Purcari Wineries (BVB:WINE) - Share price, News & Analysis

WINE fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	4/6
Past Performance	2/6
Financial Health	5/6
Dividends	2/6

WINE Stock Overview

Rewards

Trading at 76.8% below our estimate of its fair value

Earnings are forecast to grow 11.7% per year

Risk Analysis

Dividend of 5.55% is not well covered by earnings

Volatile share price over the past 3 months

Profit margins (19.1%) are lower than last year (28.3%)

Does not have a meaningful market cap (RON365M)

Purcari Wineries Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Purcari Wineries
Historical stock prices
Current Share Price	RON9.19
52 Week High	RON16.75
52 Week Low	RON8.50
Beta	0.53
1 Month Change	-0.11%
3 Month Change	-7.73%
1 Year Change	-41.65%
3 Year Change	-22.77%
5 Year Change	n/a
Change since IPO	-3.26%

Recent News & Updates

Mar 30

Here's What's Concerning About Purcari Wineries' (BVB:WINE) Returns On Capital

If you're looking for a multi-bagger, there's a few things to keep an eye out for. Ideally, a business will show two...

Shareholder Returns

	WINE	RO Beverage	RO Market
7D	2.9%	3.1%	2.0%
1Y	-41.7%	-11.1%	8.2%

Return vs Industry: WINE underperformed the RO Beverage industry which returned -11.1% over the past year.

Return vs Market: WINE underperformed the RO Market which returned 8.2% over the past year.

Price Volatility

Is WINE's price volatile compared to industry and market?
WINE volatility
WINE Average Weekly Movement	6.3%
Beverage Industry Average Movement	4.3%
Market Average Movement	4.0%
10% most volatile stocks in RO Market	7.6%
10% least volatile stocks in RO Market	2.9%

Stable Share Price: WINE is more volatile than 75% of RO stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: WINE's weekly volatility (6%) has been stable over the past year, but is still higher than 75% of RO stocks.

About the Company

Founded	Employees	CEO	Website
1827	700	Victor Bostan	https://www.purcari.wine

Purcari Wineries Public Company Limited, together with its subsidiaries, produces and sells wines and brandies in Romania, Republic of Moldova, Poland, Czech Republic, Slovakia, Ukraine, Scandinavian countries, the United Kingdom, China, Japan, South Korea, Canada, the United States, and internationally. The company also operates a hotel, which includes 10 luxury rooms, 2 exotic houses and 1 sky house, 2 restaurants, and patios, as well as various services, such as boating, biking, hiking, fishing, tennis, ping-pong, volleyball, and games for children. Further, it provides waste recycling management services.

Purcari Wineries Fundamentals Summary

How do Purcari Wineries's earnings and revenue compare to its market cap?
WINE fundamental statistics
Market Cap	RON365.35m
Earnings (TTM)	RON48.57m
Revenue (TTM)	RON254.48m

7.5x

P/E Ratio

1.4x

P/S Ratio

Is WINE overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
WINE income statement (TTM)
Revenue	RON254.48m
Cost of Revenue	RON131.23m
Gross Profit	RON123.24m
Other Expenses	RON74.67m
Earnings	RON48.57m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 29, 2022

Earnings per share (EPS)	1.22
Gross Margin	48.43%
Net Profit Margin	19.09%
Debt/Equity Ratio	35.0%

How did WINE perform over the long term?

See historical performance and comparison

Dividends

5.5%

Current Dividend Yield

42%

Payout Ratio

Does WINE pay a reliable dividends?

See WINE dividend history and benchmarks

When do you need to buy WINE by to receive an upcoming dividend?
Purcari Wineries dividend dates
Ex Dividend Date	Aug 22 2022
Dividend Pay Date	Sep 08 2022
Days until Ex dividend	57 days
Days until Dividend pay date	74 days

Does WINE pay a reliable dividends?

See WINE dividend history and benchmarks

We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

5/6

Valuation Score 5/6

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

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for WINE. This is calculated by dividing WINE's market cap by their current preferred multiple.
What is WINE's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	RON365.35m

WINE 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	1.8x
Enterprise Value/EBITDA	6.2x
PEG Ratio	0.6x

Price to Earnings Ratio vs Peers

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

WINE PE Ratio vs Peers

The above table shows the PE ratio for WINE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	22.8x

Forward PE

Price-To-Earnings vs Peers: WINE is good value based on its Price-To-Earnings Ratio (7.5x) compared to the peer average (22.8x).

Price to Earnings Ratio vs Industry

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

Price-To-Earnings vs Industry: WINE is good value based on its Price-To-Earnings Ratio (7.5x) compared to the European Beverage industry average (18.4x)

Price to Earnings Ratio vs Fair Ratio

What is WINE'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.

WINE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	7.5x
Fair PE Ratio	n/a

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

Share Price vs Fair Value

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

Below Fair Value: WINE (RON9.19) is trading below our estimate of fair value (RON39.58)

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

Price to Earnings Growth Ratio

PEG Ratio: WINE is good value based on its PEG Ratio (0.6x)

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Future Growth

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

Future Growth Score

4/6

Future Growth Score 4/6

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

11.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: WINE's forecast earnings growth (11.7% per year) is above the savings rate (1.1%).

Earnings vs Market: WINE's earnings (11.7% per year) are forecast to grow faster than the RO market (6.7% per year).

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

Revenue vs Market: WINE's revenue (12.3% per year) is forecast to grow faster than the RO market (4.5% per year).

High Growth Revenue: WINE's revenue (12.3% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: WINE's Return on Equity is forecast to be high in 3 years time (20.6%)

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Past Performance

How has Purcari Wineries 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

17.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: WINE has high quality earnings.

Growing Profit Margin: WINE's current net profit margins (19.1%) are lower than last year (28.3%).

Past Earnings Growth Analysis

Earnings Trend: WINE's earnings have grown by 17.8% per year over the past 5 years.

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

Earnings vs Industry: WINE had negative earnings growth (-17.3%) over the past year, making it difficult to compare to the Beverage industry average (56.8%).

Return on Equity

High ROE: WINE's Return on Equity (19.7%) is considered low.

Discover strong past performing companies

Financial Health

How is Purcari Wineries's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

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

Financial Position Analysis

Short Term Liabilities: WINE's short term assets (RON193.0M) exceed its short term liabilities (RON113.0M).

Long Term Liabilities: WINE's short term assets (RON193.0M) exceed its long term liabilities (RON69.6M).

Debt to Equity History and Analysis

Debt Level: WINE's net debt to equity ratio (25.9%) is considered satisfactory.

Reducing Debt: WINE's debt to equity ratio has reduced from 68.6% to 35% over the past 5 years.

Debt Coverage: WINE's debt is not well covered by operating cash flow (15.4%).

Interest Coverage: WINE's interest payments on its debt are well covered by EBIT (16.9x coverage).

Balance Sheet

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Dividend

What is Purcari Wineries's current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

5.55%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: WINE's dividend (5.55%) is higher than the bottom 25% of dividend payers in the RO market (2.86%).

High Dividend: WINE's dividend (5.55%) is low compared to the top 25% of dividend payers in the RO market (7.06%).

Stability and Growth of Payments

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

Growing Dividend: WINE's dividend payments have increased, but the company has only paid a dividend for 3 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (41.7%), WINE's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: WINE is paying a dividend but the company has no free cash flows.

Discover strong dividend paying companies

Management

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

12.4yrs

Average management tenure

CEO

Victor Bostan (61 yo)

20.42yrs

Tenure

RON1,060,041

Compensation

Mr. Victor Bostan founded Purcari Wineries Public Company Limited in 2002 and serves as its Chief Executive Officer and also serves as its General Manager. Mr. Bostan served as an Interim Chief Operations...

CEO Compensation Analysis

Compensation vs Market: Victor's total compensation ($USD226.18K) is about average for companies of similar size in the RO market ($USD285.29K).

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

Leadership Team

Experienced Management: WINE's management team is seasoned and experienced (12.4 years average tenure).

Board Members

Experienced Board: WINE's board of directors are considered experienced (4.3 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	2022/06/25 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31