Bodegas Riojanas (BME:RIO) - Share price, News & Analysis

Q: What is the Fair Price of RIO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

RIO (€3.5) is trading above our estimate of [[fair value]] (€2.59)

RIO fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	0/6
Past Performance	5/6
Financial Health	3/6
Dividends	3/6

RIO Stock Overview

Bodegas Riojanas, S.A. engages in winemaking business in Spain.

Rewards

Earnings grew by 282.2% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

Unstable dividend track record

Volatile share price over the past 3 months

Does not have a meaningful market cap (€17M)

Bodegas Riojanas Competitors

Grace Wine Holdings

SEHK:8146

HK$131.3m

Viñedos Emiliana

SNSE:EMILIANA

CL$19.1b

Lamdong Foodstuffs

HNX:VDL

₫359.1b

aktsiaselts Linda Nektar

TLSE:LINDA

€11.1m

Price History & Performance

Summary of all time highs, changes and price drops for Bodegas Riojanas
Historical stock prices
Current Share Price	€3.50
52 Week High	€3.98
52 Week Low	€2.80
Beta	0.63
1 Month Change	10.76%
3 Month Change	20.69%
1 Year Change	0.57%
3 Year Change	-25.21%
5 Year Change	-29.29%
Change since IPO	-64.11%

Shareholder Returns

	RIO	ES Beverage	ES Market
7D	0%	-0.2%	1.9%
1Y	0.6%	-0.8%	-5.8%

Return vs Industry: RIO exceeded the Spanish Beverage industry which returned -2.3% over the past year.

Return vs Market: RIO exceeded the Spanish Market which returned -7.1% over the past year.

Price Volatility

Is RIO's price volatile compared to industry and market?
RIO volatility
RIO Average Weekly Movement	6.8%
Beverage Industry Average Movement	3.8%
Market Average Movement	3.9%
10% most volatile stocks in ES Market	7.0%
10% least volatile stocks in ES Market	0.7%

Stable Share Price: RIO is more volatile than 75% of Spanish stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: RIO's weekly volatility (7%) has been stable over the past year, but is still higher than 75% of Spanish stocks.

About the Company

Founded	Employees	CEO	Website
1890	92	n/a	https://www.bodegasriojanas.com

Bodegas Riojanas, S.A. engages in winemaking business in Spain. The company offers its wine products under the Monte Real, Viña Albina, Puerta Vieja, Gran Albina, Viore, Borisa, Peñamonte, Pascali, Marqués de Peñamonte, Veiga Naúm, Pierrel, Alacer, and Canchales names. The company was founded in 1890 and is based in Cenicero, Spain.

Bodegas Riojanas Fundamentals Summary

How do Bodegas Riojanas's earnings and revenue compare to its market cap?
RIO fundamental statistics
Market Cap	€16.87m
Earnings (TTM)	€814.00k
Revenue (TTM)	€18.56m

20.7x

P/E Ratio

0.9x

P/S Ratio

Is RIO overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
RIO income statement (TTM)
Revenue	€18.56m
Cost of Revenue	€9.09m
Gross Profit	€9.47m
Other Expenses	€8.65m
Earnings	€814.00k

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.17
Gross Margin	51.01%
Net Profit Margin	4.39%
Debt/Equity Ratio	119.2%

How did RIO perform over the long term?

See historical performance and comparison

Dividends

2.9%

Current Dividend Yield

59%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is RIO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for RIO?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for RIO. This is calculated by dividing RIO's market cap by their current preferred multiple.
What is RIO's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	€16.87m

RIO key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2.2x
Enterprise Value/EBITDA	17.3x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does RIO's PE Ratio compare to its peers?

RIO PE Ratio vs Peers

The above table shows the PE ratio for RIO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	59.7x
8146 Grace Wine Holdings	28.6x	n/a	HK$131.3m
EMILIANA Viñedos Emiliana	9.7x	n/a	CL$19.1b
VDL Lamdong Foodstuffs	110.3x	n/a	₫359.1b
LINDA aktsiaselts Linda Nektar	90.1x	n/a	€11.1m
RIO Bodegas Riojanas	20.7x	n/a	€16.9m

Price-To-Earnings vs Peers: RIO is good value based on its Price-To-Earnings Ratio (20.7x) compared to the peer average (59.7x).

Price to Earnings Ratio vs Industry

How does RIO's PE Ratio compare vs other companies in the European Beverage Industry?

Price-To-Earnings vs Industry: RIO is expensive based on its Price-To-Earnings Ratio (20.7x) compared to the European Beverage industry average (18.8x)

Price to Earnings Ratio vs Fair Ratio

What is RIO's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

RIO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	20.7x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate RIO's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of RIO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: RIO (€3.5) is trading above our estimate of fair value (€2.59)

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

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

10.8%

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 Bodegas Riojanas 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.

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Check out Bodegas Riojanas's track record over time to understand how much the company has returned to shareholders and its earnings growth rate in the past.
Bodegas Riojanas competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Bodegas Riojanas performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

6.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: RIO has high quality earnings.

Growing Profit Margin: RIO's current net profit margins (4.4%) are higher than last year (1.2%).

Past Earnings Growth Analysis

Earnings Trend: RIO has become profitable over the past 5 years, growing earnings by 6.9% per year.

Accelerating Growth: RIO's earnings growth over the past year (282.2%) exceeds its 5-year average (6.9% per year).

Earnings vs Industry: RIO earnings growth over the past year (282.2%) exceeded the Beverage industry 38.2%.

Return on Equity

High ROE: RIO's Return on Equity (4%) is considered low.

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Financial Health

How is Bodegas Riojanas's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: RIO's short term assets (€32.8M) exceed its short term liabilities (€14.5M).

Long Term Liabilities: RIO's short term assets (€32.8M) exceed its long term liabilities (€14.4M).

Debt to Equity History and Analysis

Debt Level: RIO's net debt to equity ratio (117.3%) is considered high.

Reducing Debt: RIO's debt to equity ratio has increased from 111% to 119.2% over the past 5 years.

Debt Coverage: RIO's debt is not well covered by operating cash flow (9%).

Interest Coverage: RIO's interest payments on its debt are well covered by EBIT (3.6x coverage).

Balance Sheet

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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

2.86%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: RIO's dividend (2.86%) is higher than the bottom 25% of dividend payers in the Spanish market (2.19%).

High Dividend: RIO's dividend (2.86%) is low compared to the top 25% of dividend payers in the Spanish market (5.9%).

Stability and Growth of Payments

Stable Dividend: RIO's dividend payments have been volatile in the past 10 years.

Growing Dividend: RIO's dividend payments have not increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (59.2%), RIO's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: At its current cash payout ratio (76.7%), RIO's dividend payments are covered by cash flows.

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Management

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

9.2yrs

Average board tenure

CEO

Bodegas Riojanas has no CEO, or we have no data on them.

Board Members

Experienced Board: RIO's board of directors are considered experienced (9.2 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.

Data	Last Updated (UTC time)
Company Analysis	2022/08/08 00:00
End of Day Share Price	2022/08/08 00:00
Earnings	2022/06/30
Annual Earnings	2021/12/31