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PGG Wrightson

NZSE:PGW
Snowflake Description

Excellent balance sheet and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
PGW
NZSE
NZ$143M
Market Cap
  1. Home
  2. NZ
  3. Food, Beverage & Tobacco
Company description

PGG Wrightson Limited provides goods and services for agricultural sector in New Zealand. The last earnings update was 38 days ago. More info.


Add to Portfolio Compare Print
  • PGG Wrightson has significant price volatility in the past 3 months.
PGW Share Price and Events
7 Day Returns
11.8%
NZSE:PGW
3.8%
NZ Food
3.4%
NZ Market
1 Year Returns
-61.6%
NZSE:PGW
-0.4%
NZ Food
-5.4%
NZ Market
PGW Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
PGG Wrightson (PGW) 11.8% -18.1% -20.5% -61.6% -64.8% -60.4%
NZ Food 3.8% 1% 3% -0.4% 46.3% 93.9%
NZ Market 3.4% -13.9% -17.4% -5.4% 13.1% 26%
1 Year Return vs Industry and Market
  • PGW underperformed the Food industry which returned -0.4% over the past year.
  • PGW underperformed the Market in New Zealand which returned -5.4% over the past year.
Price Volatility
PGW
Industry
5yr Volatility vs Market

Value

 Is PGG Wrightson 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 PGG Wrightson 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 PGG Wrightson.

NZSE:PGW Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Dividend Discount Model
Dividend Per Share Company Filings (2019-12-31) in NZD NZ$ 0.17575
Payout Ratio Company Filings (2019-12-31) 6428%
Discount Rate (Cost of Equity) See below 5.7%
Perpetual Growth Rate 10-Year NZ Government Bond Rate 1.3%

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 NZSE:PGW
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year NZ Govt Bond Rate 1.3%
Equity Risk Premium S&P Global 5.4%
Food Unlevered Beta Simply Wall St/ S&P Global 0.57
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.566 (1 + (1- 28%) (118.21%))
0.735
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)
= 1.32% + (0.8 * 5.44%)
5.67%

Discounted Cash Flow Calculation for NZSE:PGW using Dividend Discount Model Model

The calculations below outline how an intrinsic value for PGG Wrightson 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.

NZSE:PGW Gordon Growth Model
Calculation Result
Value per share = Expected dividends per share / (Discount Rate - Perpetual growth rate)
= NZ$0.18 / (5.67% - 1.32%)
NZ$4.04
NZSE:PGW Discount to Share Price
Calculation Result
Value per share (NZD) From above. NZ$4.04
Current discount Discount to share price of NZ$1.90
= -1 x (NZ$1.90 - NZ$4.04) / NZ$4.04
53%

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

Current Discount
Amount off the current price PGG Wrightson is available for.
Intrinsic value
>50%
Share price is NZ$1.9 vs Future cash flow value of NZ$4.04
Current Discount Checks
For PGG Wrightson to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • PGG Wrightson's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • PGG Wrightson'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 PGG Wrightson's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are PGG Wrightson's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NZSE:PGW PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in NZD NZ$0.10
NZSE:PGW Share Price ** NZSE (2020-04-03) in NZD NZ$1.9
New Zealand Food Industry PE Ratio Median Figure of 10 Publicly-Listed Food Companies 15.62x
New Zealand Market PE Ratio Median Figure of 85 Publicly-Listed Companies 15.62x

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

** Primary Listing of PGG Wrightson.

NZSE:PGW PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NZSE:PGW Share Price ÷ EPS (both in NZD)

= 1.9 ÷ 0.10

19.82x

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

  • PGG Wrightson is overvalued based on earnings compared to the NZ Food industry average.
  • PGG Wrightson is overvalued based on earnings compared to the New Zealand market.
Price based on expected Growth
Does PGG Wrightson's expected growth come at a high price?
Raw Data
NZSE:PGW PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 19.82x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
19.7%per year
New Zealand Food Industry PEG Ratio Median Figure of 7 Publicly-Listed Food Companies 1.01x
New Zealand Market PEG Ratio Median Figure of 59 Publicly-Listed Companies 0.85x

*Line of best fit is calculated by linear regression .

NZSE:PGW PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 19.82x ÷ 19.7%

1.01x

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

  • PGG Wrightson is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on PGG Wrightson's assets?
Raw Data
NZSE:PGW PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in NZD NZ$2.30
NZSE:PGW Share Price * NZSE (2020-04-03) in NZD NZ$1.9
New Zealand Food Industry PB Ratio Median Figure of 13 Publicly-Listed Food Companies 1.04x
New Zealand Market PB Ratio Median Figure of 118 Publicly-Listed Companies 1.26x
NZSE:PGW PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NZSE:PGW Share Price ÷ Book Value per Share (both in NZD)

= 1.9 ÷ 2.30

0.83x

* Primary Listing of PGG Wrightson.

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

  • PGG Wrightson is good value based on assets compared to the NZ Food industry average.
X
Value checks
We assess PGG Wrightson'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. PGG Wrightson 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 PGG Wrightson 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
19.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is PGG Wrightson expected to grow at an attractive rate?
  • PGG Wrightson's earnings growth is expected to exceed the low risk savings rate of 1.3%.
Growth vs Market Checks
  • PGG Wrightson's earnings growth is expected to exceed the New Zealand market average.
  • PGG Wrightson's revenue growth is positive but not above the New Zealand market average.
Annual Growth Rates Comparison
Raw Data
NZSE:PGW Future Growth Rates Data Sources
Data Point Source Value (per year)
NZSE:PGW Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts 19.7%
NZSE:PGW Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 2%
New Zealand Food Industry Earnings Growth Rate Market Cap Weighted Average 16.1%
New Zealand Food Industry Revenue Growth Rate Market Cap Weighted Average 13.5%
New Zealand Market Earnings Growth Rate Market Cap Weighted Average 9.4%
New Zealand Market Revenue Growth Rate Market Cap Weighted Average 6.2%

*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
NZSE:PGW Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in NZD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NZSE:PGW Future Estimates Data
Date (Data in NZD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-06-30 849 17 2
2021-06-30 833 16 2
2020-06-30 815 15 2
2020-04-04
NZSE:PGW Past Financials Data
Date (Data in NZD Millions) Revenue Cash Flow Net Income *
2019-12-31 810 -5 7
2019-09-30 809 -27 5
2019-06-30 809 -49 3
2018-12-31 814 -3 5
2018-09-30 811 1 7
2018-06-30 809 6 8
2018-03-31 901 -4 25
2017-12-31 993 -13 42
2017-09-30 1,063 4 44
2017-06-30 1,133 20 46
2017-03-31 1,150 26 44

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • PGG Wrightson's earnings are expected to grow by 19.7% yearly, however this is not considered high growth (20% yearly).
  • PGG Wrightson's revenue is expected to grow by 2% 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
NZSE:PGW Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

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

NZSE:PGW Future Estimates Data
Date (Data in NZD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-06-30 0.22 0.24 0.21 2.00
2021-06-30 0.21 0.23 0.20 2.00
2020-06-30 0.19 0.20 0.19 2.00
2020-04-04
NZSE:PGW Past Financials Data
Date (Data in NZD Millions) EPS *
2019-12-31 0.10
2019-09-30 0.07
2019-06-30 0.04
2018-12-31 0.07
2018-09-30 0.09
2018-06-30 0.11
2018-03-31 0.33
2017-12-31 0.56
2017-09-30 0.58
2017-06-30 0.60
2017-03-31 0.58

*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.
  • PGG Wrightson is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess PGG Wrightson'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 New Zealand market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the New Zealand 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.
PGG Wrightson has a total score of 2/6, 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 PGG Wrightson 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 PGG Wrightson'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.
  • PGG Wrightson's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • PGG Wrightson's 1-year earnings growth exceeds its 5-year average (40.8% vs -27.7%)
  • PGG Wrightson's earnings growth has exceeded the NZ Food industry average in the past year (40.8% vs 2.2%).
Earnings and Revenue History
PGG Wrightson'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 PGG Wrightson Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NZSE:PGW Past Revenue, Cash Flow and Net Income Data
Date (Data in NZD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 809.57 7.24 152.70
2019-09-30 809.41 5.28 152.73
2019-06-30 809.26 3.32 152.76
2018-12-31 814.30 5.14 160.59 -0.02
2018-09-30 811.50 6.61 158.73 -0.01
2018-06-30 808.70 8.08 156.86
2018-03-31 901.02 25.23 166.79 0.96
2017-12-31 993.35 42.39 176.71 1.91
2017-09-30 1,063.16 43.98 187.93 3.23
2017-06-30 1,132.96 45.58 199.14 4.54
2017-03-31 1,149.65 43.96 195.93 4.43
2016-12-31 1,166.33 42.34 192.71 4.32
2016-09-30 1,173.98 42.79 192.20 4.42
2016-06-30 1,181.62 43.24 191.69 4.52
2016-03-31 1,176.41 35.76 189.59 4.72
2015-12-31 1,171.20 28.28 187.48 4.93
2015-09-30 1,187.02 30.01 185.73 4.61
2015-06-30 1,202.84 31.73 183.98 4.30
2015-03-31 1,221.01 40.33 185.02 4.54
2014-12-31 1,239.19 48.94 186.07 4.78
2014-09-30 1,229.29 45.14 184.01 4.81
2014-06-30 1,219.38 41.35 181.95 4.84
2013-12-31 1,177.62 -298.93 178.08 3.98
2013-09-30 1,154.73 -302.67 177.10 4.17
2013-06-30 1,131.85 -306.41 176.11 4.36

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

Health

 How is PGG Wrightson'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 PGG Wrightson's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • PGG Wrightson is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • PGG Wrightson's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of PGG Wrightson'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 6.5x 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 PGG Wrightson Company Filings, last reported 3 months ago.

NZSE:PGW Past Debt and Equity Data
Date (Data in NZD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 173.46 60.00 0.68
2019-09-30 173.46 60.00 0.68
2019-06-30 398.26 2.68 210.49
2018-12-31 274.07 209.64 3.91
2018-09-30 274.07 209.64 3.91
2018-06-30 287.46 180.01 10.96
2018-03-31 287.46 180.01 10.96
2017-12-31 294.13 221.85 24.28
2017-09-30 294.13 221.85 24.28
2017-06-30 289.71 137.64 12.84
2017-03-31 289.71 137.64 12.84
2016-12-31 275.89 166.32 13.89
2016-09-30 275.89 166.32 13.89
2016-06-30 274.30 134.13 14.25
2016-03-31 274.30 134.13 14.25
2015-12-31 271.96 184.24 16.84
2015-09-30 271.96 184.24 16.84
2015-06-30 267.37 126.74 7.27
2015-03-31 267.37 126.74 7.27
2014-12-31 260.97 145.27 18.10
2014-09-30 260.97 145.27 18.10
2014-06-30 269.70 100.57 11.34
2013-12-31 261.55 122.25 24.25
2013-09-30 261.55 122.25 24.25
2013-06-30 256.11 109.70 5.85
  • PGG Wrightson's level of debt (34.6%) 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 (55.6% vs 34.6% today).
  • Operating cash flow is negative therefore debt is not well covered.
  • Interest payments on debt are well covered by earnings (EBIT is 5.1x coverage).
X
Financial health checks
We assess PGG Wrightson'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. PGG Wrightson 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 PGG Wrightson'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
7.89%
Current annual income from PGG Wrightson dividends. Estimated to be 9.25% next year.
If you bought NZ$2,000 of PGG Wrightson shares you are expected to receive NZ$158 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?
  • PGG Wrightson's pays a higher dividend yield than the bottom 25% of dividend payers in New Zealand (3.44%).
  • PGG Wrightson's dividend is above the markets top 25% of dividend payers in New Zealand (7.79%).
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
NZSE:PGW 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
New Zealand Food Industry Average Dividend Yield Market Cap Weighted Average of 7 Stocks 4.7%
New Zealand Market Average Dividend Yield Market Cap Weighted Average of 63 Stocks 3.9%
New Zealand Minimum Threshold Dividend Yield 10th Percentile 2.5%
New Zealand Bottom 25% Dividend Yield 25th Percentile 3.4%
New Zealand Top 25% Dividend Yield 75th Percentile 7.8%

Industry and Market average data is calculated daily.

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

NZSE:PGW Future Dividends Estimate Data
Date (Data in NZ$) Dividend per Share (annual) Avg. No. Analysts
2022-06-30 0.19 2.00
2021-06-30 0.18 2.00
2020-06-30 0.16 2.00
2020-04-04
NZSE:PGW Past Annualized Dividends Data
Date (Data in NZ$) Dividend per share (annual) Avg. Yield (%)
2019-08-13 0.150 6.508
2018-08-14 0.300 5.567
2017-08-08 0.375 6.152
2016-08-09 0.375 7.033
2016-02-24 0.350 8.494
2015-08-12 0.400 9.613
2014-08-12 0.600 13.025
2014-02-25 0.400 9.670
2013-08-13 0.100 2.562
2010-08-13 0.000 0.000
2010-02-24 0.000 0.000
2009-08-28 0.000 0.000

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

  • PGG Wrightson 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 PGG Wrightson only paid a dividend in the past 7 years.
Current Payout to shareholders
What portion of PGG Wrightson's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.2x coverage).
X
Income/ dividend checks
We assess PGG Wrightson's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 2.5%) - 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 PGG Wrightson afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. PGG Wrightson 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 PGG Wrightson'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
Stephen Guerin
TENURE AS CEO 0.8 years
CEO Bio

Mr. Stephen Guerin serves as Chief Executive Officer at PGG Wrightson Limited since June 1, 2019. He had been Group General Manager of Retail & Water at PGG Wrightson Limited since September 1, 2016 until June 1, 2019. Mr. Guerin served as General Manager of Retail at PGG Wrightson Limited until September 1, 2016. Mr. Guerin served as General Manager of Rural Supplies & Fruitfed at PGG Wrightson Limited since May 2011 and was responsible for all aspects of the Rural Supplies and Fruitfed Supplies retail businesses. Mr. Guerin served as an Operations Manager and Accounting Manager of Fruitfed Supplies of Williams & Kettle Ltd. He served as General Manager of Retail at PGG Wrightson Limited. Mr. Guerin served as the General Manager of Fruitfed Supplies where he spent 23 years in various roles. He holds a Bachelor in Business Studies (Accounting) from Massey University.

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

Average tenure of the PGG Wrightson management team in years:

4
Average Tenure
  • The tenure for the PGG Wrightson management team is about average.
Management Team

Stephen Guerin

TITLE
Chief Executive Officer
TENURE
0.8 yrs

Peter Scott

TITLE
Chief Financial Officer
TENURE
5.1 yrs

Jane Pearson

TITLE
Legal Counsel

Rachel Shearer

TITLE
General Manager of Human Resources
TENURE
4 yrs

Julian Daly

TITLE
GM of Corporate Affairs & Company Secretary
Board of Directors Tenure

Average tenure and age of the PGG Wrightson board of directors in years:

1
Average Tenure
56.5
Average Age
  • The average tenure for the PGG Wrightson board of directors is less than 3 years, this suggests a new board.
Board of Directors

Rodger Finlay

TITLE
Independent Chairman
COMPENSATION
NZ$37K
AGE
61
TENURE
1 yrs

Joo Hai Lee

TITLE
Deputy Chairman of the Board
COMPENSATION
NZ$117K
AGE
63
TENURE
1 yrs

B. Cushing

TITLE
Independent Director
COMPENSATION
NZ$14K
TENURE
1 yrs

Kean Seng U.

TITLE
Director
COMPENSATION
NZ$80K
AGE
52
TENURE
7.3 yrs

Sarah Brown

TITLE
Independent Director
COMPENSATION
NZ$14K
TENURE
1 yrs

John Fulton

TITLE
Alternate Director
AGE
49
TENURE
5.1 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 (NZ$) Value (NZ$)
20. Aug 19 Buy Rural Equities Limited Company 15. Aug 19 16. Aug 19 99,273 NZ$2.28 NZ$220,096
06. Oct 19 Buy Rodger Finlay Individual 30. Sep 19 04. Oct 19 81,274 NZ$2.33 NZ$187,929
29. Aug 19 Buy Sarah Brown Individual 27. Aug 19 27. Aug 19 6,400 NZ$2.53 NZ$16,170
03. Oct 19 Buy Rural Equities Limited Company 26. Sep 19 02. Oct 19 315,577 NZ$2.31 NZ$729,799
05. Nov 19 Buy Sarah Brown Individual 04. Nov 19 04. Nov 19 5,000 NZ$2.46 NZ$12,300
21. Aug 19 Buy Stephen Guerin Individual 20. Aug 19 20. Aug 19 3,500 NZ$2.40 NZ$8,400
X
Management checks
We assess PGG Wrightson'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. PGG Wrightson 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

With A 6.4% Return On Equity, Is PGG Wrightson Limited (NZSE:PGW) A Quality Stock?

Our data shows PGG Wrightson has a return on equity of 6.4% for the last year. … That means that for every NZ$1 worth of shareholders' equity, it generated NZ$0.064 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Understanding Your Return On Investment In PGG Wrightson Limited (NZSE:PGW)

and want a simplistic look at the return on PGG Wrightson Limited (NZSE:PGW) stock. … Therefore, looking at how efficiently PGG Wrightson 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 -

What You Must Know About PGG Wrightson Limited's (NZSE:PGW) Return on Equity

and want to learn about Return on Equity using a real-life example. … But what is more interesting is whether PGW can sustain or improve on this level of return. … Metrics such as financial leverage can impact the level of ROE which in turn can affect the sustainability of PGW's returns.

Simply Wall St -

Interested In PGG Wrightson Limited (NZSE:PGW)? Here's How It Performed Recently

Understanding how PGG Wrightson Limited (NZSE:PGW) is performing as a company requires looking at more than just a years' earnings. … Today I will run you through a basic sense check to gain perspective on how PGG Wrightson is doing by comparing its latest earnings with its long-term trend as well as the performance of its food industry peers. … Check out our latest analysis for PGG Wrightson.

Simply Wall St -

What Should Investors Know About PGG Wrightson Limited's (NZSE:PGW) Capital Returns?

and want to begin learning the link between PGG Wrightson Limited (NZSE:PGW)’s return fundamentals and stock market performance. … Owing to this, it is important that the underlying business is producing a sufficient amount of income from the capital invested by stockholders … You need to pay attention to this because your return on investment is linked to dividends and internal investments to improve the business, which can only occur if the company is expected to produce adequate earnings with the capital that has been provided.

Simply Wall St -

What is Behind PGG Wrightson Limited's (NZE:PGW) Superior ROE?

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. … ROE can be dissected into three distinct ratios: net profit margin, asset turnover, and financial leverage. … 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 NZSE:PGW Last Perf Apr 10th 18 The first component is profit margin, which measures how much of sales is retained after the company pays for all its expenses.

Simply Wall St -

What Should Investors Know About the future of PGG Wrightson Limited's (NZE:PGW)?

To get some insight, I will try to evaluate PGG Wrightson's margin behaviour so investors can evaluate the revenue and cost drivers behind future earnings projections and understand how they may impact on returns compared to the industry. … Margin Calculation for PGW Profit Margin = Net Income ÷ Revenue ∴ Profit Margin = 45.09 Million ÷ 1.15 Billion = 3.91% PGG Wrightson's margin has expanded in the past five years, due to positive average net income growth of 31.25% and decline in revenue growth of -1.81% on average, which suggests that the company has been able to convert a larger percentage of revenue into net income despite the top line has fallen over the previous 5 years. … For PGW, future profit margin is expected to contract at the same time as the Food industry margins expand, and at the same time, PGW's projected ROE of 12.57% is less than the 14.32% expected ROE for the rest of industry.

Simply Wall St -

Is PGG Wrightson Limited's (NZE:PGW) Balance Sheet Strong Enough To Weather A Storm?

Additionally, PGW has generated NZ$20.47M in operating cash flow during the same period of time, resulting in an operating cash to total debt ratio of 14.87%, indicating that PGW’s operating cash is not sufficient to cover its debt. … At the current liabilities level of NZ$281.06M liabilities, the company has been able to meet these obligations given the level of current assets of NZ$537.15M, with a current ratio of 1.91x. … In PGW's, case, the ratio of 9.34x suggests that interest is appropriately covered, which means that lenders may be inclined to lend more money to the company, as it is seen as safe in terms of payback.Next Steps: PGW’s cash flow coverage indicates it could improve its operating efficiency in order to meet demand for debt repayments should unforeseen events arise.

Simply Wall St -

PGG Wrightson Limited (NZE:PGW): Ex-Dividend Is In 3 Days, Should You Buy?

To qualify for the dividend check of NZ$0.02 per share, investors must have owned the shares prior to 15 March 2018, which is the last day the company's management will finalize their list of shareholders to which they will send dividend payments. … Is this future income stream a compelling catalyst for dividend investors to think about the stock as an investment today? … Check out our latest analysis for PGG Wrightson Here's how I find good dividend stocks Whenever I am looking at a potential dividend stock investment, I always check these five metrics: Does it pay an annual yield higher than 75% of dividend payers?

Simply Wall St -

Is PGG Wrightson Limited (NZE:PGW) A Buy At Its Current PE Ratio?

Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for PGW Price per share = NZ$0.61 Earnings per share = NZ$0.059 ∴ Price-Earnings Ratio = NZ$0.61 ÷ NZ$0.059 = 10.3x On its own, the P/E ratio doesn’t tell you much; however, it becomes extremely useful when you compare it with other similar companies. … At 10.3x, PGW’s P/E is lower than its industry peers (15.6x). … For example, if you are inadvertently comparing lower risk firms with PGW, then PGW’s P/E would naturally be lower than its peers, since investors would value those with lower risk with a higher price.

Simply Wall St -

Company Info

Description

PGG Wrightson Limited provides goods and services for agricultural sector in New Zealand. The company operates in two segments, Agency, and Retail & Water. It operates rural supplies stores that offer a range of products, such as animal health and management products; apparel and footwear products; dairy shed hygiene products; fencing products; fertilizers; nutrition products; calf rearing products; pasture and crop protection products; wine making products; water products; horse feeds; seeds; and general merchandise products. The company also provides agency services for the sale, purchase, and service of livestock through auction, private and on-farm sales, and specialist stud stock sales; irrigation and pumping systems to farmers and horticulturists; and agritrade and ancillary support services, as well as markets and exports wool products. In addition, it offers insurance products; and rural finance and investment products to small-to-medium sized business, farms, and families. Further, the company provides real estate services, including rural, lifestyle, residential, and commercial properties; and operates fruitfed supplies retail network that provides plant protection and nutrition products, vegetable seeds, crop monitoring, soil tests and fertilizer recommendations, spray programs, frost fighting solutions and machinery, irrigation services, winery supplies, posts, wire and bird nettings, safety gears, and picking and pruning equipment, as well as protective cropping supplies for glasshouses and undercover crops. PGG Wrightson Limited was founded in 1841 and is based in Christchurch, New Zealand.

Details
Name: PGG Wrightson Limited
PGW
Exchange: NZSE
Founded: 1841
NZ$143,419,757
75,484,083
Website: http://www.pggwrightson.co.nz
Address: PGG Wrightson Limited
57 Waterloo Road,
Hornby,
Christchurch,
8042,
New Zealand
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NZSE PGW Ordinary Shares New Zealand Stock Exchange NZ NZD 02. Jan 1992
OTCPK PGWF.F Ordinary Shares Pink Sheets LLC US USD 02. Jan 1992
Number of employees
Current staff
Staff numbers
0
PGG Wrightson employees.
Industry
Agricultural Products
Food, Beverage & Tobacco
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/04 10:33
End of day share price update: 2020/04/03 00:00
Last estimates confirmation: 2020/02/26
Last earnings filing: 2020/02/26
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/06/30


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

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