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

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Andrew Peller A NV

(TSX:ADW.A)

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.

Andrew Peller A NV (ADW.A) vs. iShares MSCI Canada ETF (EWC)

Market Cap

C$237.46M

Dividend Yield4.83%

Average Volume (3M)26.40K

Price to Earnings (P/E)13.4

Beta (1Y)0.49

Revenue Growth1.17%

EPS GrowthN/A

CountryCA

Employees1,367

SectorConsumer Defensive

Sector Strength49

IndustryBeverages - Wineries & Distilleries

Share Statistics

EPS (TTM)0.11

Shares Outstanding35,284,794

10 Day Avg. Volume25,623

30 Day Avg. Volume26,403

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

C$13.00

Price Target Upside155.40% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering1

Andrew Peller A NV Business Overview & Revenue Model

Company DescriptionAndrew Peller Limited (ADW.A) is a leading producer and marketer of quality wines in Canada. The company operates in the beverage industry and has a diverse portfolio of well-known wine brands, including Peller Estates, Trius, Wayne Gretzky, Sandhill, and Thirty Bench. With a commitment to quality and innovation, Andrew Peller Limited focuses on producing wines that cater to a broad range of consumer preferences and price points.

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:Aug 06, 2025

(Q1-2026)

% Change Since: |

Next Earnings Date:Nov 05, 2025

Earnings Call Sentiment Positive

The earnings call reflects a strong financial performance in terms of EBITDA growth, gross margin improvement, and debt reduction. Positive domestic sales and strategic asset management contribute to the optimistic outlook. Despite some challenges in specific business segments, the overall sentiment remains positive due to the company's successful adaptation to market changes and strategic focus.

Q1-2026 Updates

Positive Updates

Strong EBITDA Growth

EBITDA increased by 25.4% to $16.1 million in the quarter from $12.9 million in the prior year, due to margin favorability and the Ontario Grape Support Program.

Improvement in Gross Margin

Gross margin improved to 42.4%, up from 38.4% in the same period last year, driven by a $20 million cost savings program.

Significant Debt Reduction

Net debt position reduced from $182.4 million to $169 million, with cash from operations increasing to $19.2 million from $15.3 million in the prior year.

Positive Domestic Wine Sales

Domestic wine sales were strong, driven by expanded retail distribution in Ontario and positive traffic trends at estate wineries.

Successful Noncore Asset Sale

Completed the sale of a 7-acre land parcel in British Columbia for $1.3 million, as a step towards focusing on high-return areas.

Negative Updates

Decline in Agency Business Sales

Lower sales in the agency business due to U.S. wine being off shelves in most provinces.

Softness in Personal Winemaking and Stand-Alone Retail

Moderate decline in personal winemaking business and expected softness in stand-alone retail locations due to changes in the Ontario market.

Company Guidance

During the Andrew Peller LTD Q1 2026 Financial Results Conference Call, the company provided strong financial guidance, highlighting a 25% year-over-year increase in EBITDA, driven by a $20 million cost savings program and a 4% increase in gross margin to 42.4%. Revenue for the quarter was consistent with the previous year at $99.2 million, while the Ontario Grape Support Program contributed $2.1 million. The company significantly reduced its net debt from $182.4 million to $169 million, reflecting improved cash generation and operational efficiencies. They also completed the sale of a non-core 7-acre parcel in British Columbia for $1.3 million, aligning with their strategy to focus resources on high-return areas. The expansion into new retail channels in Ontario and increased traffic at estate wineries were key revenue drivers, with domestic sales remaining strong despite declines in agency and personal winemaking businesses.

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

Neutral

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.

Balance Sheet

Neutral

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.

Cash Flow

Positive

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	280.09M	389.61M	385.86M	382.14M	373.94M	393.04M
Gross Profit	115.78M	155.57M	140.27M	132.10M	129.88M	146.38M
EBITDA	45.34M	57.57M	36.89M	34.84M	47.77M	63.72M
Net Income	11.48M	11.12M	-2.85M	-3.35M	12.47M	27.79M
Balance Sheet
Total Assets	521.28M	543.44M	553.20M	566.75M	558.07M	542.52M
Cash, Cash Equivalents and Short-Term Investments	0.00	0.00	0.00	-14.73M	1.30M	2.74M
Total Debt	188.51M	203.18M	226.51M	227.76M	208.33M	192.36M
Total Liabilities	274.96M	299.66M	311.76M	313.11M	292.67M	276.95M
Stockholders Equity	246.32M	243.78M	241.44M	253.64M	265.40M	265.57M
Cash Flow
Free Cash Flow	28.43M	42.56M	22.34M	-6.58M	-7.31M	4.58M
Operating Cash Flow	38.64M	60.18M	38.12M	13.75M	15.59M	41.12M
Investing Cash Flow	-8.24M	-17.59M	-14.84M	-20.33M	-14.11M	-36.54M
Financing Cash Flow	-30.40M	-42.59M	-23.28M	5.28M	-2.92M	-1.84M

Andrew Peller A NV Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price5.09

Price Trends

50DMA

5.28

Negative

100DMA

4.89

Positive

200DMA

4.59

Positive

Market Momentum

MACD

-0.03

Positive

RSI

38.26

Neutral

STOCH

14.15

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ADW.A, the sentiment is Neutral. The current price of 5.09 is below the 20-day moving average (MA) of 5.29, below the 50-day MA of 5.28, and above the 200-day MA of 4.59, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 38.26 is Neutral, neither overbought nor oversold. The STOCH value of 14.15 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:ADW.A.

Andrew Peller A NV Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CSW.B	74 Outperform	C$414.99M	14.27	15.03%	6.55%	7.47%	14.65%
CSW.A	71 Outperform	C$414.99M	15.28	15.03%	6.11%	7.47%	14.65%
Sector *	63 Neutral	$20.54B	14.42	-2.84%	3.14%	2.08%	-6.12%
ADW.A	60 Neutral	C$237.46M	13.42	6.61%	4.83%	1.17%	―
DWS	―	C$10.85M	―	-0.37%	―	―	―
HLF	61 Neutral	C$469.20M	7.28	12.01%	4.98%	1.05%	13.40%
HBFGF	―	$112.09M	―	-97.83%	―	―	―

* Consumer Defensive Sector Average

Performance Comparison

TSE:ADW.A

Andrew Peller A NV

5.09

1.52

42.58%

TSE:CSW.A

Corby Spirit&Wine A

14.72

2.16

17.20%

TSE:CSW.B

Corby Spirit&Wn B NV

13.75

2.19

18.94%

TSE:DWS

Diamond Estates Wines & Spirits

0.16

-0.10

-38.46%

TSE:HLF

High Liner Foods

16.16

3.32

25.86%

HBFGF

Happy Belly Food Group

0.83

0.47

130.56%

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.Date of analysis: Apr 30, 2025