I came across this stock via a low PE screener and realized that I am already familiar with many of their products. They're in the alcoholic beverages industry, own vineyards, and produce a wide portfolio of wine brands sold in 50 countries. I'm a big fan of Decoy for producing cheaply priced but great tasting reds.
They had their IPO last month and their price seems to be stabilizing after yoyoing between $16-20. Facts:
- Market Cap: $2.1b
- Shares: $18.58
- PEG: 0.01
- PE: 0.04
This seems like an absolute steal. Competitors in the beverages industry have an average PE of 32.5 and PEG of 0.05 (per TD Ameritrade analytics, anyway). Its a profitable company that has great margins.
The primary downside is their tiny market share in a competitive industry. In 2020, their total revenue was $270mil, versus the industry total of $326bil (0.08%).
What else am I missing? Why is $NAPA valued at such a discount?
Submitted April 30, 2021 at 09:27AM by toconsider https://ift.tt/3nCqZ4Y
