Retail drinks and hospitality business EDV has performed well through 2022 managing to largely ignore all of the macro factors in play. People are partial to a drink during tough times and the owners of Dan Murphy’s and BWS are clearly well-positioned for this trend. The group enjoy online sales In excess of $1bn with 40% of its sales now digitally influenced – ordering online at Dan Murphy’s and picking up through the drive-through delivers a great customer experience!
The stocks not cheap trading on an Est P/E for 2022 of 27.8x, richer than COLs for a similar amount of revenue growth however margins are better and profitability is growing at a higher clip which could justify the premium multiple, but we’re not entirely sure – our main concern being whether the stocks close to being fully priced.
MM is mildly bullish EDV initially targeting $8
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