MUN:SD61

Stock Analysis Report

Executive Summary

Standard Diversified Inc., a diversified holding company, through its subsidiaries, engages in the other tobacco products and outdoor advertising activities in the United States.


Snowflake Analysis

Overvalued with worrying balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: SD61's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.5%

SD61

13.9%

DE Tobacco

-0.6%

DE Market


1 Year Return

-41.0%

SD61

-14.1%

DE Tobacco

-20.9%

DE Market

Return vs Industry: SD61 underperformed the German Tobacco industry which returned -14.1% over the past year.

Return vs Market: SD61 underperformed the German Market which returned -20.9% over the past year.


Shareholder returns

SD61IndustryMarket
7 Day-1.5%13.9%-0.6%
30 Day-16.3%-5.7%-18.6%
90 Day-24.9%-13.4%-26.2%
1 Year-41.0%-41.0%-6.7%-14.1%-18.6%-20.9%
3 Yearn/a-37.5%-48.0%-19.0%-25.8%
5 Yearn/a-7.4%-28.8%-21.2%-31.8%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Standard Diversified undervalued compared to its fair value and its price relative to the market?

20.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SD61 (€9.31) is trading below our estimate of fair value (€11.57)

Significantly Below Fair Value: SD61 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: SD61 is unprofitable, so we can't compare its PE Ratio to the Tobacco industry average.

PE vs Market: SD61 is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SD61's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SD61 is overvalued based on its PB Ratio (3.6x) compared to the XE Tobacco industry average (1.2x).


Next Steps

Future Growth

How is Standard Diversified forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

11.2%

Forecasted Food, Beverage & Tobacco industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Standard Diversified has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Standard Diversified performed over the past 5 years?

-71.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SD61 is currently unprofitable.

Growing Profit Margin: SD61 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SD61 is unprofitable, and losses have increased over the past 5 years at a rate of -71.8% per year.

Accelerating Growth: Unable to compare SD61's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SD61 is unprofitable, making it difficult to compare its past year earnings growth to the Tobacco industry (4.8%).


Return on Equity

High ROE: SD61 has a negative Return on Equity (-3.77%), as it is currently unprofitable.


Next Steps

Financial Health

How is Standard Diversified's financial position?


Financial Position Analysis

Short Term Liabilities: SD61's short term assets ($232.2M) exceed its short term liabilities ($84.8M).

Long Term Liabilities: SD61's short term assets ($232.2M) do not cover its long term liabilities ($326.0M).


Debt to Equity History and Analysis

Debt Level: SD61's debt to equity ratio (318.3%) is considered high.

Reducing Debt: Insufficient data to determine if SD61's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: SD61 has a high level of physical assets or inventory.

Debt Coverage by Assets: SD61's debt is not covered by short term assets (assets are 0.7x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: SD61 has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: SD61 has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate SD61's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate SD61's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SD61's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SD61's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SD61's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Greg Baxter (66yo)

1.08s

Tenure

US$96,405

Compensation

Mr. Gregory H. A. Baxter, also known as Greg, serves as Executive Chairman of the Board at Standard Diversified Inc. since June 2017 and has been its Interim Chief Executive Officer since March 29, 2019. H ...


CEO Compensation Analysis

Compensation vs Market: Greg's total compensation ($USD96.41K) is below average for companies of similar size in the German market ($USD744.69K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Gregory H. Baxter
Executive Chairman of the Board & Interim CEO1.08yrsUS$96.41k0.17% $271.7k
Edward Sweeney
Interim Chief Financial Officer2.92yrsno datano data
Bradford Tobin
General Counsel & Secretary2.25yrsUS$548.31k0.044% $68.9k

2.3yrs

Average Tenure

49yo

Average Age

Experienced Management: SD61's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gregory H. Baxter
Executive Chairman of the Board & Interim CEO1.08yrsUS$96.41k0.17% $271.7k
David Wurzer
Independent Director10.17yrsUS$81.00k0.080% $125.1k
Thomas Helms
Director2.67yrsUS$76.00k2.35% $3.7m
Ian Estus
Director3.67yrsUS$400.00k0.49% $766.1k
David Glazek
Independent Director2.67yrsno datano data
Arnold Zimmerman
Independent Director2yrsUS$59.13k0.026% $41.0k

2.8yrs

Average Tenure

63.5yo

Average Age

Experienced Board: SD61's board of directors are not considered experienced ( 2.8 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Standard Diversified Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Standard Diversified Inc.
  • Ticker: SD61
  • Exchange: MUN
  • Founded:
  • Industry: Tobacco
  • Sector: Food, Beverage & Tobacco
  • Market Cap: US$168.646m
  • Listing Market Cap: US$156.318m
  • Shares outstanding: 16.58m
  • Website: https://www.standarddiversified.com

Number of Employees


Location

  • Standard Diversified Inc.
  • 767 5th Avenue
  • 12th Floor
  • New York
  • New York
  • 10153
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SDIAMEX (NYSE MKT LLC)YesClass A Common StockUSUSDJun 2017
SD61MUN (Boerse Muenchen)YesClass A Common StockDEEURJun 2017
SDOI.BOTCPK (Pink Sheets LLC)Class B Common StockUSUSDJul 2017

Biography

Standard Diversified Inc., a diversified holding company, through its subsidiaries, engages in the other tobacco products and outdoor advertising activities in the United States. Its Smokeless Products segment manufactures and markets moist snuff and contracts for and markets chewing tobacco products. The company’s Smoking Products segment markets cigarette papers, tubes, and related products; markets and distributes finished cigars and Make-Your-Own cigar wraps; and processes, packages, markets, and distributes traditional pipe tobaccos. Its NewGen Products segment markets and distributes e-cigarettes, e-liquids, vaporizers, and other products without tobacco and/or nicotine; and an assortment of vaping and cannabidiol isolate (CBD) related products to non-traditional retail outlets, as well as to individual consumers via Vapor Shark and VaporFi branded retail outlets and online platforms. The company’s portfolio of brands includes Zig-Zag, Beech-Nut, Stoker’s, Trophy, VaporBeast, Solace, and VaporFi. It also engages in out-of-home advertising business. As of December 31, 2019, the company owned, managed, and operated 399 billboard faces located across Alabama, Florida, Georgia, South Carolina, and Texas. Standard Diversified Inc. is headquartered in New York, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/05 04:05
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.