LSE:BVIC

Stock Analysis Report

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Market Cap

UK£2.5b

Last Updated

2021/06/17 22:43 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Proven track record with adequate balance sheet.


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 is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: BVIC's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-0.05%

BVIC

0.8%

GB Beverage

0.1%

GB Market


1 Year Return

17.7%

BVIC

23.9%

GB Beverage

18.7%

GB Market

Return vs Industry: BVIC underperformed the UK Beverage industry which returned 22.6% over the past year.

Return vs Market: BVIC underperformed the UK Market which returned 19% over the past year.


Shareholder returns

BVICIndustryMarket
7 Day-0.05%0.8%0.1%
30 Day-0.8%3.7%1.4%
90 Day15.8%16.1%7.2%
1 Year21.7%17.7%27.1%23.9%24.6%18.7%
3 Year35.7%24.0%31.0%21.6%14.5%1.3%
5 Year69.7%43.6%114.1%88.6%47.6%19.9%

Long-Term 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?

39.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BVIC (£9.44) is trading below our estimate of fair value (£15.44)

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


Price To Earnings Ratio

PE vs Industry: BVIC is good value based on its PE Ratio (28.3x) compared to the UK Beverage industry average (37.9x).

PE vs Market: BVIC is poor value based on its PE Ratio (28.3x) compared to the UK market (25.6x).


Price to Earnings Growth Ratio

PEG Ratio: BVIC is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: BVIC is overvalued based on its PB Ratio (7.8x) compared to the GB Beverage industry average (4.1x).


Future Growth

How is Britvic forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

21.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BVIC's forecast earnings growth (14.8% per year) is above the savings rate (0.9%).

Earnings vs Market: BVIC's earnings (14.8% per year) are forecast to grow slower than the UK market (17.4% per year).

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

Revenue vs Market: BVIC's revenue (4.2% per year) is forecast to grow slower than the UK market (5.3% per year).

High Growth Revenue: BVIC's revenue (4.2% 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 (30.5%)


Past Performance

How has Britvic performed over the past 5 years?

-5.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BVIC has high quality earnings.

Growing Profit Margin: BVIC's current net profit margins (6.7%) are higher than last year (5.8%).


Past Earnings Growth Analysis

Earnings Trend: BVIC's earnings have declined by 5.5% per year over the past 5 years.

Accelerating Growth: BVIC's earnings growth over the past year (4.7%) exceeds its 5-year average (-5.5% per year).

Earnings vs Industry: BVIC earnings growth over the past year (4.7%) exceeded the Beverage industry -21.7%.


Return on Equity

High ROE: Whilst BVIC's Return on Equity (27.69%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is Britvic's financial position?


Financial Position Analysis

Short Term Liabilities: BVIC's short term assets (£514.6M) exceed its short term liabilities (£505.3M).

Long Term Liabilities: BVIC's short term assets (£514.6M) do not cover its long term liabilities (£724.2M).


Debt to Equity History and Analysis

Debt Level: BVIC's debt to equity ratio (195.9%) is considered high.

Reducing Debt: BVIC's debt to equity ratio has reduced from 279.2% to 195.9% over the past 5 years.

Debt Coverage: BVIC's debt is well covered by operating cash flow (34.9%).

Interest Coverage: BVIC's interest payments on its debt are well covered by EBIT (6.7x coverage).


Balance Sheet


Dividend

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

1.38%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BVIC's dividend (1.38%) is higher than the bottom 25% of dividend payers in the UK market (1.28%).

High Dividend: BVIC's dividend (1.38%) is low compared to the top 25% of dividend payers in the UK market (3.99%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (84.3%), BVIC's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BVIC's dividends in 3 years are forecast to be covered by earnings (52.2% payout ratio).


Next Steps

Management

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

5.1yrs

Average management tenure


CEO

Simon Litherland (55 yo)

8.33yrs

Tenure

UK£1,059,600

Compensation

Mr. Simon Litherland has been the Chief Executive Officer and Executive Director of Britvic Plc since February 13, 2013. He is responsible for the day-to-day management of the business, developing Britvic ...


CEO Compensation Analysis

Compensation vs Market: Simon's total compensation ($USD1.49M) is about average for companies of similar size in the UK market ($USD1.65M).

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


Leadership Team

Experienced Management: BVIC's management team is seasoned and experienced (5.1 years average tenure).


Board Members

Experienced Board: BVIC's board of directors are considered experienced (3.8 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.


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£2.518b
  • Shares outstanding: 266.89m
  • Website: https://www.britvic.com

Number of Employees


Location

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

Listings


Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/17 22:43
End of Day Share Price2021/06/17 00:00
Earnings2021/03/31
Annual Earnings2020/09/30


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.