AIM:WINE

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Naked Wines plc, together with its subsidiaries, engages in the retailing of wines, beers, and spirits in the United Kingdom, the United States, and Australia. More Details


Snowflake Analysis

Excellent balance sheet with concerning outlook.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: WINE is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: WINE's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

12.6%

WINE

1.6%

GB Consumer Retailing

-1.0%

GB Market


1 Year Return

245.2%

WINE

3.7%

GB Consumer Retailing

-7.7%

GB Market

Return vs Industry: WINE exceeded the UK Consumer Retailing industry which returned 3.6% over the past year.

Return vs Market: WINE exceeded the UK Market which returned -6.3% over the past year.


Shareholder returns

WINEIndustryMarket
7 Day12.6%1.6%-1.0%
30 Day21.3%5.0%2.2%
90 Day59.1%16.3%18.5%
1 Year245.2%245.2%9.0%3.7%-4.0%-7.7%
3 Year65.4%58.8%12.0%0.02%4.0%-8.7%
5 Year118.8%105.5%51.3%32.5%43.8%15.9%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Naked Wines undervalued compared to its fair value and its price relative to the market?

5.24x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate WINE's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate WINE's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: WINE is unprofitable, so we can't compare its PE Ratio to the GB Consumer Retailing industry average.

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: WINE is overvalued based on its PB Ratio (5.2x) compared to the GB Consumer Retailing industry average (1.4x).


Next Steps

Future Growth

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

76.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WINE is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: WINE is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: WINE is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: WINE's revenue (12.6% per year) is forecast to grow faster than the UK market (6.6% per year).

High Growth Revenue: WINE's revenue (12.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WINE's Return on Equity is forecast to be low in 3 years time (1.4%).


Next Steps

Past Performance

How has Naked Wines performed over the past 5 years?

-51.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WINE is currently unprofitable.

Growing Profit Margin: WINE is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: WINE is unprofitable, and losses have increased over the past 5 years at a rate of 51.8% per year.

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

Earnings vs Industry: WINE is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Retailing industry (-8.7%).


Return on Equity

High ROE: WINE has a negative Return on Equity (-8.78%), as it is currently unprofitable.


Next Steps

Financial Health

How is Naked Wines's financial position?


Financial Position Analysis

Short Term Liabilities: WINE's short term assets (£168.7M) exceed its short term liabilities (£110.8M).

Long Term Liabilities: WINE's short term assets (£168.7M) exceed its long term liabilities (£3.8M).


Debt to Equity History and Analysis

Debt Level: WINE's debt to equity ratio (0.07%) is considered satisfactory.

Reducing Debt: WINE's debt to equity ratio has reduced from 42.1% to 0.07% over the past 5 years.

Debt Coverage: WINE's debt is well covered by operating cash flow (58464.1%).

Interest Coverage: Insufficient data to determine if WINE's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: WINE is not paying a notable dividend for the UK market.


Future Payout to Shareholders

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


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Nick Devlin (35 yo)

1

Tenure

UK£370,335

Compensation

Mr. Nicholas James Devlin, also known as Nick, serves as Chief Executive Officer of Naked Wines plc (also known as Majestic Wine plc) since January 9, 2020. He has been Executive Director and Group Chief O...


CEO Compensation Analysis

Compensation vs Market: Nick's total compensation ($USD505.60K) is below average for companies of similar size in the UK market ($USD1.01M).

Compensation vs Earnings: Insufficient data to compare Nick's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Nicholas Devlin
Group COO1yrUK£370.34k0.099%
£ 529.5k
James Crawford
Managing Director of UK Business0.083yrUK£460.00k0.21%
£ 1.1m
Shawn Tabak
CFO & Director0.083yrno datano data
Alex Iapichino
General Counsel & Company Secretary3.25yrsno datano data
Cat Lomax
Head of Buying3.58yrsno datano data
Joshua Lincoln
Retail & Managing Director of Majestic Retail3yrsno data0.028%
£ 146.7k
Olivia Fitzgerald
Managing Director of Majestic Commercial2.75yrsno datano data
Dave Smith
Director of Lay & Wheelerno datano datano data

2.8yrs

Average Tenure

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


Board Members

NamePositionTenureCompensationOwnership
Nicholas Devlin
Group COO1yrUK£370.34k0.099%
£ 529.5k
Shawn Tabak
CFO & Director0.083yrno datano data
Ian Harding
Independent Chairman0.42yrUK£58.00k0.016%
£ 87.3k
Justin Apthorp
Non-Executive Director15yrsUK£40.00k0.068%
£ 364.0k
David Stead
Senior Independent Director0.42yrUK£45.00kno data
Katrina Cliffe
Independent Non-Executive Director1.67yrsUK£35.00k0.021%
£ 109.2k

1.0yrs

Average Tenure

55yo

Average Age

Experienced Board: WINE's board of directors are not considered experienced ( 1 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: WINE insiders have sold more shares than they have bought 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

Naked Wines plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Naked Wines plc
  • Ticker: WINE
  • Exchange: AIM
  • Founded: 1980
  • Industry: Food Retail
  • Sector: Consumer Retailing
  • Market Cap: UK£532.587m
  • Shares outstanding: 73.16m
  • Website: https://www.nakedwinesplc.co.uk

Number of Employees


Location

  • Naked Wines plc
  • Norvic House
  • 29-33 Chapel Field Road
  • Norwich
  • Norfolk
  • NR2 1RP
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WINEAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPNov 1996
MJWN.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 1996

Biography

Naked Wines plc, together with its subsidiaries, engages in the retailing of wines, beers, and spirits in the United Kingdom, the United States, and Australia. The company offers its products online. It al...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/25 19:43
End of Day Share Price2021/01/25 00:00
Earnings2020/09/28
Annual Earnings2020/03/30


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.