DB:WRG

Stock Analysis Report

Executive Summary

Orsero S.p.A. imports and distributes fruits and vegetables worldwide.

Rewards

Trading at 76.4% below its fair value

Earnings are forecast to grow 47.58% per year

Risk Analysis

Debt is not well covered by operating cash flow

Unstable dividend track record

Large one-off items impacting financial results

Profit margins (0.4%) are lower than last year (1.9%)



Snowflake Analysis

Good value with moderate growth potential.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

1.8%

WRG

1.4%

DE Consumer Retailing

1.7%

DE Market


1 Year Return

-9.1%

WRG

1.3%

DE Consumer Retailing

15.0%

DE Market

Return vs Industry: WRG underperformed the German Consumer Retailing industry which returned 1.3% over the past year.

Return vs Market: WRG underperformed the German Market which returned 15% over the past year.


Shareholder returns

WRGIndustryMarket
7 Day1.8%1.4%1.7%
30 Day7.1%1.5%0.8%
90 Day9.9%0.7%3.7%
1 Year-7.6%-9.1%5.3%1.3%18.5%15.0%
3 Yearn/a5.5%-5.0%17.1%6.9%
5 Yearn/a9.4%-7.3%24.3%7.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Orsero 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: WRG (€6.68) is trading below our estimate of fair value (€28.36)

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


Price To Earnings Ratio

PE vs Industry: WRG is poor value based on its PE Ratio (32.8x) compared to the Consumer Retailing industry average (21x).

PE vs Market: WRG is poor value based on its PE Ratio (32.8x) compared to the German market (21.1x).


Price to Earnings Growth Ratio

PEG Ratio: WRG is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: WRG is good value based on its PB Ratio (0.8x) compared to the XE Consumer Retailing industry average (1.6x).


Next Steps

Future Growth

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

47.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WRG's forecast earnings growth (47.6% per year) is above the savings rate (-0.4%).

Earnings vs Market: WRG's earnings (47.6% per year) are forecast to grow faster than the German market (13.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: WRG's revenue (2.9% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: WRG's revenue (2.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WRG's Return on Equity is forecast to be low in 3 years time (9.4%).


Next Steps

Past Performance

How has Orsero performed over the past 5 years?

7.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WRG has a large one-off loss of €6.8M impacting its June 30 2019 financial results.

Growing Profit Margin: WRG's current net profit margins (0.4%) are lower than last year (1.9%).


Past Earnings Growth Analysis

Earnings Trend: WRG's earnings have grown by 7.2% per year over the past 5 years.

Accelerating Growth: WRG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: WRG had negative earnings growth (-79.9%) over the past year, making it difficult to compare to the Consumer Retailing industry average (-0.7%).


Return on Equity

High ROE: WRG's Return on Equity (2.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Orsero's financial position?


Financial Position Analysis

Short Term Liabilities: WRG's short term assets (€256.9M) exceed its short term liabilities (€197.2M).

Long Term Liabilities: WRG's short term assets (€256.9M) exceed its long term liabilities (€153.3M).


Debt to Equity History and Analysis

Debt Level: WRG's debt to equity ratio (121.1%) is considered high.

Reducing Debt: Insufficient data to determine if WRG's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: WRG's debt is not well covered by operating cash flow (11.8%).

Interest Coverage: WRG's interest payments on its debt are well covered by EBIT (4.6x coverage).


Balance Sheet

Inventory Level: WRG has a high level of physical assets or inventory.

Debt Coverage by Assets: WRG's debt is covered by short term assets (assets are 1.4x debt).


Next Steps

Dividend

What is Orsero's current dividend yield, its reliability and sustainability?

1.76%

Current Dividend Yield


Dividend Yield vs Market

company1.8%marketbottom25%1.3%markettop25%3.6%industryaverage3.7%forecastin3Years1.8%

Current dividend yield vs market & industry

Notable Dividend: WRG's dividend (1.76%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: WRG's dividend (1.76%) is low compared to the top 25% of dividend payers in the German market (3.59%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, WRG has been paying a dividend for less than 10 years.

Growing Dividend: WRG has only been paying a dividend for 2 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (57.9%), WRG's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WRG's dividends in 3 years are forecast to be well covered by earnings (15.1% payout ratio).


Next Steps

Management

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

4.1yrs

Average management tenure


CEO

Raffaella Orsero (53yo)

3yrs

Tenure

0

Ms. Raffaella Orsero has been Deputy Chair Woman, Chief Executive Officer and Managing Director of Orsero SpA since February 2017. Ms. Orsero served as the Chief Executive Officer of GF Group SPA from 2013 ...


Leadership Team

NamePositionTenureCompensationOwnership
Paolo Prudenziati
Chairman3yrsno datano data
Raffaella Orsero
Deputy Chair Woman3yrsno datano data
Matteo Colombini
CFO, MD & Director0yrsno datano data
Tommaso Cotto
Chief Operating Officer5.1yrsno datano data
Daniele Gazzano
Administrative Director0yrsno datano data
Alessandro Piccardo
Chief HR Officer & Director2.4yrsno datano data

4.1yrs

Average Tenure

54yo

Average Age

Experienced Management: WRG's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Paolo Prudenziati
Chairman3yrsno datano data
Raffaella Orsero
Deputy Chair Woman3yrsno datano data
Matteo Colombini
CFO, MD & Director0yrsno datano data
Alessandro Piccardo
Chief HR Officer & Director2.4yrsno datano data
Luca Giacometti
Director0yrsno data0.61% 702.4k
Gino Lugli
Director0yrsno datano data
Armando de Sanna
Independent Director0yrsno datano data
Vera Tagliaferri
Independent Director0yrsno datano data
Michele Paolillo
Chairman of the Board of Statutory Auditors0yrsno datano data
Carlos Ruiz
Director2.4yrsno datano data

2.7yrs

Average Tenure

55yo

Average Age

Experienced Board: WRG's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


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

Orsero S.p.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Orsero S.p.A.
  • Ticker: WRG
  • Exchange: DB
  • Founded:
  • Industry: Food Distributors
  • Sector: Consumer Retailing
  • Market Cap: €115.125m
  • Shares outstanding: 16.93m
  • Website: https://www.orserogroup.it

Number of Employees


Location

  • Orsero S.p.A.
  • Regione Cime di Leca, 30
  • Albenga
  • Savona
  • 17031
  • Italy

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ORSBIT (Borsa Italiana)YesCommon SharesITEURNov 2015
WRGDB (Deutsche Boerse AG)YesCommon SharesDEEURNov 2015
0YCGLSE (London Stock Exchange)YesCommon SharesGBEURNov 2015

Biography

Orsero S.p.A. imports and distributes fruits and vegetables worldwide. It also produces bananas and pineapples, citrus fruits, apples, melons, pears, as well as mangos, papayas, and avocados under the F.lli Orsero brand name. Orsero S.p.A. is based in Albenga, Italy. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 22:41
End of Day Share Price2020/02/14 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.