Clover Corporation Limited (CLV) AI Stock Analysis

• Market Cap: AU$91.85M
• Dividend Yield: 2.73%
• Average Volume (3M): 328.37K
• Price to Earnings (P/E): 20.3
• Beta (1Y): -0.45
• Revenue Growth: 15.48%
• EPS Growth: 135.65%
• Country: AU
• Employees: 60
• Sector: Industrials
• Sector Strength: 85
• Industry: Packaged Foods
• EPS (TTM): 0.01
• Shares Outstanding: 166,999,340
• 10 Day Avg. Volume: 138,477
• 30 Day Avg. Volume: 328,374
• PEG Ratio: -2.21
• Price to Book (P/B): 2.71
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 35.71
• 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: AU$0.60
• Price Target Upside: 11.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 64 Neutral
• Price Target: AU$0.50 ▼(-7.41%Downside)

Clover Corporation Limited's overall stock score is primarily influenced by its solid financial position and reasonable valuation, despite declining revenue and profitability. The technical analysis indicates moderate momentum, with caution advised due to nearing overbought conditions. The absence of earnings call insights and corporate events means these areas did not impact the overall score.

Clover Corporation Limited Business Overview & Revenue Model

Company Description

Clover Corporation Limited (CLV) is an Australian-based company specializing in the development and production of unique, high-quality ingredients for the food, beverage, and nutraceutical industries. The company is renowned for its innovative encapsulation technology, which enhances the stability and bioavailability of sensitive oils such as omega-3 fatty acids. CLV's products are used globally in a variety of applications, including infant formula, dietary supplements, and functional foods, supporting health and wellness initiatives worldwide.

How the Company Makes Money

Clover Corporation Limited generates revenue primarily through the manufacture and sale of its proprietary encapsulated ingredients. The company's key revenue streams include sales of products like omega-3 DHA powders and other specialty ingredients that are incorporated into a wide range of consumer products. CLV's advanced encapsulation technology allows it to command premium pricing for its offerings, adding value by enhancing the nutritional profile and shelf life of end products. Additionally, the company may enter into strategic partnerships and collaborations with major food and nutraceutical companies to expand its market reach and drive additional sales. Factors such as global health trends and increasing consumer awareness of the benefits of omega-3 fatty acids contribute to the demand for Clover's products, supporting its financial performance.

Clover Corporation Limited Financial Statement Overview

Summary

Clover Corporation Limited faces challenges with declining revenue and profitability, yet maintains a strong balance sheet and solid cash flow generation. The company's low leverage and high equity ratio offer stability, but declining ROE and margins are concerning. The ability to generate cash flow amidst decreasing profitability is a strength, but addressing top-line growth and margins is critical for future performance.

Income Statement

Clover Corporation Limited has experienced a significant decline in revenue and profitability over the past year. The gross profit margin decreased from 29.72% to 27.10%, and the net profit margin dropped from 7.77% to 2.44%. Revenue fell by 22.14% year-over-year, indicating challenges in maintaining sales. The EBIT margin also decreased from 12.47% to 5.03%. These metrics suggest pressure on both the top and bottom lines.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.15, reflecting conservative leverage. The equity ratio is high at 79.46%, indicating financial stability. However, ROE has decreased from 9.24% to 2.26%, which highlights a decline in profitability despite strong equity. Overall, the balance sheet suggests a sound financial position with low leverage but reduced returns on equity.

Cash Flow

Free cash flow increased by 20.19%, indicating improved cash generation despite declining revenue. The operating cash flow to net income ratio is robust at 5.58, demonstrating strong cash flow management. However, the free cash flow to net income ratio is at 4.04, which, while positive, reflects decreased net income. The cash flow statement shows resilience in cash generation amidst declining profitability.

Breakdown	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	72.49M	62.21M	79.88M	70.66M	60.51M	88.28M
Gross Profit	20.62M	16.86M	23.74M	21.66M	18.24M	29.71M
EBITDA	7.77M	3.87M	10.88M	11.95M	10.23M	19.04M
Net Income	4.53M	1.51M	6.21M	7.13M	6.00M	12.49M
Balance Sheet
Total Assets	81.44M	84.39M	86.20M	90.77M	78.73M	81.49M
Cash, Cash Equivalents and Short-Term Investments	15.38M	12.26M	9.44M	10.11M	9.09M	9.24M
Total Debt	6.03M	10.39M	11.71M	12.08M	14.19M	14.62M
Total Liabilities	13.49M	17.32M	19.05M	27.73M	20.32M	23.92M
Stockholders Equity	67.95M	67.07M	67.15M	63.04M	58.42M	57.57M
Cash Flow
Free Cash Flow	18.51M	6.13M	5.10M	4.51M	6.40M	6.11M
Operating Cash Flow	20.34M	8.45M	6.74M	5.93M	8.23M	6.66M
Investing Cash Flow	-2.42M	-2.97M	-2.53M	-1.43M	-1.83M	-4.02M
Financing Cash Flow	-10.60M	-2.66M	-4.88M	-3.49M	-6.55M	-1.67M

Clover Corporation Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.54
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:CLV, the sentiment is Positive. The current price of 0.54 is above the 20-day moving average (MA) of 0.51, above the 50-day MA of 0.47, and above the 200-day MA of 0.46, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 61.65 is Neutral, neither overbought nor oversold. The STOCH value of 62.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:CLV.

Clover Corporation Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CLV	64 Neutral	AU$91.85M	20.30	6.80%	2.73%	15.48%	135.65%
Sector *	59 Neutral	AU$1.64B	9.68	11.24%	3.68%	6.75%	3.18%
BUB	51 Neutral	AU$160.76M	―	-21.85%	―	30.54%	88.42%
BUB	51 Neutral	AU$160.76M	―	-21.85%	―	30.54%	88.42%
HCT	47 Neutral	AU$19.77M	―		―	-5.86%	98.26%
HCT	47 Neutral	AU$19.77M	―		―	-5.86%	98.26%
NUC	45 Neutral	AU$23.47M	―	-47.74%	―	43.14%	51.35%
NUC	45 Neutral	AU$23.47M	―	-47.74%	―	43.14%	51.35%
AHF	41 Neutral	AU$31.59M	―	-23.00%	―	-2.14%	11.40%
AHF	41 Neutral	AU$31.59M	―	-23.00%	―	-2.14%	11.40%
NGS	31 Underperform	AU$3.70M	―		―	-16.29%	58.77%

Clover Corporation Limited Corporate Events

Clover Corporation Expects Strong FY25 Financial Performance

Clover Corporation Limited announced an expected outperformance in its unaudited Net Profit After Tax (NPAT) for FY25, surpassing market consensus by approximately 20%. The company’s full-year sales are also anticipated to exceed expectations, driven by a favorable product and customer mix, enhanced performance at Melody Dairies and Ecuador operations, and beneficial currency movements. CEO Peter Davey highlighted the strong contribution from Ecuador as a key factor in the company’s global production footprint, emphasizing the company’s robust balance sheet and continued momentum into FY26.

The most recent analyst rating on (AU:CLV) stock is a Buy with a A$0.60 price target. To see the full list of analyst forecasts on Clover Corporation Limited stock, see the AU:CLV Stock Forecast page.