Waterloo Brewing Ltd (WBR.CA) Stock Fundamental Analysis
Canada - TSX:WBR - CA94155W1059 - Common Stock
4.01 CAD
+0.02 (+0.5%)
WBR gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 10 industry peers in the Beverages industry. There are concerns on the financial health of WBR while its profitability can be described as average. WBR has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
WBR had positive earnings in the past year.
In the past year WBR had a positive cash flow from operations.
In the past 5 years WBR has always been profitable.
In the past 5 years WBR always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.72%, WBR is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
With an excellent Return On Equity value of 2.77%, WBR belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
WBR has a better Return On Invested Capital (3.31%) than 86.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WBR is in line with the industry average of 8.57%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.72% | ||
| ROE | 2.77% | ||
| ROIC | 3.31% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)7.23%
ROIC(5y)N/A
1.3 Margins
WBR has a Profit Margin of 0.90%. This is in the better half of the industry: WBR outperforms 80.00% of its industry peers.
WBR's Profit Margin has declined in the last couple of years.
The Operating Margin of WBR (4.55%) is better than 80.00% of its industry peers.
In the last couple of years the Operating Margin of WBR has declined.
The Gross Margin of WBR (21.61%) is worse than 60.00% of its industry peers.
WBR's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.55% | ||
| PM (TTM) | 0.9% | ||
| GM | 21.61% |
OM growth 3Y18.47%
OM growth 5Y-7.31%
PM growth 3Y26.32%
PM growth 5Y-10.12%
GM growth 3Y-0.34%
GM growth 5Y-5.9%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WBR is destroying value.
WBR has more shares outstanding than it did 1 year ago.
Compared to 1 year ago, WBR has a worse debt to assets ratio.
2.2 Solvency
WBR has an Altman-Z score of 1.61. This is a bad value and indicates that WBR is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.61, WBR is in line with its industry, outperforming 60.00% of the companies in the same industry.
The Debt to FCF ratio of WBR is 12.88, which is on the high side as it means it would take WBR, 12.88 years of fcf income to pay off all of its debts.
WBR's Debt to FCF ratio of 12.88 is amongst the best of the industry. WBR outperforms 86.67% of its industry peers.
WBR has a Debt/Equity ratio of 1.35. This is a high value indicating a heavy dependency on external financing.
WBR has a worse Debt to Equity ratio (1.35) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | 12.88 | ||
| Altman-Z | 1.61 |
ROIC/WACC0.45
WACC7.37%
2.3 Liquidity
A Current Ratio of 0.82 indicates that WBR may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.82, WBR is in line with its industry, outperforming 46.67% of the companies in the same industry.
WBR has a Quick Ratio of 0.82. This is a bad value and indicates that WBR is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.45, WBR perfoms like the industry average, outperforming 53.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.45 |
3. Growth
3.1 Past
WBR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -72.73%.
The Earnings Per Share has been growing slightly by 7.65% on average over the past years.
Looking at the last year, WBR shows a decrease in Revenue. The Revenue has decreased by -2.70% in the last year.
The Revenue has been growing by 19.86% on average over the past years. This is quite good.
EPS 1Y (TTM)-72.73%
EPS 3Y58.41%
EPS 5Y7.65%
EPS Q2Q%-50%
Revenue 1Y (TTM)-2.7%
Revenue growth 3Y30.68%
Revenue growth 5Y19.86%
Sales Q2Q%-2.69%
3.2 Future
The Earnings Per Share is expected to decrease by -31.52% on average over the next years. This is quite bad
Based on estimates for the next years, WBR will show a small growth in Revenue. The Revenue will grow by 3.06% on average per year.
EPS Next Y-85.57%
EPS Next 2Y-31.52%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-5.21%
Revenue Next 2Y3.06%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 133.67 indicates a quite expensive valuation of WBR.
Based on the Price/Earnings ratio, WBR is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of WBR to the average of the S&P500 Index (26.11), we can say WBR is valued expensively.
WBR is valuated quite expensively with a Price/Forward Earnings ratio of 61.08.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WBR indicates a rather cheap valuation: WBR is cheaper than 86.67% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.55. WBR is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 133.67 | ||
| Fwd PE | 61.08 |
4.2 Price Multiples
73.33% of the companies in the same industry are more expensive than WBR, based on the Enterprise Value to EBITDA ratio.
86.67% of the companies in the same industry are more expensive than WBR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.05 | ||
| EV/EBITDA | 12.07 |
4.3 Compensation for Growth
The decent profitability rating of WBR may justify a higher PE ratio.
WBR's earnings are expected to decrease with -31.52% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)17.48
EPS Next 2Y-31.52%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.07%, WBR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.23, WBR pays a better dividend. On top of this WBR pays more dividend than 86.67% of the companies listed in the same industry.
WBR's Dividend Yield is a higher than the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.07% |
5.2 History
The dividend of WBR is nicely growing with an annual growth rate of 9.11%!
WBR has been paying a dividend for less than 5 years, so it still needs to build a track record.
As WBR did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)9.11%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
WBR pays out 344.52% of its income as dividend. This is not a sustainable payout ratio.
WBR's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP344.52%
EPS Next 2Y-31.52%
EPS Next 3YN/A
TSX:WBR (3/8/2023, 7:00:00 PM)
4.01
+0.02 (+0.5%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners10.07%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap144.01M
Revenue(TTM)105.10M
Net Income(TTM)949.91K
Analysts75
Price Target4.53 (12.97%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.07% |
Yearly Dividend0.11
Dividend Growth(5Y)9.11%
DP344.52%
Div Incr Years7
Div Non Decr Years7
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-54.62%
Min EPS beat(2)-75.25%
Max EPS beat(2)-33.99%
EPS beat(4)1
Avg EPS beat(4)-20.24%
Min EPS beat(4)-75.25%
Max EPS beat(4)48.51%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-11.9%
Min Revenue beat(2)-12.95%
Max Revenue beat(2)-10.86%
Revenue beat(4)0
Avg Revenue beat(4)-8.94%
Min Revenue beat(4)-12.95%
Max Revenue beat(4)-4.21%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-24.47%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-75%
EPS NY rev (3m)-75%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-5.33%
Revenue NY rev (3m)-5.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 133.67 | ||
| Fwd PE | 61.08 | ||
| P/S | 1.37 | ||
| P/FCF | 26.05 | ||
| P/OCF | 19.19 | ||
| P/B | 4.21 | ||
| P/tB | 7.55 | ||
| EV/EBITDA | 12.07 |
EPS(TTM)0.03
EY0.75%
EPS(NY)0.07
Fwd EY1.64%
FCF(TTM)0.15
FCFY3.84%
OCF(TTM)0.21
OCFY5.21%
SpS2.93
BVpS0.95
TBVpS0.53
PEG (NY)N/A
PEG (5Y)17.48
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.72% | ||
| ROE | 2.77% | ||
| ROCE | N/A | ||
| ROIC | 3.31% | ||
| ROICexc | 3.31% | ||
| ROICexgc | 3.88% | ||
| OM | 4.55% | ||
| PM (TTM) | 0.9% | ||
| GM | 21.61% | ||
| FCFM | N/A |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)7.23%
ROIC(5y)N/A
ROICexc(3y)5.83%
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3Y13.32%
ROICexgc growth 5Y-13.65%
ROICexc growth 3Y21.22%
ROICexc growth 5Y-8.05%
OM growth 3Y18.47%
OM growth 5Y-7.31%
PM growth 3Y26.32%
PM growth 5Y-10.12%
GM growth 3Y-0.34%
GM growth 5Y-5.9%
F-Score4
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | 12.88 | ||
| Debt/EBITDA | 4.29 | ||
| Cap/Depr | 16.72% | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 581.85% | ||
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.45 | ||
| Altman-Z | 1.61 |
F-Score4
WACC7.37%
ROIC/WACC0.45
Cap/Depr(3y)167.34%
Cap/Depr(5y)180.33%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-72.73%
EPS 3Y58.41%
EPS 5Y7.65%
EPS Q2Q%-50%
EPS Next Y-85.57%
EPS Next 2Y-31.52%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-2.7%
Revenue growth 3Y30.68%
Revenue growth 5Y19.86%
Sales Q2Q%-2.69%
Revenue Next Year-5.21%
Revenue Next 2Y3.06%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-42.71%
EBIT growth 3Y54.82%
EBIT growth 5Y11.1%
EBIT Next Year56.93%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y206.91%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-36.04%
OCF growth 3Y-16.32%
OCF growth 5Y-14.45%
Waterloo Brewing Ltd / WBR.CA FAQ
What is the ChartMill fundamental rating of Waterloo Brewing Ltd (WBR.CA) stock?
ChartMill assigns a fundamental rating of 2 / 10 to WBR.CA.
Can you provide the valuation status for Waterloo Brewing Ltd?
ChartMill assigns a valuation rating of 1 / 10 to Waterloo Brewing Ltd (WBR.CA). This can be considered as Overvalued.
Can you provide the profitability details for Waterloo Brewing Ltd?
Waterloo Brewing Ltd (WBR.CA) has a profitability rating of 1 / 10.
Can you provide the PE and PB ratios for WBR stock?
The Price/Earnings (PE) ratio for Waterloo Brewing Ltd (WBR.CA) is 133.67 and the Price/Book (PB) ratio is 4.21.
How sustainable is the dividend of Waterloo Brewing Ltd (WBR.CA) stock?
The dividend rating of Waterloo Brewing Ltd (WBR.CA) is 5 / 10 and the dividend payout ratio is 344.52%.