Fevertree Drinks Share Discussion Threads

[wetdream] 04/12/2024 13:55

Nick Train ‘in pain’ over Diageo bet and fund performance



Presumably FEVR contributing to his ‘pain’.

[valuehurts] 03/12/2024 23:10

Imagine you are selling lemonade for one pound and the prices of ingredients mugs etc go up so much you only make a penny of profit. If you get the cups a penny cheaper and raise prices by a penny your profit is now 3 pence. Your profits have tripled. Now imagine you sell 33 percent more lemonade. Your profits have quadrupled. This is the principle of how this share could work out.

[valuehurts] 02/12/2024 21:07

What's half of market cap got to do with anything? This story is about margins and the cost of bottling etc. PEs will look high if the costs increase. These types of businesses have a few levers to pull to increase earnings. Cut the operating costs, which should happen now they have made progress with the bottling. Increase pricing, which they are doing and increase volume which seem to be doing. What's special about Fevertree though is that the people who buy it aren't that price sensitive. You could increase prices quite aggressively and people would still buy it. It may even be good for the brand.

[disc0dave46] 02/12/2024 13:37

CTNot looked at Docs for a while as seemed to be getting way ahead of itself. If this FY profits are only a third of last year that's circa 2.5p eps, so on a fairly hefty PE IMO at 27x. That said if a recovery does play out (which I can't see tbh) the forecast earnings for FY26 are 5.4p, IMO a target price of say 80p (PE 15x), but better risks to rewards out there IMO.Will trump put the boot in with his tariffs?, then there's the issues here in the UK with min wage and NI etc.

[disc0dave46] 02/12/2024 10:01

Hi CTHope all is good.Since Covid sales have been growing but yes net profit has been falling, but "has been" being the operative words. Net profit is forecast to double for FY24 with eps growth of 95%, giving a PE of 27x, and falling to a PE of 20x for FY25. A PEG of less than 1 for both FY24 and FY25.Margins are improving and whilst UK sales appear to be saturated it's not too concerning given mitigating growth in the US and ROW.

[castleford tiger] 02/12/2024 09:14

ValueHurts

Not in the first half results they were flat.

last full year sales were up 20m to 364m which........ is LESS THAN HALF MARKET CAP

net profit fell £10m giving a p/e of 50+

I do understand that FEVR has never looked a sensible valuation.

The big concern is the UK sales are falling.

Tiger

[edwardt] 28/11/2024 17:44

fidelity seem to want a tipple

[valuehurts] 28/11/2024 14:34

Sales are growing

[castleford tiger] 28/11/2024 14:14

PROFITS ARE FALLING NOT GROWING

TIGER

[valuehurts] 27/11/2024 21:00

Bought a chunk of this again a week ago, great business great product and will continue growing. Let's hope the margins get sorted over the next few years.

[philanderer] 27/11/2024 14:35

JPMorgan cuts Fevertree Drinks price target to 825 (900) pence - 'neutral'

[riskvsreward] 23/11/2024 11:50

It is incredible that this is a share favoured by both Smith and Train.

[edwardt] 23/11/2024 11:39

He is talked of in the pejorative because of regulatory failings at his firm. To compare to fevertree that has a net cash balance sheet and good liquidity is way off the mark imho

[dvb99] 12/11/2024 14:37

whats a Neil Woodford type share?

[ricardo montalban] 08/11/2024 22:16

Anything that cites U.K. summer weather as being a large factor is pretty fxkt….this is like worth 1.80-2 quid a share. It’s a Neil Woodford type share.

[wetdream] 25/10/2024 21:27

£28 to £7.50 over three years.
‘Hope’ over ‘reality’;?

[castleford tiger] 25/10/2024 16:55

brand no longer holding its premium spot.
try the 5 star london hotels and the stock is not around.

My view is this is a short and seriously overvalued
tiger

[montyhedge] 30/9/2024 11:14

Must admit not keen on one product companies that also rely on good weather.

[philanderer] 30/9/2024 10:09

Jefferies cuts Fevertree Drinks price target to 800 (1,000) pence - 'hold'

[philanderer] 27/9/2024 20:29

Questor tip

Like Terry Smith, we’re keeping hold of this underperformer
Investors need to be patient but Fever-Tree’s strategy will come good

[toffeeman] 27/9/2024 09:29

Takeover potential

[my retirement fund] 27/9/2024 08:46

Still don't understand why this is still over £8 ? Bizzare, what am I missing.

[wetdream] 19/9/2024 13:37

And voila - £7.80 it is.

[davius] 19/9/2024 09:58

Goldman Sachs cuts Fevertree price target to 780 (1,050) pence - 'sell'

[davius] 16/9/2024 18:22

Deutsche Bank cuts Fevertree Drinks target to 1,325 (1,450) pence - 'buy'

A bit of a disconnect with the DB target and the share price