CPSE:RBREW

Stock Analysis Report

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Executive Summary

Royal Unibrew A/S produces, markets, sells, and distributes beer, malt, soft drinks, ciders, and ready-to-drink products.


Snowflake Analysis

Solid track record second-rate dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

3.6%

RBREW

9.1%

DK Beverage

0.8%

DK Market


1 Year Return

17.8%

RBREW

-19.3%

DK Beverage

21.6%

DK Market

Return vs Industry: RBREW exceeded the Danish Beverage industry which returned -21.7% over the past year.

Return vs Market: RBREW underperformed the Danish Market which returned 22% over the past year.


Shareholder returns

RBREWIndustryMarket
7 Day3.6%9.1%0.8%
30 Day12.6%14.5%7.5%
90 Day-2.8%0.9%8.2%
1 Year17.8%17.8%-17.9%-19.3%24.0%21.6%
3 Year89.5%81.2%-11.6%-16.5%42.9%31.1%
5 Year158.4%134.7%-0.2%-10.0%52.4%33.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Royal Unibrew undervalued compared to its fair value and its price relative to the market?

1.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RBREW (DKK561.4) is trading below our estimate of fair value (DKK570.02)

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


Price To Earnings Ratio

PE vs Industry: RBREW is poor value based on its PE Ratio (24.5x) compared to the Beverage industry average (18.4x).

PE vs Market: RBREW is poor value based on its PE Ratio (24.5x) compared to the Danish market (16.8x).


Price to Earnings Growth Ratio

PEG Ratio: RBREW is poor value based on its PEG Ratio (3.3x)


Price to Book Ratio

PB vs Industry: RBREW is overvalued based on its PB Ratio (8.7x) compared to the XE Beverage industry average (1.8x).


Next Steps

Future Growth

How is Royal Unibrew forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

7.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RBREW's forecast earnings growth (7.4% per year) is above the savings rate (0.3%).

Earnings vs Market: RBREW's earnings (7.4% per year) are forecast to grow slower than the Danish market (14.9% per year).

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

Revenue vs Market: RBREW's revenue (3.5% per year) is forecast to grow slower than the Danish market (6.4% per year).

High Growth Revenue: RBREW's revenue (3.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RBREW's Return on Equity is forecast to be high in 3 years time (33.1%)


Next Steps

Past Performance

How has Royal Unibrew performed over the past 5 years?

11.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RBREW has high quality earnings.

Growing Profit Margin: RBREW's current net profit margins (14.7%) are higher than last year (14.3%).


Past Earnings Growth Analysis

Earnings Trend: RBREW's earnings have grown by 11.6% per year over the past 5 years.

Accelerating Growth: RBREW's earnings growth over the past year (7.8%) is below its 5-year average (11.6% per year).

Earnings vs Industry: RBREW earnings growth over the past year (7.8%) exceeded the Beverage industry 1.9%.


Return on Equity

High ROE: RBREW's Return on Equity (35.6%) is considered high.


Next Steps

Financial Health

How is Royal Unibrew's financial position?


Financial Position Analysis

Short Term Liabilities: RBREW's short term assets (DKK1.4B) do not cover its short term liabilities (DKK2.2B).

Long Term Liabilities: RBREW's short term assets (DKK1.4B) do not cover its long term liabilities (DKK3.1B).


Debt to Equity History and Analysis

Debt Level: RBREW's debt to equity ratio (84.6%) is considered high.

Reducing Debt: RBREW's debt to equity ratio has increased from 60.5% to 84.6% over the past 5 years.

Debt Coverage: RBREW's debt is well covered by operating cash flow (55.7%).

Interest Coverage: RBREW's interest payments on its debt are well covered by EBIT (41.7x coverage).


Balance Sheet


Next Steps

Dividend

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

2.17%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RBREW's dividend (2.17%) is higher than the bottom 25% of dividend payers in the Danish market (1.42%).

High Dividend: RBREW's dividend (2.17%) is low compared to the top 25% of dividend payers in the Danish market (3.45%).


Stability and Growth of Payments

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

Growing Dividend: RBREW'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 (53.1%), RBREW's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RBREW's dividends in 3 years are forecast to be covered by earnings (52.7% payout ratio).


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Hans Savonije (63yo)

2.75yrs

Tenure

ø14,496,000

Compensation

Mr. Johannes F. C. M. Savonije, also known as Hans, has been Chief Executive Officer and President of Royal Unibrew A/S since September 18, 2017 also serves as its Member of Executive Board. Mr. Savonije s ...


CEO Compensation Analysis

Compensation vs Market: Hans's total compensation ($USD2.18M) is above average for companies of similar size in the Danish market ($USD1.62M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Johannes F. C. Savonije
CEO, President & Member of Executive Board2.75yrsø14.50m0.39% DKK108.3m
Lars Vestergaard
CFO & Member of Executive Board0.17yrø571.00k0.00084% DKK231.9k
Lars Jensen
COO & Member of Executive Board8.58yrsø9.41m0.085% DKK23.3m
Claus Kærgaard
Sales Development Manager & Director2.17yrsø380.00kno data
Martin Alsø
Business Unit Manager & Director6.17yrsø380.00k0.0039% DKK1.1m

2.8yrs

Average Tenure

46yo

Average Age

Experienced Management: RBREW's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Claus Kærgaard
Sales Development Manager & Director2.17yrsø380.00kno data
Martin Alsø
Business Unit Manager & Director6.17yrsø380.00k0.0039% DKK1.1m
Walther Thygesen
Independent Chairman of the Board2.42yrsø1.33m0.019% DKK5.3m
Søren Lorentzen
Alternate Director2.17yrsno datano data
Floris van Woerkom
Independent Director2.17yrsø404.00k0.0020% DKK560.4k
Christian Sagild
Independent Director2.17yrsø505.00k0.0031% DKK842.0k
Jais Valeur
Independent Deputy Chairman2.42yrsø791.00kno data
Heidi Kleinbach-Sauter
Independent Director1.17yrsø260.00kno data
Einar Nielsen
Director2.17yrsø381.00k0.00010% DKK27.6k
Catharina Stackelberg-Hammarén
Independent Director1.17yrsø265.00kno data

2.2yrs

Average Tenure

56.5yo

Average Age

Experienced Board: RBREW's board of directors are not considered experienced ( 2.2 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

Royal Unibrew A/S's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Royal Unibrew A/S
  • Ticker: RBREW
  • Exchange: CPSE
  • Founded:
  • Industry: Brewers
  • Sector: Food, Beverage & Tobacco
  • Market Cap: ø27.606b
  • Shares outstanding: 49.17m
  • Website: https://www.royalunibrew.com

Number of Employees


Location

  • Royal Unibrew A/S
  • Faxe AllE 1
  • Faxe
  • Zealand Region
  • 4640
  • Denmark

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RBREWCPSE (OMX Nordic Exchange Copenhagen)YesShare CapitalDKDKKMay 1998
0R6ZLSE (London Stock Exchange)YesShare CapitalGBDKKMay 1998
RBREWCBATS-CHIXE (BATS 'Chi-X Europe')YesShare CapitalGBDKKMay 1998
0R1DB (Deutsche Boerse AG)YesShare CapitalDEEURMay 1998
RBREW NBMV (Bolsa Mexicana de Valores)YesShare CapitalMXMXNMay 1998

Biography

Royal Unibrew A/S produces, markets, sells, and distributes beer, malt, soft drinks, ciders, and ready-to-drink products. The company also provides spring water, natural mineral water, energy drinks, fruit juices, nectar drinks, long drinks, and cocktail products. It offers its products under the Royal Beer, Schiøtz, Lottrup, Kissmeyer, Anarkist, Albani, Ceres, Thor, Faxe Kondi, Nikoline, Egekilde, Faxe Kondi Booster, Tempt, Polar Monkey, Lorina, CULT Energy, SHAKER, MOKAÏ, PureThé, InFreshhh, LemonSoda, OranSoda, PelmoSoda, TonicSoda, Crodo Lisiel, Crodo Chinotto, Karjala, Lapin Kulta, Aura, Lahden Erikois, Mattson, Original Long Drink, Upcider, Happy Joe, Jaffa, ED, Booster, Novelle, Kalnapilis, Taurus, the Vilkmerges, Cido, Mangali, Fruts, Lacplesa Alus, Livu Alus, the Lielvardes, Meistriti Gildi, Vitamalt, Supermalt, and Powermalt brands. The company also provides license-based international brands, such as Heineken and PepsiCo; and a range of international spirits and wine brands, including Johnny Walker, Captain Morgan, Lanson, Baileys, and JP. Chenet on an agency basis. It serves customers in Denmark, Germany, Italy, France, Finland, Lithuania, Latvia, Estonia, and internationally. The company was formerly known as Bryggerigruppen A/S and changes its name to Royal Unibrew A/S in 2005. Royal Unibrew A/S is headquartered in Faxe, Denmark. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/04 21:20
End of Day Share Price2020/06/04 00:00
Earnings2020/03/31
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.