 "Agree Edward, forward looking is more positive. However, 30p consensus forecast for 24 is implying forward pe of around 47. Way too rich!"
Its pretty obvious to anyone that they are accepting lower margins to get global presence - if they could return to anything like the goilden oldy day ref margins when a mature buisness its pretty obvious that this company could be making pots of cash and have much lower pe multiple than they currently have. To ignore the fact they have had short term issues ref inflatinonary costs and its always going to be more costly to "expand quickly" seems silly.
I would agree its uncertain as to whether they will ever retain their former glories with regard to any country they do business in - but to say this company is worth peanuts seeming to be ignoring the decent global brand they are building and decent future potential.
Note this used to be my biggest holding and i currently own zero shares as i was lucky enough to exit ata higher pirce - so whilst still being positive overall ref the future - at present its not exactly the stockm that jumps out as being the best risk reward.
In some respects i am a little surprised that bigger brands didnt come sniffing around when price was sub 1000p but there ya go who would pay any sort of premium at present with ongoing world uncertainty. |
Fevertree Drinks plc posted Interims for the HY ended 30th June this morning. The Group recorded revenue growth of 9% year-on-year to £175.6m, with a standout performance in the US of +40% growth which is now the Group's largest region by revenue contribution. Profits were held back a little driven by product cost headwinds, partially offset by efficiency projects, adjusted EBITDA dropped 54% to £10.2m. EPS was down more dramatically by 90% to 1.2p. Valuation remains the main cloud for the investment case with forward PE ratio at 47.9x looking a little prohibitive. The share has a market cap of over £1.5b on statutory net profit of under £25m. There is lots of growth here, but FEVR remains a share to monitor at current prices...
...from WealthOracle |
Fair play. I've learned never to go against momentum! |
hey - all i see is Mr Market is agreeing with me! the fact it is now up today does tell you the bad news was probably known knowns. |
The US growth wasn't all organic as they acquired Powell & Mahoney in July last year so none of that revenue was present in H1 '22 |
it is rich but i would have thought Pepsi might not think so if the US cagr can be sustained. it is a 10x larger market than uk after all. |
Agree Edward, forward looking is more positive. However, 30p consensus forecast for 24 is implying forward pe of around 47. Way too rich! |
24 ebitda margins has been revised up from consensus expectations to 15% - as i say, that is where the market should be looking. anyway,agree the results were not exactly great but the muted share price reaction is right imo. |
1.2p EPS half year, let's say 2.5 full year. 500 times earnings anyone?! |
There's no way this is currently worth more than 1000p |
Defying gravity more like. |
And then recovers, as per! |
Looks like opening way lower |
Agree John.
This often happens with FEVR |
For some reason this stock defies logic regarding share price movements. But yes, should be marked down |
Should be market down, I concur. |
Would be surprised if this isn't marked down at the off. A great brand but there's always something- bad weather, production issue or de-stocking that delays cash flow generation. Strategically valuable but stand alone looks expensive imo |
Don't look very good to me. Cash down, margins have shrunk, earnings miniscule, sky high historic PE. US doing well but everywhere else not so. |
Operating profit just £0.6 million. Down 96% All the rest is just waffle#overvalued. |
12th of September. |
When is the trading update guys please? |
All this talk of doing well and we forecast 36/42 ebitda
Flat profits from last year.
We have just had an awful July weather wise and August has started as bad.
I think they will miss targets.
Shares are too high in my opinion
tiger |
Boom - double upgrade by exane |
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