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Italian Wine Brands

BIT:IWB
Snowflake Description

Very undervalued with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
IWB
BIT
€88M
Market Cap
  1. Home
  2. IT
  3. Food, Beverage & Tobacco
Company description

Italian Wine Brands S.p.A., together with its subsidiaries, produces and distributes Italian wines worldwide. The last earnings update was 52 days ago. More info.


Add to Portfolio Compare Print
IWB Share Price and Events
7 Day Returns
-0.8%
BIT:IWB
-0.4%
Europe Beverage
-0.8%
IT Market
1 Year Returns
9.5%
BIT:IWB
10.8%
Europe Beverage
19.7%
IT Market
IWB Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Italian Wine Brands (IWB) -0.8% -1.2% -1.6% 9.5% 35% -
Europe Beverage -0.4% -5.8% -8.7% 10.8% 12% 20.1%
IT Market -0.8% 3.7% 10% 19.7% 21.5% -23.8%
1 Year Return vs Industry and Market
  • IWB underperformed the Beverage industry which returned 10.8% over the past year.
  • IWB underperformed the Market in Italy which returned 19.7% over the past year.
Price Volatility
IWB
Industry
5yr Volatility vs Market

Value

 Is Italian Wine Brands undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Italian Wine Brands to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Italian Wine Brands.

BIT:IWB Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 2 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.2%
Perpetual Growth Rate 10-Year IT Government Bond Rate 2.9%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for BIT:IWB
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IT Govt Bond Rate 2.9%
Equity Risk Premium S&P Global 9%
Beverage Unlevered Beta Simply Wall St/ S&P Global 0.5
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.504 (1 + (1- 24%) (52.79%))
0.803
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.93% + (0.803 * 9.02%)
10.18%

Discounted Cash Flow Calculation for BIT:IWB using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Italian Wine Brands is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

BIT:IWB DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (EUR, Millions) Source Present Value
Discounted (@ 10.18%)
2020 11.60 Analyst x1 10.53
2021 12.10 Analyst x1 9.97
2022 12.54 Est @ 3.6% 9.37
2023 12.96 Est @ 3.4% 8.80
2024 13.38 Est @ 3.26% 8.24
2025 13.81 Est @ 3.16% 7.72
2026 14.23 Est @ 3.09% 7.22
2027 14.67 Est @ 3.05% 6.76
2028 15.11 Est @ 3.01% 6.32
2029 15.56 Est @ 2.99% 5.90
Present value of next 10 years cash flows €80.00
BIT:IWB DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= €15.56 × (1 + 2.93%) ÷ (10.18% – 2.93%)
€221.14
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= €221.14 ÷ (1 + 10.18%)10
€83.90
BIT:IWB Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= €80.00 + €83.90
€163.90
Equity Value per Share
(EUR)
= Total value / Shares Outstanding
= €163.90 / 7.24
€22.65
BIT:IWB Discount to Share Price
Calculation Result
Value per share (EUR) From above. €22.65
Current discount Discount to share price of €12.15
= -1 x (€12.15 - €22.65) / €22.65
46.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Italian Wine Brands is available for.
Intrinsic value
46%
Share price is €12.15 vs Future cash flow value of €22.65
Current Discount Checks
For Italian Wine Brands to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Italian Wine Brands's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Italian Wine Brands's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Italian Wine Brands's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Italian Wine Brands's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
BIT:IWB PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in EUR €0.95
BIT:IWB Share Price ** BIT (2019-11-21) in EUR €12.15
Europe Beverage Industry PE Ratio Median Figure of 58 Publicly-Listed Beverage Companies 21.39x
Italy Market PE Ratio Median Figure of 248 Publicly-Listed Companies 17.72x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Italian Wine Brands.

BIT:IWB PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BIT:IWB Share Price ÷ EPS (both in EUR)

= 12.15 ÷ 0.95

12.83x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Italian Wine Brands is good value based on earnings compared to the Europe Beverage industry average.
  • Italian Wine Brands is good value based on earnings compared to the Italy market.
Price based on expected Growth
Does Italian Wine Brands's expected growth come at a high price?
Raw Data
BIT:IWB PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 12.83x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
17.7%per year
Europe Beverage Industry PEG Ratio Median Figure of 31 Publicly-Listed Beverage Companies 2.67x
Italy Market PEG Ratio Median Figure of 163 Publicly-Listed Companies 1.29x

*Line of best fit is calculated by linear regression .

BIT:IWB PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 12.83x ÷ 17.7%

0.73x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Italian Wine Brands is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Italian Wine Brands's assets?
Raw Data
BIT:IWB PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in EUR €11.56
BIT:IWB Share Price * BIT (2019-11-21) in EUR €12.15
Europe Beverage Industry PB Ratio Median Figure of 72 Publicly-Listed Beverage Companies 2.09x
Italy Market PB Ratio Median Figure of 325 Publicly-Listed Companies 1.5x
BIT:IWB PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BIT:IWB Share Price ÷ Book Value per Share (both in EUR)

= 12.15 ÷ 11.56

1.05x

* Primary Listing of Italian Wine Brands.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Italian Wine Brands is good value based on assets compared to the Europe Beverage industry average.
X
Value checks
We assess Italian Wine Brands's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Beverage industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Beverage industry average (and greater than 0)? (1 check)
  5. Italian Wine Brands has a total score of 6/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Italian Wine Brands expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
17.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Italian Wine Brands expected to grow at an attractive rate?
  • Italian Wine Brands's earnings growth is expected to exceed the low risk savings rate of 2.9%.
Growth vs Market Checks
  • Italian Wine Brands's earnings growth is expected to exceed the Italy market average.
  • Italian Wine Brands's revenue growth is positive but not above the Italy market average.
Annual Growth Rates Comparison
Raw Data
BIT:IWB Future Growth Rates Data Sources
Data Point Source Value (per year)
BIT:IWB Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts 17.7%
BIT:IWB Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 3%
Europe Beverage Industry Earnings Growth Rate Market Cap Weighted Average 7.2%
Europe Beverage Industry Revenue Growth Rate Market Cap Weighted Average 4.4%
Italy Market Earnings Growth Rate Market Cap Weighted Average 8.7%
Italy Market Revenue Growth Rate Market Cap Weighted Average 3.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
BIT:IWB Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in EUR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
BIT:IWB Future Estimates Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 163 15 11 1
2020-12-31 157 14 11 2
2019-12-31 152 13 9 2
2019-11-21
BIT:IWB Past Financials Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income *
2019-06-30 151 7 7
2019-03-31 151 7 7
2018-12-31 151 7 6
2018-09-30 152 8 6
2018-06-30 152 10 6
2018-03-31 152 10 6
2017-12-31 151 11 7
2017-09-30 151 11 7
2017-06-30 152 12 7
2017-03-31 150 11 6
2016-12-31 147 11 4
2016-09-30 146 10 4

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Italian Wine Brands's earnings are expected to grow by 17.7% yearly, however this is not considered high growth (20% yearly).
  • Italian Wine Brands's revenue is expected to grow by 3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
BIT:IWB Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from Italian Wine Brands Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BIT:IWB Future Estimates Data
Date (Data in EUR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 1.53 1.53 1.53 1.00
2020-12-31 1.33 1.41 1.26 2.00
2019-12-31 1.15 1.22 1.08 2.00
2019-11-21
BIT:IWB Past Financials Data
Date (Data in EUR Millions) EPS *
2019-06-30 0.95
2019-03-31 0.91
2018-12-31 0.88
2018-09-30 0.86
2018-06-30 0.84
2018-03-31 0.88
2017-12-31 1.19
2017-09-30 1.19
2017-06-30 1.06
2017-03-31 0.88
2016-12-31
2016-09-30

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Italian Wine Brands is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Italian Wine Brands's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Italian Wine Brands has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Italian Wine Brands performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Italian Wine Brands's growth in the last year to its industry (Beverage).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Italian Wine Brands's year on year earnings growth rate has been positive over the past 5 years.
  • Italian Wine Brands's 1-year earnings growth is less than its 5-year average (12.6% vs 16.7%)
  • Italian Wine Brands's earnings growth has exceeded the Europe Beverage industry average in the past year (12.6% vs 4.6%).
Earnings and Revenue History
Italian Wine Brands's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Italian Wine Brands Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BIT:IWB Past Revenue, Cash Flow and Net Income Data
Date (Data in EUR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 151.40 6.85 7.40
2019-03-31 151.37 6.60 7.84
2018-12-31 151.35 6.35 8.29
2018-09-30 151.77 6.22 9.32
2018-06-30 152.20 6.08 9.88
2018-03-31 151.61 6.41 9.85
2017-12-31 151.01 6.73 9.81
2017-09-30 151.38 6.73 9.32
2017-06-30 151.75 6.72 8.84
2017-03-31 149.57 5.53 10.76
2016-12-31 147.38 4.34 12.68
2016-09-30 145.89 4.21 14.69
2016-06-30 144.40 4.08 16.71
2016-03-31 145.13 3.84 17.20
2015-12-31 145.85 3.59 17.69

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Italian Wine Brands has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Italian Wine Brands used its assets less efficiently than the Europe Beverage industry average last year based on Return on Assets.
  • Italian Wine Brands has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Italian Wine Brands's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Beverage industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Italian Wine Brands has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Italian Wine Brands's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Italian Wine Brands's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Italian Wine Brands is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Italian Wine Brands's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Italian Wine Brands's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Italian Wine Brands Company Filings, last reported 4 months ago.

BIT:IWB Past Debt and Equity Data
Date (Data in EUR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 83.66 34.71 24.85
2019-03-31 83.66 34.71 24.85
2018-12-31 84.28 42.86 39.49
2018-09-30 84.28 42.86 39.49
2018-06-30 80.28 41.75 30.52
2018-03-31 80.28 41.75 30.52
2017-12-31 81.62 32.99 30.68
2017-09-30 81.62 32.99 30.68
2017-06-30 77.56 38.96 25.41
2017-03-31 77.56 38.96 25.41
2016-12-31 76.16 38.09 27.62
2016-09-30 76.16 38.09 27.62
2016-06-30 72.35 42.87 19.62
2016-03-31 72.35 42.87 19.62
2015-12-31 71.97 42.84 22.82
  • Italian Wine Brands's level of debt (41.5%) compared to net worth is high (greater than 40%).
  • Unable to establish if Italian Wine Brands's debt level has increased without past 5-year debt data.
  • Debt is well covered by operating cash flow (20.5%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 15.9x coverage).
X
Financial health checks
We assess Italian Wine Brands's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Italian Wine Brands has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Italian Wine Brands's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.29%
Current annual income from Italian Wine Brands dividends. Estimated to be 3.95% next year.
If you bought €2,000 of Italian Wine Brands shares you are expected to receive €66 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Italian Wine Brands's pays a higher dividend yield than the bottom 25% of dividend payers in Italy (2.03%).
  • Italian Wine Brands's dividend is below the markets top 25% of dividend payers in Italy (4.42%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
BIT:IWB Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
Europe Beverage Industry Average Dividend Yield Market Cap Weighted Average of 52 Stocks 2.2%
Italy Market Average Dividend Yield Market Cap Weighted Average of 177 Stocks 4.1%
Italy Minimum Threshold Dividend Yield 10th Percentile 1.1%
Italy Bottom 25% Dividend Yield 25th Percentile 2%
Italy Top 25% Dividend Yield 75th Percentile 4.4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

BIT:IWB Future Dividends Estimate Data
Date (Data in €) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.59 1.00
2020-12-31 0.47 2.00
2019-12-31 0.44 2.00
2019-11-21
BIT:IWB Past Annualized Dividends Data
Date (Data in €) Dividend per share (annual) Avg. Yield (%)
2019-03-27 0.400 3.284
2019-03-21 0.400 3.531
2018-03-28 0.400 3.269
2018-03-22 0.400 2.905

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Italian Wine Brands has been paying a dividend for less than 10 years.
  • Italian Wine Brands has only been paying a dividend for 2 years, and since then there has been no growth.
Current Payout to shareholders
What portion of Italian Wine Brands's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.4x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.7x coverage).
X
Income/ dividend checks
We assess Italian Wine Brands's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Italian Wine Brands afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Italian Wine Brands has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Italian Wine Brands's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
  • Italian Wine Brands has no CEO, or we have no data on them.
Management Team
Board of Directors Tenure

Average tenure and age of the Italian Wine Brands board of directors in years:

3.1
Average Tenure
53
Average Age
  • The tenure for the Italian Wine Brands board of directors is about average.
Board of Directors

Alessandro Mutinelli

TITLE
Chairman of the Board

Simone Strocchi

TITLE
Vice President of the Board of Directors

David Reali

TITLE
President of the Board of Statutory Auditors
AGE
53
TENURE
3.1 yrs

Angela Oggionni

TITLE
Director

Massimiliano Mutinelli

TITLE
Director

Pier Quaranta

TITLE
Director
TENURE
3.6 yrs

Antonella Lillo

TITLE
Director
AGE
58

Carlo Giordano

TITLE
Director
AGE
53

Debora Mazzaccherini

TITLE
Acting Auditor
TENURE
3.1 yrs

Eugenio Romita

TITLE
Acting Auditor
TENURE
2.6 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess Italian Wine Brands's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Italian Wine Brands has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

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Is There An Opportunity With Italian Wine Brands S.p.A.'s (BIT:IWB) 44% Undervaluation?

Today, we will estimate the stock's intrinsic value by taking the foreast future cash flows of the company and discounting them back to today's value. … Generally we assume that a dollar today is more valuable than a dollar in the future, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) estimate 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Levered FCF (€, Millions) €11.6m €12.1m €12.6m €13.0m €13.5m €13.9m €14.3m €14.8m €15.2m €15.7m Growth Rate Estimate Source Analyst x1 Analyst x1 Est @ 3.84% Est @ 3.57% Est @ 3.38% Est @ 3.24% Est @ 3.15% Est @ 3.09% Est @ 3.04% Est @ 3.01% Present Value (€, Millions) Discounted @ 10.34% €10.5 €9.9 €9.4 €8.8 €8.2 €7.7 €7.2 €6.7 €6.3 €5.9 ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF)= €80.5m The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … BIT:IWB Intrinsic value, August 26th 2019 The assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.

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Is Italian Wine Brands S.p.A. (BIT:IWB) Better Than Average At Deploying Capital?

Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Italian Wine Brands: 0.098 = €12m ÷ (€188m - €67m) (Based on the trailing twelve months to December 2018.) Therefore, Italian Wine Brands has an ROCE of 9.8%. … Italian Wine Brands's Current Liabilities And Their Impact On Its ROCE Short term (or current) liabilities, are things like supplier invoices, overdrafts, or tax bills that need to be paid within 12 months. … Italian Wine Brands's middling level of current liabilities have the effect of boosting its ROCE a bit.

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Read This Before Judging Italian Wine Brands S.p.A.'s (BIT:IWB) ROE

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Italian Wine Brands: 7.5% = €6.4m ÷ €84m (Based on the trailing twelve months to December 2018.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … Does Italian Wine Brands Have A Good Return On Equity? … Italian Wine Brands's Debt And Its 7.5% ROE While Italian Wine Brands does have some debt, with debt to equity of just 0.51, we wouldn't say debt is excessive.

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Three Things You Should Check Before Buying Italian Wine Brands S.p.A. (BIT:IWB) For Its Dividend

Some readers mightn't know much about Italian Wine Brands's 3.1% dividend, as it has only been paying distributions for a year or so. … In sum, we find it hard to get excited about Italian Wine Brands from a dividend perspective. … See if management have their own wealth at stake, by checking insider shareholdings in Italian Wine Brands stock.

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Does Italian Wine Brands (BIT:IWB) Have A Healthy Balance Sheet?

BIT:IWB Historical Debt, July 5th 2019 How Healthy Is Italian Wine Brands's Balance Sheet? … Since Italian Wine Brands does have net debt, we think it is worthwhile for shareholders to keep an eye on the balance sheet, over time. … Given Italian Wine Brands has a strong balance sheet is profitable and pays a dividend, it would be good to know how fast its dividends are growing, if at all.

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Does Italian Wine Brands S.p.A.'s (BIT:IWB) June Stock Price Reflect Its Future Growth?

But, since Italian Wine Brands is a high-growth stock, we must also account for its earnings growth by using calculation called the PEG ratio. … A PE ratio of 13.7x and expected year-on-year earnings growth of 18% give Italian Wine Brands a very low PEG ratio of 0.76x. … So, when we include the growth factor in our analysis, Italian Wine Brands appears relatively cheap , based on the fundamentals.

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Do You Know What Italian Wine Brands S.p.A.'s (BIT:IWB) P/E Ratio Means?

Italian Wine Brands has a price to earnings ratio of 13.64, based on the last twelve months. … The formula for P/E is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Italian Wine Brands: P/E of 13.64 = €11.95 ÷ €0.88 (Based on the year to December 2018.) Is A High Price-to-Earnings Ratio Good? … The Bottom Line On Italian Wine Brands's P/E Ratio Italian Wine Brands has a P/E of 13.6.

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Italian Wine Brands S.p.A. (BIT:IWB): What's The Analyst Consensus Outlook?

Today I want to provide a brief commentary on how market analysts predict Italian Wine Brands's earnings growth outlook over the next couple of years and whether the future looks brighter. … View our latest analysis for Italian Wine Brands Analysts' outlook for the coming year seems positive, with earnings increasing by a robust 50%. … This means, we can expect Italian Wine Brands will grow its earnings by 18% every year for the next few years.

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Is Italian Wine Brands S.p.A. (BIT:IWB) Trading At A 41% Discount?

Today, we will estimate the stock's intrinsic value by taking the expected future cash flows and discounting them to their present value. … Generally we assume that a dollar today is more valuable than a dollar in the future, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF (€, Millions) €10.30 €11.60 €12.10 €12.56 €13.01 €13.45 €13.89 €14.33 €14.77 €15.22 Growth Rate Estimate Source Analyst x1 Analyst x1 Analyst x1 Est @ 3.84% Est @ 3.57% Est @ 3.38% Est @ 3.24% Est @ 3.15% Est @ 3.09% Est @ 3.04% Present Value (€, Millions) Discounted @ 11.07% €9.27 €9.40 €8.83 €8.26 €7.70 €7.17 €6.66 €6.19 €5.74 €5.33 Present Value of 10-year Cash Flow (PVCF)= €74.54m "Est" = FCF growth rate estimated by Simply Wall St We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. … BIT:IWB Intrinsic value, May 14th 2019 The assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows.

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Italian Wine Brands (BIT:IWB) Shareholders Booked A 17% Gain In The Last Three Years

By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … During three years of share price growth, Italian Wine Brands achieved compound earnings per share growth of 17% per year. … This EPS growth is higher than the 5.5% average annual increase in the share price.

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Company Info

Description

Italian Wine Brands S.p.A., together with its subsidiaries, produces and distributes Italian wines worldwide. The company sells its wine products primarily under the Giordano brand name through Web, mail, and tele-selling channels. It is also involved in the provision of food products, such as espresso coffee under the Italian Art Café brand name and extra virgin olive oil under the Terre dei Gigli brand name. Italian Wine Brands S.p.A. is based in Milan, Italy.

Details
Name: Italian Wine Brands S.p.A.
IWB
Exchange: BIT
Founded:
€87,911,896
7,235,547
Website: http://www.italianwinebrands.it
Address: Italian Wine Brands S.p.A.
Via Brera 16,
Milan,
Milan, 20121,
Italy
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BIT IWB Common Stock Borsa Italiana IT EUR 29. Jan 2015
Number of employees
Current staff
Staff numbers
0
Italian Wine Brands employees.
Industry
Distillers and Vintners
Food, Beverage & Tobacco
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/21 21:24
End of day share price update: 2019/11/21 00:00
Last estimates confirmation: 2019/09/25
Last earnings filing: 2019/09/30
Last earnings reported: 2019/06/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.