TSX:ADW.B

Stock Analysis Report

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Executive Summary

Andrew Peller Limited produces and markets wine, spirits, and wine related products.


Snowflake Analysis

Solid track record average dividend payer.


Similar Companies

Share Price & News

How has Andrew Peller's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ADW.B has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

6.0%

ADW.B

0.8%

CA Beverage

0.2%

CA Market


1 Year Return

-25.0%

ADW.B

-7.2%

CA Beverage

-6.3%

CA Market

Return vs Industry: ADW.B underperformed the Canadian Beverage industry which returned -7.2% over the past year.

Return vs Market: ADW.B underperformed the Canadian Market which returned -6.3% over the past year.


Shareholder returns

ADW.BIndustryMarket
7 Day6.0%0.8%0.2%
30 Day-10.9%1.1%4.5%
90 Day11.6%14.1%9.5%
1 Year-23.7%-25.0%-4.9%-7.2%-3.0%-6.3%
3 Year-1.5%-5.4%-19.7%-25.0%8.5%-2.0%
5 Year60.2%49.6%11.3%-0.4%29.5%9.7%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Andrew Peller undervalued compared to its fair value and its price relative to the market?

15.78x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ADW.B (CA$10.6) is trading above our estimate of fair value (CA$5.63)

Significantly Below Fair Value: ADW.B is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ADW.B is good value based on its PE Ratio (15.8x) compared to the XN Beverage industry average (28x).

PE vs Market: ADW.B is poor value based on its PE Ratio (15.8x) compared to the Canadian market (14.5x).


Price to Earnings Growth Ratio

PEG Ratio: ADW.B is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: ADW.B's PB Ratio (1.5x) is in line with the CA Beverage industry average.


Next Steps

Future Growth

How is Andrew Peller forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

12.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ADW.B's forecast earnings growth (12.6% per year) is above the savings rate (1.7%).

Earnings vs Market: ADW.B's earnings (12.6% per year) are forecast to grow slower than the Canadian market (24.6% per year).

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

Revenue vs Market: ADW.B's revenue is expected to decline over the next 3 years (-1.4% per year).

High Growth Revenue: ADW.B's revenue is forecast to decline over the next 3 years (-1.4% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if ADW.B's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Andrew Peller performed over the past 5 years?

5.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ADW.B has high quality earnings.

Growing Profit Margin: ADW.B's current net profit margins (6.1%) are higher than last year (5.8%).


Past Earnings Growth Analysis

Earnings Trend: ADW.B's earnings have grown by 5.5% per year over the past 5 years.

Accelerating Growth: ADW.B's earnings growth over the past year (6.9%) exceeds its 5-year average (5.5% per year).

Earnings vs Industry: ADW.B earnings growth over the past year (6.9%) exceeded the Beverage industry -0.2%.


Return on Equity

High ROE: ADW.B's Return on Equity (9.6%) is considered low.


Next Steps

Financial Health

How is Andrew Peller's financial position?


Financial Position Analysis

Short Term Liabilities: ADW.B's short term assets (CA$214.1M) exceed its short term liabilities (CA$130.5M).

Long Term Liabilities: ADW.B's short term assets (CA$214.1M) exceed its long term liabilities (CA$137.9M).


Debt to Equity History and Analysis

Debt Level: ADW.B's debt to equity ratio (68.7%) is considered high.

Reducing Debt: ADW.B's debt to equity ratio has increased from 61.9% to 68.7% over the past 5 years.

Debt Coverage: ADW.B's debt is not well covered by operating cash flow (18.7%).

Interest Coverage: ADW.B's interest payments on its debt are well covered by EBIT (4.4x coverage).


Balance Sheet


Next Steps

Dividend

What is Andrew Peller current dividend yield, its reliability and sustainability?

2.55%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ADW.B's dividend (2.55%) is higher than the bottom 25% of dividend payers in the Canadian market (1.82%).

High Dividend: ADW.B's dividend (2.55%) is low compared to the top 25% of dividend payers in the Canadian market (6%).


Stability and Growth of Payments

Stable Dividend: ADW.B's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (40.3%), ADW.B's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

John Peller

no data

Tenure

CA$1,523,263

Compensation

Mr. John E. Peller serves as the Chief Executive Officer of Peller Estates Winery Limited. Mr. Peller serves as the Chief Executive Officer of Andrew Peller Limited (formerly known as Andres Wines Ltd.) an ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD1.14M) is above average for companies of similar size in the Canadian market ($USD675.91K).

Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
John Peller
Executive Chairmanno dataCA$1.52m12.22%
CA$ 47.1m
Steven Attridge
Executive VP of IT & CFO1.92yrsCA$653.12kno data
Brendan Wall
Executive Vice-President of Operationsno dataCA$458.41k0.13%
CA$ 504.9k
Shawn MacLeod
Executive Vice-President of Marketing2.75yrsCA$413.42k0.018%
CA$ 70.6k
Patrick O'Brien
Executive Vice-President of Sales0.92yrno datano data
Sara Presutto
Executive Vice-President of People & Culture2.17yrsno datano data

2.0yrs

Average Tenure

Experienced Management: ADW.B's management team is considered experienced (2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Peller
Executive Chairmanno dataCA$1.52m12.22%
CA$ 47.1m
John Petch
Honorary Director3.83yrsCA$3.50kno data
Mark Cosens
Independent Director19.58yrsCA$47.75k0.0080%
CA$ 30.9k
Andrew Peller
Vice Chairman of the Boardno dataCA$109.25k0.51%
CA$ 2.0m
Brian Short
Honorary Director3.83yrsCA$5.00kno data
François Vimard
Independent Director1.92yrsCA$47.00kno data
Shauneen Bruder
Independent Corporate Director1.92yrsCA$39.00kno data
Richard Hossack
Honorary Directorno dataCA$6.00kno data
Perry Miele
Lead Independent Director1.08yrsCA$53.00k0.036%
CA$ 139.0k
Michelle Mallett-DiEmanuele
Independent Director3.83yrsCA$51.75k0.0052%
CA$ 19.9k

3.8yrs

Average Tenure

60yo

Average Age

Experienced Board: ADW.B's board of directors are considered experienced (3.8 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.


Ownership Breakdown

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


Top Shareholders

Company Information

Andrew Peller Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Andrew Peller Limited
  • Ticker: ADW.B
  • Exchange: TSX
  • Founded: 1961
  • Industry: Distillers and Vintners
  • Sector: Food, Beverage & Tobacco
  • Market Cap: CA$385.167m
  • Shares outstanding: 43.62m
  • Website: https://www.andrewpeller.com

Number of Employees


Location

  • Andrew Peller Limited
  • 697 South Service Road
  • Grimsby
  • Ontario
  • L3M 4E8
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ADW.ATSX (The Toronto Stock Exchange)YesClass A Common Shares Non-VotingCACADOct 1975
ADWP.FOTCPK (Pink Sheets LLC)YesClass A Common Shares Non-VotingUSUSDOct 1975
ANJDB (Deutsche Boerse AG)YesClass A Common Shares Non-VotingDEEUROct 1975
ADW.BTSX (The Toronto Stock Exchange)Class B Common Shares VotingCACADJan 1979

Biography

Andrew Peller Limited produces and markets wine, spirits, and wine related products. It offers wines under various trademarks, including Andrés Wines, Andrew Peller Limited, Peller Estates, Trius, Thirty B ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/03 00:51
End of Day Share Price2020/07/30 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.