WBAG:CPR

Stock Analysis Report

Executive Summary

Davide Campari-Milano S.p.A., together with its subsidiaries, manufactures and trades in alcoholic and non-alcoholic beverages in the Americas, Europe, the Middle East, Africa, Europe, and the Asia-Pacific.

Rewards

Earnings are forecast to grow 10.04% per year

Risk Analysis

Debt is not well covered by operating cash flow

Profit margins (15.3%) are lower than last year (23%)

Shareholders have been diluted in the past year



Snowflake Analysis

Moderate growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has Davide Campari-Milano's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CPR has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.6%

CPR

0.8%

AT Beverage

1.9%

AT Market


1 Year Return

9.2%

CPR

5.9%

AT Beverage

5.1%

AT Market

Return vs Industry: CPR exceeded the Austrian Beverage industry which returned 5.9% over the past year.

Return vs Market: CPR exceeded the Austrian Market which returned 5.1% over the past year.


Shareholder returns

CPRIndustryMarket
7 Day-0.6%0.8%1.9%
30 Day3.8%-3.4%0.3%
90 Day7.9%-0.04%0.8%
1 Year9.8%9.2%8.0%5.9%8.8%5.1%
3 Yearn/a12.0%5.0%27.7%16.2%
5 Yearn/a21.8%9.0%56.9%35.2%

Price Volatility Vs. Market

How volatile is Davide Campari-Milano's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Davide Campari-Milano undervalued compared to its fair value and its price relative to the market?

37.8x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CPR (€8.96) is trading above our estimate of fair value (€5.83)

Significantly Below Fair Value: CPR is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CPR is poor value based on its PE Ratio (37.8x) compared to the Beverage industry average (20.7x).

PE vs Market: CPR is poor value based on its PE Ratio (37.8x) compared to the Austrian market (14.2x).


Price to Earnings Growth Ratio

PEG Ratio: CPR is poor value based on its PEG Ratio (3.8x)


Price to Book Ratio

PB vs Industry: CPR is overvalued based on its PB Ratio (4.6x) compared to the XE Beverage industry average (2.1x).


Next Steps

Future Growth

How is Davide Campari-Milano forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

10.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CPR's forecast earnings growth (10% per year) is above the savings rate (-0.1%).

Earnings vs Market: CPR's earnings (10% per year) are forecast to grow faster than the Austrian market (9.9% per year).

High Growth Earnings: CPR's earnings are forecast to grow, but not significantly.

Revenue vs Market: CPR's revenue (6.5% per year) is forecast to grow faster than the Austrian market (2.7% per year).

High Growth Revenue: CPR's revenue (6.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CPR's Return on Equity is forecast to be low in 3 years time (12.9%).


Next Steps

Past Performance

How has Davide Campari-Milano performed over the past 5 years?

20.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CPR has high quality earnings.

Growing Profit Margin: CPR's current net profit margins (15.3%) are lower than last year (23%).


Past Earnings Growth Analysis

Earnings Trend: CPR's earnings have grown significantly by 20.9% per year over the past 5 years.

Accelerating Growth: CPR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CPR had negative earnings growth (-31.2%) over the past year, making it difficult to compare to the Beverage industry average (2.7%).


Return on Equity

High ROE: CPR's Return on Equity (12.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Davide Campari-Milano's financial position?


Financial Position Analysis

Short Term Liabilities: CPR's short term assets (€1.8B) exceed its short term liabilities (€677.7M).

Long Term Liabilities: CPR's short term assets (€1.8B) do not cover its long term liabilities (€2.0B).


Debt to Equity History and Analysis

Debt Level: CPR's debt to equity ratio (73.2%) is considered high.

Reducing Debt: CPR's debt to equity ratio has reduced from 99.3% to 73.2% over the past 5 years.

Debt Coverage: CPR's debt is not well covered by operating cash flow (18.7%).

Interest Coverage: CPR's interest payments on its debt are well covered by EBIT (13.7x coverage).


Balance Sheet

Inventory Level: CPR has a high level of physical assets or inventory.

Debt Coverage by Assets: CPR's debt is covered by short term assets (assets are 1.1x debt).


Next Steps

Dividend

What is Davide Campari-Milano's current dividend yield, its reliability and sustainability?

0.56%

Current Dividend Yield


Dividend Yield vs Market

company0.6%marketbottom25%1.6%markettop25%4.5%industryaverage2.2%forecastin3Years0.7%

Current dividend yield vs market & industry

Notable Dividend: CPR's dividend (0.56%) isn’t notable compared to the bottom 25% of dividend payers in the Austrian market (1.58%).

High Dividend: CPR's dividend (0.56%) is low compared to the top 25% of dividend payers in the Austrian market (4.47%).


Stability and Growth of Payments

Stable Dividend: CPR is not paying a notable dividend for the Austrian market, therefore no need to check if payments are stable.

Growing Dividend: CPR is not paying a notable dividend for the Austrian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: CPR is not paying a notable dividend for the Austrian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CPR's dividend in 3 years as they are not forecast to pay a notable one for the Austrian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.1yrs

Average management tenure


CEO

Bob Kunze-Concewitz (52yo)

1.1yrs

Tenure

€4,229,945

Compensation

Mr. Robert Kunze-Concew, also known as Bob, has been Chief Executive Officer of Austin, Nichols Distilling Co., Inc. since May 2007. Mr. Kunze-Concew has been Chief Executive Officer of Davide Campari - Mi ...


CEO Compensation Analysis

Compensation vs Market: Bob's total compensation ($USD0.00) is below average for companies of similar size in the Austrian market ($USD3.59M).

Compensation vs Earnings: Bob's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Robert Kunze-Concewitz
MD, CEO & Executive Director1.1yrs€4.23mno data
Paolo Marchesini
MD, CFO & Executive Director9.8yrs€2.62mno data
Gaspare Campari
0yrsno datano data
Piera Tula
Statutory Auditor1.1yrsno datano data
Christopher Woods
Head of IT3.4yrsno datano data
Fabio Di Fede
Group General Counsel0.8yrsno datano data
Jean Dubau
Group Head of Marketing0.08yrsno datano data
Giorgio Pivetta
Head of Group Human Resources4.1yrsno datano data
Sascha Cumia
Managing Director of Southern Europe1.1yrsno datano data
Cesare Vandini
Managing Director Northern9.1yrsno datano data

2.1yrs

Average Tenure

52yo

Average Age

Experienced Management: CPR's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Kunze-Concewitz
MD, CEO & Executive Director1.1yrs€4.23mno data
Paolo Marchesini
MD, CFO & Executive Director9.8yrs€2.62mno data
Fabio Di Fede
Group General Counsel0.8yrsno datano data
Luca Garavoglia
Non-Executive Chairman25.4yrs€1.83mno data
Marco Perelli-Cippo
Honorary Chairman0yrs€25.00kno data
Catherine Yvonne Gérardin-Vautrin
Independent Director3.8yrsno datano data
Eugenio Barcellona
Director9.8yrs€62.50kno data
Annalisa Loustau
Independent Director3.8yrsno datano data
Ines Gandini
Chairman of Board of Statutory Auditors1.1yrsno datano data
Alessandra Garavoglia
Director0.8yrsno datano data

3.8yrs

Average Tenure

52yo

Average Age

Experienced Board: CPR's board of directors are considered experienced (3.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CPR insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.1%.


Top Shareholders

Company Information

Davide Campari-Milano S.p.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Davide Campari-Milano S.p.A.
  • Ticker: CPR
  • Exchange: WBAG
  • Founded: 1860
  • Industry: Distillers and Vintners
  • Sector: Food, Beverage & Tobacco
  • Market Cap: €10.320b
  • Shares outstanding: 1.15b
  • Website: https://www.camparigroup.com

Number of Employees


Location

  • Davide Campari-Milano S.p.A.
  • Via Franco Sacchetti, 20
  • Sesto San Giovanni
  • Milan
  • 20099
  • Italy

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CPRBIT (Borsa Italiana)YesOrdinary SharesITEURJul 2001
DVDC.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2001
0ROYLSE (London Stock Exchange)YesOrdinary SharesGBEURJul 2001
DVC3DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2001
CPRWBAG (Wiener Boerse AG)YesOrdinary SharesATEURJul 2001
DVDC.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDApr 2004

Biography

Davide Campari-Milano S.p.A., together with its subsidiaries, manufactures and trades in alcoholic and non-alcoholic beverages in the Americas, Europe, the Middle East, Africa, Europe, and the Asia-Pacific. Its product portfolio includes aperitifs, vodka, whisky, tequila, rum, gin, liqueurs, sparkling and still wines, and ready to drink products under approximately 50 brands. The company was founded in 1860 and is headquartered in Sesto San Giovanni, Italy. Davide Campari-Milano S.p.A. operates as a subsidiary of Lagfin S.C.A. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 22:29
End of Day Share Price2020/02/14 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.