ISE:GCC

Stock Analysis Report

Executive Summary

C&C Group plc manufactures, markets, and distributes cider, beer, wine, spirits, ales, soft drinks, and bottled water in the Republic of Ireland, Scotland, England and Wales, the United States, Canada, and internationally.


Snowflake Analysis

Good value with adequate balance sheet.


Similar Companies

Share Price & News

How has C&C Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-2.4%

GCC

1.7%

IE Beverage

0.8%

IE Market


1 Year Return

19.6%

GCC

-28.5%

IE Beverage

-21.4%

IE Market

Return vs Industry: GCC exceeded the Irish Beverage industry which returned 17.7% over the past year.

Return vs Market: GCC underperformed the Irish Market which returned 25.3% over the past year.


Shareholder returns

GCCIndustryMarket
7 Day-2.4%1.7%0.8%
30 Day1.8%-12.8%-19.4%
90 Day0%-28.2%-30.0%
1 Year25.0%19.6%-27.0%-28.5%-20.0%-21.4%
3 Year31.5%15.0%-21.2%-26.1%-9.3%-13.8%
5 Year26.5%3.5%-19.7%-28.1%9.0%0.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

22.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GCC (€4.05) is trading below our estimate of fair value (€5.25)

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


Price To Earnings Ratio

PE vs Industry: GCC is good value based on its PE Ratio (17.3x) compared to the Beverage industry average (20.7x).

PE vs Market: GCC is poor value based on its PE Ratio (17.3x) compared to the Irish market (12.3x).


Price to Earnings Growth Ratio

PEG Ratio: GCC is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: GCC is good value based on its PB Ratio (2.1x) compared to the XE Beverage industry average (2.2x).


Next Steps

Future Growth

How is C&C Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

9.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GCC's forecast earnings growth (9.4% per year) is above the savings rate (0.9%).

Earnings vs Market: GCC's earnings (9.4% per year) are forecast to grow slower than the Irish market (12.2% per year).

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

Revenue vs Market: GCC's revenue (2.6% per year) is forecast to grow slower than the Irish market (4.2% per year).

High Growth Revenue: GCC's revenue (2.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GCC's Return on Equity is forecast to be low in 3 years time (13.1%).


Next Steps

Past Performance

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

8.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GCC has high quality earnings.

Growing Profit Margin: GCC's current net profit margins (4.6%) are lower than last year (14.5%).


Past Earnings Growth Analysis

Earnings Trend: GCC's earnings have grown by 8.8% per year over the past 5 years.

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

Earnings vs Industry: GCC had negative earnings growth (-9.2%) over the past year, making it difficult to compare to the Beverage industry average (1.3%).


Return on Equity

High ROE: GCC's Return on Equity (12.1%) is considered low.


Next Steps

Financial Health

How is C&C Group's financial position?


Financial Position Analysis

Short Term Liabilities: GCC's short term assets (€491.1M) exceed its short term liabilities (€400.4M).

Long Term Liabilities: GCC's short term assets (€491.1M) exceed its long term liabilities (€431.0M).


Debt to Equity History and Analysis

Debt Level: GCC's debt to equity ratio (74.6%) is considered high.

Reducing Debt: GCC's debt to equity ratio has increased from 36.1% to 74.6% over the past 5 years.

Debt Coverage: GCC's debt is well covered by operating cash flow (25.3%).

Interest Coverage: GCC's interest payments on its debt are well covered by EBIT (8.4x coverage).


Balance Sheet


Next Steps

Dividend

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

3.78%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GCC's dividend (3.78%) is higher than the bottom 25% of dividend payers in the Irish market (2.29%).

High Dividend: GCC's dividend (3.78%) is low compared to the top 25% of dividend payers in the Irish market (4.42%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (65.3%), GCC's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GCC's dividends in 3 years are forecast to be covered by earnings (54.5% payout ratio).


Next Steps

Management

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

3.6yrs

Average management tenure


CEO

Stephen Glancey (58yo)

7.75s

Tenure

€1,777,000

Compensation

Mr. Stephen Glancey has been the Group Chief Executive Officer of C&C Group Plc since January 1, 2012. Mr. Glancey serves as a Consultant of Heineken U.K. Ltd. Previously, he served as the Chief Operating  ...


CEO Compensation Analysis

Compensation vs Market: Stephen's total compensation ($USD1.95M) is above average for companies of similar size in the Irish market ($USD1.34M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Stephen Glancey
Group CEO & Executive Director7.75yrs€1.78m1.36% 17.6m
Jonathan Solesbury
Group CFO & Director1.92yrs€1.08m0.016% 208.8k
Andrea Pozzi
Group COO & Director2.33yrs€713.00k0.021% 277.6k
Mark Chilton
Company Secretary & Group General Counsel0.67yrno data0.0057% 73.4k
Joris Brams
Managing Director of International Division7.67yrs€1.38m0.030% 382.0k
Joe Thompson
Head of Investor Relationsno datano datano data
Sarah Riley
Group Director of Human Resourcesno datano datano data
Paul Bartlett
Head of Corporate Affairsno datano datano data
David Johnston
Company Secretary4.92yrsno datano data

3.6yrs

Average Tenure

52yo

Average Age

Experienced Management: GCC's management team is considered experienced (3.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Stephen Glancey
Group CEO & Executive Director7.75yrs€1.78m1.36% 17.6m
Jonathan Solesbury
Group CFO & Director1.92yrs€1.08m0.016% 208.8k
Andrea Pozzi
Group COO & Director2.33yrs€713.00k0.021% 277.6k
Jim Clerkin
Independent Non-Executive Director2.5yrs€65.00k0.011% 137.7k
Vincent Crowley
Senior Independent Non-Executive Director0.33yr€78.00k0.0065% 83.5k
Emer Finnan
Independent Non-Executive Director5.42yrs€90.00k0.0017% 21.7k
James Thompson
Independent Non-Executive Director0.58yrno data0.044% 571.1k
Stewart Gilliland
Independent Chairman1.25yrs€179.00k0.024% 306.6k
Helen Pitcher
Independent Non-Executive Director0.67yr€4.00kno data
Jill Caseberry
Independent Non-Executive Director0.67yr€4.00kno data

1.6yrs

Average Tenure

58yo

Average Age

Experienced Board: GCC's board of directors are not considered experienced ( 1.6 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: GCC 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

C&C Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: C&C Group plc
  • Ticker: GCC
  • Exchange: ISE
  • Founded: 1935
  • Industry: Distillers and Vintners
  • Sector: Food, Beverage & Tobacco
  • Market Cap: €1.292b
  • Shares outstanding: 309.50m
  • Website: https://candcgroupplc.com

Number of Employees


Location

  • C&C Group plc
  • Bulmers House
  • Keeper Road
  • Dublin
  • Co. Dublin
  • 12
  • Ireland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GCCISE (Irish Stock Exchange)YesOrdinary SharesIEEURMay 2004
GCCDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 2004
CCRLSE (London Stock Exchange)YesOrdinary SharesGBEURMay 2004
CGPZ.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 2004
CCGG.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDMar 2005

Biography

C&C Group plc manufactures, markets, and distributes cider, beer, wine, spirits, ales, soft drinks, and bottled water in the Republic of Ireland, Scotland, England and Wales, the United States, Canada, and internationally. The company offers its products under the Bulmers, Outcider, Tennent’s, Magners, Clonmel 1650, Five Lamps, Heverlee, Roundstone Irish Ale, Dowd’s Lane, Finches, Tipperary Water, Caledonia Best, Blackthorn, Olde English, Chaplin & Cork’s, Orchard Pig, K Cider, Gaymers, Woodchuck, Wyders, and Hornsby’s brands. It also distributes third party branded beers, wines, spirits, cider, and soft drinks. C&C Group plc was founded in 1935 and is headquartered in Dublin, the Republic of Ireland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/08 20:31
End of Day Share Price2019/10/07 00:00
Earnings2019/02/28
Annual Earnings2019/02/28


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.