Latest news with #GrainCorp
Yahoo
17-05-2025
- Business
- Yahoo
GrainCorp (ASX:GNC) Will Pay A Dividend Of A$0.24
The board of GrainCorp Limited (ASX:GNC) has announced that it will pay a dividend of A$0.24 per share on the 17th of July. Based on this payment, the dividend yield on the company's stock will be 6.1%, which is an attractive boost to shareholder returns. Our free stock report includes 3 warning signs investors should be aware of before investing in GrainCorp. Read for free now. A big dividend yield for a few years doesn't mean much if it can't be sustained. Prior to this announcement, GrainCorp's dividend was making up a very large proportion of earnings and perhaps more concerning was that it was 109% of cash flows. Paying out such a high proportion of cash flows can expose the business to needing to cut the dividend if the business runs into some challenges. Over the next year, EPS is forecast to expand by 64.7%. If the dividend continues on its recent course, the payout ratio in 12 months could be 97%, which is a bit high and could start applying pressure to the balance sheet. See our latest analysis for GrainCorp The company's dividend history has been marked by instability, with at least one cut in the last 10 years. The annual payment during the last 10 years was A$0.20 in 2015, and the most recent fiscal year payment was A$0.48. This means that it has been growing its distributions at 9.1% per annum over that time. A reasonable rate of dividend growth is good to see, but we're wary that the dividend history is not as solid as we'd like, having been cut at least once. Growing earnings per share could be a mitigating factor when considering the past fluctuations in the dividend. We are encouraged to see that GrainCorp has grown earnings per share at 6.5% per year over the past five years. Recently, the company has been able to grow earnings at a decent rate, but with the payout ratio on the higher end we don't think the dividend has many prospects for growth. Overall, we don't think this company makes a great dividend stock, even though the dividend wasn't cut this year. The track record isn't great, and the payments are a bit high to be considered sustainable. Overall, we don't think this company has the makings of a good income stock. Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. Just as an example, we've come across 3 warning signs for GrainCorp you should be aware of, and 1 of them is significant. If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
17-05-2025
- Business
- Yahoo
GrainCorp (ASX:GNC) Will Pay A Dividend Of A$0.24
The board of GrainCorp Limited (ASX:GNC) has announced that it will pay a dividend of A$0.24 per share on the 17th of July. Based on this payment, the dividend yield on the company's stock will be 6.1%, which is an attractive boost to shareholder returns. Our free stock report includes 3 warning signs investors should be aware of before investing in GrainCorp. Read for free now. A big dividend yield for a few years doesn't mean much if it can't be sustained. Prior to this announcement, GrainCorp's dividend was making up a very large proportion of earnings and perhaps more concerning was that it was 109% of cash flows. Paying out such a high proportion of cash flows can expose the business to needing to cut the dividend if the business runs into some challenges. Over the next year, EPS is forecast to expand by 64.7%. If the dividend continues on its recent course, the payout ratio in 12 months could be 97%, which is a bit high and could start applying pressure to the balance sheet. See our latest analysis for GrainCorp The company's dividend history has been marked by instability, with at least one cut in the last 10 years. The annual payment during the last 10 years was A$0.20 in 2015, and the most recent fiscal year payment was A$0.48. This means that it has been growing its distributions at 9.1% per annum over that time. A reasonable rate of dividend growth is good to see, but we're wary that the dividend history is not as solid as we'd like, having been cut at least once. Growing earnings per share could be a mitigating factor when considering the past fluctuations in the dividend. We are encouraged to see that GrainCorp has grown earnings per share at 6.5% per year over the past five years. Recently, the company has been able to grow earnings at a decent rate, but with the payout ratio on the higher end we don't think the dividend has many prospects for growth. Overall, we don't think this company makes a great dividend stock, even though the dividend wasn't cut this year. The track record isn't great, and the payments are a bit high to be considered sustainable. Overall, we don't think this company has the makings of a good income stock. Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. Just as an example, we've come across 3 warning signs for GrainCorp you should be aware of, and 1 of them is significant. If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
News.com.au
15-05-2025
- Business
- News.com.au
GrainCorp reports 17 per cent surge in net profit
Now Playing Australia's biggest grain handler and distributor GrainCorp is a barometer for the health of rural Australia. GrainCorp's revenue in the half year was up 21 per cent to $4.1 billion. Net profit rose 17 per cent to $58 million and the interim dividend was steady at 14 cents, with a special dividend of 10 cents.
Yahoo
27-03-2025
- Business
- Yahoo
GrainCorp Limited (ASX:GNC) has caught the attention of institutional investors who hold a sizeable 41% stake
Significantly high institutional ownership implies GrainCorp's stock price is sensitive to their trading actions The top 9 shareholders own 50% of the company Insiders have bought recently To get a sense of who is truly in control of GrainCorp Limited (ASX:GNC), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are institutions with 41% ownership. Put another way, the group faces the maximum upside potential (or downside risk). Since institutional have access to huge amounts of capital, their market moves tend to receive a lot of scrutiny by retail or individual investors. Hence, having a considerable amount of institutional money invested in a company is often regarded as a desirable trait. Let's delve deeper into each type of owner of GrainCorp, beginning with the chart below. See our latest analysis for GrainCorp Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index. GrainCorp already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at GrainCorp's earnings history below. Of course, the future is what really matters. It looks like hedge funds own 5.0% of GrainCorp shares. That catches my attention because hedge funds sometimes try to influence management, or bring about changes that will create near term value for shareholders. Australian Retirement Trust Pty Ltd is currently the largest shareholder, with 7.1% of shares outstanding. For context, the second largest shareholder holds about 7.1% of the shares outstanding, followed by an ownership of 6.6% by the third-largest shareholder. We did some more digging and found that 9 of the top shareholders account for roughly 50% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat. While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future. While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it. Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group. Our data suggests that insiders own under 1% of GrainCorp Limited in their own names. It appears that the board holds about AU$14m worth of stock. This compares to a market capitalization of AU$1.5b. Many tend to prefer to see a board with bigger shareholdings. A good next step might be to take a look at this free summary of insider buying and selling. The general public, who are usually individual investors, hold a 41% stake in GrainCorp. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders. We can see that public companies hold 6.5% of the GrainCorp shares on issue. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership. I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Take risks for example - GrainCorp has 2 warning signs (and 1 which makes us a bit uncomfortable) we think you should know about. Ultimately the future is most important. You can access this free report on analyst forecasts for the company. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. 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Yahoo
10-03-2025
- Business
- Yahoo
Asian Undervalued Small Caps With Insider Action To Watch In March 2025
Amidst global economic uncertainties, including tariff tensions and fluctuating inflation rates, Asian markets have shown resilience with targeted growth strategies and fiscal adjustments. While broader market sentiment remains cautious, small-cap stocks in Asia present intriguing opportunities for investors looking to navigate this complex landscape. Identifying promising small caps often involves assessing companies with strong fundamentals and potential insider actions that align well with current market dynamics. Name PE PS Discount to Fair Value Value Rating Security Bank 4.9x 1.1x 38.92% ★★★★★☆ Puregold Price Club 9.0x 0.4x 26.47% ★★★★★☆ Abacus Storage King 7.4x 6.6x 23.63% ★★★★★☆ Hansen Technologies 285.2x 2.8x 28.03% ★★★★★☆ Hong Leong Asia 9.2x 0.2x 44.69% ★★★★☆☆ Dicker Data 20.1x 0.7x -25.65% ★★★★☆☆ Sing Investments & Finance 7.2x 3.7x 36.57% ★★★★☆☆ Viva Energy Group NA 0.1x 13.43% ★★★★☆☆ Collins Foods 20.1x 0.7x -2.32% ★★★☆☆☆ Integral Diagnostics 154.3x 1.8x 41.18% ★★★☆☆☆ Click here to see the full list of 52 stocks from our Undervalued Asian Small Caps With Insider Buying screener. Here's a peek at a few of the choices from the screener. Simply Wall St Value Rating: ★★★☆☆☆ Overview: GrainCorp is an agribusiness company involved in grain handling, storage, and marketing, as well as producing nutrition and energy products, with a market cap of approximately A$2.7 billion. Operations: GrainCorp generates revenue primarily from its Agribusiness and Nutrition & Energy segments, with the former contributing A$4.96 billion and the latter A$1.89 billion. The company experienced fluctuations in gross profit margin, peaking at 20.70% in September 2022 before declining to 9.99% by March 2025. PE: 24.9x GrainCorp, an Asian small-cap, faces challenges with profit margins dropping from 3% to 0.9% over the past year. However, earnings are projected to grow by 16.63% annually, indicating potential for recovery. The company relies solely on external borrowing for funding, posing higher risks compared to customer deposits. Insider confidence is reflected in recent share buyback plans worth A$50 million announced in February 2025, suggesting management's belief in future prospects despite current financial hurdles. Get an in-depth perspective on GrainCorp's performance by reading our valuation report here. Explore historical data to track GrainCorp's performance over time in our Past section. Simply Wall St Value Rating: ★★★★☆☆ Overview: Nuix is a technology company specializing in software and programming solutions, with operations focused on data analytics and cybersecurity, and has a market cap of approximately A$0.29 billion. Operations: Nuix generates revenue primarily from its software and programming segment, with the latest reported figure at A$227.32 million. The company's gross profit margin has seen fluctuations, reaching 90.21% recently, indicating a strong ability to manage production costs relative to revenue. Operating expenses are significant, driven by sales and marketing along with research and development efforts. PE: -2034.0x Nuix, a smaller player in the Asian market, has caught attention with insider confidence shown through recent share purchases. Despite reporting a net loss of A$10.4 million for the half-year ending December 2024, up from A$4.8 million previously, revenue grew to A$105.2 million from A$98.4 million year-on-year. The company faces higher risk due to reliance on external borrowing but anticipates earnings growth of 53% annually, suggesting potential for future value realization amidst current challenges. Dive into the specifics of Nuix here with our thorough valuation report. Review our historical performance report to gain insights into Nuix's's past performance. Simply Wall St Value Rating: ★★★☆☆☆ Overview: Manila Water Company operates as a provider of water and wastewater services, primarily through its Manila Concession and various domestic and foreign subsidiaries, with a market capitalization of ₱53.26 billion. Operations: The company's revenue is primarily driven by its Manila Concession and Head Office, contributing significantly to its financial performance. Over recent periods, the gross profit margin has shown an upward trend, reaching 80.05% in December 2024. Key expenses include operating expenses and non-operating expenses, with depreciation and amortization also being notable cost components. PE: 8.3x Manila Water Company, a notable player in Asia's smaller stock market segment, demonstrates potential with recent insider confidence. Liwayway Sevalla increased their stake by 143,664 shares valued at approximately PHP 3.88 million in February 2025. The company announced a total dividend of PHP 1.841 per share, reflecting strong financial health with net income rising to PHP 10.5 billion for the year ending December 2024 from PHP 5.6 billion previously. A recent P15 billion loan aims to bolster capital projects, indicating strategic growth plans amidst robust earnings forecasts of over 15% annually. Click to explore a detailed breakdown of our findings in Manila Water Company's valuation report. Gain insights into Manila Water Company's past trends and performance with our Past report. Navigate through the entire inventory of 52 Undervalued Asian Small Caps With Insider Buying here. Got skin in the game with these stocks? Elevate how you manage them by using Simply Wall St's portfolio, where intuitive tools await to help optimize your investment outcomes. Elevate your portfolio with Simply Wall St, the ultimate app for investors seeking global market coverage. Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. Find companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include ASX:GNC ASX:NXL and PSE:MWC. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
