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LRK

Lark DistillingASX:LRK Stock Report

Market Cap

AU$348.3m

7D

14.8%

1Y

308.9%

Updated

19 Oct, 2021

Data

Company Financials +
LRK fundamental analysis
Snowflake Score
Valuation2/6
Future Growth6/6
Past Performance2/6
Financial Health5/6
Dividends0/6

LRK Overview

Lark Distilling Co. Ltd produces single malt whisky.

Price History & Performance

Summary of all time highs, changes and price drops for Lark Distilling
Historical stock prices
Current Share PriceAU$5.52
52 Week HighAU$1.34
52 Week LowAU$5.60
Beta0.22
1 Month Change15.00%
3 Month Change11.29%
1 Year Change308.89%
3 Year Change308.89%
5 Year Change206.67%
Change since IPO-98.77%

Recent News & Updates

Sep 05
Lark Distilling's (ASX:LRK) Robust Earnings Are Not All Good News For Shareholders

Lark Distilling's (ASX:LRK) Robust Earnings Are Not All Good News For Shareholders

We didn't see Lark Distilling Co. Ltd's ( ASX:LRK ) stock surge when it reported robust earnings recently. We decided...

Shareholder Returns

LRKAU BeverageAU Market
7D14.8%-4.2%1.7%
1Y308.9%32.6%20.3%

Return vs Industry: LRK exceeded the Australian Beverage industry which returned 32.6% over the past year.

Return vs Market: LRK exceeded the Australian Market which returned 20.3% over the past year.

Price Volatility

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

Stable Share Price: LRK is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: LRK's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1839n/aGeoff Bainbridgehttps://www.larkdistillery.com

Lark Distilling Co. Ltd produces single malt whisky. It also offers spirits and liqueurs, gin, slainte, brandy, rum, and sanitizers. The company was formerly known as Australian Whisky Holdings Limited and changed its name to Lark Distilling Co. Ltd in May 2020.

Lark Distilling Fundamentals Summary

How do Lark Distilling's earnings and revenue compare to its market cap?
LRK fundamental statistics
Market CapAU$348.35m
Earnings (TTM)AU$3.44m
Revenue (TTM)AU$16.54m

101.2x

P/E Ratio

21.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LRK income statement (TTM)
RevenueAU$16.54m
Cost of RevenueAU$7.89m
Gross ProfitAU$8.65m
ExpensesAU$5.21m
EarningsAU$3.44m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.055
Gross Margin52.31%
Net Profit Margin20.80%
Debt/Equity Ratio9.9%

How did LRK perform over the long term?

See historical performance and comparison

Valuation

Is Lark Distilling 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: LRK (A$5.52) is trading below our estimate of fair value (A$13.04)

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


Price To Earnings Ratio

PE vs Industry: LRK is poor value based on its PE Ratio (101.2x) compared to the Oceanic Beverage industry average (26.7x).

PE vs Market: LRK is poor value based on its PE Ratio (101.2x) compared to the Australian market (19.9x).


Price to Earnings Growth Ratio

PEG Ratio: LRK is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: LRK is overvalued based on its PB Ratio (6.9x) compared to the AU Beverage industry average (2.1x).


Future Growth

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

46.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LRK's forecast earnings growth (46.7% per year) is above the savings rate (1.9%).

Earnings vs Market: LRK's earnings (46.7% per year) are forecast to grow faster than the Australian market (11.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: LRK's revenue (40.7% per year) is forecast to grow faster than the Australian market (5.4% per year).

High Growth Revenue: LRK's revenue (40.7% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LRK's Return on Equity is forecast to be high in 3 years time (20.6%)


Past Performance

How has Lark Distilling performed over the past 5 years?

18.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LRK has a high level of non-cash earnings.

Growing Profit Margin: LRK became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: LRK has become profitable over the past 5 years, growing earnings by 18.8% per year.

Accelerating Growth: LRK has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: LRK has become profitable in the last year, making it difficult to compare its past year earnings growth to the Beverage industry (25.3%).


Return on Equity

High ROE: LRK's Return on Equity (6.8%) is considered low.


Financial Health

How is Lark Distilling's financial position?


Financial Position Analysis

Short Term Liabilities: LRK's short term assets (A$18.6M) exceed its short term liabilities (A$3.4M).

Long Term Liabilities: LRK's short term assets (A$18.6M) exceed its long term liabilities (A$6.6M).


Debt to Equity History and Analysis

Debt Level: LRK's debt to equity ratio (9.9%) is considered satisfactory.

Reducing Debt: LRK's debt to equity ratio has reduced from 77.3% to 9.9% over the past 5 years.

Debt Coverage: LRK's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: LRK's interest payments on its debt are well covered by EBIT (3.4x coverage).


Balance Sheet


Dividend

What is Lark Distilling current dividend yield, its reliability and sustainability?

0.30%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate LRK's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate LRK's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if LRK's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if LRK's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

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


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Geoff Bainbridge

2yrs

Tenure

AU$582,170

Compensation

Mr. Geoff Bainbridge has been Managing Director and Executive Director of Lark Distilling Co. Ltd (formerly known as Australian Whisky Holdings Limited) since October 4, 2019. He was a Non Executive Dire...


CEO Compensation Analysis

Compensation vs Market: Geoff's total compensation ($USD431.46K) is about average for companies of similar size in the Australian market ($USD549.23K).

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


Leadership Team

Experienced Management: LRK's management team is considered experienced (2 years average tenure).


Board Members

Experienced Board: LRK's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


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

Lark Distilling Co. Ltd's employee growth, exchange listings and data sources


Key Information

  • Name: Lark Distilling Co. Ltd
  • Ticker: LRK
  • Exchange: ASX
  • Founded: 1839
  • Industry: Distillers and Vintners
  • Sector: Food, Beverage & Tobacco
  • Market Cap: AU$348.345m
  • Shares outstanding: 63.11m
  • Website: https://www.larkdistillery.com

Location

  • Lark Distilling Co. Ltd
  • 30 Argyle Street
  • Level 1
  • Hobart
  • Tasmania
  • 7000
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/19 15:41
End of Day Share Price2021/10/19 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.