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Ricegrowers

ASX:SGLLV
Snowflake Description

Undervalued with excellent balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SGLLV
ASX
A$227M
Market Cap
  1. Home
  2. AU
  3. Food, Beverage & Tobacco
Company description

Ricegrowers Limited, operates as a rice food company in Australia and internationally. The last earnings update was 108 days ago. More info.


Add to Portfolio Compare Print
  • Ricegrowers has significant price volatility in the past 3 months.
SGLLV Share Price and Events
7 Day Returns
-2.5%
ASX:SGLLV
-0.4%
AU Food
1.3%
AU Market
1 Year Returns
-35.8%
ASX:SGLLV
-10%
AU Food
9.9%
AU Market
SGLLV Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Ricegrowers (SGLLV) -2.5% -3.5% -25% -35.8% -20.6% -
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
  • SGLLV underperformed the Food industry which returned -10% over the past year.
  • SGLLV underperformed the Market in Australia which returned 9.9% over the past year.
Price Volatility
SGLLV
Industry
5yr Volatility vs Market

Value

 Is Ricegrowers 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 Ricegrowers 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 Ricegrowers.

ASX:SGLLV Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Dividend Discount Model
Dividend Per Share Company Filings (2019-04-30) in AUD A$ .330000
Payout Ratio Company Filings (2019-04-30) 4136.4%
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:SGLLV
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
Food Unlevered Beta Simply Wall St/ S&P Global 0.54
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.542 (1 + (1- 30%) (58.6%))
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:SGLLV using Dividend Discount Model Model

The calculations below outline how an intrinsic value for Ricegrowers 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:SGLLV Gordon Growth Model
Calculation Result
Value per share = Expected dividends per share / (Discount Rate - Perpetual growth rate)
= A$0.33 / (7.08% - 2.31%)
A$6.92
ASX:SGLLV Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$6.92
Current discount Discount to share price of A$3.85
= -1 x (A$3.85 - A$6.92) / A$6.92
44.4%

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

Current Discount
Amount off the current price Ricegrowers is available for.
Intrinsic value
44%
Share price is A$3.85 vs Future cash flow value of A$6.92
Current Discount Checks
For Ricegrowers 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 Ricegrowers's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Ricegrowers's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:SGLLV PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-04-30) in AUD A$0.54
ASX:SGLLV Share Price ** ASX (2019-10-11) in AUD A$3.85
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 Ricegrowers.

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

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

= 3.85 ÷ 0.54

7.07x

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

  • Ricegrowers is good value based on earnings compared to the AU Food industry average.
  • Ricegrowers is good value based on earnings compared to the Australia market.
Price based on expected Growth
Does Ricegrowers's expected growth come at a high price?
Raw Data
ASX:SGLLV PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 7.07x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
2%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 Ricegrowers, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Ricegrowers's assets?
Raw Data
ASX:SGLLV PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-04-30) in AUD A$7.50
ASX:SGLLV Share Price * ASX (2019-10-11) in AUD A$3.85
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:SGLLV PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 3.85 ÷ 7.50

0.51x

* Primary Listing of Ricegrowers.

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

  • Ricegrowers is good value based on assets compared to the AU Food industry average.
X
Value checks
We assess Ricegrowers'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. Ricegrowers has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

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

Future Performance

 How is Ricegrowers expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

  • No analysts cover Ricegrowers, future earnings growth has been estimated based on fundamentals.
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
2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Ricegrowers expected to grow at an attractive rate?
  • Ricegrowers's earnings growth is positive but not above the low risk savings rate of 2.3%.
Growth vs Market Checks
  • Ricegrowers's earnings growth is positive but not above the Australia market average.
  • Unable to compare Ricegrowers's revenue growth to the Australia market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
ASX:SGLLV Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:SGLLV Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts 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:SGLLV Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:SGLLV Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
ASX:SGLLV Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2019-04-30 1,193 -9 31
2019-01-31 1,204 26 32
2018-10-31 1,215 62 33
2018-07-31 1,196 71 38
2018-04-30 1,177 80 43
2018-01-31 1,133 76 40
2017-10-31 1,089 71 36
2017-07-31 1,101 107 35
2017-04-30 1,112 142 34
2017-01-31 1,154 124 41
2016-10-31 1,196 107 48
2016-07-31 1,233 68 49

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • 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.
Raw Data
ASX:SGLLV Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Ricegrowers Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:SGLLV Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
ASX:SGLLV Past Financials Data
Date (Data in AUD Millions) EPS *
2019-04-30 0.54
2019-01-31 0.56
2018-10-31 0.58
2018-07-31 0.67
2018-04-30 0.76
2018-01-31 0.70
2017-10-31 0.65
2017-07-31 0.63
2017-04-30 0.61
2017-01-31 0.74
2016-10-31 0.86
2016-07-31 0.87

*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.
  • Unable to establish if Ricegrowers will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Ricegrowers'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.
Ricegrowers has a total score of 0/6, 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 Ricegrowers 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 Ricegrowers'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.
  • Ricegrowers's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Ricegrowers's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Ricegrowers's 1-year earnings growth is negative, it can't be compared to the AU Food industry average.
Earnings and Revenue History
Ricegrowers'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 Ricegrowers Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:SGLLV Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-04-30 1,192.64 31.50 267.43
2019-01-31 1,203.77 32.18 271.52
2018-10-31 1,214.89 32.85 275.61
2018-07-31 1,195.91 37.77 273.13
2018-04-30 1,176.93 42.70 270.65
2018-01-31 1,132.95 39.51 257.34
2017-10-31 1,088.98 36.32 244.04
2017-07-31 1,100.61 35.26 238.60
2017-04-30 1,112.23 34.20 233.16
2017-01-31 1,153.88 41.22 242.12
2016-10-31 1,195.52 48.23 251.08
2016-07-31 1,232.54 48.65 262.48
2016-04-30 1,269.57 49.08 273.87
2016-01-31 1,275.25 47.47 277.24
2015-10-31 1,280.94 45.87 280.62
2015-07-31 1,263.01 44.65 280.78
2015-04-30 1,245.07 43.43 280.94
2015-01-31 1,222.57 39.36 291.27
2014-10-31 1,200.08 35.30 301.60
2014-07-31 1,173.03 32.51 298.27
2014-04-30 1,145.98 29.73 294.95
2014-01-31 1,122.80 31.03 284.30
2013-10-31 1,099.62 32.32 273.65
2013-07-31 1,082.95 32.29 265.54
2013-04-30 1,066.27 32.27 257.44
2013-01-31 1,051.24 33.40 217.99
2012-10-31 1,036.21 34.54 178.54

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

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Ricegrowers is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Ricegrowers's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Ricegrowers'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 4.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Ricegrowers Company Filings, last reported 5 months ago.

ASX:SGLLV Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-04-30 462.90 131.70 22.44
2019-01-31 462.90 131.70 22.44
2018-10-31 441.31 219.37 83.77
2018-07-31 441.31 219.37 83.77
2018-04-30 434.13 164.92 122.90
2018-01-31 434.13 164.92 122.90
2017-10-31 410.54 244.44 90.54
2017-07-31 410.54 244.44 90.54
2017-04-30 404.88 145.15 59.98
2017-01-31 404.88 145.15 59.98
2016-10-31 391.11 270.40 90.21
2016-07-31 391.11 270.40 90.21
2016-04-30 390.23 298.06 120.12
2016-01-31 390.23 298.06 120.12
2015-10-31 370.63 290.88 67.07
2015-07-31 370.63 290.88 67.07
2015-04-30 363.86 223.77 68.43
2015-01-31 363.86 223.77 68.43
2014-10-31 335.00 256.82 52.43
2014-07-31 335.00 256.82 52.43
2014-04-30 324.02 217.65 84.81
2014-01-31 324.02 217.65 84.81
2013-10-31 310.95 343.46 164.26
2013-07-31 310.95 343.46 164.26
2013-04-30 314.30 329.25 146.26
2013-01-31 314.30 329.25 146.26
2012-10-31 296.55 173.47 29.09
  • Ricegrowers's level of debt (28.5%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (67.3% vs 28.5% today).
  • Operating cash flow is negative therefore debt is not well covered.
  • Interest payments on debt are well covered by earnings (EBIT is 7.5x coverage).
X
Financial health checks
We assess Ricegrowers'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. Ricegrowers has a total score of 5/6, 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 Ricegrowers'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
8.57%
Current annual income from Ricegrowers dividends.
If you bought A$2,000 of Ricegrowers shares you are expected to receive A$171 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?
  • Ricegrowers's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.5%).
  • Ricegrowers's dividend is above the markets top 25% of dividend payers in Australia (5.6%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:SGLLV 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 0 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:SGLLV Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
ASX:SGLLV Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2019-06-27 0.330 7.470
2018-07-02 0.330 5.593
2017-06-23 0.330 8.045
2016-06-21 0.330 7.648
2015-06-26 0.260 5.977

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

  • Whilst dividend payments have been stable, Ricegrowers has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Ricegrowers only paid a dividend in the past 4 years.
Current Payout to shareholders
What portion of Ricegrowers's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.7x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Ricegrowers'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 Ricegrowers afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Ricegrowers 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 Ricegrowers'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
Rob Gordon
COMPENSATION A$2,838,540
TENURE AS CEO 7.7 years
CEO Bio

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.

CEO Compensation
  • 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 Ricegrowers management team in years:

6.8
Average Tenure
  • The average tenure for the Ricegrowers management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Rob Gordon

TITLE
CEO & Executive Director
COMPENSATION
A$3M
TENURE
7.7 yrs

Dimitri Courtelis

TITLE
Chief Financial Officer
COMPENSATION
A$1M
AGE
38
TENURE
1.6 yrs

Rachel Westbrook

TITLE
Head of Finance

Matthew Gerber

TITLE
Head of Corporate Affairs

Julian Luke

TITLE
Head of Corporate Affairs

Mandy Del Gigante

TITLE
Company Secretary

Matt Alonso

TITLE
Chief Executive Officer of Sunfoods LLC
TENURE
8.8 yrs

Stephen Forde

TITLE
Chief Executive Officer of Riviana Foods Pty Ltd
TENURE
6 yrs

Worthington-Eyre Greg

TITLE
Chief Executive Officer of Trukai Industries Limited
TENURE
6.8 yrs
Board of Directors Tenure

Average tenure of the Ricegrowers board of directors in years:

3.9
Average Tenure
  • The tenure for the Ricegrowers board of directors is about average.
Board of Directors

Laurie Arthur

TITLE
Chairman
COMPENSATION
A$193K
TENURE
5.8 yrs

Rob Gordon

TITLE
CEO & Executive Director
COMPENSATION
A$3M
TENURE
7.7 yrs

Ian Glasson

TITLE
Non-Executive Independent Director
COMPENSATION
A$105K
TENURE
3.7 yrs

Luisa Catanzaro

TITLE
Non Executive Independent Director
COMPENSATION
A$65K
TENURE
1.1 yrs

Gillian Kirkup

TITLE
Non-Executive Director
COMPENSATION
A$99K
TENURE
13.9 yrs

Leigh Vial

TITLE
Non-Executive Director
COMPENSATION
A$100K
TENURE
4.2 yrs

John Bradford

TITLE
Non-Executive Director
COMPENSATION
A$98K
TENURE
4.2 yrs

Ian Mason

TITLE
Non-Executive Director
COMPENSATION
A$97K
AGE
60
TENURE
1.7 yrs

Jeremy Morton

TITLE
Director
TENURE
0.2 yrs

Julian Zanatta

TITLE
Director
TENURE
0.2 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$) Value (A$)
X
Management checks
We assess Ricegrowers'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. Ricegrowers 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 Ricegrowers (ASX:SGLLV) Using Too Much Debt?

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.

Simply Wall St -

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.

Simply Wall St -

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).

Simply Wall St -

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.

Simply Wall St -

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

Simply Wall St -

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.

Simply Wall St -

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)

Simply Wall St -

Company Info

Description

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.

Details
Name: Ricegrowers Limited
SGLLV
Exchange: ASX
Founded: 1950
A$226,781,952
59,211,998
Website: http://www.sunrice.com.au
Address: Ricegrowers Limited
MLC Centre,
Level 24,
Sydney,
New South Wales, 2000,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX SGLLV Ordinary B Class Shares Australian Securities Exchange AU AUD 11. May 2015
Number of employees
Current staff
Staff numbers
2,044
Ricegrowers employees.
Industry
Packaged Foods and Meats
Food, Beverage & Tobacco
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/10/13 10:36
End of day share price update: 2019/10/11 00:00
Last estimates confirmation: 2018/06/29
Last earnings filing: 2019/06/27
Last earnings reported: 2019/04/30
Last annual earnings reported: 2019/04/30


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.