| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 21.00 | 107 |
| Intrinsic value (DCF) | 2.45 | -76 |
| Graham-Dodd Method | 0.90 | -91 |
| Graham Formula | 1.90 | -81 |
Davide Campari-Milano N.V. is a leading global player in the premium spirits and beverage industry, headquartered in Sesto San Giovanni, Italy. Founded in 1860, the company boasts a diverse portfolio of iconic brands, including Aperol, Campari, SKYY Vodka, Wild Turkey, Grand Marnier, and Appleton Estate. Operating across the Americas, Europe, the Middle East, Africa, and Asia-Pacific, Campari specializes in aperitifs, vodka, liqueurs, bitters, whisky, tequila, rum, gin, cognac, and non-alcoholic beverages. The company’s strong brand equity and premium positioning make it a key competitor in the global spirits market. As a subsidiary of Lagfin S.C.A., Campari benefits from strategic investments in marketing and distribution, reinforcing its presence in both mature and emerging markets. With a focus on premiumization and innovation, Campari continues to expand its footprint in high-growth categories, making it a standout in the Consumer Defensive sector.
Davide Campari-Milano N.V. presents an attractive investment opportunity due to its strong brand portfolio, global distribution network, and consistent revenue growth. The company’s focus on premium spirits and strategic acquisitions (such as Wild Turkey and Grand Marnier) enhances its market positioning. However, investors should note its high debt levels (€2.86B) and exposure to fluctuating consumer trends in the alcoholic beverage sector. The stock’s low beta (0.49) suggests relative stability, but reliance on key brands like Aperol and Campari could pose concentration risks. Dividend investors may find the modest yield (~1.5%) appealing, but growth prospects depend on successful expansion in emerging markets and premiumization trends.
Davide Campari-Milano N.V. competes in the global spirits market by leveraging its premium brand portfolio and strong distribution capabilities. Its competitive advantage lies in its niche focus on aperitifs and bitter liqueurs, where it dominates with Aperol and Campari. Unlike mass-market competitors, Campari emphasizes premiumization, allowing for higher margins. However, it faces stiff competition from larger conglomerates like Diageo and Pernod Ricard, which have broader portfolios and greater scale. Campari’s acquisition strategy (e.g., Wild Turkey, Grand Marnier) strengthens its presence in whiskey and cognac, but it lacks the diversified beer and wine segments that some rivals possess. The company’s regional exposure is balanced, with strong growth in the Americas offsetting slower European markets. Its marketing prowess, particularly in experiential and digital campaigns, helps maintain brand loyalty among younger consumers. Nevertheless, pricing pressure in emerging markets and regulatory risks in alcohol advertising remain challenges.