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TWE

Treasury Wine Estates ASX:TWE Stock Report

Last Price

AU$12.57

Market Cap

AU$9.1b

7D

0.2%

1Y

1.6%

Updated

01 Oct, 2022

Data

Company Financials +
TWE fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance4/6
Financial Health5/6
Dividends3/6

TWE Stock 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

Price History & Performance

Summary of all time highs, changes and price drops for Treasury Wine Estates
Historical stock prices
Current Share PriceAU$12.57
52 Week HighAU$13.68
52 Week LowAU$10.37
Beta0.43
1 Month Change-5.06%
3 Month Change10.65%
1 Year Change1.62%
3 Year Change-29.85%
5 Year Change-10.72%
Change since IPO274.11%

Recent News & Updates

Sep 20
Treasury Wine Estates (ASX:TWE) Seems To Use Debt Quite Sensibly

Treasury Wine Estates (ASX:TWE) Seems To Use Debt Quite Sensibly

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' It's only natural to consider a company's...

Sep 02
Treasury Wine Estates (ASX:TWE) Has More To Do To Multiply In Value Going Forward

Treasury Wine Estates (ASX:TWE) Has More To Do To Multiply In Value Going Forward

If you're looking for a multi-bagger, there's a few things to keep an eye out for. One common approach is to try and...

Shareholder Returns

TWEAU BeverageAU Market
7D0.2%-0.2%-1.7%
1Y1.6%-1.7%-10.8%

Return vs Industry: TWE exceeded the Australian Beverage industry which returned -1.7% over the past year.

Return vs Market: TWE exceeded the Australian Market which returned -10.8% over the past year.

Price Volatility

Is TWE's price volatile compared to industry and market?
TWE volatility
TWE Average Weekly Movement2.8%
Beverage Industry Average Movement6.5%
Market Average Movement9.4%
10% most volatile stocks in AU Market16.5%
10% least volatile stocks in AU Market4.2%

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

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

About the Company

FoundedEmployeesCEOWebsite
18432,500Tim 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. The company engages in the viticulture and winemaking; and marketing, sale, and distribution of wine. Its wine portfolio includes luxury, premium and commercial wine brands, such as 19 Crimes, Acacia Vineyard, Annie’s Lane, Beaulieu Vineyard, Belcreme de Lys, Beringer Vineyards, Blossom Hill, Cavaliere d’Oro, Coldstream Hills, Devil’s Lair, EMBRAZEN, Etude, Fifth Leg, Heemskerk, Hewitt Vineyard, Ingoldby, Jamieson’s Run, Killawarra, Leo Buring, Lindeman’s, Maison de Grand Esprit, Matua, Penfolds, Pepperjack, 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$9.07b
Earnings (TTM)AU$263.20m
Revenue (TTM)AU$2.53b

34.5x

P/E Ratio

3.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TWE income statement (TTM)
RevenueAU$2.53b
Cost of RevenueAU$1.47b
Gross ProfitAU$1.07b
Other ExpensesAU$802.90m
EarningsAU$263.20m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.36
Gross Margin42.11%
Net Profit Margin10.40%
Debt/Equity Ratio28.1%

How did TWE perform over the long term?

See historical performance and comparison

Dividends

2.5%

Current Dividend Yield

85%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is TWE undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for TWE?

Other financial metrics that can be useful for relative valuation.

TWE key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue4.1x
Enterprise Value/EBITDA17.4x
PEG Ratio2.4x

Price to Earnings Ratio vs Peers

How does TWE's PE Ratio compare to its peers?

TWE PE Ratio vs Peers
The above table shows the PE ratio for TWE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average31.2x
AVG Australian Vintage
8.9x10.7%AU$154.1m
EMI Emperador
29.9x13.5%₱302.8b
MCDOWELL-N United Spirits
57.5x17.6%₹597.5b
603198 Anhui Yingjia Distillery
28.6x24.8%CN¥44.9b
TWE Treasury Wine Estates
34.5x14.5%AU$9.1b

Price-To-Earnings vs Peers: TWE is expensive based on its Price-To-Earnings Ratio (34.5x) compared to the peer average (31.2x).


Price to Earnings Ratio vs Industry

How does TWE's PE Ratio compare vs other companies in the Global Beverage Industry?

Price-To-Earnings vs Industry: TWE is expensive based on its Price-To-Earnings Ratio (34.5x) compared to the Global Beverage industry average (19.8x)


Price to Earnings Ratio vs Fair Ratio

What is TWE's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

TWE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio34.5x
Fair PE Ratio27.3x

Price-To-Earnings vs Fair Ratio: TWE is expensive based on its Price-To-Earnings Ratio (34.5x) compared to the estimated Fair Price-To-Earnings Ratio (27.3x).


Share Price vs Fair Value

What is the Fair Price of TWE when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: TWE (A$12.57) is trading below our estimate of fair value (A$19.23)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Future Growth

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

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


14.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TWE's forecast earnings growth (14.5% per year) is above the savings rate (1.8%).

Earnings vs Market: TWE's earnings (14.5% per year) are forecast to grow faster than the Australian market (6.5% per year).

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

Revenue vs Market: TWE's revenue (5.7% per year) is forecast to grow faster than the Australian market (3.7% per year).

High Growth Revenue: TWE's revenue (5.7% 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%).


Discover growth companies

Past Performance

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

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-9.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: TWE has high quality earnings.

Growing Profit Margin: TWE's current net profit margins (10.4%) are higher than last year (9.3%).


Past Earnings Growth Analysis

Earnings Trend: TWE's earnings have declined by 9% per year over the past 5 years.

Accelerating Growth: TWE's earnings growth over the past year (5.3%) exceeds its 5-year average (-9% per year).

Earnings vs Industry: TWE earnings growth over the past year (5.3%) exceeded the Beverage industry 1.8%.


Return on Equity

High ROE: TWE's Return on Equity (6.9%) is considered low.


Discover strong past performing companies

Financial Health

How is Treasury Wine Estates's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: TWE's short term assets (A$2.0B) exceed its short term liabilities (A$1.0B).

Long Term Liabilities: TWE's short term assets (A$2.0B) exceed its long term liabilities (A$1.9B).


Debt to Equity History and Analysis

Debt Level: TWE's net debt to equity ratio (16.7%) is considered satisfactory.

Reducing Debt: TWE's debt to equity ratio has increased from 16.7% to 28.1% over the past 5 years.

Debt Coverage: TWE's debt is well covered by operating cash flow (52.8%).

Interest Coverage: TWE's interest payments on its debt are well covered by EBIT (7.2x coverage).


Balance Sheet


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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


2.47%

Current Dividend Yield

Dividend Yield vs Market

Treasury Wine Estates Dividend Yield vs Market
How does Treasury Wine Estates dividend yield compare to the market?
SegmentDividend Yield
Company (Treasury Wine Estates)2.5%
Market Bottom 25% (AU)2.8%
Market Top 25% (AU)7.2%
Industry Average (Beverage)2.0%
Analyst forecast in 3 Years (Treasury Wine Estates)3.5%

Notable Dividend: TWE's dividend (2.47%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.8%).

High Dividend: TWE's dividend (2.47%) is low compared to the top 25% of dividend payers in the Australian market (7.16%).


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.


Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (85%), TWE's payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (49.7%), TWE's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

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

2.7yrs

Average management tenure


CEO

Tim Ford

2.17yrs

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

Tim Ford's Compensation vs Treasury Wine Estates Earnings
How has Tim Ford's remuneration changed compared to Treasury Wine Estates's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

AU$263m

Mar 31 2022n/an/a

AU$252m

Dec 31 2021n/an/a

AU$241m

Sep 30 2021n/an/a

AU$246m

Jun 30 2021AU$3mAU$1m

AU$250m

Mar 31 2021n/an/a

AU$201m

Dec 31 2020n/an/a

AU$152m

Sep 30 2020n/an/a

AU$199m

Jun 30 2020AU$2mAU$779k

AU$245m

Mar 31 2020n/an/a

AU$326m

Dec 31 2019n/an/a

AU$407m

Sep 30 2019n/an/a

AU$408m

Jun 30 2019AU$1mAU$339k

AU$409m

Compensation vs Market: Tim's total compensation ($USD2.05M) is below average for companies of similar size in the Australian market ($USD2.94M).

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 considered experienced (2.7 years average tenure).


Board Members

Experienced Board: TWE's board of directors are considered experienced (7.9 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

ASX:TWE Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
09 Mar 22BuyAU$56,643Antonia KorsanosIndividual5,000AU$11.38
05 Nov 21BuyAU$254,816,790The Vanguard Group, Inc.Company13,292,477AU$19.17
02 Nov 21SellAU$107,293,913The Vanguard Group, Inc.Company5,641,418AU$19.10
01 Nov 21BuyAU$102,756State Street Global Advisors, Inc.Company572,142AU$12.48

Ownership Breakdown

What is the ownership structure of TWE?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders1,326,6510.2%
Private Companies3,989,7130.6%
Institutions280,913,10138.9%
General Public435,618,71160.3%

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


Top Shareholders

Top 25 shareholders own 36.2% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
9.51%
Capital Research and Management Company
68,677,969A$863.3m0%0.04%
6.33%
BlackRock, Inc.
45,713,004A$574.6m0%0.01%
5.07%
State Street Global Advisors, Inc.
36,604,889A$460.1m-50%0.02%
4.74%
The Vanguard Group, Inc.
34,205,004A$430.0m0%0.01%
2.05%
Norges Bank Investment Management
14,799,568A$186.0m0%0.02%
1.01%
Goldman Sachs Asset Management, L.P.
7,264,843A$91.3m0%0.03%
0.97%
T. Rowe Price Group, Inc.
7,010,057A$88.1m-3.94%0.01%
0.87%
M&G Investment Management Limited
6,309,052A$79.3m3.77%0.12%
0.75%
Matthews International Capital Management, LLC
5,399,961A$67.9m-12.58%0.29%
0.56%
Geode Capital Management, LLC
4,044,463A$50.8m1.4%no data
0.56%
Van Eck Associates Corporation
4,006,232A$50.4m-3.75%0.07%
0.45%
Argo Investments Limited
3,250,000A$40.9m0%0.75%
0.45%
GSCO - ECA Resource Geologic Partners
3,233,866A$40.6m0%no data
0.38%
Baillie Gifford & Co.
2,760,884A$34.7m2.06%0.01%
0.32%
Dimensional Fund Advisors LP
2,282,398A$28.7m0.34%no data
0.25%
Charles Schwab Investment Management, Inc.
1,773,990A$22.3m2.34%no data
0.24%
Netwealth Investments Ltd.
1,754,526A$22.1m106.5%0.3%
0.24%
J.P. Morgan Asset Management, Inc.
1,747,314A$22.0m-2.2%no data
0.23%
Fidelity International Ltd
1,634,735A$20.5m0%0.01%
0.22%
Mutual Trust Pty Ltd, Asset Management Arm
1,599,182A$20.1m22.34%1.15%
0.22%
Teachers Insurance and Annuity Association-College Retirement Equities Fund
1,574,170A$19.8m2.63%no data
0.21%
BetaShares Capital Limited
1,506,693A$18.9m4.58%0.16%
0.2%
Jupiter Fund Management Plc
1,441,641A$18.1m-21.16%0.04%
0.19%
AMP Capital Investors Limited
1,386,386A$17.4m0%0.85%
0.18%
New York Life Investment Management LLC
1,324,736A$16.7m0.01%0.07%

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
  • Implied Market Cap: AU$9.074b
  • Shares outstanding: 721.85m
  • 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)SPON ADR EACH REPR 1 ORD SHSUSUSDMay 2011
T7W0MUN (Boerse Muenchen)SPON ADR EACH REPR 1 ORD SHSDEEURMay 2011

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/01 00:00
End of Day Share Price2022/09/30 00:00
Earnings2022/06/30
Annual Earnings2022/06/30


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.