C&C Group (LSE:CCR) - Share price, News & Analysis

CCR fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	4/6
Past Performance	0/6
Financial Health	4/6
Dividends	0/6

CCR Stock Overview

C&C Group plc manufactures, markets, and distributes cider, beer, wine, spirits, ales, and soft drinks in the Republic of Ireland, Great Britain, and internationally.

Rewards

Trading at 66.5% below our estimate of its fair value

Earnings are forecast to grow 73.9% per year

Risk Analysis

Shareholders have been diluted in the past year

C&C Group Competitors

Diageo

LSE:DGE

UK£87.9b

Anheuser-Busch InBev

ENXTBR:ABI

€107.8b

Constellation Brands

NYSE:STZ

US$47.2b

Heineken Holding

ENXTAM:HEIO

€21.5b

Price History & Performance

Summary of all time highs, changes and price drops for C&C Group
Historical stock prices
Current Share Price	UK£2.13
52 Week High	UK£3.26
52 Week Low	UK£1.69
Beta	1.75
1 Month Change	7.59%
3 Month Change	-3.63%
1 Year Change	-27.69%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-44.05%

Recent News & Updates

Dec 22

Is C&C Group plc (LON:CCR) Trading At A 37% Discount?

How far off is C&C Group plc ( LON:CCR ) from its intrinsic value? Using the most recent financial data, we'll take a...

Nov 22

C&C Group (LON:CCR) Is Making Moderate Use Of Debt

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

	CCR	GB Beverage	GB Market
7D	13.2%	4.0%	3.6%
1Y	-27.7%	7.0%	-2.5%

Return vs Industry: CCR underperformed the UK Beverage industry which returned 7.8% over the past year.

Return vs Market: CCR underperformed the UK Market which returned -3.2% over the past year.

Price Volatility

Is CCR's price volatile compared to industry and market?
CCR volatility
CCR Average Weekly Movement	5.9%
Beverage Industry Average Movement	5.8%
Market Average Movement	6.1%
10% most volatile stocks in GB Market	11.8%
10% least volatile stocks in GB Market	3.2%

Stable Share Price: CCR is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: CCR's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1935	2,653	David Forde	https://candcgroupplc.com

C&C Group plc manufactures, markets, and distributes cider, beer, wine, spirits, ales, and soft drinks in the Republic of Ireland, Great Britain, and internationally. The company offers its products primarily under the Tennent’s, Bulmers, and Magners brand name. It also distributes third party branded beers, wines, spirits, cider, and soft drinks.

C&C Group Fundamentals Summary

How do C&C Group's earnings and revenue compare to its market cap?
CCR fundamental statistics
Market Cap	€984.39m
Earnings (TTM)	-€63.20m
Revenue (TTM)	€1.01b

1.0x

P/S Ratio

-15.6x

P/E Ratio

Is CCR overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
CCR income statement (TTM)
Revenue	€1.01b
Cost of Revenue	€805.90m
Gross Profit	€201.60m
Other Expenses	€264.80m
Earnings	-€63.20m

Last Reported Earnings

Aug 31, 2021

Next Earnings Date

May 17, 2022

Earnings per share (EPS)	-0.16
Gross Margin	20.01%
Net Profit Margin	-6.27%
Debt/Equity Ratio	41.2%

How did CCR perform over the long term?

See historical performance and comparison

Valuation

Is C&C Group undervalued compared to its fair value and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: CCR (£2.13) is trading below our estimate of fair value (£6.35)

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

Price To Earnings Ratio

PE vs Industry: CCR is unprofitable, so we can't compare its PE Ratio to the UK Beverage industry average.

PE vs Market: CCR 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 CCR's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: CCR is good value based on its PB Ratio (1.5x) compared to the GB Beverage industry average (2.6x).

Future Growth

How is C&C Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

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

73.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: CCR is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.9%).

Earnings vs Market: CCR is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: CCR's is expected to become profitable in the next 3 years.

Revenue vs Market: CCR's revenue (18.3% per year) is forecast to grow faster than the UK market (4% per year).

High Growth Revenue: CCR's revenue (18.3% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: CCR's Return on Equity is forecast to be low in 3 years time (13.8%).

Past Performance

How has C&C Group performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

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

-21.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CCR is currently unprofitable.

Growing Profit Margin: CCR is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: CCR is unprofitable, and losses have increased over the past 5 years at a rate of 21.5% per year.

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

Earnings vs Industry: CCR is unprofitable, making it difficult to compare its past year earnings growth to the Beverage industry (31.9%).

Return on Equity

High ROE: CCR has a negative Return on Equity (-9.86%), as it is currently unprofitable.

Financial Health

How is C&C Group's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: CCR's short term assets (€504.2M) do not cover its short term liabilities (€575.6M).

Long Term Liabilities: CCR's short term assets (€504.2M) exceed its long term liabilities (€281.3M).

Debt to Equity History and Analysis

Debt Level: CCR's net debt to equity ratio (27.3%) is considered satisfactory.

Reducing Debt: CCR's debt to equity ratio has reduced from 54.3% to 41.2% over the past 5 years.

Balance Sheet

Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: CCR has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if CCR has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.

Dividend

What is C&C Group current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

3.53%

Forecast Dividend Yield

Dividend Yield vs Market

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

High Dividend: Unable to evaluate CCR'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 CCR's dividends per share have been stable in the past.

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

Earnings Payout to Shareholders

Earnings Coverage: CCR is not paying a notable dividend for the UK market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as CCR has not reported any payouts.

Next Steps

Explore strong dividend paying companies in the Food, Beverage & Tobacco industry.

Management

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

2.5yrs

Average management tenure

CEO

David Forde (53 yo)

1.5yrs

Tenure

€2,191,000

Compensation

Mr. David Forde has been the Group Chief Executive Officer and Executive Director of C&C Group plc since November 2, 2020. He has been the Managing Director of Heineken UK at Heineken U.K. Limited since Ma...

CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD2.31M) is above average for companies of similar size in the UK market ($USD1.36M).

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

Leadership Team

Experienced Management: CCR's management team is considered experienced (2.5 years average tenure).

Board Members

Experienced Board: CCR's board of directors are considered experienced (3.2 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 been diluted in the past year, with total shares outstanding growing by 26.2%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/17 00:00
End of Day Share Price	2022/05/17 00:00
Earnings	2021/08/31
Annual Earnings	2021/02/28