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Webster

ASX:WBA
Snowflake Description

Reasonable growth potential with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
WBA
ASX
A$706M
Market Cap
  1. Home
  2. AU
  3. Food, Beverage & Tobacco
Company description

Webster Limited operates as an agribusiness company in Australia. The last earnings update was 145 days ago. More info.


Add to Portfolio Compare Print
  • Webster has significant price volatility in the past 3 months.
WBA Share Price and Events
7 Day Returns
0.5%
ASX:WBA
-0.4%
AU Food
1.3%
AU Market
1 Year Returns
13%
ASX:WBA
-10%
AU Food
9.9%
AU Market
WBA Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Webster (WBA) 0.5% 57.3% 36.4% 13% 69.6% 77.3%
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
  • WBA outperformed the Food industry which returned -10% over the past year.
  • WBA outperformed the Market in Australia which returned 9.9% over the past year.
Price Volatility
WBA
Industry
5yr Volatility vs Market

WBA Value

 Is Webster 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 Webster 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 Webster.

ASX:WBA Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 2 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.1%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:WBA
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%) (14.7%))
0.73
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:WBA using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Webster 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:WBA DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (AUD, Millions) Source Present Value
Discounted (@ 7.08%)
2020 1.95 Analyst x2 1.82
2021 21.60 Analyst x1 18.84
2022 25.60 Analyst x1 20.85
2023 28.57 Est @ 11.62% 21.73
2024 31.09 Est @ 8.82% 22.09
2025 33.23 Est @ 6.87% 22.04
2026 35.06 Est @ 5.5% 21.72
2027 36.65 Est @ 4.55% 21.21
2028 38.07 Est @ 3.88% 20.57
2029 39.37 Est @ 3.41% 19.87
Present value of next 10 years cash flows A$190.00
ASX:WBA DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= A$39.37 × (1 + 2.31%) ÷ (7.08% – 2.31%)
A$844.83
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= A$844.83 ÷ (1 + 7.08%)10
A$426.27
ASX:WBA Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= A$190.00 + A$426.27
A$616.27
Equity Value per Share
(AUD)
= Total value / Shares Outstanding
= A$616.27 / 362.25
A$1.7
ASX:WBA Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$1.70
Current discount Discount to share price of A$1.95
= -1 x (A$1.95 - A$1.70) / A$1.70
-14.6%

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

  • The current share price of Webster is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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 Webster's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Webster's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:WBA PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in AUD A$0.07
ASX:WBA Share Price ** ASX (2019-10-11) in AUD A$1.95
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 Webster.

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

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

= 1.95 ÷ 0.07

27.16x

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

  • Webster is overvalued based on earnings compared to the AU Food industry average.
  • Webster is overvalued based on earnings compared to the Australia market.
Price based on expected Growth
Does Webster's expected growth come at a high price?
Raw Data
ASX:WBA PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 27.16x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
21.4%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:WBA PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 27.16x ÷ 21.4%

1.27x

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

  • Webster is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Webster's assets?
Raw Data
ASX:WBA PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in AUD A$1.36
ASX:WBA Share Price * ASX (2019-10-11) in AUD A$1.95
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:WBA PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 1.95 ÷ 1.36

1.43x

* Primary Listing of Webster.

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

  • Webster is overvalued based on assets compared to the AU Food industry average.
X
Value checks
We assess Webster'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. Webster has a total score of 0/6, 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.

WBA Future Performance

 How is Webster expected to perform in the next 1 to 3 years based on estimates from 2 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
21.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Webster expected to grow at an attractive rate?
  • Webster's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
  • Webster's earnings growth is expected to exceed the Australia market average.
  • Webster's revenue growth is expected to exceed the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:WBA Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:WBA Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts 21.4%
ASX:WBA Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 11.9%
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:WBA Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:WBA Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-09-30 211 47 36 1
2021-09-30 191 43 27 2
2020-09-30 148 23 31 2
2019-10-13
2019-09-30 124 51 10 2
ASX:WBA Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2019-03-31 178 73 25
2018-12-31 162 49 26
2018-09-30 145 25 27
2017-09-30 133 60 47
2017-06-30 101 9 66
2017-03-31 113 23 43
2016-12-31 116 36 20
2016-09-30 118 38 -30
2016-06-30 120 40 -81

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Webster's earnings are expected to grow significantly at over 20% yearly.
  • Webster's revenue is expected to grow by 11.9% 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:WBA 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 2 Analyst Estimates (S&P Global) See Below

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

ASX:WBA Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-09-30 0.10 0.10 0.10 1.00
2021-09-30 0.07 0.09 0.06 2.00
2020-09-30 0.09 0.09 0.09 1.00
2019-10-13
2019-09-30 0.05 0.05 0.05 1.00
ASX:WBA Past Financials Data
Date (Data in AUD Millions) EPS *
2019-03-31 0.07
2018-12-31 0.07
2018-09-30 0.08
2017-09-30 0.13
2017-06-30 0.19
2017-03-31 0.12
2016-12-31 0.06
2016-09-30 -0.09
2016-06-30 -0.23

*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.
  • Webster is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Webster'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.
Webster has a total score of 4/6, 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.

WBA Past Performance

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

ASX:WBA Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 178.34 25.44 29.36
2018-12-31 161.80 26.26 33.07
2018-09-30 145.26 27.09 36.78
2017-09-30 132.87 46.63 47.51
2017-06-30 101.03 65.63 48.66
2017-03-31 112.89 42.95 59.38
2016-12-31 115.65 20.28 58.18
2016-09-30 117.72 -30.20 60.20
2016-06-30 119.78 -80.67 62.23
2016-03-31 110.86 -82.44 51.81
2015-12-31 101.93 -84.22 41.40
2015-09-30 80.13 -37.93 32.49
2015-06-30 58.32 8.36 23.59
2015-03-31 57.66 6.93 23.60
2014-12-31 56.99 5.49 23.62
2014-09-30 55.94 6.91 23.83
2014-06-30 54.90 8.33 24.05
2014-03-31 55.79 7.14 23.75
2013-12-31 56.69 5.95 23.46
2013-09-30 54.78 6.46 22.85
2013-06-30 52.87 6.97 22.25
2013-03-31 51.03 5.31 22.22
2012-12-31 49.20 3.65 22.20

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

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

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

WBA Health

 How is Webster'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 Webster's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Webster is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Webster's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Webster'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 not covered by short term assets, assets are 0.8x 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 Webster Company Filings, last reported 6 months ago.

ASX:WBA Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 493.38 103.34 7.50
2018-12-31 493.38 103.34 7.50
2018-09-30 501.48 210.12 11.01
2017-09-30 484.78 119.12 15.44
2017-06-30 492.09 207.78 16.36
2017-03-31 492.09 207.78 16.36
2016-12-31 417.31 158.63 6.08
2016-09-30 417.31 158.63 6.08
2016-06-30 416.86 194.28 12.45
2016-03-31 416.86 194.28 12.45
2015-12-31 400.33 177.78 6.27
2015-09-30 400.33 177.78 6.27
2015-06-30 501.09 194.98 17.23
2015-03-31 501.09 194.98 17.23
2014-12-31 118.44 116.65 2.23
2014-09-30 118.44 116.65 2.23
2014-06-30 108.44 9.29 2.24
2014-03-31 108.44 9.29 2.24
2013-12-31 99.83 0.65 8.19
2013-09-30 99.83 0.65 8.19
2013-06-30 102.97 0.39 15.27
2013-03-31 102.97 0.39 15.27
2012-12-31 97.80 0.75 16.38
  • Webster's level of debt (20.9%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (8.6% vs 20.9% today).
  • Debt is well covered by operating cash flow (71%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 4.4x coverage).
X
Financial health checks
We assess Webster'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. Webster 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.

WBA Dividends

 What is Webster'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
1.54%
Current annual income from Webster dividends. Estimated to be 1.38% next year.
If you bought A$2,000 of Webster shares you are expected to receive A$31 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?
  • Webster's pays a lower dividend yield than the bottom 25% of dividend payers in Australia (2.5%).
  • Webster's dividend is below the markets top 25% of dividend payers in Australia (5.6%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:WBA 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 2 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:WBA Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2022-09-30 0.04 1.00
2021-09-30 0.03 2.00
2020-09-30 0.02 2.00
2019-10-13
2019-09-30 0.02 2.00
ASX:WBA Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2018-11-22 0.030 2.027
2017-11-02 0.030 1.921
2017-08-23 0.030 2.215
2016-08-30 0.010 0.756
2015-09-29 0.010 0.825
2015-08-28 0.010 0.685
2015-02-27 0.000 0.000
2014-09-30 0.040 3.365
2014-08-27 0.040 3.285
2013-09-30 0.025 2.314
2013-08-29 0.025 2.940
2012-09-28 0.030 4.653
2012-08-30 0.030 5.290
2012-02-28 0.010 1.927
2011-09-26 0.010 2.291
2011-08-31 0.010 2.461
2010-02-26 0.000 0.000
2009-09-30 0.000 0.000
2009-08-28 0.000 0.000
2009-03-02 0.000 0.000

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

  • Webster is not paying a notable dividend for Australia, therefore no need to check if the payments are stable.
  • Webster is not paying a notable dividend for Australia, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of Webster's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of Webster's dividends as it is not paying a notable one for Australia.
Future Payout to shareholders
  • No need to calculate the sustainability of Webster's dividends in 3 years as they are not expected to pay a notable one for Australia.
X
Income/ dividend checks
We assess Webster'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 Webster afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Webster has a total score of 0/6, see the detailed checks below.


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

WBA Management

 What is the CEO of Webster'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
Maurice Felizzi
COMPENSATION A$1,241,006
TENURE AS CEO 1.8 years
CEO Bio

Mr. Maurice Felizzi, BAAcc, CPA, CA, AGIM has been the Chief Executive Officer of Webster Ltd. since December 19, 2017 and was its Company Secretary since April 28, 2016 until January 22, 2019. Mr. Felizzi served as Chief Financial Officer at Webster Ltd. since April 2016 until January 22, 2019. Mr. Felizzi has been an Executive Board Member of Webster Ltd. since April 30, 2018 and serves as its Managing Director. He joined Webster on April 18, 2016. He has a strong background in a wide range of executive roles including serving as Chief Executive and Chief Financial Officer of Clarendon Homes (Investa Residential) and served as General Manager of Johnson Property Group. Mr Felizzi is a member of CA Australia and the Institute of Chartered Secretaries. He holds a Bachelor of Arts from the University of Canberra.

CEO Compensation
  • Maurice's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
  • Maurice's remuneration is about average for companies of similar size in Australia.
Management Team Tenure

Average tenure of the Webster management team in years:

2
Average Tenure
  • The tenure for the Webster management team is about average.
Management Team

Maurice Felizzi

TITLE
CEO, MD & Executive Director
COMPENSATION
A$1M
TENURE
1.8 yrs

D. Goullet

TITLE
General Manager of Operations - Walnuts Australia
COMPENSATION
A$432K

B. Barry

TITLE
General Manager of Water Operations
COMPENSATION
A$411K

G. Lok

TITLE
General Manager of Webster Southern Ag
COMPENSATION
A$481K
TENURE
2.3 yrs

W. Andreatta

TITLE
Development Director
COMPENSATION
A$381K
TENURE
2.3 yrs

John Tyndall

TITLE
CFO & Company Secretary
TENURE
0.8 yrs
Board of Directors Tenure

Average tenure of the Webster board of directors in years:

1.7
Average Tenure
  • The average tenure for the Webster board of directors is less than 3 years, this suggests a new board.
Board of Directors

Chris Corrigan

TITLE
Chairman
COMPENSATION
A$122K
AGE
72
TENURE
1.8 yrs

Maurice Felizzi

TITLE
CEO, MD & Executive Director
COMPENSATION
A$1M
TENURE
1.5 yrs

Bevan Cushing

TITLE
Non-Executive Director
COMPENSATION
A$86K
TENURE
7 yrs

David Fitzsimons

TITLE
Non-Executive Director
COMPENSATION
A$39K
AGE
65
TENURE
1.5 yrs

Ross Burling

TITLE
Non-Executive Director
TENURE
0.9 yrs

Joseph Corrigan

TITLE
Alternate Director
TENURE
6 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 Webster'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. Webster 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.

WBA News

Simply Wall St News

Does Webster Limited (ASX:WBA)'s Capital Return Make The Cut?

This is because the actual cash flow generated by the business dictates the potential for income (dividends) and capital appreciation (price increases), which are the two ways to achieve positive returns when buying a stock. … Therefore, looking at how efficiently Webster is able to use capital to create earnings will help us understand your potential return. … Investors use many different metrics but the analysis below focuses on return on capital employed (ROCE).

Simply Wall St -

Are Webster Limited's (ASX:WBA) Interest Costs Too High?

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

Simply Wall St -

Who Really Owns Webster Limited (ASX:WBA)?

In this article, I will take a quick look at Webster Limited’s (ASX:WBA) recent ownership structure – an unconventional investing subject, but an important one. … When it comes to ownership structure of a company, the impact has been observed in both the long-and short-term performance of shares. … ASX:WBA Ownership Summary July 28th 18

Simply Wall St -

Should You Be Tempted To Sell Webster Limited (ASX:WBA) Because Of Its PE Ratio?

But should the relatively competitive multiple be the final verdict of WBA’s undervaluation. … This is because multiples like PE tend to overlook key company-specific factors such as future growth and capital structure … This article will cover some key aspects we should consider in order to determine the best multiple to be used for

Simply Wall St -

What Should Investors Know About Webster Limited's (ASX:WBA) Future Margins?

To get a preliminary understanding, I will try to evaluate Webster's margin behaviour to help recognise the underlying make-up of revenue and expenses that is responsible for driving future earnings expectations and what it means for WBA's returns relative to its competitors. … Margin Calculation for WBA Profit Margin = Net Income ÷ Revenue ∴ Profit Margin = 46.63 Million ÷ 132.87 Million = 35.09% There has been a contraction in Webster's margin over the past five years, with a positive 19.31% average growth in revenue and decline in net income of -5.79% on average, which means that although revenue has increased, a smaller portion falls in to the bottom line. … Based on future expectations, WBA's profit margin will contract further, with 13.09% in expected annual revenue growth and net income forecasted to decline annually at -13.81%.

Simply Wall St -

Are Webster Limited's (ASX:WBA) Interest Costs Too High?

WBA has shrunken its total debt levels in the last twelve months, from AU$158.63M to AU$119.94M , which is made up of current and long term debt. … Additionally, WBA has produced cash from operations of AU$59.58M during the same period of time, leading to an operating cash to total debt ratio of 49.67%, meaning that WBA’s operating cash is sufficient to cover its debt. … Next Steps: WBA has demonstrated its ability to generate sufficient levels of cash flow, while its debt hovers at an appropriate level.

Simply Wall St -

What Should Investors Know About The Future Of Webster Limited's (ASX:WBA)?

Webster Limited's (ASX:WBA) most recent earnings update in September 2017 suggested that the company turned profitable again after experiencing negative earnings in the last financial year. … Below is a brief commentary on my key takeaways on how market analysts perceive Webster's earnings growth trajectory over the next couple of years and whether the future looks brighter. … The pro of this technique is that we can get a bigger picture of the direction of Webster's earnings trajectory over the long run, irrespective of near term fluctuations, be more volatile.

Simply Wall St -

Why Webster Limited (ASX:WBA) Delivered An Inferior ROE Compared To The Industry

See our latest analysis for Webster What you must know about ROE Return on Equity (ROE) is a measure of Webster’s profit relative to its shareholders’ equity. … Return on Equity = Net Profit ÷ Shareholders Equity ROE is assessed against cost of equity, which is measured using the Capital Asset Pricing Model (CAPM) – but let’s not dive into the details of that today. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity ASX:WBA Last Perf Mar 10th 18 Basically, profit margin measures how much of revenue trickles down into earnings which illustrates how efficient the business is with its cost management.

Simply Wall St -

What does Webster Limited's (ASX:WBA) Balance Sheet Tell Us Abouts Its Future?

On top of this, WBA has generated A$59.6M in operating cash flow during the same period of time, resulting in an operating cash to total debt ratio of 49.67%, meaning that WBA’s debt is appropriately covered by operating cash. … WBA’s high cash coverage and appropriate debt levels indicate its ability to utilise its borrowings efficiently in order to generate ample cash flow. … Although WBA’s debt level is relatively low, it has the ability to efficiently utilise its borrowings to generate ample cash flow coverage.

Simply Wall St -

Webster Limited (ASX:WBA): What is driving earnings?

Margin Calculation for WBA Profit Margin = Net Income ÷ Revenue ∴ Profit Margin = 46.63 Million ÷ 132.87 Million = 35.09% There has been a contraction in Webster's margin over the past five years, as a result of a positive 19.07% average growth in revenue and decline in net income of -4.87% on average, which means that although revenue has increased, a smaller portion falls in to the bottom line. … This suggests the future earnings decline is driven further by an increase in costs rather than a dramatic fall in revenue potential, which is squeezing the incremental amount of net income that is retained from the forecasted revenue increase. … Thus, it is essential to run your own analysis on Webster's future expectations whilst maintaining a watchful eye over cost behaviour, because if the business is able to maintain their revenue trajectory, there may be an opportunity to return to positive earnings growth and attractive returns.

Simply Wall St -

WBA Company Info

Description

Webster Limited operates as an agribusiness company in Australia. The company operates in two segments, Agriculture and Horticulture. It produces annual row crops, including cotton, wheat, maize, walnuts, and almonds, as well as breeds livestock; and other crops, such as corn, cereals, and legumes. The company also exports its products in Europe, the Middle East, and Asia. Webster Limited was founded in 1831 and is based in Leeton, Australia.

Details
Name: Webster Limited
WBA
Exchange: ASX
Founded: 1831
A$706,378,067
362,245,163
Website: http://www.websterltd.com.au
Address: Webster Limited
61 Kurrajong Avenue,
Leeton,
New South Wales, 2705,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX WBA Ordinary Securities Australian Securities Exchange AU AUD 02. Jan 1992
CHIA WBA Ordinary Securities Chi-X Australia AU AUD 02. Jan 1992
ASX WBAPA 9% CUM PREF AUD1 Australian Securities Exchange AU AUD 14. Sep 1992
Number of employees
Current staff
Staff numbers
0
Webster 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: 2019/10/03
Last earnings filing: 2019/05/21
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.