ASX:TWE

Stock Analysis Report

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Executive Summary

Treasury Wine Estates Limited operates as a wine company primarily in Australia, New Zealand, Asia, Europe, and the Americas. More Details


Snowflake Analysis

Excellent balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has Treasury Wine Estates's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TWE's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.0%

TWE

-0.05%

AU Beverage

0.5%

AU Market


1 Year Return

-47.0%

TWE

-26.9%

AU Beverage

-5.6%

AU Market

Return vs Industry: TWE underperformed the Australian Beverage industry which returned -26.9% over the past year.

Return vs Market: TWE underperformed the Australian Market which returned -5.6% over the past year.


Shareholder returns

TWEIndustryMarket
7 Day-3.0%-0.05%0.5%
30 Day1.5%7.7%5.0%
90 Day-21.4%-1.1%2.9%
1 Year-45.5%-47.0%-24.8%-26.9%-2.3%-5.6%
3 Year-35.6%-39.7%-8.3%-16.1%12.4%-1.2%
5 Year37.7%23.9%41.5%18.7%41.5%12.9%

Price Volatility Vs. Market

How volatile is Treasury Wine Estates's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Treasury Wine Estates 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: TWE (A$8.98) is trading below our estimate of fair value (A$21.71)

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


Price To Earnings Ratio

PE vs Industry: TWE is poor value based on its PE Ratio (24.8x) compared to the XO Beverage industry average (20.6x).

PE vs Market: TWE is poor value based on its PE Ratio (24.8x) compared to the Australian market (21.4x).


Price to Earnings Growth Ratio

PEG Ratio: TWE is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: TWE's PB Ratio (1.8x) is in line with the AU Beverage industry average.


Next Steps

Future Growth

How is Treasury Wine Estates forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

17.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TWE's forecast earnings growth (17.6% per year) is above the savings rate (2.3%).

Earnings vs Market: TWE's earnings (17.6% per year) are forecast to grow faster than the Australian market (17.5% per year).

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

Revenue vs Market: TWE's revenue (6.6% per year) is forecast to grow faster than the Australian market (4.6% per year).

High Growth Revenue: TWE's revenue (6.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TWE's Return on Equity is forecast to be low in 3 years time (12.2%).


Next Steps

Past Performance

How has Treasury Wine Estates performed over the past 5 years?

22.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TWE has high quality earnings.

Growing Profit Margin: TWE's current net profit margins (9.7%) are lower than last year (14.2%).


Past Earnings Growth Analysis

Earnings Trend: TWE's earnings have grown significantly by 22.5% per year over the past 5 years.

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

Earnings vs Industry: TWE had negative earnings growth (-36.2%) over the past year, making it difficult to compare to the Beverage industry average (34.9%).


Return on Equity

High ROE: TWE's Return on Equity (7.2%) is considered low.


Next Steps

Financial Health

How is Treasury Wine Estates's financial position?


Financial Position Analysis

Short Term Liabilities: TWE's short term assets (A$2.1B) exceed its short term liabilities (A$983.0M).

Long Term Liabilities: TWE's short term assets (A$2.1B) exceed its long term liabilities (A$2.1B).


Debt to Equity History and Analysis

Debt Level: TWE's debt to equity ratio (33.9%) is considered satisfactory.

Reducing Debt: TWE's debt to equity ratio has increased from 11.3% to 33.9% over the past 5 years.

Debt Coverage: TWE's debt is well covered by operating cash flow (31.7%).

Interest Coverage: TWE's interest payments on its debt are well covered by EBIT (6x coverage).


Balance Sheet


Next Steps

Dividend

What is Treasury Wine Estates's current dividend yield, its reliability and sustainability?

3.12%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TWE's dividend (3.12%) is higher than the bottom 25% of dividend payers in the Australian market (2.13%).

High Dividend: TWE's dividend (3.12%) is low compared to the top 25% of dividend payers in the Australian market (5.51%).


Stability and Growth of Payments

Stable Dividend: TWE has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: TWE's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (77.3%), TWE's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TWE's dividends in 3 years are forecast to be covered by earnings (64.4% payout ratio).


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Tim Ford

0.25

Tenure

AU$1,568,401

Compensation

Mr. Timothy Ford, also known as Tim, BBus, MBA, has been Chief Executive Officer, Managing Director and Director at Treasury Wine Estates Limited since July 1, 2020. Mr. Ford was Chief Operating Officer of ...


CEO Compensation Analysis

Compensation vs Market: Tim's total compensation ($USD1.11M) is below average for companies of similar size in the Australian market ($USD2.04M).

Compensation vs Earnings: Tim's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Timothy Ford
CEO, MD & Director0.25yrAU$1.57m0.0099%
A$ 639.3k
Matthew Young
Chief Financial Officer2.42yrsAU$1.35m0.0026%
A$ 167.8k
Kirsten Gray
Chief Corporate Services Officerno datano datano data
Angus Lilley
Chief Marketing Officer1.75yrsno datano data
Stuart Boxer
Chief Strategy & Corporate Development Officer0.33yrno datano data
Tom King
Managing Director of Asia3.58yrsno datano data
Peter Neilson
Managing Director of Australia & New Zealand2.75yrsno datano data
Katie Hodgson
Chief People Officer0.75yrno datano data
Michelle Brampton
Managing Director of EMEAno datano datano data
Kristy Keyte
Global Marketing Director of Penfoldsno datano datano data
Ben Dollard
President of Operations in the Americas0.75yrno datano data
Ash Peck
General Manager of Global Business Services2.75yrsno datano data

1.8yrs

Average Tenure

Experienced Management: TWE's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Timothy Ford
CEO, MD & Director0.25yrAU$1.57m0.0099%
A$ 639.3k
Warwick Every-Burns
Non-Executive Director9.42yrsAU$245.86k0.014%
A$ 897.8k
Paul Rayner
Independent Chairman8.08yrsAU$546.09k0.041%
A$ 2.7m
Lauri Shanahan
Independent Non-Executive Director3.92yrsAU$217.60k0.0016%
A$ 103.6k
Garry Hounsell
Independent Non-Executive Director8.08yrsAU$265.11k0.012%
A$ 750.1k
Wai Wan Cheang
Independent Non-Executive Director1.83yrsAU$197.00kno data
Antonia Korsanos
Independent Non-Executive Director0.50yrAU$54.75k0.00069%
A$ 44.7k
Colleen Jay
Independent Non-Executive Director2.5yrsAU$218.65k0.00047%
A$ 30.4k
Yiu Cheong Chan
Independent Non-Executive Director8.08yrsAU$219.00k0.0067%
A$ 433.4k

3.9yrs

Average Tenure

57yo

Average Age

Experienced Board: TWE's board of directors are considered experienced (3.9 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

Treasury Wine Estates Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Treasury Wine Estates Limited
  • Ticker: TWE
  • Exchange: ASX
  • Founded: 1843
  • Industry: Distillers and Vintners
  • Sector: Food, Beverage & Tobacco
  • Market Cap: AU$6.478b
  • Shares outstanding: 721.34m
  • Website: https://www.tweglobal.com

Number of Employees


Location

  • Treasury Wine Estates Limited
  • 161 Collins Street
  • Level 8
  • Melbourne
  • Victoria
  • 3000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TWEASX (Australian Securities Exchange)YesOrdinary SharesAUAUDMay 2011
TSRY.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 2011
T7WDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 2011
TWECHIA (Chi-X Australia)YesOrdinary SharesAUAUDMay 2011
TSRY.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDMay 2011

Biography

Treasury Wine Estates Limited operates as a wine company primarily in Australia, New Zealand, Asia, Europe, and the Americas. It engages in the viticulture and winemaking; and marketing, sale, and distribu ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 10:41
End of Day Share Price2020/10/20 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.