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DGL

Delegat GroupNZSE:DGL Stock Report

Market Cap

NZ$1.4b

7D

-3.1%

1Y

-4.8%

Updated

18 Oct, 2021

Data

Company Financials +
DGL fundamental analysis
Snowflake Score
Valuation1/6
Future Growth2/6
Past Performance2/6
Financial Health4/6
Dividends0/6

DGL Overview

Delegat Group Limited engages in the production, marketing, distribution, and sale of wine.

Price History & Performance

Summary of all time highs, changes and price drops for Delegat Group
Historical stock prices
Current Share PriceNZ$14.25
52 Week HighNZ$12.90
52 Week LowNZ$15.82
Beta0.77
1 Month Change-1.86%
3 Month Change1.42%
1 Year Change-4.81%
3 Year Change48.44%
5 Year Change141.52%
Change since IPO819.36%

Recent News & Updates

Sep 20
Here's Why Delegat Group (NZSE:DGL) Can Manage Its Debt Responsibly

Here's Why Delegat Group (NZSE:DGL) Can Manage Its Debt Responsibly

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Jul 19
Slowing Rates Of Return At Delegat Group (NZSE:DGL) Leave Little Room For Excitement

Slowing Rates Of Return At Delegat Group (NZSE:DGL) Leave Little Room For Excitement

If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. Ideally, a...

Jun 14
Delegat Group Limited's (NZSE:DGL) Intrinsic Value Is Potentially 54% Above Its Share Price

Delegat Group Limited's (NZSE:DGL) Intrinsic Value Is Potentially 54% Above Its Share Price

In this article we are going to estimate the intrinsic value of Delegat Group Limited ( NZSE:DGL ) by taking the...

May 15
I Ran A Stock Scan For Earnings Growth And Delegat Group (NZSE:DGL) Passed With Ease

I Ran A Stock Scan For Earnings Growth And Delegat Group (NZSE:DGL) Passed With Ease

It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...

Shareholder Returns

DGLNZ BeverageNZ Market
7D-3.1%-2.8%-0.5%
1Y-4.8%24.8%2.2%

Return vs Industry: DGL underperformed the NZ Beverage industry which returned 24.8% over the past year.

Return vs Market: DGL underperformed the NZ Market which returned 2.2% over the past year.

Price Volatility

Is DGL's price volatile compared to industry and market?
DGL volatility
DGL Beta0.77
Industry Beta0.51
Market Beta1

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

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

About the Company

FoundedEmployeesCEOWebsite
1947400Graeme Lordhttps://www.delegat.com

Delegat Group Limited engages in the production, marketing, distribution, and sale of wine. The company markets and sells its products primarily under the Oyster Bay, Barossa Valley Estate, and Delegat brands 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.

Delegat Group Fundamentals Summary

How do Delegat Group's earnings and revenue compare to its market cap?
DGL fundamental statistics
Market CapNZ$1.44b
Earnings (TTM)NZ$62.17m
Revenue (TTM)NZ$305.38m

23.2x

P/E Ratio

4.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
DGL income statement (TTM)
RevenueNZ$305.38m
Cost of RevenueNZ$159.12m
Gross ProfitNZ$146.26m
ExpensesNZ$84.09m
EarningsNZ$62.17m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.61
Gross Margin47.89%
Net Profit Margin20.36%
Debt/Equity Ratio57.7%

How did DGL perform over the long term?

See historical performance and comparison

Dividends

1.4%

Current Dividend Yield

33%

Payout Ratio

Valuation

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

23.18x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DGL (NZ$14.25) is trading above our estimate of fair value (NZ$5.8)

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


Price To Earnings Ratio

PE vs Industry: DGL is good value based on its PE Ratio (23.2x) compared to the Oceanic Beverage industry average (26.3x).

PE vs Market: DGL is poor value based on its PE Ratio (23.2x) compared to the NZ market (22.5x).


Price to Earnings Growth Ratio

PEG Ratio: DGL is poor value based on its PEG Ratio (2.8x)


Price to Book Ratio

PB vs Industry: DGL is overvalued based on its PB Ratio (3.2x) compared to the XO Beverage industry average (2.2x).


Future Growth

How is Delegat Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

8.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DGL's forecast earnings growth (8.2% per year) is above the savings rate (2.1%).

Earnings vs Market: DGL's earnings (8.2% per year) are forecast to grow slower than the NZ market (9.2% per year).

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

Revenue vs Market: DGL's revenue (7.9% per year) is forecast to grow faster than the NZ market (5.2% per year).

High Growth Revenue: DGL'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: DGL's Return on Equity is forecast to be low in 3 years time (13.2%).


Past Performance

How has Delegat Group performed over the past 5 years?

10.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DGL has high quality earnings.

Growing Profit Margin: DGL's current net profit margins (20.4%) are lower than last year (21.5%).


Past Earnings Growth Analysis

Earnings Trend: DGL's earnings have grown by 10.3% per year over the past 5 years.

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

Earnings vs Industry: DGL had negative earnings growth (-5%) over the past year, making it difficult to compare to the Beverage industry average (25.3%).


Return on Equity

High ROE: DGL's Return on Equity (13.7%) is considered low.


Financial Health

How is Delegat Group's financial position?


Financial Position Analysis

Short Term Liabilities: DGL's short term assets (NZ$225.3M) exceed its short term liabilities (NZ$44.9M).

Long Term Liabilities: DGL's short term assets (NZ$225.3M) do not cover its long term liabilities (NZ$385.3M).


Debt to Equity History and Analysis

Debt Level: DGL's debt to equity ratio (57.7%) is considered high.

Reducing Debt: DGL's debt to equity ratio has reduced from 105.9% to 57.7% over the past 5 years.

Debt Coverage: DGL's debt is well covered by operating cash flow (28.5%).

Interest Coverage: DGL's interest payments on its debt are well covered by EBIT (9.7x coverage).


Balance Sheet


Dividend

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

1.40%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DGL's dividend (1.4%) isn’t notable compared to the bottom 25% of dividend payers in the NZ market (2.45%).

High Dividend: DGL's dividend (1.4%) is low compared to the top 25% of dividend payers in the NZ market (4.75%).


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?

9.2yrs

Average management tenure


CEO

Graeme Lord

0.50

Tenure

NZ$1,259,000

Compensation

Mr. Graeme Stuart Lord serves as Acting Managing Director & Executive Director at Delegat Group Limited since April 1, 2021 and served as its Non-Executive Director since July 1, 2020 until April 1, 2021....


CEO Compensation Analysis

Compensation vs Market: Graeme's total compensation ($USD890.76K) is about average for companies of similar size in the NZ market ($USD732.31K).

Compensation vs Earnings: Graeme's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: DGL's management team is seasoned and experienced (9.2 years average tenure).


Board Members

Experienced Board: DGL's board of directors are considered experienced (9 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

Delegat Group Limited's 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$1.441b
  • Shares outstanding: 101.13m
  • Website: https://www.delegat.com

Number of Employees


Location

  • Delegat Group Limited
  • 15 Customs Street West
  • Level 31
  • Auckland
  • 1010
  • New Zealand

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/18 15:21
End of Day Share Price2021/10/18 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.