LSE:BVIC

Stock Analysis Report

Executive Summary

Britvic plc, together with its subsidiaries, manufactures, markets, and distributes soft drinks in the United Kingdom, the Republic of Ireland, France, Brazil, and internationally.

Rewards

Trading at 43% below its fair value

Earnings are forecast to grow 19.54% per year

Pays a reliable dividend of 3.22%

Risk Analysis

Has a high level of debt

Dividend of 3.22% is not well covered by earnings

Large one-off items impacting financial results

Profit margins (5.2%) are lower than last year (7.8%)



Snowflake Analysis

Adequate balance sheet average dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.0%

BVIC

-1.9%

GB Beverage

-0.2%

GB Market


1 Year Return

3.9%

BVIC

-0.4%

GB Beverage

6.1%

GB Market

Return vs Industry: BVIC exceeded the UK Beverage industry which returned -0.4% over the past year.

Return vs Market: BVIC underperformed the UK Market which returned 6.2% over the past year.


Shareholder returns

BVICIndustryMarket
7 Day-1.0%-1.9%-0.2%
30 Day8.7%-4.4%-1.8%
90 Day-2.4%0.4%4.0%
1 Year7.3%3.9%2.4%-0.4%11.8%6.1%
3 Year63.0%47.4%45.5%34.9%17.5%2.6%
5 Year48.7%24.7%93.4%69.2%34.8%3.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

43.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BVIC (£9.33) is trading below our estimate of fair value (£16.37)

Significantly Below Fair Value: BVIC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BVIC is poor value based on its PE Ratio (30.5x) compared to the Beverage industry average (25x).

PE vs Market: BVIC is poor value based on its PE Ratio (30.5x) compared to the UK market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: BVIC is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: BVIC is overvalued based on its PB Ratio (6x) compared to the GB Beverage industry average (3.3x).


Next Steps

Future Growth

How is Britvic forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

19.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BVIC's forecast earnings growth (19.5% per year) is above the savings rate (0.5%).

Earnings vs Market: BVIC's earnings (19.5% per year) are forecast to grow faster than the UK market (12.2% per year).

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

Revenue vs Market: BVIC's revenue (1.7% per year) is forecast to grow slower than the UK market (3.4% per year).

High Growth Revenue: BVIC's revenue (1.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BVIC's Return on Equity is forecast to be high in 3 years time (28.4%)


Next Steps

Past Performance

How has Britvic performed over the past 5 years?

1.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BVIC has a large one-off loss of £31.2M impacting its September 29 2019 financial results.

Growing Profit Margin: BVIC's current net profit margins (5.2%) are lower than last year (7.8%).


Past Earnings Growth Analysis

Earnings Trend: BVIC's earnings have grown by 1.6% per year over the past 5 years.

Accelerating Growth: BVIC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BVIC had negative earnings growth (-30.9%) over the past year, making it difficult to compare to the Beverage industry average (-8.4%).


Return on Equity

High ROE: BVIC's Return on Equity (19.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Britvic's financial position?


Financial Position Analysis

Short Term Liabilities: BVIC's short term assets (£621.4M) do not cover its short term liabilities (£717.7M).

Long Term Liabilities: BVIC's short term assets (£621.4M) exceed its long term liabilities (£607.5M).


Debt to Equity History and Analysis

Debt Level: BVIC's debt to equity ratio (166.4%) is considered high.

Reducing Debt: BVIC's debt to equity ratio has reduced from 691.4% to 166.4% over the past 5 years.

Debt Coverage: BVIC's debt is well covered by operating cash flow (27%).

Interest Coverage: BVIC's interest payments on its debt are well covered by EBIT (8.2x coverage).


Balance Sheet

Inventory Level: BVIC has a high level of physical assets or inventory.

Debt Coverage by Assets: BVIC's debt is not covered by short term assets (assets are 0.9x debt).


Next Steps

Dividend

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

3.22%

Current Dividend Yield


Dividend Yield vs Market

company3.2%marketbottom25%1.8%markettop25%5.1%industryaverage2.2%forecastin3Years3.5%

Current dividend yield vs market & industry

Notable Dividend: BVIC's dividend (3.22%) is higher than the bottom 25% of dividend payers in the UK market (1.83%).

High Dividend: BVIC's dividend (3.22%) is low compared to the top 25% of dividend payers in the UK market (5.09%).


Stability and Growth of Payments

Stable Dividend: BVIC's dividends per share have been stable in the past 10 years.

Growing Dividend: BVIC's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (98.1%), BVIC's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BVIC's dividends in 3 years are forecast to be covered by earnings (51.6% payout ratio).


Next Steps

Management

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

2.4yrs

Average management tenure


CEO

Simon Litherland (54yo)

7yrs

Tenure

UK£3,452,500

Compensation

Mr. Simon Litherland has been the Chief Executive Officer of Britvic Plc since February 13, 2013. Mr. Litherland served as Managing Director of GB at Britvic Soft Drinks Limited since October 4, 2011. He h ...


CEO Compensation Analysis

Compensation vs Market: Simon's total compensation ($USD4.50M) is above average for companies of similar size in the UK market ($USD2.22M).

Compensation vs Earnings: Simon's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Simon Litherland
CEO & Director7yrsUK£3.45m0.12% £2.9m
Joanne Wilson
CFO & Director0.4yrsUK£1.12m0.000020% £495.3
Steve Potts
Chief Information2.1yrsno data0.013% £319.2k
Steve Nightingale
Director of Investor Relations0yrsno datano data
Jonathan Adelman
Acting General Counsel & Company Secretary2.4yrsno datano data
Matt Barwell
Chief Marketing Officer0yrsno data0.015% £362.3k
Zareena Brown
Chief Human Resources Officer1.7yrsno data0.0040% £98.1k
Michael Mountford
Head of Compensation & Benefits0yrsno datano data
Paul Graham
Managing Director of Great Britain6.6yrsno data0.024% £603.0k
Kevin Donnelly
Managing Director of Ireland3.8yrsno data0.011% £276.4k

2.4yrs

Average Tenure

Experienced Management: BVIC's management team is considered experienced (2.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Simon Litherland
CEO & Director7yrsUK£3.45m0.12% £2.9m
Joanne Wilson
CFO & Director0.4yrsUK£1.12m0.000020% £495.3
Sue Clark
Independent Non-Executive Director4yrsUK£66.20k0.0062% £152.3k
Ian McHoul
Senior Independent Director2.4yrsUK£75.20k0.0038% £93.4k
John Daly
Non-Executive Chairman2.4yrsUK£240.00k0.0056% £139.9k
Euan Sutherland
Independent Non-Executive Director4yrsUK£57.20kno data
William Eccleshare
Independent Non-Executive Director2.3yrsUK£57.20kno data
Suniti Chauhan
Independent Non-Executive Director2.3yrsUK£57.20kno data

2.4yrs

Average Tenure

55yo

Average Age

Experienced Board: BVIC's board of directors are not considered experienced ( 2.4 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: BVIC insiders have only sold shares 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

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


Key Information

  • Name: Britvic plc
  • Ticker: BVIC
  • Exchange: LSE
  • Founded: 2005
  • Industry: Soft Drinks
  • Sector: Food, Beverage & Tobacco
  • Market Cap: UK£2.476b
  • Shares outstanding: 265.56m
  • Website: https://www.britvic.com

Number of Employees


Location

  • Britvic plc
  • Breakspear Park
  • Breakspear Way
  • Hemel Hempstead
  • Hertfordshire
  • HP2 4TZ
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BVICLSE (London Stock Exchange)YesOrdinary SharesGBGBPDec 2005
B6SBST (Boerse-Stuttgart)YesOrdinary SharesDEEURDec 2005
BTVC.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 2005
BVICLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPDec 2005
B6SDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2005
BVIC NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNDec 2005
BTVC.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDFeb 2010

Biography

Britvic plc, together with its subsidiaries, manufactures, markets, and distributes soft drinks in the United Kingdom, the Republic of Ireland, France, Brazil, and internationally. It also provides fruit juices, syrups, squash, mineral water, liquid concentrates, ready-to-drink nectar drinks, sodas, mixers, energy drinks, and flavored drinks. The company’s brand portfolio includes 7Up, Aqua Libra, Ballygowan, C&C, Club Mixers, Club Orange, DaFruta, Drench, Energise Sport, Fruit Shoot, Gatorade, J2O, Lipton, Maguary, MiWadi, Mountain Dew, Pepsi Max, Purdey's, R White's, Robinsons, Tango, Teisseire, TK, Fruité, Moulin de Valdonne, and Pressade. In addition, it supplies water-coolers and bottled water; wholesales soft drinks to the licensed trade; and offers pension funding and financing services. The company was incorporated in 2005 and is headquartered in Hemel Hempstead, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/15 21:13
End of Day Share Price2020/02/14 00:00
Earnings2019/09/29
Annual Earnings2019/09/29


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.