Andrew Peller A NV (ADW.A) AI Stock Analysis

• Market Cap: C$244.43M
• Dividend Yield: 4.71%
• Average Volume (3M): 22.39K
• Price to Earnings (P/E): 7.4
• Beta (1Y): 0.34
• Revenue Growth: -2.11%
• EPS Growth: N/A
• Country: CA
• Employees: 1,367
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Beverages - Wineries & Distilleries
• EPS (TTM): 0.18
• Shares Outstanding: 35,874,370
• 10 Day Avg. Volume: 22,711
• 30 Day Avg. Volume: 22,394
• PEG Ratio: 2.16
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 0.43
• P/FCF Ratio: 7.39
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.49
• Revenue Forecast (FY): C$389.35M

• Rating: 67 Neutral
• Price Target: C$5.50 ▲(3.19% Upside)
• Action: Downgraded Date: 02/18/26
• Date: Action: Downgraded 02/18/26

The score is driven primarily by improving financial performance (better profitability and leverage) and supportive valuation (low P/E and strong dividend yield). The earnings call adds confidence via positive guidance and operational progress, while neutral technical indicators and weaker recent free-cash-flow momentum keep the score from being higher.

Positive Factors

Margin and EBITDA expansion

Sustained improvement in gross margins and mid-teens YTD EBITDA growth indicate the company is extracting more value from sales and lowering unit costs. That strengthens durable operating profitability, enhances cash generation potential, and supports reinvestment or dividend capacity over coming quarters.

Improving leverage and interest burden

Declining net debt and materially lower interest expense improve financial flexibility and reduce refinancing risk. A ~2.3x debt/EBITDA profile gives room to absorb vintages or seasonal swings, enabling stable capital allocation and lower long-term financing cost exposure.

Product innovation and DTC strength

Rapid Better‑for‑You growth and national innovation launches plus strong wine-club/estate traction show the company is expanding higher-margin channels and refreshing its portfolio. This supports longer-term mix shift toward premium and DTC sales that tend to sustain higher margins and customer loyalty.

Negative Factors

Modest underlying revenue growth

Underlying organic sales growth remains tepid when one-off disruptions are removed, implying limited top-line momentum absent new distribution wins or product success. Slow revenue expansion forces reliance on cost savings and mix improvements to drive lasting profit growth.

Weakened cash conversion and FCF decline

A large FCF drop and sub‑1x cash conversion point to working-capital and capex pressure despite improved earnings. Persistent weaker cash conversion limits ability to self-fund growth, increases sensitivity to seasonal harvest cycles, and constrains capital flexibility over multiple quarters.

Higher operating expenses to support growth

Elevated S&A to drive distribution and innovation compresses near-term operating leverage and requires sustained revenue gains to justify the spend. If top-line acceleration lags, higher ongoing SG&A could temper margin expansion and pressure free cash flow durability.

Andrew Peller A NV Business Overview & Revenue Model

Company Description

Andrew 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 Money

Andrew 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 Financial Statement Overview

Summary

Financials are improving but not yet consistently strong. Income statement trends show better profitability and margins in TTM, and leverage has improved to a more manageable level. Offsetting this, cash-flow momentum is weaker (free cash flow down sharply and cash conversion below net income), and prior-year profitability was uneven.

Income Statement

TTM (Trailing-Twelve-Months) results show clear profitability improvement, with net income of ~$20.7M and healthier operating profitability (about 41% gross margin and ~11% EBIT margin). That said, the recent annual period included weaker profitability (near-breakeven to losses in prior years and lower margins), and revenue growth has been modest in the annual series—suggesting the earnings profile, while improving, has not been consistently stable.

Balance Sheet

Leverage looks manageable but meaningful: TTM (Trailing-Twelve-Months) debt-to-equity is ~0.71 (improved versus ~0.90–0.94 in recent annual periods), supported by a solid equity base (~$260M) and total assets of ~$533M. Returns on equity have recovered to ~8% in TTM (Trailing-Twelve-Months), but the business had negative returns in multiple recent annual periods, which highlights sensitivity in underlying profitability and limits balance-sheet strength despite the better leverage trend.

Cash Flow

Cash generation is positive in TTM (Trailing-Twelve-Months) with operating cash flow of ~$42.0M and free cash flow of ~$25.4M, but free cash flow declined sharply (down ~40%). Cash conversion is also not fully tight: operating cash flow is below net income (about 0.86x), and free cash flow is ~0.74x of net income, pointing to working-capital/capex demands that can pressure cash even as earnings improve.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	389.04M	389.61M	382.14M	373.94M	393.04M	382.31M
Gross Profit	161.18M	155.57M	132.10M	129.88M	146.38M	156.19M
EBITDA	69.47M	57.57M	34.84M	47.77M	63.72M	58.33M
Net Income	20.66M	11.12M	-3.35M	12.47M	27.79M	23.49M
Balance Sheet
Total Assets	532.98M	543.44M	566.75M	558.07M	542.52M	513.92M
Cash, Cash Equivalents and Short-Term Investments	11.42M	0.00	-14.73M	1.30M	2.74M	-17.82M
Total Debt	192.96M	203.18M	227.76M	208.33M	192.36M	183.06M
Total Liabilities	273.23M	299.66M	313.11M	292.67M	276.95M	268.40M
Stockholders Equity	259.75M	243.78M	253.64M	265.40M	265.57M	245.52M
Cash Flow
Free Cash Flow	25.38M	42.56M	-6.58M	-7.31M	4.58M	8.23M
Operating Cash Flow	41.98M	60.18M	13.75M	15.59M	41.12M	31.54M
Investing Cash Flow	-13.70M	-17.59M	-20.33M	-14.11M	-36.54M	-23.31M
Financing Cash Flow	-24.73M	-42.59M	5.28M	-2.92M	-1.84M	-8.23M

Andrew Peller A NV Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.33
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 5.33 is above the 20-day moving average (MA) of 5.20, above the 50-day MA of 5.24, and above the 200-day MA of 5.13, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 54.28 is Neutral, neither overbought nor oversold. The STOCH value of 88.34 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CSW.A	74 Outperform	C$405.02M	11.92	15.74%	6.34%	8.87%	10.15%
CSW.B	72 Outperform	C$405.02M	11.45	15.23%	6.57%	8.87%	10.15%
ADW.A	67 Neutral	C$244.43M	7.36	8.23%	4.71%	-2.11%	―
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
BR	41 Neutral	C$20.21M	-61.73	-44.11%	―	25.86%	-62.85%