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Ridley

ASX:RIC
Snowflake Description

Good value with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
RIC
ASX
A$327M
Market Cap
  1. Home
  2. AU
  3. Food, Beverage & Tobacco
Company description

Ridley Corporation Limited, together with its subsidiaries, provides animal nutrition solutions in Australasia. The last earnings update was 18 days ago. More info.


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RIC Share Price and Events
7 Day Returns
1.9%
ASX:RIC
-0.4%
AU Food
1.3%
AU Market
1 Year Returns
-26.8%
ASX:RIC
-10%
AU Food
9.9%
AU Market
RIC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Ridley (RIC) 1.9% 1.9% -6.7% -26.8% -16% 23.5%
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
  • RIC underperformed the Food industry which returned -10% over the past year.
  • RIC underperformed the Market in Australia which returned 9.9% over the past year.
Price Volatility
RIC
Industry
5yr Volatility vs Market

Value

 Is Ridley 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 Ridley 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 Ridley.

ASX:RIC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Dividend Discount Model
Dividend Per Share Company Filings (2019-06-30) in AUD A$ 0.051908181818182
Payout Ratio Company Filings (2019-06-30) 5171.4%
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:RIC
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%) (48.18%))
0.717
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:RIC using Dividend Discount Model Model

The calculations below outline how an intrinsic value for Ridley is arrived at by discounting future dividends to their present value. This approach is used for finance firms where free cash flow is difficult to estimate (e.g. Banks/ Insurance firms).

If the firm does not pay the majority of its earnings out as a dividend this method will often arrive at a value significantly lower than the share price.

See our documentation to learn about this calculation.

ASX:RIC Gordon Growth Model
Calculation Result
Value per share = Expected dividends per share / (Discount Rate - Perpetual growth rate)
= A$0.05 / (7.08% - 2.31%)
A$1.09
ASX:RIC Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$1.09
Current discount Discount to share price of A$1.05
= -1 x (A$1.05 - A$1.09) / A$1.09
3.6%

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

Current Discount
Amount off the current price Ridley is available for.
Intrinsic value
4%
Share price is A$1.05 vs Future cash flow value of A$1.09
Current Discount Checks
For Ridley to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Ridley's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Ridley's share price is below the future cash flow value, but not 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 Ridley's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Ridley's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:RIC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in AUD A$0.08
ASX:RIC Share Price ** ASX (2019-10-11) in AUD A$1.05
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 Ridley.

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

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

= 1.05 ÷ 0.08

13.74x

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

  • Ridley is good value based on earnings compared to the AU Food industry average.
  • Ridley is good value based on earnings compared to the Australia market.
Price based on expected Growth
Does Ridley's expected growth come at a high price?
Raw Data
ASX:RIC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 13.74x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
14.6%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:RIC PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 13.74x ÷ 14.6%

0.94x

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

  • Ridley is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Ridley's assets?
Raw Data
ASX:RIC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in AUD A$0.89
ASX:RIC Share Price * ASX (2019-10-11) in AUD A$1.05
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:RIC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 1.05 ÷ 0.89

1.18x

* Primary Listing of Ridley.

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

  • Ridley is good value based on assets compared to the AU Food industry average.
X
Value checks
We assess Ridley'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. Ridley has a total score of 4/6, 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 Ridley 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
14.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Ridley expected to grow at an attractive rate?
  • Ridley's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
  • Ridley's earnings growth is expected to exceed the Australia market average.
  • Ridley's revenue growth is expected to exceed the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:RIC Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:RIC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts 14.6%
ASX:RIC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts 4.8%
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:RIC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 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:RIC Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-06-30 1,268 74 47 1
2023-06-30 1,231 71 45 1
2022-06-30 1,104 57 31 3
2021-06-30 1,047 42 26 3
2020-06-30 997 34 22 3
2019-10-13
ASX:RIC Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2019-06-30 1,003 37 24
2019-03-31 997 36 22
2018-12-31 992 36 21
2018-09-30 955 43 19
2018-06-30 918 51 17
2018-03-31 899 55 21
2017-12-31 880 59 24
2017-09-30 866 44 25
2017-06-30 853 30 26
2016-12-31 862 27 31
2016-09-30 887 23 29

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Ridley's earnings are expected to grow by 14.6% yearly, however this is not considered high growth (20% yearly).
  • Ridley's revenue is expected to grow by 4.8% 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:RIC 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 3 Analyst Estimates (S&P Global) See Below

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

ASX:RIC Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-06-30 0.15 0.15 0.15 1.00
2023-06-30 0.14 0.14 0.14 1.00
2022-06-30 0.10 0.13 0.08 3.00
2021-06-30 0.09 0.10 0.08 3.00
2020-06-30 0.07 0.08 0.06 3.00
2019-10-13
ASX:RIC Past Financials Data
Date (Data in AUD Millions) EPS *
2019-06-30 0.08
2019-03-31 0.07
2018-12-31 0.07
2018-09-30 0.06
2018-06-30 0.06
2018-03-31 0.07
2017-12-31 0.08
2017-09-30 0.08
2017-06-30 0.08
2016-12-31 0.10
2016-09-30 0.09

*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.
  • Ridley is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Ridley'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.
Ridley 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 Ridley 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 Ridley'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.
  • Ridley's year on year earnings growth rate has been positive over the past 5 years.
  • Ridley's 1-year earnings growth exceeds its 5-year average (35.4% vs 0.7%)
  • Ridley's earnings growth has exceeded the AU Food industry average in the past year (35.4% vs -28.6%).
Earnings and Revenue History
Ridley'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 Ridley Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:RIC 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 1,002.58 23.57 43.96
2019-03-31 997.27 22.30 42.54
2018-12-31 991.96 21.03 41.13
2018-09-30 954.81 19.22 38.95
2018-06-30 917.66 17.41 36.78
2018-03-31 898.71 20.83 37.59
2017-12-31 879.76 24.24 38.40
2017-09-30 866.34 25.03 39.13
2017-06-30 852.92 25.82 39.87
2016-12-31 862.32 31.01 34.87
2016-09-30 887.44 29.11 37.54
2016-06-30 912.56 27.20 40.21
2015-12-31 915.29 24.98 41.61
2015-09-30 911.44 25.36 39.78
2015-06-30 907.60 25.74 37.94
2015-03-31 902.96 19.97 45.37
2014-12-31 896.07 18.78 47.00
2014-09-30 884.85 18.19 45.49
2014-06-30 873.63 17.61 43.98
2013-12-31 812.93 10.24 32.09
2013-09-30 764.63 -3.17 31.07
2013-06-30 716.32 -16.59 30.05
2012-12-31 654.75 -15.62 34.05

*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.
  • Ridley has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Ridley used its assets more efficiently than the AU Food industry average last year based on Return on Assets.
  • Ridley's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Ridley'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.
Ridley has a total score of 4/6, 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 Ridley'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 Ridley's finances.

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

ASX:RIC Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 277.50 157.46 17.48
2019-03-31 277.50 157.46 17.48
2018-12-31 269.35 106.29 18.75
2018-09-30 269.35 106.29 18.75
2018-06-30 263.11 118.68 23.44
2018-03-31 263.11 118.68 23.44
2017-12-31 261.78 81.15 26.00
2017-09-30 261.78 81.15 26.00
2017-06-30 259.82 68.08 16.54
2016-12-31 251.91 111.01 31.35
2016-09-30 251.91 111.01 31.35
2016-06-30 247.88 69.44 28.47
2015-12-31 234.90 97.75 38.89
2015-09-30 234.90 97.75 38.89
2015-06-30 229.83 109.59 34.99
2015-03-31 229.83 109.59 34.99
2014-12-31 225.42 64.64 11.03
2014-09-30 225.42 64.64 11.03
2014-06-30 219.77 76.03 19.24
2013-12-31 217.63 69.53 16.65
2013-09-30 217.63 69.53 16.65
2013-06-30 207.55 56.84 16.94
2012-12-31 236.23 206.64 22.80
  • Ridley's level of debt (56.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (34.5% vs 56.7% today).
  • Debt is well covered by operating cash flow (23.4%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 4.9x coverage).
X
Financial health checks
We assess Ridley'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. Ridley 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.

Dividends

 What is Ridley'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
4.05%
Current annual income from Ridley dividends. Estimated to be 4.94% next year.
If you bought A$2,000 of Ridley shares you are expected to receive A$81 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?
  • Ridley's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.5%).
  • Ridley's dividend is below the markets top 25% of dividend payers in Australia (5.6%).
Upcoming dividend payment

Purchase Ridley before the 'Ex-dividend' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
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:RIC 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:RIC Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2024-06-30 0.07 1.00
2023-06-30 0.07 1.00
2022-06-30 0.05 3.00
2021-06-30 0.05 3.00
2020-06-30 0.04 3.00
2019-10-13
ASX:RIC Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2019-08-23 0.043 4.120
2019-02-28 0.043 3.435
2018-09-27 0.043 3.026
2018-08-21 0.043 2.992
2018-02-13 0.043 3.097
2017-08-23 0.043 3.092
2017-02-14 0.040 2.873
2016-09-29 0.040 3.166
2016-08-29 0.040 3.075
2016-02-17 0.035 2.542
2015-09-28 0.035 2.443
2015-08-19 0.035 2.774
2014-09-23 0.040 3.828
2014-04-14 0.030 3.585
2013-09-30 0.000 0.000
2013-08-20 0.000 0.000
2013-02-20 0.000 0.000
2012-09-26 0.075 6.554
2012-08-22 0.075 6.823
2012-02-22 0.075 6.836
2011-08-25 0.075 7.024
2011-02-09 0.075 6.104
2010-08-24 0.075 5.942
2010-02-23 0.070 6.035
2009-08-25 0.070 6.415
2009-02-10 0.070 8.787

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

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of Ridley's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.8x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.9x coverage).
X
Income/ dividend checks
We assess Ridley'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 Ridley afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Ridley 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.

Management

 What is the CEO of Ridley'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
Quinton Hildebrand
TENURE AS CEO 0.2 years
CEO Bio

Mr. Quinton Lance Hildebrand, BSc (AgEcon), MBA serves as Chief Executive Officer, Managing Director and Director of Ridley Corporation Limited since August 26, 2019. Mr. Hildebrand served as the Chief Commercial Officer of Inghams Group Limited until June 2019. He served as Acting Chief Executive Officer of Inghams Group Limited from August 2018 to November 14, 2018. Mr. Hildebrand served as Operations Excellence Director at Inghams Group Limited. Mr. Hildebrand joined Inghams Group Limited in November 2015. He has 23 years’ commercial experience in grower relations, manufacturing operations, commodity trading and marketing from South Africa, Europe and Australia. Prior to joining Ingham’s Group Limited, he served as the Chief Executive Officer of Mackay Sugar Limited from May 2008 to October 9, 2015, General Manager Marketing at Illovo Sugar in South Africa from 2007 to 2008, and International Marketing Director at South African Sugar Association from 2001 to 2007. He served as a Director of New Zealand Sugar Company Limited since March 26, 2008. His role is focused on driving commercial improvements within the operations of the Ingham’s business. He serves as a Director of Inghams Enterprises (NZ) Pty Limited. Mr. Hildebrand has a Bachelor of Science in Agricultural Economics from the University of Natal in South Africa, a Master of Business Administration from the Edinburgh Business School in Scotland, and a Graduate Diploma in Banking from the Institute of Bankers in South Africa.

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

Average tenure of the Ridley management team in years:

3.8
Average Tenure
  • The tenure for the Ridley management team is about average.
Management Team

Alan Boyd

TITLE
CFO & Company Secretary
COMPENSATION
A$650K
AGE
59
TENURE
10.5 yrs

Mike Murphy

TITLE
General Manager of Safety
COMPENSATION
A$437K
TENURE
3.8 yrs

Quinton Hildebrand

TITLE
CEO, MD & Director
TENURE
0.2 yrs

Ian Fairbairn

TITLE
General Manager of Operations
TENURE
8.8 yrs

Anton Feely

TITLE
Head of Strategy & Corporate Development
TENURE
3.5 yrs
Board of Directors Tenure

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

5.3
Average Tenure
57
Average Age
  • The tenure for the Ridley board of directors is about average.
Board of Directors

Gary Weiss

TITLE
Independent Chairman
COMPENSATION
A$178K
AGE
66
TENURE
4.3 yrs

Quinton Hildebrand

TITLE
CEO, MD & Director
TENURE
0.2 yrs

Patria Mann

TITLE
Independent Non Executive Director
COMPENSATION
A$96K
AGE
57
TENURE
11.6 yrs

David Lord

TITLE
Non-Executive Director
COMPENSATION
A$91K
AGE
61
TENURE
3.5 yrs

Robert van Barneveld

TITLE
Independent Non Executive Director
COMPENSATION
A$95K
AGE
51
TENURE
9.3 yrs

Ejnar Knudsen

TITLE
Non Executive Director
COMPENSATION
A$85K
AGE
50
TENURE
6.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
05. Aug 19 Sell Colonial First State Asset Management (Australia) Limited Company 29. Oct 18 02. Aug 19 -2,572,165 A$1.34 A$-3,439,823
05. Aug 19 Buy Colonial First State Asset Management (Australia) Limited Company 26. Oct 18 22. Jul 19 3,825,068 A$1.31 A$5,024,972
05. Mar 19 Sell Lazard Asset Management LLC Company 26. May 17 01. Mar 19 -5,327,253 A$1.40 A$-7,435,724
14. Dec 18 Sell Schroder Investment Management Limited Company 18. Oct 18 14. Dec 18 -417,305 A$1.45 A$-607,098
14. Dec 18 Buy Schroder Investment Management Limited Company 18. Oct 18 14. Dec 18 3,732,212 A$1.41 A$5,257,082
29. Oct 18 Buy Realindex Investments Pty Limited Company 25. Jun 18 25. Oct 18 738,177 A$1.38 A$1,019,049
29. Oct 18 Buy Colonial First State Asset Management (Australia) Limited Company 05. Jul 18 26. Oct 18 2,163,744 A$1.40 A$3,028,331
17. Oct 18 Sell Schroder Investment Management Limited Company 04. Sep 18 17. Oct 18 -279,862 A$1.44 A$-402,088
17. Oct 18 Buy Schroder Investment Management Limited Company 04. Sep 18 17. Oct 18 4,398,195 A$1.49 A$6,571,391
X
Management checks
We assess Ridley'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. Ridley 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

Is Ridley Corporation Limited (ASX:RIC) A Risky Dividend Stock?

ASX:RIC Historical Dividend Yield, August 24th 2019 Payout ratios Dividends are typically paid from company earnings. … Dividend Growth Potential With a relatively unstable dividend, it's even more important to evaluate if earnings per share (EPS) are growing - it's not worth taking the risk on a dividend getting cut, unless you might be rewarded with larger dividends in future. Ridley has grown its earnings per share at 6.0% per annum over the past five years. The rate at which earnings have grown is quite decent, and by paying out more than half of its earnings as dividends, the company is striking a reasonable balance between reinvestment and returns to shareholders. 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. … Earnings growth generally bodes well for the future value of company dividend payments.

Simply Wall St -

A Holistic Look At Ridley Corporation Limited (ASX:RIC)

By this I mean, I look at stocks holistically, from their financial health to their future outlook. … Excellent balance sheet and good value RIC's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. … Take a look at our free research report of analyst consensus for RIC’s outlook.

Simply Wall St -

A Look At The Intrinsic Value Of Ridley Corporation Limited (ASX:RIC)

Today we will run through one way of estimating the intrinsic value of Ridley Corporation Limited (ASX:RIC) by taking the expected future cash flows and discounting them to their present value. … Value Per Share = Expected Dividend Per Share / (Discount Rate - Perpetual Growth Rate) = A$0.053 / (7.1% – 2.3%) = A$1.12 ASX:RIC Intrinsic value, August 2nd 2019 Important assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. … Given that we are looking at Ridley as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt.

Simply Wall St -

Does Ridley Corporation Limited (ASX:RIC) Create Value For Shareholders?

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 Ridley: 0.08 = AU$30m ÷ (AU$547m - AU$171m) (Based on the trailing twelve months to December 2018.) So, Ridley has an ROCE of 8.0%. … Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE. … Ridley has a medium level of current liabilities, which would boost its ROCE somewhat.

Simply Wall St -

Ridley (ASX:RIC) Shareholders Have Enjoyed A 53% Share Price Gain

For example, the Ridley Corporation Limited (ASX:RIC) share price is up 53% in the last 5 years, clearly besting than the market return of around 8.8% (ignoring dividends). … Over half a decade, Ridley managed to grow its earnings per share at 15% a year. … When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return.

Simply Wall St -

Does It Make Sense To Buy Ridley Corporation Limited (ASX:RIC) For Its Yield?

Today we'll take a closer look at Ridley Corporation Limited (ASX:RIC) 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. Yet sometimes, investors buy a stock for its dividend and lose money because the share price falls by more than they earned in dividend payments. A high yield and a long history of paying dividends is an appealing combination for Ridley. It would not be a surprise to discover that many investors buy it for the dividends. The company also bought back stock equivalent to around 1.1% of market capitalisation this year. Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1. We'll run through some checks below to help with this. Click the interactive chart for our full dividend analysis ASX:RIC Historical Dividend Yield, May 20th 2019 Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card! Payout ratios Dividends are usually paid out of company earnings. If a company is paying more than it earns, 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. In the last year, Ridley paid out 63% of its profit as dividends. A payout ratio above 50% generally implies a business is reaching maturity, although it is still possible to reinvest in the business or increase the dividend over time. We also measure dividends paid against a company's levered free cash flow, to see if enough cash was generated to cover the dividend. Last year, Ridley paid a dividend while reporting negative free cash flow. While there may be an explanation, we think this behaviour is generally not sustainable. Remember, you can always get a snapshot of Ridley's latest financial position, by checking our visualisation of its financial health. Dividend Volatility One of the major risks of relying on dividend income, is the potential for a company to struggle financially and cut its dividend. Not only is your income cut, but the value of your investment declines as well - nasty. Ridley has been paying dividends for a long time, but for the purpose of this analysis, we only examine the past 10 years of payments. This dividend has been unstable, which we define as having fallen by at least 20% one or more times over this time. During the past ten-year period, the first annual payment was AU$0.07 in 2009, compared to AU$0.043 last year. This works out to be a decline of approximately -4.9% per year over that time. Ridley's dividend hasn't shrunk linearly at -4.9% per annum, but the CAGR is a useful estimate of the historical rate of change. Dividend Growth Potential Given that the dividend has been cut in the past, we need to check if earnings are growing and if that might lead to stronger dividends in the future. Earnings have grown at around 4.3% a year for the past five years, which is better than seeing them shrink! Growth of 4.3% is relatively anaemic growth, which we wonder about. When a business is not growing, it often makes more sense to pay higher dividends to shareholders rather than retain the cash with no way to utilise it. 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. … Unfortunately, earnings growth has also been mediocre, and the company has cut its dividend at least once in the past. … Earnings growth generally bodes well for the future value of company dividend payments.

Simply Wall St -

Ridley Corporation Limited (ASX:RIC): Should The Recent Earnings Drop Worry You?

For long-term investors, assessing earnings trend over time and against industry benchmarks is more beneficial than examining a single earnings announcement at a point in time. … RIC's trailing twelve-month earnings (from 31 December 2018) of AU$21m has. … Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 4.4%, indicating the rate at which RIC is growing has slowed down

Simply Wall St -

4 Days Left To Cash In On Ridley Corporation Limited (ASX:RIC) Dividend

On the 10 May 2019, Ridley Corporation Limited (ASX:RIC) will be paying shareholders an upcoming dividend amount of AU$0.015 per share. … Is this future income stream a compelling catalyst for dividend investors to think about the stock as an investment today? … Is it paying an annual yield above 75% of dividend payers?

Simply Wall St -

Is Ridley Corporation Limited (ASX:RIC) A Financially Sound Company?

While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … Evaluating financial health as part of your investment thesis is. … We'll look at some basic checks that can form a snapshot the company’s financial strength.

Simply Wall St -

Do You Know Ridley Corporation Limited’s (ASX:RIC) Cash Situation?

Two important questions to ask before you buy Ridley Corporation Limited (ASX:RIC) is, how it makes money and how it spends its cash. … I’ve analysed below, the health and outlook of Ridley’s cash flow, which will help you understand the stock from a cash standpoint. … Ridley’s free cash flow (FCF) is the level of cash flow the business generates from its operational activities, after it reinvests in the company as capital expenditure.

Simply Wall St -

Company Info

Description

Ridley Corporation Limited, together with its subsidiaries, provides animal nutrition solutions in Australasia. It operates through two segments, AgriProducts and Property. It offers animal meals, including meat and bone meal, poultry meal, hydrolysed feather meal, blood meal, fish meal, and animal fats primarily under the Barastoc, Rumevite, Cobber, and Primo brands. The company provides its animal nutrition solutions to food producers in dairy, poultry, pig, aquaculture, sheep, and beef industries; laboratory animals in the research sector; and the equine and canine markets in the recreational sector. It is also involved in the sale of residual properties. The company was founded in 1987 and is headquartered in Melbourne, Australia.

Details
Name: Ridley Corporation Limited
RIC
Exchange: ASX
Founded: 1987
A$326,819,032
311,256,221
Website: http://www.ridley.com.au
Address: Ridley Corporation Limited
565 Bourke Street,
Level 4,
Melbourne,
Victoria, 3000,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX RIC Ordinary Shares Australian Securities Exchange AU AUD 02. Jan 1992
OTCPK RIDY.F Ordinary Shares Pink Sheets LLC US USD 02. Jan 1992
DB RI6 Ordinary Shares Deutsche Boerse AG DE EUR 02. Jan 1992
CHIA RIC Ordinary Shares Chi-X Australia AU AUD 02. Jan 1992
Number of employees
Current staff
Staff numbers
697
Ridley employees.
Industry
Agricultural Products
Food, Beverage & Tobacco
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/10/13 10:32
End of day share price update: 2019/10/11 00:00
Last estimates confirmation: 2019/10/01
Last earnings filing: 2019/09/25
Last earnings reported: 2019/06/30
Last annual earnings reported: 2019/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.