Clover Corporation Limited (CLV) AI Stock Analysis

• Market Cap: AU$65.13M
• Dividend Yield: 3.85%
• Average Volume (3M): 165.23K
• Price to Earnings (P/E): 14.4
• Beta (1Y): -0.45
• Revenue Growth: 15.48%
• EPS Growth: 135.65%
• Country: AU
• Employees: 60
• Sector: Industrials
• Sector Strength: 91
• Industry: Packaged Foods
• EPS (TTM): 0.01
• Shares Outstanding: 166,999,340
• 10 Day Avg. Volume: 137,625
• 30 Day Avg. Volume: 165,231
• PEG Ratio: 0.07
• Price to Book (P/B): 0.96
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.52
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 63 Neutral
• Price Target: AU$0.50 ▲(28.21%Upside)

The overall stock score of Clover Corporation Limited is 63.4, reflecting a mix of financial strengths and challenges. The strong balance sheet and cash flow generation provide stability, but declining revenue and profitability are concerning. Technical analysis indicates some bearish momentum, while the valuation is supported by a reasonable P/E ratio and attractive dividend yield. Addressing profitability and growth remains crucial for improving future performance.

Clover Corporation Limited Business Overview & Revenue Model

Company Description

Clover Corporation Limited refines and sells natural oils in Australia, New Zealand, Asia, Europe, and the Americas. It also engages in the production of encapsulated products; and research and product development of functional food and infant nutrition ingredients. In addition, the company offers Nu-Mega Hi docosahexaenoic tuna oils for use in infant formula and pharmaceutical products; Ocean Gold refined tuna oils; Nu-Mega Driphorm powders that are used in a range of infant formula, follow-on formula, growing up milks, and food applications; and Nu-Mega Driphorm HA for non-dairy applications. Further, it provides products in the areas of active living-immune system and sports, healthy living–brain and heart, and starting out-infant and child. The company was incorporated in 1988 and is headquartered in Altona North, Australia.

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
	EBIT
5.74M	3.13M	9.96M	11.24M	9.52M	18.36M
	EBITDA
7.77M	3.87M	10.88M	11.95M	10.23M	19.04M
	Net Income Common Stockholders
4.53M	1.51M	6.21M	7.13M	6.00M	12.49M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.17M	12.26M	9.44M	10.11M	9.09M	9.24M
	Total Assets
57.24M	84.39M	86.20M	90.77M	78.73M	81.49M
	Total Debt
7.44M	10.39M	11.71M	12.08M	14.19M	14.62M
	Net Debt
1.27M	-1.87M	2.27M	1.97M	5.09M	5.38M
	Total Liabilities
16.66M	17.32M	19.05M	27.73M	20.32M	23.92M
	Stockholders Equity
40.58M	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: Negative
• Last Price: 0.39
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 0.39 is below the 20-day moving average (MA) of 0.43, below the 50-day MA of 0.46, and below the 200-day MA of 0.44, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 33.96 is Neutral, neither overbought nor oversold. The STOCH value of 21.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:CLV.

Clover Corporation Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	66 Neutral	$4.51B	12.29	5.40%	248.53%	4.14%	-12.41%
CLV	63 Neutral	AU$65.13M	14.39	6.80%	3.85%	15.48%	135.65%
ACOPF		$3.79B	36.06	13.75%	0.97%	―	―
FTZ		€663.12M	14.16	7.21%	6.35%	―	―
B6G		€975.36M	46.13	3.35%	1.93%	―	―
BUB	51 Neutral	AU$125.04M	―	-21.85%	―	30.54%	88.42%
SM1		AU$396.81M	―	-14.39%	―	―	―

Clover Corporation Limited Corporate Events

TIGA Trading Acquires Substantial Stake in Clover Corporation

TIGA Trading Pty Ltd has become a substantial holder in Clover Corporation Limited, acquiring a 5.98% voting power through 9,980,642 fully paid ordinary shares. This acquisition, involving entities under the Thorney Investment Group and controlled by Alex Waislitz, signifies a strategic investment that could influence Clover Corporation’s future decisions and market positioning.

Clover Corporation Announces Dividend Distribution for Shareholders

Clover Corporation Limited has announced a dividend distribution of AUD 0.0075 per share, covering a six-month period ending January 31, 2025. The ex-dividend date is set for April 9, 2025, with the record date on April 10, 2025, and payment to be made on April 24, 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders and may positively impact investor sentiment.

Clover Corporation Reports Strong Financial Turnaround in 1H FY25

Clover Corporation Limited has reported a significant financial turnaround for the first half of FY25, with revenue increasing by 38% to $37.6 million and a net profit after tax of $2.4 million, compared to a loss in the previous period. The company’s strategic initiatives in product mix optimization and manufacturing efficiencies have improved gross margins and EBITDA, while new distributor partnerships in North America, Asia, and Europe are enhancing market reach. The commencement of crude oil deliveries from Ecuador and investments in fish oil sourcing are expected to secure raw materials and provide strategic benefits, positioning Clover for sustainable growth.

Clover Corporation Reports Strong Financial Turnaround

Clover Corporation Limited has announced a significant financial turnaround for the half-year ended 31 January 2025, reporting a profit after tax of $2.4 million, a substantial increase from a $0.6 million loss in the previous corresponding period. This remarkable improvement is highlighted by a 38% rise in revenue to $37.6 million and a 468% increase in profit from ordinary activities after tax, reflecting the company’s strengthened market position and operational efficiency, which may positively impact stakeholders and industry standing.

Clover Corporation Announces Change in Substantial Shareholding

Clover Corporation Limited has announced a change in the substantial holding of its shares by Washington H. Soul Pattinson and Company Limited (Soul Patts). As of March 14, 2025, Soul Patts’ voting power in Clover Corporation has decreased from 17.89% to 16.67%. This change in shareholding could impact Clover Corporation’s shareholder dynamics and influence within the company, potentially affecting its strategic decisions and market positioning.