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TWE

Treasury Wine EstatesASX:TWE Stock Report

Market Cap

AU$8.5b

7D

0.5%

1Y

31.3%

Updated

26 Oct, 2021

Data

Company Financials +
TWE fundamental analysis
Snowflake Score
Valuation2/6
Future Growth2/6
Past Performance4/6
Financial Health5/6
Dividends4/6

TWE Overview

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

Treasury Wine Estates Competitors

Diageo

LSE:DGE

UK£83.8b

Amcor

ASX:AMC

AU$24.7b

Viña Concha y Toro

SNSE:CONCHATORO

CL$923.9b

Crimson Wine Group

OTCPK:CWGL

US$200.5m

Price History & Performance

Summary of all time highs, changes and price drops for Treasury Wine Estates
Historical stock prices
Current Share PriceAU$11.79
52 Week HighAU$7.87
52 Week LowAU$13.34
Beta0.45
1 Month Change-2.00%
3 Month Change-0.085%
1 Year Change31.29%
3 Year Change-20.23%
5 Year Change9.47%
Change since IPO250.89%

Recent News & Updates

Aug 24
Treasury Wine Estates (ASX:TWE) Is Increasing Its Dividend To AU$0.13

Treasury Wine Estates (ASX:TWE) Is Increasing Its Dividend To AU$0.13

The board of Treasury Wine Estates Limited ( ASX:TWE ) has announced that it will be increasing its dividend on the 1st...

Aug 22
We Think Treasury Wine Estates (ASX:TWE) Can Stay On Top Of Its Debt

We Think Treasury Wine Estates (ASX:TWE) Can Stay On Top Of Its Debt

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

TWEAU BeverageAU Market
7D0.5%0.7%0.8%
1Y31.3%36.4%24.4%

Return vs Industry: TWE underperformed the Australian Beverage industry which returned 36.4% over the past year.

Return vs Market: TWE exceeded the Australian Market which returned 24.4% over the past year.

Price Volatility

Is TWE's price volatile compared to industry and market?
TWE volatility
TWE Beta0.45
Industry Beta0.47
Market Beta1

Stable Share Price: TWE is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: TWE's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
18432,600Tim Fordhttps://www.tweglobal.com

Treasury Wine Estates Limited operates as a wine company primarily in Australia, New Zealand, Asia, Europe, the Middle East, Africa, and the Americas. It engages in the viticulture and winemaking; and marketing, sale, and distribution of wine. The company’s wine portfolio includes luxury, premium and commercial wine brands, such as 19 Crimes, Acacia Vineyard, Annie’s Lane, Beaulieu Vineyard, Belcreme de Lys, Beringer Vineyard, Chateau St. Jean, Coldstream Hills, Devil’s Lair, EMBRAZEN, Fifth Leg, Heemskerk, Hewitt Vineyard, Etude, Ingoldby, Jamieson’s Run, Killawarra, Leo Buring, Lindeman’s, Maison de Grand Esprit, Matua, Metala, Penfolds, Pepperjack, Provenance Vineyards, Rawson’s Retreat, Rosemount Estate, Run Riot, Saltram, Samuel Wynn & Co, Secret Stone, Seppelt, Shingle Peak, Sledgehammer, Squealing pig, St Huberts, Stags’ Leap Winery, Stellina di Notte, Sterling Vineyards, T’Gallant, The Walking Dead Wine, Wolf Blass, Wynns Coonawarra Estate, and Yellowglen.

Treasury Wine Estates Fundamentals Summary

How do Treasury Wine Estates's earnings and revenue compare to its market cap?
TWE fundamental statistics
Market CapAU$8.54b
Earnings (TTM)AU$250.00m
Revenue (TTM)AU$2.68b

34.1x

P/E Ratio

3.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TWE income statement (TTM)
RevenueAU$2.68b
Cost of RevenueAU$1.61b
Gross ProfitAU$1.08b
ExpensesAU$828.40m
EarningsAU$250.00m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.35
Gross Margin40.18%
Net Profit Margin9.31%
Debt/Equity Ratio25.5%

How did TWE perform over the long term?

See historical performance and comparison

Dividends

2.4%

Current Dividend Yield

81%

Payout Ratio

Valuation

Is Treasury Wine Estates undervalued compared to its fair value and its price relative to the market?

47.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TWE (A$11.79) is trading below our estimate of fair value (A$22.32)

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 (34.1x) compared to the Oceanic Beverage industry average (28.2x).

PE vs Market: TWE is poor value based on its PE Ratio (34.1x) compared to the Australian market (20x).


Price to Earnings Growth Ratio

PEG Ratio: TWE is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: TWE is overvalued based on its PB Ratio (2.4x) compared to the AU Beverage industry average (2x).


Future Growth

How is Treasury Wine Estates forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

16.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TWE's forecast earnings growth (16.5% per year) is above the savings rate (1.9%).

Earnings vs Market: TWE's earnings (16.5% per year) are forecast to grow faster than the Australian market (12.4% per year).

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

Revenue vs Market: TWE's revenue (4.4% per year) is forecast to grow slower than the Australian market (5.3% per year).

High Growth Revenue: TWE's revenue (4.4% 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 (11.8%).


Past Performance

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

0.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TWE has high quality earnings.

Growing Profit Margin: TWE's current net profit margins (9.3%) are higher than last year (9.2%).


Past Earnings Growth Analysis

Earnings Trend: TWE's earnings have grown by 0.7% per year over the past 5 years.

Accelerating Growth: TWE's earnings growth over the past year (1.9%) exceeds its 5-year average (0.7% per year).

Earnings vs Industry: TWE earnings growth over the past year (1.9%) underperformed the Beverage industry 22.5%.


Return on Equity

High ROE: TWE's Return on Equity (7%) is considered low.


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$878.5M).

Long Term Liabilities: TWE's short term assets (A$2.1B) exceed its long term liabilities (A$1.8B).


Debt to Equity History and Analysis

Debt Level: TWE's debt to equity ratio (25.5%) is considered satisfactory.

Reducing Debt: TWE's debt to equity ratio has increased from 17.8% to 25.5% over the past 5 years.

Debt Coverage: TWE's debt is well covered by operating cash flow (51.5%).

Interest Coverage: TWE's interest payments on its debt are well covered by EBIT (6.6x coverage).


Balance Sheet


Dividend

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

2.37%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TWE's dividend (2.37%) is higher than the bottom 25% of dividend payers in the Australian market (2.23%).

High Dividend: TWE's dividend (2.37%) is low compared to the top 25% of dividend payers in the Australian market (5.32%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (80.8%), 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 (65.3% 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

1.25yrs

Tenure

AU$3,180,598

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 ($USD2.38M) is about average for companies of similar size in the Australian market ($USD2.36M).

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


Leadership Team

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


Board Members

Experienced Board: TWE's board of directors are considered experienced (7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: TWE 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 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$8.537b
  • Shares outstanding: 722.24m
  • Website: https://www.tweglobal.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/26 07:02
End of Day Share Price2021/10/26 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.