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Australian Vintage Ltd (AU:AVG)
ASX:AVG

Australian Vintage Ltd (AVG) AI Stock Analysis

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Australian Vintage Ltd

(Sydney:AVG)

Rating:44Neutral
Price Target:
AU$0.00
▼(-100.00%Downside)
The overall stock score is driven primarily by financial performance, which reflects significant financial difficulties due to declining profitability and cash flow issues. The technical analysis suggests a bearish trend, further weighing on the stock. The negative P/E ratio and lack of dividend yield indicate poor valuation. In the absence of earnings call data and corporate events, these factors heavily influence the overall score.

Australian Vintage Ltd (AVG) vs. iShares MSCI Australia ETF (EWA)

Australian Vintage Ltd Business Overview & Revenue Model

Company DescriptionAustralian Vintage Ltd (AVG) is a leading Australian wine company engaged in the production, marketing, and distribution of a diverse range of wines. The company operates in the wine production industry and offers a portfolio of well-known brands, catering to both domestic and international markets. With a focus on quality and innovation, AVG has established itself as a significant player in the wine sector, utilizing state-of-the-art facilities and sustainable practices in its operations.
How the Company Makes MoneyAustralian Vintage Ltd generates revenue primarily through the production and sale of wine products. The company's revenue streams include domestic sales within Australia and international exports to various global markets. AVG owns a portfolio of brands that cater to different market segments, allowing it to capture a wide customer base. Additionally, the company engages in partnerships and distribution agreements to enhance its market reach and presence. AVG also focuses on brand development and marketing strategies to strengthen its brand recognition and consumer loyalty, which are crucial for driving sales and revenue growth.

Australian Vintage Ltd Financial Statement Overview

Summary
Australian Vintage Ltd is experiencing financial difficulties, with declining profitability and cash flow challenges. The income statement reveals significant losses, and the cash flow situation indicates an inability to generate sufficient cash from operations. The balance sheet reflects increasing reliance on debt, posing financial risk. Overall, the company faces significant hurdles in stabilizing its financial health.
Income Statement
42
Neutral
The income statement shows a concerning decline in performance. Revenue has been relatively flat over the years, with a slight increase in the latest period. However, profitability has severely decreased, as indicated by a negative EBIT and EBITDA in the latest year. The gross profit margin has decreased significantly from 28.8% to 10.6% year-over-year, and the net profit margin has turned negative, highlighting substantial losses.
Balance Sheet
55
Neutral
The balance sheet shows a moderate level of risk with an increasing debt-to-equity ratio, now at approximately 0.64. The company's equity ratio has decreased slightly, indicating more reliance on debt. However, the company maintains a relatively stable asset base, though stockholders' equity has decreased over the years.
Cash Flow
38
Negative
Cash flow analysis indicates challenges, with negative operating and free cash flows in the most recent period. This marks a deterioration from previous years where free cash flow, although fluctuating, was positive. The operating cash flow to net income ratio is negative, showing the inability to generate cash from operations to cover reported losses.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
250.55M260.59M258.56M260.10M273.96M267.14M
Gross Profit
33.16M27.69M75.11M85.35M86.20M76.19M
EBIT
-33.19M-46.26M8.45M26.02M30.65M20.55M
EBITDA
-26.84M-62.28M20.32M40.95M45.41M33.78M
Net Income Common Stockholders
-96.29M-93.03M4.01M17.33M19.60M10.95M
Balance SheetCash, Cash Equivalents and Short-Term Investments
11.21M6.02M6.90M2.55M3.65M7.66M
Total Assets
478.29M415.43M498.04M515.60M493.53M509.05M
Total Debt
142.64M137.27M128.89M125.37M98.86M132.41M
Net Debt
131.43M131.25M121.99M122.82M95.20M124.76M
Total Liabilities
183.51M201.83M206.92M215.75M180.85M205.64M
Stockholders Equity
294.78M213.60M291.12M299.85M312.68M303.41M
Cash FlowFree Cash Flow
-14.22M-18.84M-23.48M4.00M38.61M12.04M
Operating Cash Flow
-7.63M-10.96M-12.72M15.35M45.03M22.26M
Investing Cash Flow
-1.20M-2.74M57.46M-9.70M-6.40M-10.15M
Financing Cash Flow
3.75M12.82M-40.39M-6.75M-42.63M-12.51M

Australian Vintage Ltd Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.09
Price Trends
50DMA
0.10
Negative
100DMA
0.12
Negative
200DMA
0.13
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
45.42
Neutral
STOCH
86.27
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:AVG, the sentiment is Negative. The current price of 0.09 is above the 20-day moving average (MA) of 0.08, below the 50-day MA of 0.10, and below the 200-day MA of 0.13, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 45.42 is Neutral, neither overbought nor oversold. The STOCH value of 86.27 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:AVG.

Australian Vintage Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUEDV
76
Outperform
AU$7.38B16.0711.71%4.85%1.78%-11.07%
65
Neutral
$8.88B15.034.75%203.74%3.58%-2.49%
AUTWE
63
Neutral
$6.58B42.983.25%5.25%22.94%-40.23%
AUEDU
59
Neutral
AU$41.40M17.3022.69%98.84%
AUAVG
44
Neutral
$28.00M-38.39%-2.72%-1624.66%
AULRK
39
Underperform
AU$78.67M-4.70%-7.45%-0.15%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:AVG
Australian Vintage Ltd
0.09
-0.23
-72.44%
AU:EDU
EDU Holdings Limited
0.28
0.19
211.11%
AU:TWE
Treasury Wine Estates Limited
8.17
-3.36
-29.12%
AU:LRK
Lark Distilling Co. Ltd.
0.74
-0.15
-16.85%
AU:EDV
Endeavour Group Ltd
4.15
-0.66
-13.72%

Australian Vintage Ltd Corporate Events

Director Increases Stake in Australian Vintage Ltd
Jun 2, 2025

Australian Vintage Ltd has announced a change in the interest of its director, James Williamson, who has acquired an additional 3,000,000 fully paid ordinary shares through an on-market trade. This acquisition increases Williamson’s total holdings to 60,959,616 shares, reflecting a significant personal investment in the company. The transaction, valued at $213,000, underscores the director’s confidence in the company’s future prospects and may positively influence stakeholder perception regarding the company’s stability and growth potential.

Australian Vintage Ltd Sees Increase in Substantial Holder’s Voting Power
May 28, 2025

Australian Vintage Limited, a company listed on the Australian Securities Exchange, has seen a change in the interests of a substantial holder, Wentworth Williamson Management Pty Ltd. The substantial holder’s voting power increased from 16.26% to 17.48% following an on-market purchase of additional shares. This change in voting power could potentially impact the company’s governance and decision-making processes, influencing its strategic direction and potentially affecting shareholder value.

Australian Vintage Ltd Updates Securities Trading Policy
May 28, 2025

Australian Vintage Ltd has updated its Securities Trading Policy in line with ASX Listing Rule 12.10, reflecting the company’s commitment to corporate governance and business ethics. This policy aims to maintain public confidence in the company’s reputation and ensure compliance with insider trading laws, impacting directors, employees, and senior management.

Australian Vintage Ltd Director Increases Shareholding
May 28, 2025

Australian Vintage Ltd has announced a change in the director’s interests, specifically regarding James Williamson. Mr. Williamson, through indirect interests, acquired over 4 million fully paid ordinary shares, increasing his total holdings to nearly 58 million shares. This transaction, valued at over $310,000, was conducted through an on-market trade. The change in shareholding reflects a significant increase in Mr. Williamson’s investment in the company, potentially indicating confidence in the company’s future performance and impacting stakeholders’ perceptions.

Australian Vintage Ltd Issues 500,000 New Securities
May 27, 2025

Australian Vintage Ltd has announced the issuance of 500,000 ordinary fully paid securities, effective from May 14, 2025. This move indicates a strategic decision to potentially strengthen its financial position and enhance shareholder value, reflecting the company’s ongoing efforts to maintain a competitive edge in the wine industry.

Australian Vintage Ltd’s Strategic Turnaround and Expansion Plans for FY2026
May 22, 2025

Australian Vintage Ltd is undergoing a strategic turnaround to address declining sales and negative cash flows, with FY2026 expected to be transformational. The company is launching the Poco Vino™ brand in the UK and Australia, which has exceeded pre-sales expectations, and expanding the Lemsecco™ brand, anticipating significant sales contributions. Additionally, the acquisition of the Madfish brand and distribution rights for Howard Park will enhance their portfolio in the UK and other regions. Despite a projected 3% decline in FY2025 sales, the company is focused on achieving mid-single-digit sales growth in FY2026, alongside improved inventory management and cash flow.

Australian Vintage Ltd Announces Cessation of Securities
May 15, 2025

Australian Vintage Ltd announced the cessation of 5,000,000 securities due to the lapse of conditional rights, as the conditions were not or could not be satisfied. This development may impact the company’s capital structure and could have implications for its market positioning and stakeholder interests.

Australian Vintage Ltd Appoints New CEO to Drive Growth Strategy
Apr 29, 2025

Australian Vintage Ltd has announced the appointment of Tom Dusseldorp as the new CEO, succeeding Craig Garvin who has been instrumental in stabilizing the company after a challenging 2024. Under Garvin’s leadership, the company transitioned from a family business to a major industry player, setting a clear direction for future growth. Dusseldorp, who has been with the company since 2022 and has extensive experience in the industry, aims to continue this trajectory by focusing on sustainable cash flow and targeted growth through innovation and brand investment. This leadership change is seen as a strategic move to enhance the company’s market positioning and shareholder value.

Australian Vintage Ltd Sees Increased Stake from Wentworth Williamson Management
Mar 26, 2025

Australian Vintage Ltd has announced a change in the substantial holding of its voting shares, with Wentworth Williamson Management Pty Ltd increasing its stake from 11.41% to 16.41%. This change reflects a strategic move by Wentworth Williamson Management to strengthen its influence within the company, potentially impacting the company’s future decisions and market positioning.

Director Increases Stake in Australian Vintage Ltd
Mar 26, 2025

Australian Vintage Limited announced a significant change in the director’s interest, with Director James Williamson acquiring 16,000,000 fully paid ordinary shares through an on-market trade. This acquisition, valued at $1,920,000, increases Williamson’s total holdings, potentially strengthening his influence within the company and reflecting confidence in its future prospects.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.