COSE:DIST.N0000

Stock Analysis Report

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Distilleries Company of Sri Lanka

Market Cap

LK₨91.1b

Last Updated

2021/07/25 11:01 UTC

Data Sources

Company Financials +

Executive Summary

Distilleries Company of Sri Lanka PLC engages in the distillation, manufacture, and distribution of liquor products primarily in Sri Lanka. More Details


Snowflake Analysis

Excellent balance sheet established dividend payer.

Share Price & News

How has Distilleries Company of Sri Lanka's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DIST.N0000 is less volatile than 75% of LK stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: DIST.N0000's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-0.5%

DIST.N0000

0.7%

LK Beverage

2.1%

LK Market


1 Year Return

41.4%

DIST.N0000

23.2%

LK Beverage

61.4%

LK Market

Return vs Industry: DIST.N0000 exceeded the LK Beverage industry which returned 23.2% over the past year.

Return vs Market: DIST.N0000 underperformed the LK Market which returned 61.4% over the past year.


Shareholder returns

DIST.N0000IndustryMarket
7 Day-0.5%0.7%2.1%
30 Day0.5%2.0%5.1%
90 Day-1.0%5.0%12.6%
1 Year49.4%41.4%29.7%23.2%67.7%61.4%
3 Year19.8%-3.4%3.4%-9.0%41.6%27.3%
5 Year4.3%-17.5%283.2%252.7%40.2%18.3%

Long-Term Price Volatility Vs. Market

How volatile is Distilleries Company of Sri Lanka's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Distilleries Company of Sri Lanka undervalued compared to its fair value and its price relative to the market?

25.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DIST.N0000 (LKR19.8) is trading below our estimate of fair value (LKR26.65)

Significantly Below Fair Value: DIST.N0000 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: DIST.N0000's PE Ratio (13.2x) is in line with the LK Beverage industry average.

PE vs Market: DIST.N0000 is poor value based on its PE Ratio (13.2x) compared to the LK market (10.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate DIST.N0000's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: DIST.N0000 is overvalued based on its PB Ratio (12.1x) compared to the LK Beverage industry average (2.7x).


Future Growth

How is Distilleries Company of Sri Lanka forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

7.9%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if DIST.N0000's forecast earnings growth is above the savings rate (3.6%).

Earnings vs Market: Insufficient data to determine if DIST.N0000's earnings are forecast to grow faster than the LK market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: DIST.N0000's revenue (7.9% per year) is forecast to grow slower than the LK market (18.1% per year).

High Growth Revenue: DIST.N0000's revenue (7.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DIST.N0000's Return on Equity is forecast to be very high in 3 years time (76.2%).


Past Performance

How has Distilleries Company of Sri Lanka performed over the past 5 years?

40.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DIST.N0000 has high quality earnings.

Growing Profit Margin: DIST.N0000's current net profit margins (25.2%) are higher than last year (21.4%).


Past Earnings Growth Analysis

Earnings Trend: DIST.N0000 has become profitable over the past 5 years, growing earnings by 40.2% per year.

Accelerating Growth: DIST.N0000's earnings growth over the past year (9.5%) is below its 5-year average (40.2% per year).

Earnings vs Industry: DIST.N0000 earnings growth over the past year (9.5%) underperformed the Beverage industry 9.5%.


Return on Equity

High ROE: DIST.N0000's Return on Equity (91.8%) is considered outstanding.


Financial Health

How is Distilleries Company of Sri Lanka's financial position?


Financial Position Analysis

Short Term Liabilities: DIST.N0000's short term assets (LKR12.7B) exceed its short term liabilities (LKR10.8B).

Long Term Liabilities: DIST.N0000's short term assets (LKR12.7B) exceed its long term liabilities (LKR3.6B).


Debt to Equity History and Analysis

Debt Level: DIST.N0000's debt to equity ratio (23.2%) is considered satisfactory.

Reducing Debt: DIST.N0000's debt to equity ratio has increased from 22.2% to 23.2% over the past 5 years.

Debt Coverage: DIST.N0000's debt is well covered by operating cash flow (524.4%).

Interest Coverage: DIST.N0000's interest payments on its debt are well covered by EBIT (43.3x coverage).


Balance Sheet


Dividend

What is Distilleries Company of Sri Lanka current dividend yield, its reliability and sustainability?

5.66%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DIST.N0000's dividend (5.66%) is higher than the bottom 25% of dividend payers in the LK market (1.67%).

High Dividend: DIST.N0000's dividend (5.66%) is in the top 25% of dividend payers in the LK market (5.54%)


Stability and Growth of Payments

Stable Dividend: DIST.N0000's dividend payments have been volatile in the past 10 years.

Growing Dividend: DIST.N0000's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (64.5%), DIST.N0000's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: DIST.N0000's dividends in 3 years are forecast to be covered by earnings (87.9% payout ratio).


Next Steps

Management

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

13.6yrs

Average board tenure


CEO

Harry Jayawardena (77 yo)

29.5yrs

Tenure

Mr. Deshamanya Don Harold Stassen Jayawardena, also known as Harry, serves as an Executive Chairman at Lanka Milk Foods (CWE) PLC. He has been the Chairman of Distilleries Company of Sri Lanka PLC and DCSL...


Board Members

Experienced Board: DIST.N0000's board of directors are seasoned and experienced ( 13.6 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

Distilleries Company of Sri Lanka PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Distilleries Company of Sri Lanka PLC
  • Ticker: DIST.N0000
  • Exchange: COSE
  • Founded: 1913
  • Industry: Distillers and Vintners
  • Sector: Food, Beverage & Tobacco
  • Market Cap: LK₨91.080b
  • Shares outstanding: 4.60b
  • Website: https://www.dcslgroup.com

Number of Employees


Location

  • Distilleries Company of Sri Lanka PLC
  • No. 110, Norris Canal Road
  • Colombo
  • 10
  • Sri Lanka

Listings


Biography

Distilleries Company of Sri Lanka PLC engages in the distillation, manufacture, and distribution of liquor products primarily in Sri Lanka. It provides arracks, whiskies, vodkas, rums, brandies, and wines,...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/25 11:01
End of Day Share Price2021/07/22 00:00
Earnings2020/12/31
Annual Earnings2020/03/31


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.