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Cott

TSX:BCB
Snowflake Description

Fair value with moderate growth potential.

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

Cott Corporation, together with its subsidiaries, operates as a route based service company in the United States, the United Kingdom, Canada, and internationally. The last earnings update was 13 days ago. More info.


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BCB Share Price and Events
7 Day Returns
0%
TSX:BCB
-0.8%
CA Beverage
0.3%
CA Market
1 Year Returns
-11.3%
TSX:BCB
-14.5%
CA Beverage
8.5%
CA Market
BCB Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Cott (BCB) 0% 3.2% 3.5% -11.3% 5.4% 126.2%
CA Beverage -0.8% -2.2% -2.1% -14.5% -20.7% 33.7%
CA Market 0.3% 3.1% 3.6% 8.5% 6% 8.7%
1 Year Return vs Industry and Market
  • BCB outperformed the Beverage industry which returned -14.5% over the past year.
  • BCB underperformed the Market in Canada which returned 8.5% over the past year.
Price Volatility
BCB
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Cott 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 Cott 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 Cott.

TSX:BCB Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 9 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.2%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.9%

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 TSX:BCB
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.9%
Equity Risk Premium S&P Global 6%
Beverage Unlevered Beta Simply Wall St/ S&P Global 0.5
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.504 (1 + (1- 26.5%) (89.37%))
0.889
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.89
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.95% + (0.889 * 5.96%)
7.25%

Discounted Cash Flow Calculation for TSX:BCB using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Cott 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.

TSX:BCB DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.25%)
2020 159.67 Analyst x7 148.88
2021 191.78 Analyst x5 166.74
2022 215.48 Est @ 12.36% 174.69
2023 235.38 Est @ 9.23% 177.92
2024 251.97 Est @ 7.05% 177.60
2025 265.87 Est @ 5.52% 174.73
2026 277.70 Est @ 4.45% 170.17
2027 287.96 Est @ 3.7% 164.54
2028 297.10 Est @ 3.17% 158.29
2029 305.43 Est @ 2.8% 151.73
Present value of next 10 years cash flows $1,665.00
TSX:BCB DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $305.43 × (1 + 1.95%) ÷ (7.25% – 1.95%)
$5,875.37
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $5,875.37 ÷ (1 + 7.25%)10
$2,918.75
TSX:BCB Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,665.00 + $2,918.75
$4,583.75
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $4,583.75 / 134.69
$34.03
TSX:BCB Discount to Share Price
Calculation Result
Exchange Rate USD/CAD
(Reporting currency to currency of TSX:BCB)
1.331
Value per Share
(CAD)
= Value per Share in USD x Exchange Rate (USD/CAD)
= $34.03 x 1.331
CA$45.29
Value per share (CAD) From above. CA$45.29
Current discount Discount to share price of CA$17.12
= -1 x (CA$17.12 - CA$45.29) / CA$45.29
62.2%

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

Current Discount
Amount off the current price Cott is available for.
Intrinsic value
>50%
Share price is CA$17.12 vs Future cash flow value of CA$45.29
Current Discount Checks
For Cott to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Cott's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Cott'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 Cott's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Cott's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:BCB PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-28) in USD $-0.02
TSX:BCB Share Price ** TSX (2019-11-20) in CAD CA$17.12
TSX:BCB Share Price converted to USD reporting currency Exchange rate (CAD/ USD) 0.751 $12.86
North America Beverage Industry PE Ratio Median Figure of 19 Publicly-Listed Beverage Companies 28.34x
Canada Market PE Ratio Median Figure of 519 Publicly-Listed Companies 14.39x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Cott.

TSX:BCB PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:BCB Share Price ÷ EPS (both in USD)

= 12.86 ÷ -0.02

-564.37x

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

  • Cott is loss making, we can't compare its value to the North America Beverage industry average.
  • Cott is loss making, we can't compare the value of its earnings to the Canada market.
Price based on expected Growth
Does Cott's expected growth come at a high price?
Raw Data
TSX:BCB PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -564.37x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts
115.6%per year
North America Beverage Industry PEG Ratio Median Figure of 15 Publicly-Listed Beverage Companies 1.64x
Canada Market PEG Ratio Median Figure of 242 Publicly-Listed Companies 1.04x

*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 Cott, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Cott's assets?
Raw Data
TSX:BCB PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-28) in USD $8.48
TSX:BCB Share Price * TSX (2019-11-20) in CAD CA$17.12
TSX:BCB Share Price converted to USD reporting currency Exchange rate (CAD/ USD) 0.751 $12.86
Canada Beverage Industry PB Ratio Median Figure of 9 Publicly-Listed Beverage Companies 2.08x
Canada Market PB Ratio Median Figure of 2,293 Publicly-Listed Companies 1.25x
TSX:BCB PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:BCB Share Price ÷ Book Value per Share (both in USD)

= 12.86 ÷ 8.48

1.52x

* Primary Listing of Cott.

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

  • Cott is good value based on assets compared to the CA Beverage industry average.
X
Value checks
We assess Cott'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 Beverage 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 Beverage industry average (and greater than 0)? (1 check)
  5. Cott has a total score of 3/6, see the detailed checks below.

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

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

Future Performance

 How is Cott expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
115.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Cott expected to grow at an attractive rate?
  • Cott's earnings growth is expected to exceed the low risk savings rate of 1.9%.
Growth vs Market Checks
  • Cott's earnings growth is expected to exceed the Canada market average.
  • Cott's revenue growth is positive but not above the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:BCB Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:BCB Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts 115.6%
TSX:BCB Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 9 Analysts 4%
North America Beverage Industry Earnings Growth Rate Market Cap Weighted Average 12.1%
North America Beverage Industry Revenue Growth Rate Market Cap Weighted Average 4.4%
Canada Market Earnings Growth Rate Market Cap Weighted Average 9.7%
Canada Market Revenue Growth Rate Market Cap Weighted Average 4.7%

*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
TSX:BCB Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:BCB Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 2,603 309 75 5
2020-12-31 2,501 283 44 9
2019-12-31 2,402 252 2 9
2019-11-20
TSX:BCB Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-09-28 2,394 208 -3
2019-06-29 2,387 199 -3
2019-03-30 2,386 222 5
2018-12-29 2,373 147 29
2018-09-29 2,345 136 35
2018-06-30 2,317 157 28
2018-03-31 2,294 231 11
2017-12-30 2,270 279 -4
2017-09-30 2,220 305 -68
2017-07-01 2,115 308 -73
2017-04-01 1,462 285 -68
2016-12-31 1,623 270 -60
2016-10-01 1,801 248 -10

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Cott's earnings are expected to grow significantly at over 20% yearly.
  • Cott's revenue is expected to grow by 4% 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
TSX:BCB Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below

All data from Cott Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:BCB Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 0.54 0.68 0.40 2.00
2020-12-31 0.33 0.51 0.22 4.00
2019-12-31 0.02 0.06 -0.02 4.00
2019-11-20
TSX:BCB Past Financials Data
Date (Data in USD Millions) EPS *
2019-09-28 -0.02
2019-06-29 -0.02
2019-03-30 0.03
2018-12-29 0.21
2018-09-29 0.25
2018-06-30 0.20
2018-03-31 0.08
2017-12-30 -0.03
2017-09-30 -0.49
2017-07-01 -0.53
2017-04-01 -0.50
2016-12-31 -0.47
2016-10-01 -0.08

*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.
  • Cott is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Cott'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 North America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the North America 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.
Cott 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 Cott 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 Cott's growth in the last year to its industry (Beverage).
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.
  • Cott does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare Cott's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Cott's 1-year growth to the North America Beverage industry average as it is not currently profitable.
Earnings and Revenue History
Cott'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 Cott Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:BCB Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-28 2,393.50 -3.10 1,112.60
2019-06-29 2,386.70 -3.20 1,111.70
2019-03-30 2,386.20 4.60 1,102.70
2018-12-29 2,372.90 28.90 1,091.70
2018-09-29 2,345.00 34.80 1,081.30
2018-06-30 2,316.60 27.90 1,064.60
2018-03-31 2,293.60 11.20 1,049.40
2017-12-30 2,269.70 -3.60 1,043.30
2017-09-30 2,219.60 -67.80 1,036.70
2017-07-01 2,115.40 -73.40 998.80
2017-04-01 1,461.70 -67.70 864.20
2016-12-31 1,623.20 -60.30 806.30
2016-10-01 1,800.80 -10.00 738.60 2.80
2016-07-02 2,079.70 -1.20 709.50 2.80
2016-04-02 2,932.60 -0.20 774.30 2.80
2016-01-02 1,187.30 -2.20 608.40
2015-10-03 2,788.70 19.70 638.20 2.90
2015-07-04 2,568.10 16.20 491.90 2.90
2015-04-04 2,337.50 8.10 352.40 2.90
2015-01-03 2,102.80 10.00 210.80 2.90
2014-09-27 2,040.90 -20.20 205.80 3.10
2014-06-28 2,049.10 -9.50 193.30 3.10
2014-03-29 2,063.70 12.90 182.80 3.10
2013-12-28 2,094.00 17.00 177.20 3.10
2013-09-28 2,129.60 30.80 159.70 2.80
2013-06-29 2,170.20 33.30 166.10 2.80
2013-03-30 2,232.20 41.90 174.70 2.80
2012-12-29 2,250.60 48.20 200.80

*GAAP earnings excluding extraordinary items.

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

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Cott is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Cott's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Cott'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 0.5x 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 Cott Company Filings, last reported 1 month ago.

TSX:BCB Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-28 1,141.90 1,325.60 143.60
2019-06-29 1,139.90 1,341.30 113.40
2019-03-30 1,151.00 1,304.30 153.90
2018-12-29 1,170.40 1,337.20 170.80
2018-09-29 1,214.10 1,269.70 175.70
2018-06-30 1,238.90 1,258.90 162.40
2018-03-31 1,263.80 1,288.60 212.30
2017-12-30 885.70 2,280.60 91.90
2017-09-30 873.80 1,531.20 82.00
2017-07-01 829.50 2,291.30 123.20
2017-04-01 845.80 2,677.50 86.10
2016-12-31 873.80 2,193.20 78.10
2016-10-01 976.30 2,281.30 118.90
2016-07-02 993.90 2,014.50 249.50
2016-04-02 778.90 1,590.30 55.10
2016-01-02 645.90 1,647.90 77.10
2015-10-03 662.80 1,700.40 63.70
2015-07-04 677.00 1,748.30 79.00
2015-04-04 661.60 1,772.90 34.50
2015-01-03 697.70 1,769.10 86.20
2014-09-27 565.20 603.20 47.40
2014-06-28 590.60 649.30 90.90
2014-03-29 595.20 515.80 40.60
2013-12-28 604.40 451.00 47.20
2013-09-28 622.60 600.70 125.80
2013-06-29 608.60 598.80 66.80
2013-03-30 604.80 599.00 93.00
2012-12-29 622.90 598.90 179.40
  • Cott's level of debt (116.1%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (110.4% vs 116.1% today).
  • Debt is not well covered by operating cash flow (15.7%, less than 20% of total debt).
  • Cott is making a loss, therefore interest payments are not well covered by earnings.
X
Financial health checks
We assess Cott'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. Cott has a total score of 1/6, 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 Cott'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
1.87%
Current annual income from Cott dividends. Estimated to be 1.89% next year.
If you bought CA$2,000 of Cott shares you are expected to receive CA$37 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?
  • Cott's pays a lower dividend yield than the bottom 25% of dividend payers in Canada (1.99%).
  • Cott's dividend is below the markets top 25% of dividend payers in Canada (5.75%).
Upcoming dividend payment

Purchase Cott 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
TSX:BCB Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
Canada Beverage Industry Average Dividend Yield Market Cap Weighted Average of 5 Stocks 2.9%
Canada Market Average Dividend Yield Market Cap Weighted Average of 331 Stocks 3.5%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.1%
Canada Bottom 25% Dividend Yield 25th Percentile 2%
Canada Top 25% Dividend Yield 75th Percentile 5.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:BCB Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.24 5.00
2020-12-31 0.24 5.00
2019-12-31 0.24 5.00
2019-11-20
TSX:BCB Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-11-06 0.240 1.870
2019-08-07 0.240 1.894
2019-05-01 0.240 1.807
2018-11-07 0.240 1.614
2018-08-02 0.240 1.578
2018-05-02 0.240 1.485
2018-03-01 0.240 1.613
2017-11-08 0.240 1.460
2017-08-02 0.240 1.583
2017-05-03 0.240 1.719
2016-11-15 0.240 2.083
2016-11-10 0.240 1.894
2016-08-04 0.240 1.624
2016-05-09 0.240 1.629
2016-05-05 0.240 1.679
2015-10-28 0.240 2.140
2015-07-29 0.240 2.186
2015-05-06 0.240 2.413
2015-02-19 0.240 2.594
2014-07-30 0.240 3.416
2014-05-07 0.240 3.411
2014-02-12 0.213 2.677
2013-10-31 0.215 2.738
2013-08-01 0.228 2.884
2013-05-01 0.227 2.807
2013-02-15 0.233 2.362
2012-11-01 0.238 2.848

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

  • Cott has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Dividend payments have increased, but Cott only paid a dividend in the past 7 years.
Current Payout to shareholders
What portion of Cott's earnings are paid to the shareholders as a dividend.
  • The company is paying a dividend however it is incurring a loss.
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (2x coverage).
X
Income/ dividend checks
We assess Cott's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - 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 Cott afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Cott has a total score of 1/6, see the detailed checks below.


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

Management

 What is the CEO of Cott'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
Tom Harrington
COMPENSATION $3,674,387
AGE 61
TENURE AS CEO 0.9 years
CEO Bio

Mr. Thomas J. Harrington, also known as Tom, has been Chief Executive Officer and Director at Cott Corporation since December 30, 2018. He serves as Chief Executive Officer and Chief Operating Officer of DS Services Holdings, Inc. Mr. Harrington has been Chief Executive Officer and President at DS Services of America, Inc. since February 2013. He served as President Services at DS Services in July 2016. Mr. Harrington served in various roles with DS Services of America, Inc. (DSS) from 2004 to 2014, including President, Chief Operating Officer, West Division President and Senior Vice President, Central Division. Prior to joining DSS, Mr. Harrington served in various roles with Coca-Cola Enterprises, Inc. including Vice President and General Manager of Coca-Cola Enterprises New York and Chicago divisions. He also served in various sales and marketing roles with Pepperidge Farm from 1979 to 1985. Mr. Harrington serves on the board of directors of the International Bottled Water Association, the National Automatic Merchandising Association and the Water Quality Association.

CEO Compensation
  • Tom's compensation has increased whilst company is loss making.
  • Tom's remuneration is higher than average for companies of similar size in Canada.
Management Team Tenure

Average tenure and age of the Cott management team in years:

3.5
Average Tenure
56
Average Age
  • The tenure for the Cott management team is about average.
Management Team

Jerry Fowden

TITLE
Executive Chairman of the Board
COMPENSATION
$7M
AGE
62

Tom Harrington

TITLE
CEO & Director
COMPENSATION
$4M
AGE
61
TENURE
0.9 yrs

Jay Wells

TITLE
Chief Financial & Administrative Officer
COMPENSATION
$2M
AGE
56
TENURE
7.7 yrs

Marni Poe

TITLE
Chief Legal Officer & Secretary
COMPENSATION
$1M
AGE
49
TENURE
9.8 yrs

Ron Hinson

TITLE
Chief Executive Officer of S&D Coffee and Tea
COMPENSATION
$3M
AGE
63
TENURE
19.8 yrs

Jason Ausher

TITLE
Chief Accounting Officer
AGE
45
TENURE
4.5 yrs

Jamie Jamieson

TITLE
Global Chief Information Officer
TENURE
0.6 yrs

Jarrod Langhans

TITLE
Vice President of Investor Relations and Corporate FP&A

Steve Erdman

TITLE
Senior Vice President of Global Human Resources
AGE
56
TENURE
2.4 yrs

Steve Kitching

TITLE
Executive Chair of Route Based Services
COMPENSATION
$2M
AGE
55
TENURE
0.9 yrs
Board of Directors Tenure

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

11.4
Average Tenure
62
Average Age
  • The average tenure for the Cott board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Tom Harrington

TITLE
CEO & Director
COMPENSATION
$4M
AGE
61
TENURE
0.9 yrs

Stephen Halperin

TITLE
Independent Director
COMPENSATION
$216K
AGE
69
TENURE
27.8 yrs

Jerry Fowden

TITLE
Executive Chairman of the Board
COMPENSATION
$7M
AGE
62
TENURE
0.9 yrs

Graham Savage

TITLE
Independent Director
COMPENSATION
$218K
AGE
71
TENURE
11.8 yrs

Eric Rosenfeld

TITLE
Lead Independent Director
COMPENSATION
$240K
AGE
62
TENURE
11.4 yrs

Mario Pilozzi

TITLE
Independent Director
COMPENSATION
$200K
AGE
73
TENURE
11.4 yrs

Greg Monahan

TITLE
Independent Director
COMPENSATION
$200K
AGE
46
TENURE
11.4 yrs

BJ Hess

TITLE
Independent Director
COMPENSATION
$200K
AGE
70
TENURE
15.3 yrs

Britta Bomhard

TITLE
Independent Director
COMPENSATION
$12K
AGE
50
TENURE
1 yrs

Steven Stanbrook

TITLE
Independent Director
COMPENSATION
$12K
AGE
62
TENURE
1 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Cott individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
05. Sep 19 Buy Thomas Harrington Individual 03. Sep 19 04. Sep 19 80,000 CA$16.70 CA$1,332,520
14. Aug 19 Buy Crescendo Advisors II LLC Company 12. Aug 19 12. Aug 19 80,000 CA$16.39 CA$1,311,488
14. Aug 19 Buy Crescendo Advisors II LLC Company 12. Aug 19 12. Aug 19 80,000 CA$16.39 CA$1,311,488
28. Feb 19 Buy Steven Stanbrook Individual 26. Feb 19 26. Feb 19 13,500 CA$19.48 CA$262,920
27. Feb 19 Buy Charles Hinson Individual 26. Feb 19 26. Feb 19 51,405 CA$19.62 CA$1,008,327
27. Feb 19 Buy Thomas Harrington Individual 26. Feb 19 26. Feb 19 33,560 CA$19.61 CA$657,981
13. Dec 18 Sell Graham Savage Individual 12. Dec 18 12. Dec 18 -7,879 CA$19.97 CA$-157,357
11. Dec 18 Sell Graham Savage Individual 04. Dec 18 04. Dec 18 -12,411 CA$19.89 CA$-246,901
X
Management checks
We assess Cott'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. Cott 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

Do These 3 Checks Before Buying Cott Corporation (TSE:BCB) For Its Upcoming Dividend

Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. … See our latest analysis for Cott Dividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut. … Over the last year it paid out 53% of its free cash flow as dividends, within the usual range for most companies.

Simply Wall St -

Have Insiders Been Selling Cott Corporation (TSE:BCB) Shares?

So we'll take a look at whether insiders have been buying or selling shares in Cott Corporation (TSE:BCB). … As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.' Check out our latest analysis for Cott Cott Insider Transactions Over The Last Year Chief Executive Officer of S&D Coffee and Tea Charles Hinson made the biggest insider purchase in the last 12 months. … TSX:BCB Recent Insider Trading, July 23rd 2019 Insider Ownership of Cott Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own.

Simply Wall St -

Did Business Growth Power Cott's (TSE:BCB) Share Price Gain of 128%?

It hasn't been the best quarter for Cott Corporation (TSE:BCB) shareholders, since the share price has fallen 13% in that time. … Sometimes, the start of profitability is a major inflection point that can signal fast earnings growth to come, which in turn justifies very strong share price gains. … It is important to consider the total shareholder return, as well as the share price return, for any given stock.

Simply Wall St -

Is Now The Time To Look At Buying Cott Corporation (TSE:BCB)?

Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. … Great news for investors – Cott is still trading at a fairly cheap price. … Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price.

Simply Wall St -

With A 0.4% Return On Equity, Is Cott Corporation (TSE:BCB) A Quality Stock?

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Cott: 0.4% = US$4.6m ÷ US$1.2b (Based on the trailing twelve months to March 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … Does Cott Have A Good Return On Equity? … Combining Cott's Debt And Its 0.4% Return On Equity Cott clearly uses a significant amount of debt to boost returns, as it has a debt to equity ratio of 1.15.

Simply Wall St -

Should You Be Concerned About Cott Corporation's (TSE:BCB) Historical Volatility?

If you're interested in Cott Corporation (TSE:BCB), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … See our latest analysis for Cott What BCB's beta value tells investors Given that it has a beta of 0.83, we can surmise that the Cott share price has not been strongly impacted by broader market volatility (over the last 5 years).

Simply Wall St -

An Intrinsic Calculation For Cott Corporation (TSE:BCB) Suggests It's 48% Undervalued

Today we will run through one way of estimating the intrinsic value of Cott Corporation (TSE:BCB) by taking the expected future cash flows and discounting them to their present value. … A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) estimate 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $149.41 $159.16 $180.73 $197.84 $212.12 $224.07 $234.22 $243.01 $250.82 $257.92 Growth Rate Estimate Source Analyst x8 Analyst x10 Analyst x4 Est @ 9.47% Est @ 7.21% Est @ 5.63% Est @ 4.53% Est @ 3.75% Est @ 3.21% Est @ 2.83% Present Value ($, Millions) Discounted @ 7.85% $138.54 $136.84 $144.07 $146.24 $145.38 $142.39 $138.01 $132.77 $127.06 $121.15 Present Value of 10-year Cash Flow (PVCF)= $1.37b "Est" = FCF growth rate estimated by Simply Wall St The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = US$258m × (1 + 1.9%) ÷ (7.8% – 1.9%) = US$4.5b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = $US$4.5b ÷ ( 1 + 7.8%)10 = $2.09b The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is $3.46b.

Simply Wall St -

Cott Corporation’s (TSE:BCB) Investment Returns Are Lagging Its Industry

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 Cott: 0.03 = US$82m ÷ (US$3.3b - US$566m) (Based on the trailing twelve months to March 2019.) So, Cott has an ROCE of 3.0%. … The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise. … Our Take On Cott's ROCE While that is good to see, Cott has a low ROCE and does not look attractive in this analysis.

Simply Wall St -

Are Cott Corporation's (TSE:BCB) Interest Costs Too High?

Investors are always looking for growth in small-cap stocks like Cott Corporation (TSE:BCB), with a market cap of CA$2.7b. … Evaluating financial health as part of your investment thesis is. … Let's work through some financial health checks you may wish to consider if you're interested in this stock.

Simply Wall St -

Know This Before Buying Cott Corporation (TSE:BCB) For Its Dividend

Dividends play a key role in compounding returns over time and can form a large part of our portfolio return. … Historically, Cott Corporation (TSE:BCB) has paid dividends to shareholders, and these days it yields 1.6%. … Let's take a look at Cott in more detail.

Simply Wall St -

Company Info

Description

Cott Corporation, together with its subsidiaries, operates as a route based service company in the United States, the United Kingdom, Canada, and internationally. The company operates in three segments: Route Based Services; Coffee, Tea and Extract Solutions; and All Other. Its product portfolio includes bottled water, coffee, brewed tea, water dispensers, coffee and tea brewers, specialty coffee, liquid coffee or tea concentrate, single cup coffee, cold brewed coffee, iced blend coffee or tea beverages, blended teas, hot tea, sparkling tea, coffee or tea extract solutions, filtration equipment, hot chocolate, soups, malt drinks, creamers/whiteners, cereals, and beverage concentrates, as well as premium spring, sparkling and flavored, and mineral water. The company provides its services to residences, businesses, restaurant chains, hotels and motels, small and large retailers, and healthcare facilities. It serves approximately 2.5 million customers or delivery points through its platform, sales and distribution facilities, and fleets, as well as through wholesalers and distributors. Cott Corporation was incorporated in 1955 and is headquartered in Mississauga, Canada.

Details
Name: Cott Corporation
BCB
Exchange: TSX
Founded: 1955
CA$2,305,976,568
134,694,893
Website: http://www.cott.com
Address: Cott Corporation
1200 Britannia Road East,
Mississauga,
Ontario, L4W 4T5,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX BCB Common Shares The Toronto Stock Exchange CA CAD 12. Dec 1986
NYSE COT Common Shares New York Stock Exchange US USD 12. Dec 1986
DB GC6 Common Shares Deutsche Boerse AG DE EUR 12. Dec 1986
Number of employees
Current staff
Staff numbers
10,900
Cott employees.
Industry
Soft Drinks
Food, Beverage & Tobacco
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/20 23:35
End of day share price update: 2019/11/20 00:00
Last estimates confirmation: 2019/11/18
Last earnings filing: 2019/11/07
Last earnings reported: 2019/09/28
Last annual earnings reported: 2018/12/29


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.