ASX:TWE

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Excellent balance sheet with proven track record.


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


Market Performance


7 Day Return

4.4%

TWE

1.7%

AU Beverage

1.0%

AU Market


1 Year Return

7.3%

TWE

8.4%

AU Beverage

6.9%

AU Market

TWE underperformed the Beverage industry which returned 8.4% over the past year.

TWE matched the Australia Market (6.9%) over the past year.


Share holder returns

TWEIndustryMarket
7 Day4.4%1.7%1.0%
30 Day5.3%2.4%3.9%
90 Day28.7%18.8%1.6%
1 Year9.8%7.3%12.0%8.4%13.1%6.9%
3 Year85.6%74.9%57.5%42.1%39.5%20.7%
5 Year346.4%289.6%161.6%113.0%52.8%18.7%

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

1 week ago | Simply Wall St

Is Treasury Wine Estates Limited (ASX:TWE) A High Quality Stock To Own?

Valuation

Is Treasury Wine Estates undervalued based on future cash flows and its price relative to the stock market?

20%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Treasury Wine Estates's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Treasury Wine Estates's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Treasury Wine Estates is overvalued based on earnings compared to the Oceania Beverage industry average.

Treasury Wine Estates is overvalued based on earnings compared to the Australia market.


Price Based on Expected Growth

Treasury Wine Estates is poor value based on expected growth next year.


Price Based on Value of Assets

Treasury Wine Estates is overvalued based on assets compared to the AU Beverage industry average.


Next Steps

Future Growth

How is Treasury Wine Estates expected to perform in the next 1 to 3 years based on estimates from 12 analysts?

18.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Treasury Wine Estates's revenue is expected to grow by 10% yearly, however this is not considered high growth (20% yearly).

Treasury Wine Estates's earnings are expected to grow by 18% yearly, however this is not considered high growth (20% yearly).

Treasury Wine Estates's revenue growth is expected to exceed the Australia market average.

Treasury Wine Estates's earnings growth is expected to exceed the Australia market average.

Treasury Wine Estates's earnings growth is expected to exceed the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

Treasury Wine Estates is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

49.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Treasury Wine Estates has delivered over 20% year on year earnings growth in the past 5 years.

Treasury Wine Estates's 1-year earnings growth is less than its 5-year average (16.4% vs 49%)

Treasury Wine Estates's earnings growth has exceeded the Oceania Beverage industry average in the past year (16.4% vs 11%).


Return on Equity

Treasury Wine Estates has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Treasury Wine Estates used its assets more efficiently than the Oceania Beverage industry average last year based on Return on Assets.


Return on Capital Employed

Treasury Wine Estates has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Treasury Wine Estates's financial position?


Financial Position Analysis

Treasury Wine Estates is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Treasury Wine Estates's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Treasury Wine Estates's level of debt (31.4%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (9.3% vs 31.4% today).

Debt is well covered by operating cash flow (35.7%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 12.9x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.9x debt.


Next Steps

Dividend

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

2.88%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Treasury Wine Estates's pays a lower dividend yield than the bottom 25% of dividend payers in Australia (2.46%).

Treasury Wine Estates's dividend is below the markets top 25% of dividend payers in Australia (5.58%).

Whilst dividend payments have been stable, Treasury Wine Estates has been paying a dividend for less than 10 years.

Dividend payments have increased, but Treasury Wine Estates only paid a dividend in the past 8 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.5x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.6x coverage).


Next Steps

Management

What is the CEO of Treasury Wine Estates's salary, the management and board of directors tenure and is there insider trading?

1.7yrs

Average management tenure


CEO

Mike Clarke (54yo)

5.5yrs

Tenure

AU$11,387,045

Compensation

Mr. Michael A. Clarke, also known as Mike, CA, B.Com, has been the Chief Executive Officer and Managing Director of Treasury Wine Estates Limited since March 31, 2014. Mr. Clarke served as the Chief Execut ...


CEO Compensation Analysis

Mike's remuneration is higher than average for companies of similar size in Australia.

Mike's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

1.7yrs

Average Tenure

The average tenure for the Treasury Wine Estates management team is less than 2 years, this suggests a new team.


Board Age and Tenure

6.3yrs

Average Tenure

56yo

Average Age

The tenure for the Treasury Wine Estates board of directors is about average.


Insider Trading

Treasury Wine Estates individual insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

SellAU$641,12609 Sep 19
Michael Clarke
EntityIndividual
Role
Chief Executive Officer
CEO, MD & Director
Shares34,012
Max PriceAU$18.85
BuyAU$2,26405 Sep 19
Michael Clarke
EntityIndividual
Role
Chief Executive Officer
CEO, MD & Director
Shares120
Max PriceAU$18.87
SellAU$3,605,32918 Aug 19
Michael Clarke
EntityIndividual
Role
Chief Executive Officer
CEO, MD & Director
Shares212,537
Max PriceAU$16.96
SellAU$6,904,66007 May 19
Michael Clarke
EntityIndividual
Role
Chief Executive Officer
CEO, MD & Director
Shares400,000
Max PriceAU$17.26
SellAU$276,800,65925 Apr 19
BlackRock, Inc.
EntityCompany
Shares14,475,585
Max PriceAU$19.74
BuyAU$363,081,71925 Apr 19
BlackRock, Inc.
EntityCompany
Shares18,533,668
Max PriceAU$19.77
BuyAU$113,595,79520 Mar 19
Capital Research and Management Company
EntityCompany
Shares7,309,897
Max PriceAU$15.54
BuyAU$1,82711 Mar 19
Michael Clarke
EntityIndividual
Role
Chief Executive Officer
CEO, MD & Director
Shares119
Max PriceAU$15.35
BuyAU$204,470,54108 Mar 19
Capital Research and Management Company
EntityCompany
Shares13,217,230
Max PriceAU$15.47
SellAU$46,603,43824 Feb 19
Wellington Management Group LLP
EntityCompany
Shares3,143,059
Max PriceAU$14.83
BuyAU$246,45017 Feb 19
Garry Hounsell
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares15,000
Max PriceAU$16.43
BuyAU$30,431,18606 Dec 18
The Vanguard Group, Inc.
EntityCompany
Shares1,557,265
Max PriceAU$19.69
SellAU$6,304,23606 Dec 18
The Vanguard Group, Inc.
EntityCompany
Shares322,238
Max PriceAU$19.61
BuyAU$162,61026 Nov 18
Paul Rayner
EntityIndividual
Role
Chairman of the Board
Chairman
Shares11,500
Max PriceAU$14.14
BuyAU$90807 Nov 18
Michael Clarke
EntityIndividual
Role
Chief Executive Officer
CEO, MD & Director
Shares58
Max PriceAU$15.66
SellAU$137,374,58731 Oct 18
Capital Research and Management Company
EntityCompany
Shares8,875,302
Max PriceAU$15.48

Ownership Breakdown


Management Team

  • Mike Clarke (54yo)

    CEO, MD & Director

    • Tenure: 5.5yrs
    • Compensation: AU$11.39m
  • Angus G. McPherson

    President of Americas & Global Sales

    • Tenure: 0.08yrs
    • Compensation: AU$1.33m
  • Fiona Last

    Company Secretary

    • Tenure: 3yrs
  • Linnsey Caya

    Chief People & Legal Officer

    • Tenure: 3yrs
  • Tim Ford

    Chief Operating Officer

    • Tenure: 0.7yrs
    • Compensation: AU$1.01m
  • Matt Young

    Chief Financial Officer

    • Tenure: 1.3yrs
    • Compensation: AU$1.36m
  • Tom King

    Managing Director of North Asia

    • Tenure: 2.5yrs
  • Angus Lilley

    Chief Marketing Officer

    • Tenure: 0.7yrs
  • Peter Neilson

    Managing Director of Australia & New Zealand

    • Tenure: 1.7yrs

Board Members

  • Warwick Every-Burns (66yo)

    Non-Executive Director

    • Tenure: 8.3yrs
    • Compensation: AU$240.65k
  • Paul Rayner (65yo)

    Chairman

    • Tenure: 7yrs
    • Compensation: AU$532.84k
  • Lauri Shanahan (56yo)

    Non-Executive Director

    • Tenure: 2.8yrs
    • Compensation: AU$212.84k
  • Mike Clarke (54yo)

    CEO, MD & Director

    • Tenure: 5.5yrs
    • Compensation: AU$11.39m
  • Garry Hounsell (64yo)

    Non-Executive Director

    • Tenure: 7yrs
    • Compensation: AU$255.69k
  • Louisa Cheang (55yo)

    Independent Non-Executive Director

    • Tenure: 0.8yrs
    • Compensation: AU$111.96k
  • Colleen Jay (56yo)

    Independent Non-Executive Director

    • Tenure: 1.4yrs
    • Compensation: AU$213.19k
  • Ed Chan (56yo)

    Independent Non-Executive Director

    • Tenure: 7yrs
    • Compensation: AU$213.19k

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$13.775b
  • Shares outstanding: 718.54m
  • 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 in Australia, New Zealand, Asia, Europe, and the Americas. It engages in the viticulture and winemaking; and marketing, sale, and distribution of wi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/21 10:35
End of Day Share Price2019/09/20 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.