CHIA:AVG

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Executive Summary

Australian Vintage Ltd, together with its subsidiaries, produces, packages, markets, and distributes wine in Australia, the United Kingdom, Europe, Asia, North America, and internationally. More Details


Snowflake Analysis

Very undervalued with flawless balance sheet.


Similar Companies

Share Price & News

How has Australian Vintage's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AVG is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: AVG's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

24.5%

AVG

2.2%

AU Beverage

2.4%

AU Market


1 Year Return

23.3%

AVG

-23.0%

AU Beverage

-0.6%

AU Market

Return vs Industry: AVG exceeded the Australian Beverage industry which returned -23% over the past year.

Return vs Market: AVG exceeded the Australian Market which returned -0.6% over the past year.


Shareholder returns

AVGIndustryMarket
7 Day24.5%2.2%2.4%
30 Day44.3%7.7%8.0%
90 Day38.0%24.9%8.8%
1 Year30.3%23.3%-20.8%-23.0%2.7%-0.6%
3 Year59.2%41.1%10.1%0.8%24.3%9.0%
5 Year95.8%64.9%61.9%36.2%56.9%25.7%

Long-Term Price Volatility Vs. Market

How volatile is Australian Vintage's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Australian Vintage 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: AVG (A$0.64) is trading below our estimate of fair value (A$2.04)

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


Price To Earnings Ratio

PE vs Industry: AVG is good value based on its PE Ratio (16.3x) compared to the XO Beverage industry average (27x).

PE vs Market: AVG is good value based on its PE Ratio (16.3x) compared to the Australian market (22.8x).


Price to Earnings Growth Ratio

PEG Ratio: AVG is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: AVG is good value based on its PB Ratio (0.6x) compared to the AU Beverage industry average (1.7x).


Next Steps

Future Growth

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

17.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AVG's forecast earnings growth (17.7% per year) is above the savings rate (2.3%).

Earnings vs Market: AVG's earnings (17.7% per year) are forecast to grow slower than the Australian market (17.8% per year).

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

Revenue vs Market: AVG's revenue (5.7% per year) is forecast to grow faster than the Australian market (5.1% per year).

High Growth Revenue: AVG'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: AVG's Return on Equity is forecast to be low in 3 years time (6.2%).


Next Steps

  • Explore growth companies in the Food, Beverage & Tobacco industry.

Past Performance

How has Australian Vintage performed over the past 5 years?

27.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AVG has high quality earnings.

Growing Profit Margin: AVG's current net profit margins (4.1%) are higher than last year (3%).


Past Earnings Growth Analysis

Earnings Trend: AVG's earnings have grown significantly by 27.2% per year over the past 5 years.

Accelerating Growth: AVG's earnings growth over the past year (34.9%) exceeds its 5-year average (27.2% per year).

Earnings vs Industry: AVG earnings growth over the past year (34.9%) underperformed the Beverage industry 34.9%.


Return on Equity

High ROE: AVG's Return on Equity (3.6%) is considered low.


Next Steps

Financial Health

How is Australian Vintage's financial position?


Financial Position Analysis

Short Term Liabilities: AVG's short term assets (A$215.2M) exceed its short term liabilities (A$64.2M).

Long Term Liabilities: AVG's short term assets (A$215.2M) exceed its long term liabilities (A$126.8M).


Debt to Equity History and Analysis

Debt Level: AVG's debt to equity ratio (25.1%) is considered satisfactory.

Reducing Debt: AVG's debt to equity ratio has reduced from 35.7% to 25.1% over the past 5 years.

Debt Coverage: AVG's debt is well covered by operating cash flow (29.3%).

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


Balance Sheet


Next Steps

Dividend

What is Australian Vintage current dividend yield, its reliability and sustainability?

4.25%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AVG's dividend (4.25%) is higher than the bottom 25% of dividend payers in the Australian market (2.08%).

High Dividend: AVG's dividend (4.25%) is low compared to the top 25% of dividend payers in the Australian market (5.05%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (69.2%), AVG's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AVG's dividends in 3 years are forecast to be covered by earnings (70% payout ratio).


Next Steps

Management

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

1.0yrs

Average management tenure


CEO

Craig Garvin (53 yo)

1

Tenure

AU$1,666,617

Compensation

Mr. Craig Anthony Garvin serves as Chief Executive Officer and Non-Independent Executive Director at Australian Vintage Ltd since November 21, 2019. He was the Chief Executive Officer of Parmalat Australia...


CEO Compensation Analysis

Compensation vs Market: Craig's total compensation ($USD1.23M) is above average for companies of similar size in the Australian market ($USD280.63K).

Compensation vs Earnings: Insufficient data to compare Craig's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Craig Garvin
CEO & Non-Independent Executive Director1yrAU$1.67mno data
Michael Noack
Chief Financial Officer18.83yrsAU$791.81k0.11%
A$ 203.5k
Thomas Jung
Operations Director0.92yrAU$769.85kno data
Neil McGuigan
Technical Advisor1yrAU$1.44m0.36%
A$ 638.2k
Julian Dyer
Chief Operating Officer of UK/Europeno dataAU$698.75kno data
Jeff Howlett
General Manager of Australia & New Zealand0.92yrAU$611.52kno data
Josh Gibbons
Chief Information Officer4.17yrsno datano data
Rosie Davenport
PR & Communications Officerno datano datano data
Alicia Morris
General Counsel & Company Secretary4.17yrsno datano data
Scott Burton
Marketing Directorno datano datano data
Stephanie Cross
People & Culture Directorno datano datano data

1.0yrs

Average Tenure

Experienced Management: AVG's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Craig Garvin
CEO & Non-Independent Executive Director1yrAU$1.67mno data
Richard Davis
Independent Non-Executive Chairman5.42yrsAU$120.00k0.039%
A$ 69.9k
Naseema Sparks
Independent Non-Executive Director5.83yrsAU$80.00k0.015%
A$ 27.5k
Peter Perrin
Independent Non-Executive Director3.67yrsAU$80.00k0.043%
A$ 77.0k
John Davies
Independent Non-Executive Director5.83yrsAU$80.00k0.18%
A$ 317.5k
Jiang Yuan
Non-Independent Non-Executive Director3.42yrsAU$88.48k13.91%
A$ 24.8m

4.5yrs

Average Tenure

63.5yo

Average Age

Experienced Board: AVG's board of directors are considered experienced (4.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: AVG 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

Australian Vintage Ltd's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Australian Vintage Ltd
  • Ticker: AVG
  • Exchange: CHIA
  • Founded: 1991
  • Industry: Distillers and Vintners
  • Sector: Food, Beverage & Tobacco
  • Market Cap: AU$178.250m
  • Shares outstanding: 280.71m
  • Website: https://www.australianvintage.com.au

Location

  • Australian Vintage Ltd
  • 275 Sir Donald Bradman Drive
  • Cowandilla
  • South Australia
  • 5033
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AVGASX (Australian Securities Exchange)YesOrdinary SharesAUAUDMar 1992
AUVG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMar 1992
MGEDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 1992
AVGCHIA (Chi-X Australia)YesOrdinary SharesAUAUDMar 1992

Biography

Australian Vintage Ltd, together with its subsidiaries, produces, packages, markets, and distributes wine in Australia, the United Kingdom, Europe, Asia, North America, and internationally. The company ope...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/26 07:32
End of Day Share Price2020/11/25 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.