NZSE:DGL

Stock Analysis Report

Executive Summary

Delegat Group Limited produces, markets, distributes, and sells wine.


Snowflake Analysis

Fair value with moderate growth potential.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-3.0%

DGL

8.4%

NZ Beverage

0.4%

NZ Market


1 Year Return

11.3%

DGL

8.5%

NZ Beverage

21.9%

NZ Market

Return vs Industry: DGL exceeded the NZ Beverage industry which returned 8.5% over the past year.

Return vs Market: DGL underperformed the NZ Market which returned 21.9% over the past year.


Shareholder returns

DGLIndustryMarket
7 Day-3.0%8.4%0.4%
30 Day-11.9%-12.9%0.2%
90 Day-6.8%-15.7%8.1%
1 Year13.2%11.3%12.1%8.5%26.8%21.9%
3 Year82.0%71.9%21.4%10.1%60.7%39.8%
5 Year152.6%127.3%92.8%59.6%96.5%52.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

43.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DGL (NZ$10.57) is trading below our estimate of fair value (NZ$18.59)

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


Price To Earnings Ratio

PE vs Industry: DGL is good value based on its PE Ratio (22.6x) compared to the Beverage industry average (24.1x).

PE vs Market: DGL is poor value based on its PE Ratio (22.6x) compared to the NZ market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: DGL is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: DGL is overvalued based on its PB Ratio (2.9x) compared to the XO Beverage industry average (2x).


Next Steps

Future Growth

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

10.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DGL's forecast earnings growth (10.8% per year) is above the savings rate (1.3%).

Earnings vs Market: DGL's earnings (10.8% per year) are forecast to grow faster than the NZ market (7.4% per year).

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

Revenue vs Market: DGL's revenue (6.1% per year) is forecast to grow faster than the NZ market (5.3% per year).

High Growth Revenue: DGL's revenue (6.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DGL's Return on Equity is forecast to be low in 3 years time (14.5%).


Next Steps

Past Performance

How has Delegat Group performed over the past 5 years?

5.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DGL has high quality earnings.

Growing Profit Margin: DGL's current net profit margins (17%) are lower than last year (18.3%).


Past Earnings Growth Analysis

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

Accelerating Growth: DGL's earnings growth over the past year (1.1%) is below its 5-year average (5.5% per year).

Earnings vs Industry: DGL earnings growth over the past year (1.1%) underperformed the Beverage industry 6.8%.


Return on Equity

High ROE: DGL's Return on Equity (12.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Delegat Group's financial position?


Financial Position Analysis

Short Term Liabilities: DGL's short term assets (NZ$204.6M) exceed its short term liabilities (NZ$41.7M).

Long Term Liabilities: DGL's short term assets (NZ$204.6M) do not cover its long term liabilities (NZ$317.9M).


Debt to Equity History and Analysis

Debt Level: DGL's debt to equity ratio (76.2%) is considered high.

Reducing Debt: DGL's debt to equity ratio has increased from 63.8% to 76.2% over the past 5 years.

Debt Coverage: DGL's debt is not well covered by operating cash flow (19.4%).

Interest Coverage: DGL's interest payments on its debt are well covered by EBIT (6.6x coverage).


Balance Sheet

Inventory Level: DGL has a high level of physical assets or inventory.

Debt Coverage by Assets: DGL's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

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

1.61%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DGL's dividend (1.61%) isn’t notable compared to the bottom 25% of dividend payers in the NZ market (2.85%).

High Dividend: DGL's dividend (1.61%) is low compared to the top 25% of dividend payers in the NZ market (5.61%).


Stability and Growth of Payments

Stable Dividend: DGL is not paying a notable dividend for the NZ market, therefore no need to check if payments are stable.

Growing Dividend: DGL is not paying a notable dividend for the NZ market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: DGL is not paying a notable dividend for the NZ market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of DGL's dividend in 3 years as they are not forecast to pay a notable one for the NZ market.


Next Steps

Management

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

7.5yrs

Average management tenure


CEO

John Freeman 0

1.6yrs

Tenure

NZ$1,052,000

Compensation

Mr. John Anthony Freeman is the Managing Director of Delegat Group Limited since July 1, 2018 and its Director since July 3, 2018. Mr. Freeman is responsible for developing growth plans, building a high p ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD666.12K) is about average for companies of similar size in the NZ market ($USD650.53K).

Compensation vs Earnings: John's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Jakov Delegat
Executive Chairman13.8yrsno datano data
John Freeman
MD & Executive Director1.6yrsNZ$1.05mno data
Murray Annabell
Chief Financial Officer7.5yrsno datano data

7.5yrs

Average Tenure

Experienced Management: DGL's management team is seasoned and experienced (7.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jakov Delegat
Executive Chairman13.8yrsno datano data
John Freeman
MD & Executive Director1.6yrsNZ$1.05mno data
Robert Wilton
Non-Executive Non-Independent Director13.8yrsNZ$168.00k0.79% NZ$8.5m
Rosemari Delegat
Non-Executive Non-Independent Director13.8yrsNZ$68.00kno data
Alan Jackson
Non-Executive Independent Director7.3yrsNZ$88.00kno data
Shelley Cave
Non-Executive Independent Director3.4yrsNZ$88.00kno data

10.6yrs

Average Tenure

Experienced Board: DGL's board of directors are seasoned and experienced ( 10.6 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.


Ownership Breakdown

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


Top Shareholders

Company Information

Delegat Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Delegat Group Limited
  • Ticker: DGL
  • Exchange: NZSE
  • Founded: 1947
  • Industry: Distillers and Vintners
  • Sector: Food, Beverage & Tobacco
  • Market Cap: NZ$1.069b
  • Shares outstanding: 101.13m
  • Website: https://www.delegat.com

Location

  • Delegat Group Limited
  • 10 Viaduct Harbour Avenue
  • Level 1
  • Auckland
  • 1010
  • New Zealand

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DGLNZSE (New Zealand Stock Exchange)YesOrdinary SharesNZNZDApr 2006

Biography

Delegat Group Limited produces, markets, distributes, and sells wine. The company markets and sells its products primarily under the Oyster Bay and Barossa Valley Estate brands, as well as under the Delegat name to retailers and distributors in the United Kingdom, Ireland, and rest of Europe; and the United States, Canada, Australia, New Zealand, and the Asia Pacific. It also provides brand marketing services. The company was formerly known as Delegat’s Group Limited and changed its name to Delegat Group Limited in July 2014. Delegat Group Limited was founded in 1947 and is based in Auckland, New Zealand. Delegat Group Limited is a subsidiary of Delegat Share Protection Trust. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/21 10:35
End of Day Share Price2020/02/20 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.