RE:RE:RE:Duckhorn bought good new comps and price to sales does look more than just depressed.
reposting below though to highlight that some of the metrics are really underperforming at least Duck, so looks like much of the price compression is warranted.
I can't find any disclosures of sales by country so i assume there are nominal out of Canada revenues - foreign exchange risk discussion only takes about it as a purching exchange issue as well - so these stocks could be a good hedge against tariffs as i would expect US wine impor5s to get hit - add that to the massive CDN drop & foreign wine will have to do some serious price inceases - could be a nice tailwind.
Puma1back wrote: First off Duck has more than 4 times the asset base so we are comparing different beasts in the same sector
the transaction took Duckhorn which was trading at about 70% of bookvalue to a 125% of book value.
much stonger ebitda though - at 30% looks like double the last qtr for ADW at 15% but ADW margin momentum is upward.
ADW has substantially higher relative debt load and related carrying costs - even after sale of Port Moody, ADW still has 3 times the relative debt - these guys should have issued stock from Treasury during covid like Duck did - they would have had a clean a balance sheet.
interesting that sale has taken place subsequent to the Duckhorn family letting go of the control reins.
Jonathan9 wrote: Does this help give a market valuation for Andrew Peller? What would ADW be worth at similar valuation?
2-3x current share price?