Bega Cheese Limited (BGA) AI Stock Analysis

• Market Cap: €1.59B
• Dividend Yield: 2.3%
• Average Volume (3M): 615.30K
• Price to Earnings (P/E): 47.2
• Beta (1Y): 1.10
• Revenue Growth: 4.28%
• EPS Growth: N/A
• Country: AU
• Employees: 3,900
• Sector: Consumer Defensive
• Sector Strength: 53
• Industry: Packaged Foods
• EPS (TTM): 0.12
• Shares Outstanding: 305,184,500
• 10 Day Avg. Volume: 553,290
• 30 Day Avg. Volume: 615,300
• PEG Ratio: <0.01
• Price to Book (P/B): 0.86
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -14.46
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €6.22
• Price Target Upside: 17.42% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 56 Neutral
• Price Target: AU$5.50 ▲(3.77%Upside)

The overall stock score for Bega Cheese Limited is driven primarily by its strong financial performance, indicating a positive recovery trajectory. However, technical indicators suggest bearish momentum, and the high P/E ratio raises valuation concerns. The absence of earnings call data and corporate events leaves these areas unaddressed, which could have provided additional insights.

Bega Cheese Limited Business Overview & Revenue Model

Company Description

Bega Cheese Limited receives, processes, manufactures, and distributes dairy and other food-related products in Australia. The company operates in two segments, Branded and Bulk. The Branded segment manufactures value added consumer products for owned and externally owned brands. The Bulk segment manufactures bulk dairy ingredients, nutritional, and bio nutrient products. It offers natural, processed, and kids snacking cheese; butter and cream cheese products under the Farmer's Table brand name; dips, mayonnaise, and dressings under the ZoOSh brand name; and spreads under the Simply Nuts, B honey, Bega peanut butter, and VEGEMITE brands. The company also develops and supplies bio nutrient ingredients for the health and nutrition markets. In addition, it operates as a contract packer of natural cheddar and processed cheddar cheese products for corporations; and is involved in contract packaging for private proprietary brands, supermarket house brands, and QSR raw material inputs, as well as products for other dairy companies into their brands. The company also exports its products to approximately 40 countries across the Middle East, Southeast Asia, North Asia, Central and South America, and the Pacific Islands. Bega Cheese Limited was founded in 1899 and is headquartered in Bega, Australia.

How the Company Makes Money

Bega Cheese Limited generates revenue through the production and sale of dairy products, spreads, and other grocery items. The company's key revenue streams include retail sales of branded products, wholesale supply to foodservice and industrial markets, and export sales. Bega Cheese benefits from its strong brand portfolio and extensive distribution network, which allows it to reach a wide consumer base. Additionally, the company engages in strategic partnerships and acquisitions to expand its product offerings and market reach, such as the acquisition of the Vegemite brand and other assets from Mondelez International. These initiatives, along with its focus on innovation and efficiency in production, contribute significantly to its earnings.

Bega Cheese Limited Financial Statement Overview

Summary

Bega Cheese Limited shows a positive financial trajectory with revenue growth and profitability improvements. It has strong cash flow generation, manageable leverage, and potential for further margin improvements, though net profit margins and return on equity remain areas for improvement.

Income Statement

Bega Cheese Limited has shown a strong recovery in its income statement with a notable revenue growth of 4.33% from the previous year. Gross and net profit margins are at 19.83% and 0.87%, respectively, indicating improved profitability. The EBIT and EBITDA margins of 1.14% and 4.66% also reflect operational improvements, although the net profit margin remains relatively low, highlighting room for further margin improvement.

Balance Sheet

The balance sheet reflects moderate stability with a debt-to-equity ratio of 0.41, indicating manageable leverage. The equity ratio is 47.43%, suggesting a solid proportion of equity financing. However, the return on equity stands at a modest 2.96%, pointing towards lower returns for shareholders despite improving profitability metrics.

Cash Flow

Cash flow analysis reveals strong growth in free cash flow, moving from a negative position last year to a positive $59.7 million, driven by improved operating cash flow. The operating cash flow to net income ratio is robust at 4.40, indicating strong cash generation relative to net income, which is a positive indicator of cash flow health.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	3.58B	3.52B	3.38B	3.01B	2.07B	1.49B
Gross Profit	738.40M	698.50M	656.40M	689.40M	465.20M	289.05M
EBITDA	183.30M	164.00M	-130.00M	148.10M	181.20M	87.02M
Net Income	34.20M	30.50M	-229.90M	24.20M	72.20M	21.27M
Balance Sheet
Total Assets	2.12B	2.14B	2.15B	2.36B	2.51B	1.42B
Cash, Cash Equivalents and Short-Term Investments	57.80M	65.60M	66.40M	44.90M	87.20M	22.88M
Total Debt	464.30M	418.90M	467.10M	422.80M	496.50M	258.53M
Total Liabilities	1.09B	1.12B	1.15B	1.10B	1.24B	609.37M
Stockholders Equity	1.03B	1.01B	1.00B	1.26B	1.27B	814.04M
Cash Flow
Free Cash Flow	64.50M	59.70M	-59.90M	86.40M	79.20M	81.20M
Operating Cash Flow	126.20M	134.30M	8.20M	158.20M	111.40M	138.04M
Investing Cash Flow	-38.60M	-52.30M	99.90M	-63.80M	-546.70M	-52.88M
Financing Cash Flow	-98.90M	-82.80M	-86.60M	-136.70M	499.60M	-91.03M

Bega Cheese Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:BGA, the sentiment is Negative. The current price of 5.3 is below the 20-day moving average (MA) of 5.46, below the 50-day MA of 5.57, and below the 200-day MA of 5.40, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 31.92 is Neutral, neither overbought nor oversold. The STOCH value of 5.83 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:BGA.

Bega Cheese Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	HK$19.83B	12.11	0.81%	5.13%	2.72%	-47.45%
BGA	56 Neutral	€1.59B	47.24	3.35%	2.30%	4.28%	―
BUB	48 Neutral	AU$156.30M	―	-21.85%	―	30.54%	88.42%
NOU	41 Neutral	AU$31.87M	―		―	4.22%	-199.40%
F9H		€17.61M	―	-23.00%	―	―	―
NUC	44 Neutral	AU$23.47M	―	-47.74%	―	43.14%	51.35%
BFC		AU$5.99M	―		―	―	―

Bega Cheese Limited Corporate Events

Bega Cheese to Close Peanut Processing Business Amid Financial Struggles

Bega Cheese Limited has announced the phased shutdown of its peanut processing business, Peanut Company of Australia Pty Ltd (PCA), following a strategic review. Despite efforts to invest in PCA and support local growers, sustained financial losses and industry challenges, such as increased competition from imports and high input costs, have led to this decision. The closure will cease PCA’s annual operating losses of $5-10 million, although one-off shutdown costs are expected. Bega Group plans to support affected employees and growers during this transition, while maintaining its operations in other parts of Queensland.

The most recent analyst rating on (AU:BGA) stock is a Buy with a A$5.90 price target. To see the full list of analyst forecasts on Bega Cheese Limited stock, see the AU:BGA Stock Forecast page.

Bega Cheese Limited to Present FY2025 Results

Bega Cheese Limited has announced its FY2025 full year results, which will be presented by key executives during a conference call scheduled for August 21, 2025. This announcement is significant for stakeholders as it provides insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and future operations.

The most recent analyst rating on (AU:BGA) stock is a Hold with a A$4.91 price target. To see the full list of analyst forecasts on Bega Cheese Limited stock, see the AU:BGA Stock Forecast page.

Bega Cheese Seeks ACCC Clearance for Fonterra Oceania Acquisition

Bega Cheese Limited has announced its intention to seek informal merger clearance from the Australian Competition and Consumer Commission for the potential acquisition of Fonterra Oceania. This acquisition is expected to improve efficiencies and outcomes for the Australian dairy industry, benefiting farmers, customers, and consumers.

The most recent analyst rating on (AU:BGA) stock is a Hold with a A$4.91 price target. To see the full list of analyst forecasts on Bega Cheese Limited stock, see the AU:BGA Stock Forecast page.

Bega Cheese Faces Legal Appeal from Fonterra

Bega Cheese Limited is currently involved in legal proceedings with Fonterra Brands (Australia) Pty Ltd and Bonland Cheese Trading Pty Ltd, collectively referred to as the Fonterra Companies. The Supreme Court of New South Wales dismissed the Fonterra Companies’ case, which sought declarations regarding the impact of a proposed transaction on their Trade Mark Licence Agreements with Bega. Fonterra has now sought leave to appeal this decision, while Bega remains committed to defending its rights.

The most recent analyst rating on (AU:BGA) stock is a Hold with a A$4.91 price target. To see the full list of analyst forecasts on Bega Cheese Limited stock, see the AU:BGA Stock Forecast page.

Bega Cheese Consolidates Operations to Boost Efficiency

Bega Cheese Limited has announced the consolidation of its Strathmerton operations into its Ridge Street site in Bega, aiming to complete the transition by mid-2026. This strategic move is expected to yield $30 million in annual cost savings and requires a $50 million capital investment at Ridge Street. The consolidation will result in a non-cash impairment and one-off cash costs related to redundancies. The project is anticipated to improve earnings per share by 2 cents and create approximately 100 jobs in the Bega Valley, while supporting the affected Strathmerton employees through the transition.

Bega Cheese Wins Legal Battle Against Fonterra

The Supreme Court of NSW has dismissed the legal proceedings initiated by Fonterra Brands (Australia) Pty Limited and Bonland Cheese Trading Pty Limited against Bega Cheese Limited. The court’s decision requires Fonterra to cover Bega’s legal costs, affirming Bega’s position in the dispute over Trade Mark Licence Agreements. Bega’s Executive Chairman, Barry Irvin, expressed satisfaction with the outcome and indicated interest in acquiring Fonterra’s Oceania businesses, highlighting Bega’s strategic growth ambitions.

Australian Retirement Trust Acquires Significant Stake in Bega Cheese

Australian Retirement Trust Pty Ltd has become a substantial holder in Bega Cheese Limited, acquiring a 5.008% voting power through fully paid ordinary shares. This acquisition indicates a strategic interest in Bega Cheese, potentially impacting the company’s shareholder dynamics and market positioning.