Cryptocurrency

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مدة الدورة: 5 ساعة و 26 دقائق

Should you buy Laurent Perrier stock (October 2024)

00:03:51

سعر الفيديو: 5 ریال اسبوعي

Published first at Laurent Perrier stock analysis. Ticker: $LPE.PA Laurent-Perrier makes some of the world’s most exclusive champagne but shares have fallen 17% this year taking the company’s market value to 590 million euros. With 183 million of net debt the enterprise value is 773 million. Revenue over the last 12 months comes to 313 million euros with 64 million of net income and 100 million of ebitda. So Laurent Perrier stock is valued at just 9 times earnings and under 8 times EBITDA. That valuation is lower than the stock received during the 2008 financial crisis. Price to tangible book value (which accounts for Laurent Perrier’s vast Champagne stores) also looks cheap at the bottom of the historical range. Meanwhile, Laurent Perrier has been performing well in a difficult market. Global champagne sales fell 8.2% last year but Laurent Perrier’s profits increased 8% thanks to higher pricing. As a result, Laurent Perrier’s margins have soared to record levels with gross margins hitting 61% and operating margins 30%. So why is the stock so cheap? There are several issues to be aware of. The first is that Laurent Perrier’s record margins are unlikely to be sustainable. Champagne typically takes 4 years to develop, so it’s possible that the company’s margins are yet to incorporate the effects of higher inflation. Reported costs could soon go up which means margins should decline going forward. After all, the champagne industry is centuries old and it seems unlikely that Laurent Perrier has found a clever new way to extract significantly higher profits. #investing #stocks #champagne #stockstowatch

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