Latest news with #FevertreeDrinks
Yahoo
4 days ago
- Business
- Yahoo
Beer maker Molson Coors forecasts downbeat annual profit on aluminum tariff impact
(Reuters) -Molson Coors forecast a bigger drop in its annual profit on Tuesday, hit by tariff impacts on costs of aluminum it uses for its beverage cans amid macroeconomic uncertainty in the U.S. President Donald Trump's fluctuating trade tariff policies have pressured consumer spending in the U.S. and caused customers to pare back on discretionary spending such as alcohol. The annual forecast change comes as a result of "the anticipated ongoing macroeconomic impacts on the industry, our lower-than-expected U.S. share performance, and higher-than-expected indirect tariff impacts on the pricing of aluminum," CEO Gavin Hattersley said in a statement. The company, which produces its beer locally at breweries in Colorado faces a 50% tariff on aluminum metal shipped into the U.S. since June, when Trump doubled it from 25%. Shares of the company were down about 1% in premarket trading. The company expects annual adjusted earnings per share to fall 7% to 10%, compared to its prior forecast of a low single-digit rise. It expects net sales for the year to decline 3% to 4%, compared with previous expectations of a decline in the low single-digits. The Blue Moon witbier maker in January had bought an 8.5% stake in an $88-million deal that gives it exclusive rights to market British company Fevertree Drinks' cocktail mixers and tonic water in the U.S., in a bid to capture the domestic demand for non-alcoholic drinks. Both companies had agreed to equally split the costs of the 10% tariff to be imposed on UK imports to the U.S. in June. The company's net sales fell 1.6% to $3.2 billion in the second quarter ended June 30, but came ahead of analysts' estimate of $3.1 billion, according to data compiled by LSEG. It posted underlying earnings per share of $2.05, beating estimates of $1.83 cents per share. The company said the quarter benefited from pricing growth and favorable timing of U.S. shipments despite soft macroeconomic conditions. 擷取數據時發生錯誤 登入存取你的投資組合 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤
Yahoo
26-07-2025
- Business
- Yahoo
Fevertree Drinks PLC's (LON:FEVR) On An Uptrend But Financial Prospects Look Pretty Weak: Is The Stock Overpriced?
Fevertree Drinks (LON:FEVR) has had a great run on the share market with its stock up by a significant 30% over the last three months. However, we decided to pay close attention to its weak financials as we are doubtful that the current momentum will keep up, given the scenario. In this article, we decided to focus on Fevertree Drinks' ROE. ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. Simply put, it is used to assess the profitability of a company in relation to its equity capital. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. How Is ROE Calculated? The formula for return on equity is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Fevertree Drinks is: 9.9% = UK£24m ÷ UK£247m (Based on the trailing twelve months to December 2024). The 'return' is the income the business earned over the last year. That means that for every £1 worth of shareholders' equity, the company generated £0.10 in profit. Check out our latest analysis for Fevertree Drinks What Is The Relationship Between ROE And Earnings Growth? We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. Depending on how much of these profits the company reinvests or "retains", and how effectively it does so, we are then able to assess a company's earnings growth potential. Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features. Fevertree Drinks' Earnings Growth And 9.9% ROE At first glance, Fevertree Drinks' ROE doesn't look very promising. A quick further study shows that the company's ROE doesn't compare favorably to the industry average of 13% either. For this reason, Fevertree Drinks' five year net income decline of 24% is not surprising given its lower ROE. However, there could also be other factors causing the earnings to decline. For instance, the company has a very high payout ratio, or is faced with competitive pressures. However, when we compared Fevertree Drinks' growth with the industry we found that while the company's earnings have been shrinking, the industry has seen an earnings growth of 9.5% in the same period. This is quite worrisome. Earnings growth is an important metric to consider when valuing a stock. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. Doing so will help them establish if the stock's future looks promising or ominous. Has the market priced in the future outlook for FEVR? You can find out in our latest intrinsic value infographic research report. Is Fevertree Drinks Efficiently Re-investing Its Profits? With a high three-year median payout ratio of 85% (implying that 15% of the profits are retained), most of Fevertree Drinks' profits are being paid to shareholders, which explains the company's shrinking earnings. With only a little being reinvested into the business, earnings growth would obviously be low or non-existent. In addition, Fevertree Drinks has been paying dividends over a period of at least ten years suggesting that keeping up dividend payments is way more important to the management even if it comes at the cost of business growth. Existing analyst estimates suggest that the company's future payout ratio is expected to drop to 54% over the next three years. Accordingly, the expected drop in the payout ratio explains the expected increase in the company's ROE to 16%, over the same period. Conclusion In total, we would have a hard think before deciding on any investment action concerning Fevertree Drinks. Because the company is not reinvesting much into the business, and given the low ROE, it's not surprising to see the lack or absence of growth in its earnings. Having said that, looking at current analyst estimates, we found that the company's earnings growth rate is expected to see a huge improvement. To know more about the company's future earnings growth forecasts take a look at this free report on analyst forecasts for the company to find out more. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. 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Yahoo
26-05-2025
- Business
- Yahoo
Fevertree Drinks (LON:FEVR) investors are sitting on a loss of 54% if they invested five years ago
While not a mind-blowing move, it is good to see that the Fevertree Drinks PLC (LON:FEVR) share price has gained 20% in the last three months. But don't envy holders -- looking back over 5 years the returns have been really bad. In fact, the share price has declined rather badly, down some 58% in that time. So is the recent increase sufficient to restore confidence in the stock? Not yet. We'd err towards caution given the long term under-performance. It's worthwhile assessing if the company's economics have been moving in lockstep with these underwhelming shareholder returns, or if there is some disparity between the two. So let's do just that. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). Looking back five years, both Fevertree Drinks' share price and EPS declined; the latter at a rate of 17% per year. This change in EPS is reasonably close to the 16% average annual decrease in the share price. This suggests that market participants have not changed their view of the company all that much. Rather, the share price has approximately tracked EPS growth. You can see how EPS has changed over time in the image below (click on the chart to see the exact values). We like that insiders have been buying shares in the last twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. It might be well worthwhile taking a look at our free report on Fevertree Drinks' earnings, revenue and cash flow. When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. We note that for Fevertree Drinks the TSR over the last 5 years was -54%, which is better than the share price return mentioned above. The dividends paid by the company have thusly boosted the total shareholder return. Fevertree Drinks shareholders are down 26% for the year (even including dividends), but the market itself is up 6.4%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 9% over the last half decade. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. It is all well and good that insiders have been buying shares, but we suggest you check here to see what price insiders were buying at. Fevertree Drinks is not the only stock insiders are buying. So take a peek at this free list of small cap companies at attractive valuations which insiders have been buying. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on British exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
12-05-2025
- Business
- Yahoo
Why Fevertree Drinks PLC (LON:FEVR) Could Be Worth Watching
Fevertree Drinks PLC (LON:FEVR), might not be a large cap stock, but it saw a significant share price rise of 26% in the past couple of months on the AIM. Shareholders may appreciate the recent price jump, but the company still has a way to go before reaching its yearly highs again. With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock's share price. However, what if the stock is still a bargain? Today we will analyse the most recent data on Fevertree Drinks's outlook and valuation to see if the opportunity still exists. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. Great news for investors – Fevertree Drinks is still trading at a fairly cheap price. Our valuation model shows that the intrinsic value for the stock is £12.78, but it is currently trading at UK£8.48 on the share market, meaning that there is still an opportunity to buy now. However, given that Fevertree Drinks's share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility. Check out our latest analysis for Fevertree Drinks Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it's the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Fevertree Drinks' earnings over the next few years are expected to increase by 74%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value. Are you a shareholder? Since FEVR is currently undervalued, it may be a great time to increase your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation. Are you a potential investor? If you've been keeping an eye on FEVR for a while, now might be the time to make a leap. Its buoyant future outlook isn't fully reflected in the current share price yet, which means it's not too late to buy FEVR. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision. It can be quite valuable to consider what analysts expect for Fevertree Drinks from their most recent forecasts. Luckily, you can check out what analysts are forecasting by clicking here. If you are no longer interested in Fevertree Drinks, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
08-05-2025
- Business
- Yahoo
Molson Coors cuts sales, profit forecasts after Q1 declines
Canadian-American brewer Molson Coors has cut its sales and profit forecasts for 2025 after a challenging first quarter. The Cobra, Staropramen and Carling producer is forecasting low single-digit year-on-year decreases in net sales on a constant-currency basis and underlying (non-GAAP) income before income taxes. In February, Molson Coors had forecast its sales by that metric would rise at a low single-digit rate in 2025. It was also projecting a mid single-digit increase in underlying income before income taxes. The new forecasts came as the company reported an 11.3% fall in net sales in the first quarter to $2.3bn. It also posted a 49.3% fall in underlying income before income taxes to $131.1m. "We have adjusted our 2025 guidance for certain key financial metrics due to the impacts of the global macroeconomic environment on the beer industry and consumer trends," the company said. CEO Gavin Hattersley added: "The macroeconomic environment and its broad effects on the beer industry and consumer, as well as competitive pressures in EMEA & APAC, impacted our financial results in the first quarter. "The global macroeconomic environment is volatile. Uncertainty around the effects of geopolitical events and global trade policy, including the impacts on economic growth, consumer confidence and expectations around inflation, and currencies has pressured the beer industry and consumption trends. Given the uncertainty is ongoing, we have adjusted our 2025 full year guidance." Hattersley noted "expected headwinds" in the first quarter, including cycling the prior year's US inventory, the discontinuation of contractual brewing arrangements in the Americas and transition fees relating to its deal for a stake in 8.5% stake in UK-based tonic and mixer maker Fevertree Drinks. It acquired the stake in January for £71m ($88.3m), which Fevertree has called a 'long-term strategic partnership'. Hattersley plans to leave the US beer major by the end the year, the group said in a statement on 14 April. He has headed the Aspall cider brewer since 2019. "Molson Coors cuts sales, profit forecasts after Q1 declines" was originally created and published by Just Drinks, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
