| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 25.41 | 78 |
| Intrinsic value (DCF) | 5.84 | -59 |
| Graham-Dodd Method | 21.44 | 50 |
| Graham Formula | 9.56 | -33 |
Schloss Wachenheim AG (SWA.DE) is a leading German producer and distributor of sparkling and semi-sparkling wines, operating since 1888. Headquartered in Trier, Germany, the company offers a diverse portfolio including dealcoholized wines, vermouth, cider, spirits, and children's alcohol-free drinks under well-known brands such as YPSO Hard Seltzer, Imperial Blue, and Schloss Wachenheim. With a strong presence in Germany, France, and East Central Europe, Schloss Wachenheim AG caters to a broad consumer base through its extensive brand portfolio, including Nymphenburg Sekt, Charles Volner, and CIN & CIN. The company operates in the Beverages - Wineries & Distilleries sector, a stable segment within the Consumer Defensive industry, known for resilience during economic downturns. Schloss Wachenheim AG's strategic focus on both traditional and innovative products, such as hard seltzers and alcohol-free alternatives, positions it well in evolving consumer markets.
Schloss Wachenheim AG presents a mixed investment profile. The company's diversified product range and strong brand portfolio in Europe provide stability, supported by a market cap of €115.6M and revenue of €441.5M (FY 2024). However, its low beta (0.092) suggests minimal correlation with broader market movements, which may appeal to risk-averse investors. Key risks include high total debt (€97.9M) relative to cash reserves (€7.7M) and modest net income (€9.5M). The dividend yield (€0.6 per share) offers income potential, but investors should monitor debt levels and competitive pressures in the European wine and spirits market.
Schloss Wachenheim AG competes in the fragmented European wine and sparkling beverages market, leveraging its long-standing brand equity and regional distribution networks. Its competitive advantage lies in a broad portfolio spanning traditional sparkling wines (e.g., Nymphenburg Sekt) and modern categories like hard seltzers (YPSO), appealing to diverse demographics. The company’s focus on dealcoholized and children’s beverages differentiates it from traditional wineries. However, it faces stiff competition from larger global players with greater scale and marketing resources. Schloss Wachenheim’s regional strength in Germany and Eastern Europe is a double-edged sword—it provides market depth but limits exposure to high-growth markets like North America and Asia. Operational efficiency is critical given its modest operating cash flow (€20.1M) and high capital expenditures (€-20.7M). The company’s ability to innovate in low-alcohol and alcohol-free segments could be a key growth driver amid shifting consumer preferences.