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Fonterra Co-operative Group (NZSE:FCG) PS Ratio : 0.23 (As of Jun. 24, 2024)


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What is Fonterra Co-operative Group PS Ratio?

The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. As of today, Fonterra Co-operative Group's share price is NZ$2.92. Fonterra Co-operative Group's Revenue per Share for the trailing twelve months (TTM) ended in Jul. 2023 was NZ$12.72. Hence, Fonterra Co-operative Group's PS Ratio for today is 0.23.

Warning Sign:

Fonterra Co-operative Group Ltd stock PS Ratio (=0.23) is close to 2-year high of 0.24

The historical rank and industry rank for Fonterra Co-operative Group's PS Ratio or its related term are showing as below:

NZSE:FCG' s PS Ratio Range Over the Past 10 Years
Min: 0.16   Med: 0.37   Max: 0.63
Current: 0.23

During the past 13 years, Fonterra Co-operative Group's highest PS Ratio was 0.63. The lowest was 0.16. And the median was 0.37.

NZSE:FCG's PS Ratio is ranked better than
89.38% of 1874 companies
in the Consumer Packaged Goods industry
Industry Median: 0.95 vs NZSE:FCG: 0.23

Fonterra Co-operative Group's Revenue per Sharefor the six months ended in Jul. 2023 was NZ$6.34. Its Revenue per Share for the trailing twelve months (TTM) ended in Jul. 2023 was NZ$12.72.

During the past 12 months, the average Revenue per Share Growth Rate of Fonterra Co-operative Group was 12.40% per year. During the past 3 years, the average Revenue per Share Growth Rate was 6.70% per year. During the past 5 years, the average Revenue per Share Growth Rate was 3.80% per year. During the past 10 years, the average Revenue per Share Growth Rate was 1.70% per year.

During the past 13 years, Fonterra Co-operative Group's highest 3-Year average Revenue per Share Growth Rate was 6.70% per year. The lowest was -4.90% per year. And the median was 0.20% per year.

Back to Basics: PS Ratio


Fonterra Co-operative Group PS Ratio Historical Data

The historical data trend for Fonterra Co-operative Group's PS Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Fonterra Co-operative Group PS Ratio Chart

Fonterra Co-operative Group Annual Data
Trend Jul14 Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23
PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.31 0.30 0.22 0.20 0.21

Fonterra Co-operative Group Semi-Annual Data
Jan14 Jul14 Jan15 Jul15 Jan16 Jul16 Jan17 Jul17 Jan18 Jul18 Jan19 Jul19 Jan20 Jul20 Jan21 Jul21 Jan22 Jul22 Jan23 Jul23
PS Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.22 - 0.20 - 0.21

Competitive Comparison of Fonterra Co-operative Group's PS Ratio

For the Packaged Foods subindustry, Fonterra Co-operative Group's PS Ratio, along with its competitors' market caps and PS Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Fonterra Co-operative Group's PS Ratio Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Fonterra Co-operative Group's PS Ratio distribution charts can be found below:

* The bar in red indicates where Fonterra Co-operative Group's PS Ratio falls into.



Fonterra Co-operative Group PS Ratio Calculation

The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. It is a ratio widely used to value stocks and it was first used by Ken Fisher.

Fonterra Co-operative Group's PS Ratio for today is calculated as

PS Ratio=Share Price/Revenue per Share (TTM)
=2.92/12.718
=0.23

Fonterra Co-operative Group's Share Price of today is NZ$2.92.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Fonterra Co-operative Group's Revenue per Share for the trailing twelve months (TTM) ended in Jul. 2023 was NZ$12.72.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

It can also be calculated from the numbers for the whole company:

PS Ratio=Market Cap/Revenue

The Revenue here is for the trailing 12 months.


Fonterra Co-operative Group  (NZSE:FCG) PS Ratio Explanation

The PS Ratio is an excellent valuation indicator if you want to compare a stock with its historical valuation or with the stocks in the same industry. The PS Ratio works especially well when you want to compare the stock's current valuation with its historical valuation. The PS Ratio is a great valuation tool for evaluating cyclical businesses where the PE Ratio works poorly. It works the best when comparing the current valuation with the historical valuation because over time, a company's profit margin tends to revert to the mean.

When the PS Ratio is applied to the whole stock market, it can be used to evaluate the current market valuation and projected returns. In this case, the price is the total market cap of all stocks that are traded, and sales are the GDP of the country. This is how Warren Buffett estimates the broad market valuation and project future returns.

Similar to the PE Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PS Ratio measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

The PS Ratio does not tell you how cheap or expensive the stock is. It cannot be used to compare companies in different industries. It works better for companies within the same industry because these companies tend to have similar capital structures and profit margins. It works the best when comparing a company with itself in the past.


Fonterra Co-operative Group PS Ratio Related Terms

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Fonterra Co-operative Group (NZSE:FCG) Business Description

Traded in Other Exchanges
N/A
Address
109 Fanshawe Street, Auckland Central, Auckland, NZL, 1010
Fonterra Co-operative Group Ltd operates predominantly in the international dairy industry. The company is involved in the collection, manufacture, and sale of milk and milk-derived products through its ingredients, Consumer and Foodservice channels. The company's reportable segments are Global Markets, Greater China, and Core Operations and the majority of the revenue is generated from its core operations segment. Its primary geographic markets are China, the Rest of Asia, Australia, New Zealand, the United States, Latin America, and the Rest of the world.

Fonterra Co-operative Group (NZSE:FCG) Headlines