Naked Wines: Taking An Asset-Based Approach To Valuation

Nov. 18, 2022 2:30 AM ETNaked Wines plc (NWINF)5 Comments
Karreta Advisors profile picture
Karreta Advisors
1.26K Followers

Summary

  • Naked Wines was caught out in the current economic slowdown, but management has reacted and downside risk now appears limited.
  • Customers (called Angels) tend to be affluent and sticky, pointing to a gradual recovery into FY3/2024.
  • Our asset-based valuation analysis combines estimated net cash and inventory in FY3/2024, and we rate the shares a buy.

Portrait of a mature man oneologist tasting wine bottle in wine cellar with wooden barrel

Jean-philippe WALLET/iStock via Getty Images

Investment thesis

Naked Wines (OTCQX:NWINF) has been focused on investing in growth but is currently experiencing a business slowdown, compounded by inventory build-up. Management has reacted, focusing on cutting costs to improve profitability and destocking, and has access

Key financials with consensus forecasts

Key financials with consensus forecasts (Company, Refinitiv)

This article was written by

Karreta Advisors profile picture
1.26K Followers
We are an independent research house. We look at global stocks, favoring those with sustainable growth and recognized or emerging as a high quality franchise at suitable valuations. We primarily serve institutional investors.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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