Discounted Cash Flow Calculation for ASX:SGLLV using Dividend Discount Model Model
The calculations below outline how an intrinsic value for
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.
Amount off the current price
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
Ricegrowers's share price is below the future cash flow value, and at a moderate discount (> 20%).
Ricegrowers'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
is considered below, and whether this is a fair price.
Price based on past earnings
Ricegrowers's earnings available for a low price, and how does
this compare to other companies in the same industry?
Ricegrowers's earnings are expected to grow by 2% yearly, however this is not considered high growth (20% yearly).
Unable to determine if Ricegrowers is high growth as no revenue estimate data is available.
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.
Ricegrowers's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
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.
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.
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.
TENURE AS CEO
Mr. Robert Francis Gordon, also known as Rob, BSc (Hons), CEng, MAICD, is Non-Executive Director at Inghams Group Limited since April 11, 2019. He has been Chief Executive Officer of Ricegrowers Limited since February 2012. Mr. Gordon has more than 25 years of senior strategic experience. He served as Senior Vice President and President of South-East Asia at Viterra, Inc. since January 2010 and January 2010 to November 4, 2011 respectively. Mr. Gordon served as the Managing Director and Chief Executive Officer of Dairy Farmers Limited (Australian Co-operative Foods Limited). Mr. Gordon joined Dairy Farmers in 2004 with a clear mandate to re-set the business to achieve sustainable growth in advance of a future public listing. Previously, he served as the founding Managing Director at Goodman Fielder Ltd.'s Consumer Foods Division, Uncle Tobys and Meadow Lea Foods. In this role, Mr. Gordon oversaw an internal restructure and major cost reduction program resulting in strong double-digit earnings growth. Prior to this, he held several senior management roles with Unilever. His remit included retail, manufacturing and food marketing across regions such as the United Kingdom, Europe and the Asia Pacific. He served as Deputy Chair of Bread Research Institute of Australia Ltd. Mr. Gordon sits on the Board of the Australian Food and Grocery Council. He has been an Executive Director of Ricegrowers Limited since February 23, 2012. He serves as a Director of Riviana Foods Pty Ltd; Trukai Industries Ltd (PNG); Aqaba Processing Company Ltd. (Jordan); Sunshine Rice Inc. (USA) and of SunFoods LLC (USA). He serves as Governor of World Wildlife Fund. He serves as a Non Executive Director Gresham Private Equity Limited. He was Member of Advisory Board of Gresham Private Equity Limited. He served as a Director of Bread Research Institute of Australia Ltd. He holds a B.S. in Electrical and Electronic Engineering with honors from the University of Portsmouth, U.K.
Rob's compensation has been consistent with company performance over the past year, both up more than 20%.
Rob's remuneration is higher than average for companies of similar size in Australia.
Management Team Tenure
Average tenure of the
management team in years:
The average tenure for the Ricegrowers management team is over 5 years, this suggests they are a seasoned and experienced team.
CEO & Executive Director
Chief Financial Officer
Head of Finance
Head of Corporate Affairs
Head of Corporate Affairs
Mandy Del Gigante
Chief Executive Officer of Sunfoods LLC
Chief Executive Officer of Riviana Foods Pty Ltd
Chief Executive Officer of Trukai Industries Limited
Board of Directors Tenure
Average tenure of the
board of directors in years:
The tenure for the Ricegrowers board of directors is about average.
Board of Directors
CEO & Executive Director
Non-Executive Independent Director
Non Executive Independent Director
Who owns this company?
Recent Insider Trading
No 3 month open market individual insider trading information.
Debt and other liabilities become risky for a business when it cannot easily fulfill those obligations, either with free cash flow or by raising capital at an attractive price. … ASX:SGLLV Historical Debt, August 15th 2019 A Look At Ricegrowers's Liabilities The latest balance sheet data shows that Ricegrowers had liabilities of AU$268.9m due within a year, and liabilities of AU$98.1m falling due after that. … Our View When it comes to the balance sheet, the standout positive for Ricegrowers was the fact that it seems able to convert EBIT to free cash flow confidently.
Does Ricegrowers Limited's (ASX:SGLLV) P/E Ratio Signal A Buying Opportunity?
The formula for price to earnings is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Ricegrowers: P/E of 8.63 = A$4.7 ÷ A$0.54 (Based on the year to April 2019.) Is A High P/E Ratio Good? … The exact same company would hypothetically deserve a higher P/E ratio if it had a strong balance sheet, than if it had a weak one with lots of debt, because a cashed up company can spend on growth. … If the reality for a company is not as bad as the P/E ratio indicates, then the share price should increase as the market realizes this.
The Ricegrowers (ASX:SGLLV) Share Price Has Gained 39% And Shareholders Are Hoping For More
For example, Ricegrowers Limited (ASX:SGLLV) shareholders have seen the share price rise 39% over three years, well in excess of the market return (20%, not including dividends). … 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). … As well as measuring the share price return, investors should also consider the total shareholder return (TSR).
Why Ricegrowers Limited’s (ASX:SGLLV) Return On Capital Employed Is Impressive
Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Ricegrowers: 0.12 = AU$63m ÷ (AU$943m - AU$403m) (Based on the trailing twelve months to October 2018.) Therefore, Ricegrowers has an ROCE of 12%. … 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. … Ricegrowers has a medium level of current liabilities, which would boost the ROCE.
Estimating The Fair Value Of Ricegrowers Limited (ASX:SGLLV)
Today, we will estimate the stock's intrinsic value. … by taking the foreast future cash flows of the company and discounting them back to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model
Consider This Before Buying Ricegrowers Limited (ASX:SGLLV) For The 5.1% Dividend
Is Ricegrowers Limited (ASX:SGLLV) a good dividend stock? … Regular readers know we like to apply the same approach to each dividend stock, and we hope you'll find our analysis useful. … In this case, Ricegrowers likely looks attractive to dividend investors, given its 5.1% dividend yield and four-year payment history.
Do You Like Ricegrowers Limited (ASX:SGLLV) At This P/E Ratio?
This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … To keep it practical, we'll show how Ricegrowers Limited's (ASX:SGLLV) P/E ratio could help you assess the value on offer. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
Ricegrowers Limited, operates as a rice food company in Australia and internationally. The company operates through Rice Pool, International Rice, Rice Food, Riviana Foods, and CopRice segments. It engages in the receipt and storage of paddy rice; milling, manufacturing, distribution, and marketing of rice and rice based products, as well as other grocery products, including olives and pickled vegetables; research and development into the growing of rice; processing of rice and related products; and property business. The company offers everyday rice, microwave rice, healthy rice, rice snacks, low GI rice, and bulk bag rice, as well as rice for restaurants. It also provides animal feed. The company offers its products under the Sunwhite, Solrice, Trukai, CopRice, Hinode, Always Fresh, Admiral, Captain, Riviana, Mahatma, Menu Master, Garden Supreme, and Ocean Supreme brands. Ricegrowers Limited was founded in 1950 and is based in Sydney, Australia.
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