group, Inc. Company 08. May 19 19. Aug 19 -78,288 A$8.97 A$-701,955
29. Aug 19 Buy The Vanguard Group, Inc. Company 07. May 19 27. Aug 19 794,015 A$9.00 A$7,146,135
14. Aug 19 Sell Ellerston Capital Limited Company 30. May 19 12. Aug 19 -11,475,536 A$8.23 A$-94,495,776
14. Aug 19 Buy Ellerston Capital Limited Company 29. May 18 02. Aug 19 6,132,830 A$8.09 A$49,627,472
14. Jun 19 Sell Perpetual Limited Company 20. Jun 18 09. Apr 19 -7,446,903 A$8.09 A$-60,230,137
14. Jun 19 Buy Perpetual Limited Company 11. May 18 12. Jun 19 10,233,565 A$8.15 A$83,416,827
28. Jan 19 Sell Norges Bank Investment Management Company 24. Jan 19 25. Jan 19 -87,090 A$9.29 A$-803,140
21. Jan 19 Sell Norges Bank Investment Management Company 17. Dec 18 17. Dec 18 -216,200 A$9.20 A$-1,989,040
21. Jan 19 Buy Norges Bank Investment Management Company 09. Nov 18 06. Dec 18 415,088 A$9.18 A$0
20. Dec 18 Sell Health Employees Superannuation Trust Australia Company 01. May 18 17. Dec 18 -2,568,200 A$8.13 A$-20,870,380
20. Dec 18 Buy Health Employees Superannuation Trust Australia Company 23. Apr 18 02. Nov 18 1,907,438 A$7.80 A$14,874,474
17. Oct 18 Buy Realindex Investments Pty Limited Company 13. Sep 18 16. Oct 18 439,324 A$8.02 A$3,525,289
X
Management checks
We assess GrainCorp'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. GrainCorp 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

A Closer Look At GrainCorp Limited's (ASX:GNC) Uninspiring ROE

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … One way to conceptualize this, is that for each A$1 of shareholders' equity it has, the company made A$0.036 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Is GrainCorp Limited's (ASX:GNC) CEO Overpaid Relative To Its Peers?

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … How Does Mark Palmquist's Compensation Compare With Similar Sized Companies. … Thus we can conclude that Mark Palmquist receives more in total compensation than the median of a group of companies in the same market, and of similar size to GrainCorp Limited

Simply Wall St -

Who Owns GrainCorp Limited (ASX:GNC)?

Generally speaking, as a company grows, institutions will increase their ownership. … It has a market capitalization of AU$1.83b, which means it would generally expect to see some institutions on the share registry. … institutions own shares in the company

Simply Wall St -

A Look At The Intrinsic Value Of GrainCorp Limited (ASX:GNC)

by estimating the company's future cash flows and discounting them to their present value. … Discounted Cash Flows (DCF). … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

What Are Analysts Saying About The Future Of GrainCorp Limited's (ASX:GNC)?

Based on GrainCorp Limited's (ASX:GNC) earnings update in March 2018,. … with profits predicted to drop by -19.13% next year … compared to its 5-year track record of the average earnings growth rate of -21.82%, this is still an improvement.

Simply Wall St -

Are GrainCorp Limited's (ASX:GNC) Interest Costs Too High?

However, an important fact which most ignore is: how financially healthy is the business? … Assessing first and foremost the financial health is. … Here are a few basic checks that are good enough to have a broad overview of the company’s financial strength.

Simply Wall St -

Is It Too Late To Buy GrainCorp Limited (ASX:GNC) At Its July Price?

GrainCorp Limited (ASX:GNC) is considered a high-growth stock, but its last closing price of A$7.61 left some investors wondering if this high future earnings potential can be rationalized by its current price tag. … View our latest analysis for GrainCorp? … What can we expect from GrainCorp in the future.

Simply Wall St -

Has GrainCorp Limited (ASX:GNC) Improved Earnings In Recent Times?

Measuring GrainCorp Limited's (ASX:GNC) track record of past performance is a valuable exercise for investors. … Today I will assess GNC's recent performance announced on 31 March 2018 and compare these figures to its historical trend and industry movements. … How Did GNC's Recent Performance Stack Up Against Its Past.

Simply Wall St -

What Do GrainCorp Limited (ASX:GNC) Insiders Know That You Don't?

large-cap stocks … It is widely considered that insider buying stock in their own companies is potentially a bullish signal … A two-decade research published in The MIT Press (1998) showed that stocks following insider buying outperformed the market by 4.5%.

Simply Wall St -

Why GrainCorp Limited (ASX:GNC) Could Be A Buy

received a lot of attention from a substantial price movement on the ASX over the last few months, increasing to A$8.95 at one point, and dropping to the lows of A$7.6. … A question to answer is whether GrainCorp's current trading price of A$8.25 reflective of the actual value of the? … Let’s take a look at GrainCorp’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

Company Info

Description

GrainCorp Limited operates as a food ingredients and agribusiness company in Australasia, Asia, North America, Europe, the Middle East, North Africa, and internationally. The company operates in three segments: Grains, Malt, and Oils. The Grains segment receives, transports, tests, stores, and exports/imports grains comprising wheat, barley, canola, and sorghum, as well as other bulk commodities. It also markets grain and agricultural products; and operates grain pools. The Malt segment produces malt products; provides brewing inputs and other malting services to brewers and distillers; sells farm inputs; and exports malt. The Oils segment is involved in processing and crushing oilseeds; supplying edible oils and feeds; operating bulk liquid port terminals; and the provision of storage, packaging, transportation, and logistics services. GrainCorp Limited was founded in 1916 and is headquartered in Sydney, Australia.

Details
Name: GrainCorp Limited
GNC
Exchange: ASX
Founded: 1916
A$1,802,641,847
228,471,717
Website: http://www.graincorp.com.au
Address: GrainCorp Limited
175 Liverpool Street,
Level 28,
Sydney,
New South Wales, 2000,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX GNC Ordinary Shares Australian Securities Exchange AU AUD 30. Mar 1998
OTCPK GRCL.F Ordinary Shares Pink Sheets LLC US USD 30. Mar 1998
DB G3C Ordinary Shares Deutsche Boerse AG DE EUR 30. Mar 1998
CHIA GNC Ordinary Shares Chi-X Australia AU AUD 30. Mar 1998
Number of employees
Current staff
Staff numbers
0
GrainCorp 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: 2019/10/01
Last earnings filing: 2019/05/08
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.