Vranken-Pommery Monopole Société Anonyme (ENXTPA:VRAP) - Share price, News & Analysis

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

VRAP (€17.3) is trading above our estimate of [[fair value]] (€14.13)

VRAP fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	2/6
Past Performance	4/6
Financial Health	3/6
Dividends	3/6

VRAP Stock Overview

Vranken-Pommery Monopole Société Anonyme produces and sells wines and champagnes in Europe, North America, and the Asia Pacific.

Rewards

Price-To-Earnings ratio (18.5x) is below the Beverage industry average (21.9x)

Earnings are forecast to grow 16.67% per year

Earnings grew by 3437.4% over the past year

Risk Analysis

Interest payments are not well covered by earnings

Unstable dividend track record

Vranken-Pommery Monopole Société Anonyme Competitors

Lanson-BCC

ENXTPA:ALLAN

€204.8m

AdVini

ENXTPA:ADVI

€86.9m

Marie Brizard Wine & Spirits

ENXTPA:MBWS

€261.7m

Laurent-Perrier

ENXTPA:LPE

€576.4m

Price History & Performance

Summary of all time highs, changes and price drops for Vranken-Pommery Monopole Société Anonyme
Historical stock prices
Current Share Price	€17.30
52 Week High	€19.55
52 Week Low	€16.00
Beta	0.66
1 Month Change	0.29%
3 Month Change	0.29%
1 Year Change	-1.14%
3 Year Change	-21.36%
5 Year Change	-27.92%
Change since IPO	-59.81%

Shareholder Returns

	VRAP	FR Beverage	FR Market
7D	-0.9%	0.3%	1.7%
1Y	-1.1%	5.8%	-4.8%

Return vs Industry: VRAP underperformed the French Beverage industry which returned 5.9% over the past year.

Return vs Market: VRAP exceeded the French Market which returned -5.2% over the past year.

Price Volatility

Is VRAP's price volatile compared to industry and market?
VRAP volatility
VRAP Average Weekly Movement	2.0%
Beverage Industry Average Movement	3.3%
Market Average Movement	4.9%
10% most volatile stocks in FR Market	9.3%
10% least volatile stocks in FR Market	2.8%

Stable Share Price: VRAP is less volatile than 75% of French stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: VRAP's weekly volatility (2%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1976	659	Paul-François Vranken	https://www.vrankenpommery.com

Vranken-Pommery Monopole Société Anonyme produces and sells wines and champagnes in Europe, North America, and the Asia Pacific. The company offers its products under the Champagne Charles Lafitte, Champagne Demoiselle, Champagne Pommery, Champagne Heidsieck & C° Monopole, Champagne Vranken – Diamant, Champagne Germain, Sao Pedro, Rozès, and Grifo brands. The company was founded in 1976 and is based in Reims, France.

Vranken-Pommery Monopole Société Anonyme Fundamentals Summary

How do Vranken-Pommery Monopole Société Anonyme's earnings and revenue compare to its market cap?
VRAP fundamental statistics
Market Cap	€153.62m
Earnings (TTM)	€8.31m
Revenue (TTM)	€301.25m

18.5x

P/E Ratio

0.5x

P/S Ratio

Is VRAP overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
VRAP income statement (TTM)
Revenue	€301.25m
Cost of Revenue	€218.27m
Gross Profit	€82.98m
Other Expenses	€74.67m
Earnings	€8.31m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.94
Gross Margin	27.55%
Net Profit Margin	2.76%
Debt/Equity Ratio	169.0%

How did VRAP perform over the long term?

See historical performance and comparison

Dividends

4.6%

Current Dividend Yield

85%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

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 VRAP?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for VRAP. This is calculated by dividing VRAP's market cap by their current preferred multiple.
What is VRAP's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	€153.62m

VRAP 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	2.7x
Enterprise Value/EBITDA	20.1x
PEG Ratio	1.1x

Price to Earnings Ratio vs Peers

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

VRAP PE Ratio vs Peers

The above table shows the PE ratio for VRAP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	20.8x
ALLAN Lanson-BCC	10.6x	4.6%	€204.8m
ADVI AdVini	21.5x	n/a	€86.9m
MBWS Marie Brizard Wine & Spirits	39.8x	5.9%	€261.7m
LPE Laurent-Perrier	11.5x	3.9%	€576.4m
VRAP Vranken-Pommery Monopole Société Anonyme	18.5x	16.7%	€153.6m

Price-To-Earnings vs Peers: VRAP is good value based on its Price-To-Earnings Ratio (18.5x) compared to the peer average (20.8x).

Price to Earnings Ratio vs Industry

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

Price-To-Earnings vs Industry: VRAP is good value based on its Price-To-Earnings Ratio (18.5x) compared to the French Beverage industry average (21.9x)

Price to Earnings Ratio vs Fair Ratio

What is VRAP'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.

VRAP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	18.5x
Fair PE Ratio	16.3x

Price-To-Earnings vs Fair Ratio: VRAP is expensive based on its Price-To-Earnings Ratio (18.5x) compared to the estimated Fair Price-To-Earnings Ratio (16.3x).

Share Price vs Fair Value

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

Below Fair Value: VRAP (€17.3) is trading above our estimate of fair value (€14.13)

Significantly Below Fair Value: VRAP 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: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Future Growth

How is Vranken-Pommery Monopole Société Anonyme forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

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

16.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: VRAP's forecast earnings growth (16.7% per year) is above the savings rate (0.3%).

Earnings vs Market: VRAP's earnings (16.7% per year) are forecast to grow faster than the French market (11.7% per year).

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

Revenue vs Market: VRAP's revenue (3.6% per year) is forecast to grow slower than the French market (5.4% per year).

High Growth Revenue: VRAP's revenue (3.6% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: VRAP's Return on Equity is forecast to be low in 3 years time (3.6%).

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Past Performance

How has Vranken-Pommery Monopole Société Anonyme performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

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

-22.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: VRAP has high quality earnings.

Growing Profit Margin: VRAP's current net profit margins (2.8%) are higher than last year (0.1%).

Past Earnings Growth Analysis

Earnings Trend: VRAP's earnings have declined by 22.6% per year over the past 5 years.

Accelerating Growth: VRAP's earnings growth over the past year (3437.4%) exceeds its 5-year average (-22.6% per year).

Earnings vs Industry: VRAP earnings growth over the past year (3437.4%) exceeded the Beverage industry 203.1%.

Return on Equity

High ROE: VRAP's Return on Equity (2.2%) is considered low.

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Financial Health

How is Vranken-Pommery Monopole Société Anonyme'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: VRAP's short term assets (€736.0M) exceed its short term liabilities (€485.5M).

Long Term Liabilities: VRAP's short term assets (€736.0M) exceed its long term liabilities (€376.5M).

Debt to Equity History and Analysis

Debt Level: VRAP's net debt to equity ratio (165%) is considered high.

Reducing Debt: VRAP's debt to equity ratio has reduced from 183.8% to 169% over the past 5 years.

Debt Coverage: VRAP's debt is not well covered by operating cash flow (9.8%).

Interest Coverage: VRAP's interest payments on its debt are not well covered by EBIT (1.8x coverage).

Balance Sheet

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Dividend

What is Vranken-Pommery Monopole Société Anonyme 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

4.62%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: VRAP's dividend (4.62%) is higher than the bottom 25% of dividend payers in the French market (1.68%).

High Dividend: VRAP's dividend (4.62%) is low compared to the top 25% of dividend payers in the French market (5.22%).

Stability and Growth of Payments

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

Growing Dividend: VRAP's dividend payments have fallen over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (85.5%), VRAP's payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (14.3%), VRAP's dividend payments are thoroughly covered by cash flows.

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Management

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

11.1yrs

Average board tenure

CEO

Paul-François Vranken (75 yo)

no data

Tenure

€635,139

Compensation

Mr. Paul-François Vranken serves as the Chief Executive Officer of Pommery SAS. Mr. Vranken serves as the Chairman and Chief Executive at Vranken-Pommery Monopole Société Anonyme and has been its Director...

CEO Compensation Analysis

Compensation vs Market: Insufficient data to establish whether Paul-François's total compensation is reasonable compared to companies of similar size in the French market.

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

Board Members

Experienced Board: VRAP's board of directors are seasoned and experienced ( 11.1 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	2022/08/16 00:00
End of Day Share Price	2022/08/16 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31