AIM:FEVR

Stock Analysis Report

Executive Summary

Fevertree Drinks Plc, together with its subsidiaries, develops and supplies premium mixer drinks in the United Kingdom, the United States, Europe, and internationally.

Rewards

Earnings are forecast to grow 7.7% per year

Earnings grew by 21.1% over the past year

Risk Analysis

No risks detected for FEVR from our risk checks.


Snowflake Analysis

Flawless balance sheet with proven track record.


Similar Companies

Share Price & News

How has Fevertree Drinks's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FEVR has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.3%

FEVR

-1.4%

GB Beverage

0.1%

GB Market


1 Year Return

-5.3%

FEVR

8.6%

GB Beverage

9.8%

GB Market

Return vs Industry: FEVR underperformed the UK Beverage industry which returned 8.6% over the past year.

Return vs Market: FEVR underperformed the UK Market which returned 9.8% over the past year.


Shareholder returns

FEVRIndustryMarket
7 Day-1.3%-1.4%0.1%
30 Day19.3%0.7%-0.2%
90 Day-8.0%-6.9%2.0%
1 Year-4.8%-5.3%11.6%8.6%15.5%9.8%
3 Year100.9%98.1%62.7%51.0%20.1%4.8%
5 Year1145.4%1118.3%99.8%74.7%44.5%11.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Fevertree Drinks undervalued compared to its fair value and its price relative to the market?

38.77x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FEVR (£21.26) is trading above our estimate of fair value (£14.1)

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


Price To Earnings Ratio

PE vs Industry: FEVR is poor value based on its PE Ratio (38.8x) compared to the Beverage industry average (23.1x).

PE vs Market: FEVR is poor value based on its PE Ratio (38.8x) compared to the UK market (17.2x).


Price to Earnings Growth Ratio

PEG Ratio: FEVR is poor value based on its PEG Ratio (5x)


Price to Book Ratio

PB vs Industry: FEVR is overvalued based on its PB Ratio (12.3x) compared to the GB Beverage industry average (3.3x).


Next Steps

Future Growth

How is Fevertree Drinks forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

7.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FEVR's forecast earnings growth (7.7% per year) is above the savings rate (0.5%).

Earnings vs Market: FEVR's earnings (7.7% per year) are forecast to grow slower than the UK market (12.4% per year).

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

Revenue vs Market: FEVR's revenue (10.8% per year) is forecast to grow faster than the UK market (3.6% per year).

High Growth Revenue: FEVR's revenue (10.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FEVR's Return on Equity is forecast to be high in 3 years time (24%)


Next Steps

Past Performance

How has Fevertree Drinks performed over the past 5 years?

48.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FEVR has high quality earnings.

Growing Profit Margin: FEVR's current net profit margins (25.4%) are lower than last year (25.9%).


Past Earnings Growth Analysis

Earnings Trend: FEVR's earnings have grown significantly by 48.6% per year over the past 5 years.

Accelerating Growth: FEVR's earnings growth over the past year (21.1%) is below its 5-year average (48.6% per year).

Earnings vs Industry: FEVR earnings growth over the past year (21.1%) exceeded the Beverage industry -8.4%.


Return on Equity

High ROE: FEVR's Return on Equity (31.7%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Fevertree Drinks's financial position?


Financial Position Analysis

Short Term Liabilities: FEVR's short term assets (£189.9M) exceed its short term liabilities (£36.7M).

Long Term Liabilities: FEVR's short term assets (£189.9M) exceed its long term liabilities (£1.5M).


Debt to Equity History and Analysis

Debt Level: FEVR is debt free.

Reducing Debt: FEVR currently has no debt however we can't compare to 5 years ago as we have no data for that period.

Debt Coverage: FEVR has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: FEVR has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: FEVR has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if FEVR's debt is covered by short term assets.


Next Steps

Dividend

What is Fevertree Drinks's current dividend yield, its reliability and sustainability?

0.68%

Current Dividend Yield


Dividend Yield vs Market

company0.7%marketbottom25%2.0%markettop25%5.2%industryaverage2.2%forecastin3Years0.8%

Current dividend yield vs market & industry

Notable Dividend: FEVR's dividend (0.68%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.95%).

High Dividend: FEVR's dividend (0.68%) is low compared to the top 25% of dividend payers in the UK market (5.19%).


Stability and Growth of Payments

Stable Dividend: FEVR is not paying a notable dividend for the UK market, therefore no need to check if payments are stable.

Growing Dividend: FEVR is not paying a notable dividend for the UK market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

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


Future Payout to Shareholders

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


Next Steps

Management

What is the CEO of Fevertree Drinks's salary, the management and board of directors tenure and is there insider trading?

3.5yrs

Average board tenure


CEO

Tim Warrillow (44yo)

0yrs

Tenure

UK£3,981,000

Compensation

Mr. Timothy Daniel Gray Warrillow, also known as Tim, is a Co-Founder, Chief Executive Officer and Executive Director at Fevertree Drinks Plc. Mr. Warrillow joined a London-based advertising and branding a ...


CEO Compensation Analysis

Compensation vs Market: Tim's total compensation ($USD5.24M) is above average for companies of similar size in the UK market ($USD2.20M).

Compensation vs Earnings: Tim's compensation has increased by more than 20% in the past year.


Board Age and Tenure

3.5yrs

Average Tenure

55yo

Average Age

Experienced Board: FEVR's board of directors are considered experienced (3.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUK£43,32016 Aug 19
Jeff Popkin
EntityIndividual
Role
Member of the Board of Directors
Independent Non Executive Director
Shares2,000
Max PriceUK£21.66
BuyUK£289,56125 Jul 19
Kevin Havelock
EntityIndividual
Role
Member of the Board of Directors
Independent Non-executive Director
Shares13,298
Max PriceUK£21.99

Ownership Breakdown

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


Management Team

  • Charles Rolls (62yo)

    Co-Founder & Non-Executive Deputy Chairman

    • Tenure: 0yrs
  • Tim Warrillow (44yo)

    Co-Founder

    • Tenure: 0yrs
    • Compensation: UK£3.98m
  • Andy Branchflower (40yo)

    Finance Director

    • Tenure: 5.2yrs
    • Compensation: UK£1.92m
  • Saskia Stoop (35yo)

    Head of Marketing

    • Tenure: 0yrs
  • Claire Huntingford (38yo)

    Head of Supply Chain

    • Tenure: 0yrs
  • Charles Gibb

    Global Strategy Director & CEO of North American

    • Tenure: 2yrs
  • Oliver Winters

    Communications & IR Director

    • Tenure: 0yrs

Board Members

  • Bill Ronald (63yo)

    Non-Executive Chairman

    • Tenure: 6.5yrs
    • Compensation: UK£125.00k
  • Coline McConville (55yo)

    Independent Non-Executive Director

    • Tenure: 5.1yrs
    • Compensation: UK£58.00k
  • Jeff Popkin (54yo)

    Independent Non Executive Director

    • Tenure: 1.9yrs
    • Compensation: UK£46.00k
  • Kevin Havelock (61yo)

    Independent Non-executive Director

    • Tenure: 1.9yrs
    • Compensation: UK£46.00k
  • Domenic De Lorenzo (55yo)

    Independent Non-Executive Director

    • Tenure: 1.6yrs
    • Compensation: UK£30.00k
  • Charles Rolls (62yo)

    Co-Founder & Non-Executive Deputy Chairman

    • Tenure: 0yrs
  • Tim Warrillow (44yo)

    Co-Founder

    • Tenure: 0yrs
    • Compensation: UK£3.98m
  • Andy Branchflower (40yo)

    Finance Director

    • Tenure: 5.2yrs
    • Compensation: UK£1.92m

Company Information

Fevertree Drinks Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Fevertree Drinks Plc
  • Ticker: FEVR
  • Exchange: AIM
  • Founded: 2013
  • Industry: Soft Drinks
  • Sector: Food, Beverage & Tobacco
  • Market Cap: UK£2.469b
  • Shares outstanding: 116.13m
  • Website: https://www.fever-tree.com

Number of Employees


Location

  • Fevertree Drinks Plc
  • 186 -188 Shepherds Bush Road
  • London
  • Greater London
  • W6 7NL
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FEVRAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPNov 2014
FQVT.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 2014
FV8DB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 2014

Biography

Fevertree Drinks Plc, together with its subsidiaries, develops and supplies premium mixer drinks in the United Kingdom, the United States, Europe, and internationally. The company’s products include Indian ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/09 21:49
End of Day Share Price2019/12/09 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.