Latest news with #MyFoodBag
Yahoo
24-05-2025
- Business
- Yahoo
My Food Bag Group (NZSE:MFB) Is Due To Pay A Dividend Of NZ$0.01
My Food Bag Group Limited (NZSE:MFB) has announced that it will pay a dividend of NZ$0.01 per share on the 19th of June. The dividend yield will be 6.7% based on this payment which is still above the industry average. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Impressive dividend yields are good, but this doesn't matter much if the payments can't be sustained. However, My Food Bag Group's earnings easily cover the dividend. This means that most of what the business earns is being used to help it grow. The next year is set to see EPS grow by 7.7%. If the dividend continues along recent trends, we estimate the payout ratio will be 31%, which is in the range that makes us comfortable with the sustainability of the dividend. View our latest analysis for My Food Bag Group The track record isn't the longest, but we are already seeing a bit of instability in the payments. Since 2021, the dividend has gone from NZ$0.06 total annually to NZ$0.013. Dividend payments have fallen sharply, down 78% over that time. Generally, we don't like to see a dividend that has been declining over time as this can degrade shareholders' returns and indicate that the company may be running into problems. With a relatively unstable dividend, and a poor history of shrinking dividends, it's even more important to see if EPS is growing. Over the past five years, it looks as though My Food Bag Group's EPS has declined at around 8.4% a year. Declining earnings will inevitably lead to the company paying a lower dividend in line with lower profits. It's not all bad news though, as the earnings are predicted to rise over the next 12 months - we would just be a bit cautious until this can turn into a longer term trend. Overall, it's nice to see a consistent dividend payment, but we think that longer term, the current level of payment might be unsustainable. The payments haven't been particularly stable and we don't see huge growth potential, but with the dividend well covered by cash flows it could prove to be reliable over the short term. We would be a touch cautious of relying on this stock primarily for the dividend income. Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. For instance, we've picked out 2 warning signs for My Food Bag Group that investors should take into consideration. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers. 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. Sign in to access your portfolio
RNZ News
22-05-2025
- Business
- RNZ News
Will your My Food Bag investment ever recover?
My Food Bag has reported a 5 percent profit increase in the most recent full year, but shareholders could be waiting a while for shares to return to their initial list price. Photo: RNZ My Food Bag has reported a positive year in its latest update, but shareholders are being told they could have a long wait ahead of them for shares to return to their initial list price. My Food Bag listed on the NZX in 2021, in what it said at the time would be the largest IPO by amount raised since 2014. Shares were issued at $1.85 each, including to many customers. But the price dropped in initial trading and has largely continued to decline from there. Shares were trading for 20c on Thursday afternoon, after chief executive Mark Winter told the market it had lifted its profit 5 percent in the most recent full year. Greg Smith, head of retail at Devon Funds, said the prospect of the share price recovering to anything like its list price was "incredibly remote". "It was a classic private equity exit, which has seen a lot of retail investors lose out. The stock was floated in peak conditions, as lockdowns were in force, and the idea of everyone ordering meal kits on a regular basis reinforcing the hype. The firm actually did deliver on its prospectus forecasts in the early days, but many investors extrapolated a situation that as we know now was only ephemeral," he said. The bulk of the shares sold came from private equity firm Waterman Capital, with smaller parcels from founding shareholders Cecilia and James Robinson and Theresa Gattung. "At under three times earnings (EBITDA) the stock seems very cheap, however investor confidence is pretty shot, and the question is how does the company deliver a sustainable earnings growth path? "Consumer spending pressures will ease at some point, but it has tried to expand overseas and that didn't work, competition in NZ has also intensified. As management also notes they have 'right sized' the business so it would be hard to see the shares ever getting back to former glories." Jeremy Sullivan, an investment adviser at Hamilton Hindin Greene, agreed it would be tough. "Never say never, although it's a long way off. There's no doubt that a lot has happened since they listed, including Covid, high food price inflation and rising interest rates. These factors have certainly hampered demand. "However, with rates starting to fall and people beginning to feel the pressure come off, things might start to turn around for the company, [Thursday's] announcement is an encouraging sign in that direction." Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
NZ Herald
22-05-2025
- Business
- NZ Herald
NZ sharemarket down as My Food Bag sees green shoots
My Food Bag saw its share price rise following a positive result. Photo / Supplied The New Zealand sharemarket fell slightly today reflecting declining markets in the United States, Japan and Australia. Although shares in My Food Bag and WasteCo rose after the companies delivered positive news. The S&P/NZX 50 Index closed down 0.32% or 40.85 points, falling to 12,662.25, with 37,444,256 shares changing
RNZ News
21-05-2025
- Business
- RNZ News
My Food Bag sees modest lift in bottom line, subscriber numbers
My Food Bag has 57,000 subscribers, a marginal increase of 200 from last year. Photo: Facebook / My Food Bag Listed meal kit company My Food Bag has modestly lifted its bottom line despite a challenging trading environment. Key numbers for the 12 months ended March compared with a year ago: The company's revenue was on par with the prior year, and it stabilised its recent decline by maintaining its subscriber base and paying down debt. It reduced its net debt by $4.9 million to $6.9m. Chief executive Mark Winter said growth was up 5 percent in the second half of the year with promising results for its low-carb and diabetes health offerings. The company has 57,000 subscribers, a marginal increase of 200 from last year. "Our results reflect the positive impact of the initiatives taken to strengthen our customer offering and improve operational efficiency," Winter said. "We're seeing clear signs that these efforts are translating into sustained business performance and renewed growth." The company remained optimistic about the growth potential of its cheaper Bargain Box brand. My Food Bag said in the first eight weeks of the new financial year, demand growth continued, and it was confident in managing cost increases. Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
