AS Amber Latvijas balzams (RISE:BAL1R) - Share price, News & Analysis

Q: What is the Fair Price of BAL1R when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

BAL1R (€10.2) is trading above our estimate of [[fair value]] (€9.62)

BAL1R fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	2/6
Financial Health	6/6
Dividends	4/6

BAL1R Stock Overview

AS Amber Latvijas balzams produces and sells alcoholic beverages in Latvia.

Rewards

Price-To-Earnings ratio (9.2x) is below the LV market (11.7x)

Risk Analysis

Unstable dividend track record

Profit margins (10%) are lower than last year (14.8%)

Does not have a meaningful market cap (€79M)

AS Amber Latvijas balzams Competitors

AdVini

ENXTPA:ADVI

€88.4m

Zwack Unicum Nyrt

BUSE:ZWACK

Ft35.0b

IFB Agro Industries

NSEI:IFBAGRO

₹5.3b

Berentzen-Gruppe

XTRA:BEZ

€60.7m

Price History & Performance

Summary of all time highs, changes and price drops for AS Amber Latvijas balzams
Historical stock prices
Current Share Price	€10.20
52 Week High	€12.50
52 Week Low	€8.50
Beta	0.31
1 Month Change	-1.92%
3 Month Change	-0.97%
1 Year Change	-1.92%
3 Year Change	2.51%
5 Year Change	13.46%
Change since IPO	916.63%

Shareholder Returns

	BAL1R	LV Beverage	LV Market
7D	-1.0%	0.7%	0.3%
1Y	-1.9%	-0.5%	-19.1%

Return vs Industry: BAL1R matched the LV Beverage industry which returned -1.1% over the past year.

Return vs Market: BAL1R exceeded the LV Market which returned -19.4% over the past year.

Price Volatility

Is BAL1R's price volatile compared to industry and market?
BAL1R volatility
BAL1R Average Weekly Movement	3.2%
Beverage Industry Average Movement	3.8%
Market Average Movement	3.0%
10% most volatile stocks in LV Market	3.6%
10% least volatile stocks in LV Market	1.4%

Stable Share Price: BAL1R is not significantly more volatile than the rest of LV stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: BAL1R's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1900	562	Intars Geidans	https://amberlb.lv

AS Amber Latvijas balzams produces and sells alcoholic beverages in Latvia. The company produces approximately 100 types of alcoholic beverages. It offers sparkling and fortified wines, ciders, ready to drink (RTD) products, vodkas, liqueurs, brandy, strong alcoholic beverages, gin, etc.; and non-alcoholic drinks.

AS Amber Latvijas balzams Fundamentals Summary

How do AS Amber Latvijas balzams's earnings and revenue compare to its market cap?
BAL1R fundamental statistics
Market Cap	€78.72m
Earnings (TTM)	€8.29m
Revenue (TTM)	€82.55m

9.2x

P/E Ratio

0.9x

P/S Ratio

Is BAL1R overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
BAL1R income statement (TTM)
Revenue	€82.55m
Cost of Revenue	€65.03m
Gross Profit	€17.52m
Other Expenses	€9.23m
Earnings	€8.29m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 31, 2022

Earnings per share (EPS)	1.11
Gross Margin	21.23%
Net Profit Margin	10.05%
Debt/Equity Ratio	1.7%

How did BAL1R perform over the long term?

See historical performance and comparison

Dividends

4.5%

Current Dividend Yield

39%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is BAL1R undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for BAL1R?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for BAL1R. This is calculated by dividing BAL1R's market cap by their current preferred multiple.
What is BAL1R's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	€78.72m

BAL1R key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1x
Enterprise Value/EBITDA	10.5x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does BAL1R's PE Ratio compare to its peers?

BAL1R PE Ratio vs Peers

The above table shows the PE ratio for BAL1R vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	13.7x
ADVI AdVini	21.9x	n/a	€88.4m
ZWACK Zwack Unicum Nyrt	9x	n/a	Ft35.0b
IFBAGRO IFB Agro Industries	9.4x	n/a	₹5.3b
BEZ Berentzen-Gruppe	15.3x	n/a	€60.7m
BAL1R AS Amber Latvijas balzams	9.2x	n/a	€78.7m

Price-To-Earnings vs Peers: BAL1R is good value based on its Price-To-Earnings Ratio (9.2x) compared to the peer average (13.7x).

Price to Earnings Ratio vs Industry

How does BAL1R's PE Ratio compare vs other companies in the European Beverage Industry?

Price-To-Earnings vs Industry: BAL1R is good value based on its Price-To-Earnings Ratio (9.2x) compared to the European Beverage industry average (19.5x)

Price to Earnings Ratio vs Fair Ratio

What is BAL1R's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

BAL1R PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	9.2x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate BAL1R's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of BAL1R when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BAL1R (€10.2) is trading above our estimate of fair value (€9.62)

Significantly Below Fair Value: BAL1R is trading above our estimate of fair value.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

How is AS Amber Latvijas balzams forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

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

11.2%

Forecasted Food, Beverage & Tobacco industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as AS Amber Latvijas balzams has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

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Examine AS Amber Latvijas balzams's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.

Past Performance

How has AS Amber Latvijas balzams performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

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

4.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BAL1R has high quality earnings.

Growing Profit Margin: BAL1R's current net profit margins (10%) are lower than last year (14.8%).

Past Earnings Growth Analysis

Earnings Trend: BAL1R's earnings have grown by 4.2% per year over the past 5 years.

Accelerating Growth: BAL1R's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BAL1R had negative earnings growth (-15.2%) over the past year, making it difficult to compare to the Beverage industry average (38.2%).

Return on Equity

High ROE: BAL1R's Return on Equity (5.9%) is considered low.

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Financial Health

How is AS Amber Latvijas balzams's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: BAL1R's short term assets (€159.9M) exceed its short term liabilities (€35.9M).

Long Term Liabilities: BAL1R's short term assets (€159.9M) exceed its long term liabilities (€1.6M).

Debt to Equity History and Analysis

Debt Level: BAL1R's net debt to equity ratio (1.7%) is considered satisfactory.

Reducing Debt: BAL1R's debt to equity ratio has reduced from 10.8% to 1.7% over the past 5 years.

Debt Coverage: BAL1R's debt is well covered by operating cash flow (427.7%).

Interest Coverage: BAL1R earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is AS Amber Latvijas balzams's current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

4.51%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: BAL1R's dividend (4.51%) is higher than the bottom 25% of dividend payers in the LV market (1.94%).

High Dividend: BAL1R's dividend (4.51%) is in the top 25% of dividend payers in the LV market (3.96%)

Stability and Growth of Payments

Stable Dividend: BAL1R has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: BAL1R has only been paying a dividend for 5 years, and since then payments have fallen.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (39.5%), BAL1R's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (41.8%), BAL1R's dividend payments are well covered by cash flows.

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Management

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

3.2yrs

Average board tenure

CEO

Intars Geidans

11.17yrs

Tenure

Mr. Intars Geid ns has been the Chairman of Management Board at AS Amber Latvijas balzams (formerly known as Latvijas balzams) since March 3, 2016 and has been its Managing Director since March 2016. Mr. G...

Board Members

Experienced Board: BAL1R'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.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/08/15 00:00
End of Day Share Price	2022/08/15 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31