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Andrew Peller A NV (TSE:ADW.A)
TSX:ADW.A
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Andrew Peller A NV
(TSX:ADW.A)
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Rating:60Neutral
Price Target:―
Andrew Peller A NV's strengths in revenue growth and cash flow management are noteworthy. However, profitability challenges and high leverage are significant concerns. The positive earnings call offsets some of these issues with growth in key areas. Technical analysis and valuation suggest caution, with the stock appearing overvalued and displaying bearish momentum. Overall, a balanced outlook with room for improvement in financial health is indicated.
Positive Factors
Revenue Growth
The consistent revenue growth indicates strong market demand and successful expansion strategies, particularly in big-box retail, which can drive long-term business sustainability.
Improved Margins
Improved margins reflect enhanced operational efficiency and cost management, contributing to better profitability and competitive positioning in the market.
Market Share Gains
Gaining market share in key categories strengthens the company's competitive edge and brand presence, supporting long-term growth and resilience against competitors.
Negative Factors
Profitability Challenges
Ongoing profitability challenges, indicated by negative net income, highlight financial vulnerabilities that could hinder reinvestment and growth prospects.
High Leverage
High leverage limits financial flexibility and increases risk, potentially impacting the company's ability to navigate economic downturns or invest in growth opportunities.
Increased Expenses
Rising expenses can pressure margins and profitability, necessitating efficiency improvements to maintain financial health and competitive advantage.
Andrew Peller A NV (ADW.A) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$240.22M
Dividend Yield4.71%
Average Volume (3M)22.39K
Price to Earnings (P/E)10.8
Beta (1Y)0.41
Revenue Growth-2.11%
EPS GrowthN/A
CountryCA
Employees1,367
SectorConsumer Defensive
Sector Strength42
IndustryBeverages - Wineries & Distilleries
Share Statistics
EPS (TTM)0.21
Shares Outstanding35,628,380
10 Day Avg. Volume22,711
30 Day Avg. Volume22,394
Financial Highlights & Ratios
PEG Ratio2.16
Price to Book (P/B)0.68
Price to Sales (P/S)0.43
P/FCF Ratio7.39
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Andrew Peller A NV Business Overview & Revenue Model
Company DescriptionAndrew Peller Limited engages in the production, bottling, and marketing of wines and craft beverage alcohol products in Canada. The company offers products under Peller Estates, Trius, Thirty Bench, Wayne Gretzky, Sandhill, Red Rooster, Black Hills Estate Winery, Tinhorn Creek Vineyards, Gray Monk Estate Winery, Raven Conspiracy, and Conviction brands; Peller Family Vineyards, Copper Moon, Black Cellar, and XOXO brands; and Hochtaler, Domaine D'Or, Schloss Laderheim, Royal, and Sommet brands. It also produces craft beverage alcohol products, including No Boats on Sunday ciders and seltzers, beer, spirits, and cream whisky products under the Wayne Gretzky No. 99 brand. In addition, the company produces and markets personal winemaking products under Winexpert, Vine Co., Apres, LE, Passport Series, On the House, Wild Grapes, DIY My Wine Co., Island Mist, and Niagara Mist brands; and distributes these products through authorized and independent retailers in Canada, as well as through additional distributors in the United States, the United Kingdom, New Zealand, Australia, and China. Further, it owns and operates 101 independent retail locations in Ontario under The Wine Shop, Wine Country Vintners, and Wine Country Merchants store names; and operates Andrew Peller Import Agency, importers, marketing agents, and The Small Winemaker's Collection Inc. to import premium wines from around the world. The company was formerly known as Andrés Wines Ltd. and changed its name to Andrew Peller Limited in 2006. Andrew Peller Limited was founded in 1961 and is headquartered in Grimsby, Canada.
How the Company Makes MoneyAndrew Peller Limited generates revenue primarily through the production and sale of wines. The company sells its products through various channels, including retail stores, restaurants, and direct-to-consumer sales via its own retail outlets and e-commerce platforms. Additionally, the company operates estate wineries that offer hospitality services, such as wine tours and tastings, which contribute to its revenue. Key revenue streams include domestic sales within Canada and export markets, with a focus on expanding its market presence and enhancing brand recognition. Strategic partnerships with retailers and distributors play a crucial role in reaching a wider audience and driving sales growth.
Andrew Peller A NV Earnings Call Summary
Earnings Call Date:Nov 04, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Feb 11, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong financial growth, market share gains, and strategic investments, offset by challenges from past events affecting sales and regional recovery. The overall sentiment is optimistic, with financial and operational improvements driving confidence.Q2-2026 Updates
Positive Updates
Strong Harvest Results
The harvest in Niagara came with strong yields and good quality, and the Okanagan Valley returned to activity after previous challenges. This signals a positive outlook for future production.
Significant Growth in Financial Metrics
EBITDA grew by 18%, and net earnings increased by 96%. This demonstrates strong financial performance and improved profitability.
Market Share Gains
Andrew Peller gained market share in English Canada and performed well across all major markets, attributing success to its strategy and market position.
Improved Margins and Debt Reduction
Gross margin increased to 45.7%, with significant cost savings achieved. Additionally, the company reduced its net debt to $159 million, strengthening the balance sheet.
Appointment of a New Board Member
Susan O'Brien joined the board as an Independent Director, bringing extensive experience in consumer goods and retail sectors, expected to contribute to strategic growth.
Negative Updates
Year-over-Year Sales Decline
Sales decreased due to the impact of last year's LCBO strike; however, excluding this event, sales grew, indicating underlying positive trends.
Challenges in Personal Winemaking Business
There was noted softness in the personal winemaking business, which affects overall sales performance.
Ongoing Recovery in Okanagan Valley
While the Okanagan Valley showed improvement, it is still a few years away from returning to full capacity after previous weather challenges.
Company Guidance
During the Andrew Peller Limited Second Quarter 2026 Financial Results Conference Call, the company provided guidance indicating strong operational and financial performance, with an 18% growth in EBITDA and a notable 96% increase in net earnings. Despite a year-over-year decrease in sales attributed to the prior year's LCBO strike, underlying sales grew, driven by expanded distribution in grocery and big box channels. The company reported improved gross margins at 45.7% of revenue, up from 42.4% the previous year, bolstered by cost-saving measures and a $2.4 million benefit from the Ontario Grape Support program. Interest expenses decreased by 28% due to lower debt levels and interest rates. Additionally, Andrew Peller continues to focus on growth areas such as the sparkling and better-for-you categories, supported by investments in infrastructure and innovation. As of the quarter's end, inventory levels stood at $141 million, with net debt reduced to $159 million, reflecting strategic inventory management and cost efficiencies. Looking ahead, the company anticipates leveraging its strong balance sheet to support future growth and capitalize on evolving market dynamics.Andrew Peller A NV Financial Statement Overview
Summary
Andrew Peller A NV displays stable revenue and strong cash flow management. However, challenges with profitability and high leverage pose significant risks. Improvements in operational efficiency and debt management are necessary to enhance financial stability.Income Statement
The company shows stable revenue over the years with a slight increase in the most recent year. However, profitability is a concern with negative net income in recent years, indicating financial challenges. Gross profit margin is stable but lower EBIT and EBITDA margins reflect decreased operational efficiency.55
Neutral
Balance Sheet
The balance sheet reveals moderate financial health with a debt-to-equity ratio indicating significant leverage, suggesting potential risk. Equity ratio is stable, showing a balanced asset distribution. However, decreasing stockholders' equity over the years is a negative sign.60
Neutral
Cash Flow
Positive growth in free cash flow is a strong indicator of financial resilience. The operating cash flow to net income ratio is favorable, but the cash flow is primarily driven by improved cash management rather than increased profitability. This suggests good cash flow management despite net income challenges.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 385.59M | 385.86M | 389.61M | 382.14M | 373.94M | 393.04M |
| Gross Profit | 158.16M | 140.27M | 155.57M | 132.10M | 129.88M | 146.38M |
| EBITDA | 66.74M | 36.89M | 57.57M | 34.84M | 47.77M | 63.72M |
| Net Income | 20.42M | -2.85M | 11.12M | -3.35M | 12.47M | 27.79M |
Balance Sheet | ||||||
| Total Assets | 530.33M | 553.20M | 543.44M | 566.75M | 558.07M | 542.52M |
| Cash, Cash Equivalents and Short-Term Investments | 2.79M | 0.00 | 0.00 | -14.73M | 1.30M | 2.74M |
| Total Debt | 179.43M | 226.51M | 203.18M | 227.76M | 208.33M | 192.36M |
| Total Liabilities | 276.65M | 311.76M | 299.66M | 313.11M | 292.67M | 276.95M |
| Stockholders Equity | 253.68M | 241.44M | 243.78M | 253.64M | 265.40M | 265.57M |
Cash Flow | ||||||
| Free Cash Flow | 42.15M | 22.34M | 42.56M | -6.58M | -7.31M | 4.58M |
| Operating Cash Flow | 57.31M | 38.12M | 60.18M | 13.75M | 15.59M | 41.12M |
| Investing Cash Flow | -12.28M | -14.84M | -17.59M | -20.33M | -14.11M | -36.54M |
| Financing Cash Flow | -42.24M | -23.28M | -42.59M | 5.28M | -2.92M | -1.84M |
Andrew Peller A NV Technical Analysis
Positive
5.22
Price Trends
5.11
Positive
5.14
Positive
4.92
Positive
Market Momentum
0.02
Negative
56.13
Neutral
80.78
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ADW.A, the sentiment is Positive. The current price of 5.22 is above the 20-day moving average (MA) of 5.15, above the 50-day MA of 5.11, and above the 200-day MA of 4.92, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 56.13 is Neutral, neither overbought nor oversold. The STOCH value of 80.78 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ADW.A.
Andrew Peller A NV Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | C$410.70M | 14.08 | 15.23% | 6.57% | 8.87% | 10.15% | |
73 Outperform | C$410.70M | 14.58 | 15.23% | 6.34% | 8.87% | 10.15% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
60 Neutral | C$240.22M | 10.85 | 8.25% | 4.71% | -2.11% | ― | |
41 Neutral | C$18.94M | -0.56 | -42.75% | ― | 25.86% | -62.85% |
* Consumer Defensive Sector Average
TSE:ADW.A
Andrew Peller A NV
5.22
1.38
35.94%
TSE:BR
Big Rock Brewery
0.78
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-27.78%
TSE:CSW.A
Corby Spirit&Wine A
14.50
2.96
25.65%
TSE:CSW.B
Corby Spirit&Wn B NV
14.00
2.62
23.02%
TSE:DWS
Diamond Estates Wines & Spirits
0.18
-0.04
-18.18%
TSE:RUM
Rocky Mountain Liquor
0.10
0.01
11.11%
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.