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AVG

Australian VintageASX:AVG Stock Report

Market Cap

AU$220.0m

7D

3.0%

1Y

74.9%

Updated

22 Oct, 2021

Data

Company Financials +
AVG fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance5/6
Financial Health6/6
Dividends4/6

AVG Overview

Australian Vintage Ltd, together with its subsidiaries, produces, packages, markets, and distributes wine in Australia, the United Kingdom, Europe, Asia, North America, and internationally.

Australian Vintage Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Australian Vintage
Historical stock prices
Current Share PriceAU$0.86
52 Week HighAU$0.47
52 Week LowAU$0.92
Beta1.22
1 Month Change4.85%
3 Month Change11.61%
1 Year Change74.94%
3 Year Change44.17%
5 Year Change69.24%
Change since IPO55.70%

Recent News & Updates

Jul 18
Returns At Australian Vintage (ASX:AVG) Are On The Way Up

Returns At Australian Vintage (ASX:AVG) Are On The Way Up

Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key...

Jun 08
These 4 Measures Indicate That Australian Vintage (ASX:AVG) Is Using Debt Reasonably Well

These 4 Measures Indicate That Australian Vintage (ASX:AVG) Is Using Debt Reasonably Well

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

May 10
Do Australian Vintage's (ASX:AVG) Earnings Warrant Your Attention?

Do Australian Vintage's (ASX:AVG) Earnings Warrant Your Attention?

Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling...

Shareholder Returns

AVGAU BeverageAU Market
7D3.0%0.3%0.6%
1Y74.9%34.1%21.3%

Return vs Industry: AVG exceeded the Australian Beverage industry which returned 34.6% over the past year.

Return vs Market: AVG exceeded the Australian Market which returned 21.4% over the past year.

Price Volatility

Is AVG's price volatile compared to industry and market?
AVG volatility
AVG Beta1.22
Industry Beta0.47
Market Beta1

Stable Share Price: AVG is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: AVG's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1991n/aCraig Garvinhttps://www.australianvintage.com.au

Australian Vintage Ltd, together with its subsidiaries, produces, packages, markets, and distributes wine in Australia, the United Kingdom, Europe, Asia, North America, and internationally. It operates through Australia / New Zealand; UK, Europe & Americas; Asia; Australasia / North America Bulk Wine and Processing; and Vineyards segments. The company offers wine under the Nepenthe, McGuigan Wines, Tempus Two, and Barossa Valley Wine Company brands.

Australian Vintage Fundamentals Summary

How do Australian Vintage's earnings and revenue compare to its market cap?
AVG fundamental statistics
Market CapAU$219.98m
Earnings (TTM)AU$19.60m
Revenue (TTM)AU$273.96m

11.2x

P/E Ratio

0.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AVG income statement (TTM)
RevenueAU$273.96m
Cost of RevenueAU$187.76m
Gross ProfitAU$86.20m
ExpensesAU$66.60m
EarningsAU$19.60m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.077
Gross Margin31.46%
Net Profit Margin7.16%
Debt/Equity Ratio15.0%

How did AVG perform over the long term?

See historical performance and comparison

Dividends

3.5%

Current Dividend Yield

39%

Payout Ratio

Does AVG pay a reliable dividends?

See AVG dividend history and benchmarks
When do you need to buy AVG by to receive an upcoming dividend?
Australian Vintage dividend dates
Ex Dividend DateNov 25 2021
Dividend Pay DateDec 17 2021
Days until Ex dividend33 days
Days until Dividend pay date55 days

Does AVG pay a reliable dividends?

See AVG dividend history and benchmarks

Valuation

Is Australian Vintage undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AVG (A$0.87) is trading below our estimate of fair value (A$2.69)

Significantly Below Fair Value: AVG is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AVG is good value based on its PE Ratio (11.2x) compared to the Oceanic Beverage industry average (27.6x).

PE vs Market: AVG is good value based on its PE Ratio (11.2x) compared to the Australian market (19.8x).


Price to Earnings Growth Ratio

PEG Ratio: AVG is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: AVG is good value based on its PB Ratio (0.7x) compared to the AU Beverage industry average (2.1x).


Future Growth

How is Australian Vintage forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

5.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AVG's forecast earnings growth (5% per year) is above the savings rate (1.9%).

Earnings vs Market: AVG's earnings (5% per year) are forecast to grow slower than the Australian market (11.5% per year).

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

Revenue vs Market: AVG's revenue (2.8% per year) is forecast to grow slower than the Australian market (5.3% per year).

High Growth Revenue: AVG's revenue (2.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AVG's Return on Equity is forecast to be low in 3 years time (7.3%).


Past Performance

How has Australian Vintage performed over the past 5 years?

34.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AVG has high quality earnings.

Growing Profit Margin: AVG's current net profit margins (7.2%) are higher than last year (4.1%).


Past Earnings Growth Analysis

Earnings Trend: AVG has become profitable over the past 5 years, growing earnings by 34.9% per year.

Accelerating Growth: AVG's earnings growth over the past year (79%) exceeds its 5-year average (34.9% per year).

Earnings vs Industry: AVG earnings growth over the past year (79%) exceeded the Beverage industry 25.1%.


Return on Equity

High ROE: AVG's Return on Equity (6.3%) is considered low.


Financial Health

How is Australian Vintage's financial position?


Financial Position Analysis

Short Term Liabilities: AVG's short term assets (A$209.2M) exceed its short term liabilities (A$72.4M).

Long Term Liabilities: AVG's short term assets (A$209.2M) exceed its long term liabilities (A$93.8M).


Debt to Equity History and Analysis

Debt Level: AVG's debt to equity ratio (15%) is considered satisfactory.

Reducing Debt: AVG's debt to equity ratio has reduced from 40.3% to 15% over the past 5 years.

Debt Coverage: AVG's debt is well covered by operating cash flow (95.7%).

Interest Coverage: AVG's interest payments on its debt are well covered by EBIT (11.6x coverage).


Balance Sheet


Dividend

What is Australian Vintage current dividend yield, its reliability and sustainability?

3.47%

Current Dividend Yield


Upcoming Dividend Payment

TodayOct 23 2021Ex Dividend DateNov 25 2021Dividend Pay DateDec 17 202122 days from Ex DividendBuy in the next 33 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: AVG's dividend (3.47%) is higher than the bottom 25% of dividend payers in the Australian market (2.27%).

High Dividend: AVG's dividend (3.47%) is low compared to the top 25% of dividend payers in the Australian market (5.31%).


Stability and Growth of Payments

Stable Dividend: AVG's dividend payments have been volatile in the past 10 years.

Growing Dividend: AVG's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (38.7%), AVG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AVG's dividends in 3 years are forecast to be covered by earnings (70% payout ratio).


Next Steps

Management

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

1.9yrs

Average management tenure


CEO

Craig Garvin (54 yo)

1.92yrs

Tenure

AU$1,666,617

Compensation

Mr. Craig Anthony Garvin serves as Chief Executive Officer and Non-Independent Executive Director at Australian Vintage Ltd since November 21, 2019. He was the Chief Executive Officer of Parmalat Australia...


CEO Compensation Analysis

Compensation vs Market: Craig's total compensation ($USD1.25M) is above average for companies of similar size in the Australian market ($USD559.78K).

Compensation vs Earnings: Insufficient data to compare Craig's compensation with company performance.


Leadership Team

Experienced Management: AVG's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

Experienced Board: AVG's board of directors are considered experienced (5.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Australian Vintage Ltd's employee growth, exchange listings and data sources


Key Information

  • Name: Australian Vintage Ltd
  • Ticker: AVG
  • Exchange: ASX
  • Founded: 1991
  • Industry: Distillers and Vintners
  • Sector: Food, Beverage & Tobacco
  • Market Cap: AU$219.979m
  • Shares outstanding: 254.31m
  • Website: https://www.australianvintage.com.au

Location

  • Australian Vintage Ltd
  • 275 Sir Donald Bradman Drive
  • Cowandilla
  • South Australia
  • 5033
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/22 15:33
End of Day Share Price2021/10/22 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.