The Duckhorn Portfolio, Inc.
The Duckhorn Portfolio, Inc. Fundamental Analysis
The Duckhorn Portfolio, Inc. (NAPA) shows weak financial fundamentals with a PE ratio of 24.44, profit margin of 13.81%, and ROE of 5.06%. The company generates $0.5B in annual revenue with weak year-over-year growth of 0.62%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 43.1/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze NAPA's fundamental strength across five key dimensions:
Efficiency Score
WeakNAPA struggles to generate sufficient returns from assets.
Valuation Score
ExcellentNAPA trades at attractive valuation levels.
Growth Score
WeakNAPA faces weak or negative growth trends.
Financial Health Score
ExcellentNAPA maintains a strong and stable balance sheet.
Profitability Score
WeakNAPA struggles to sustain strong margins.
Key Financial Metrics
Is NAPA Expensive or Cheap?
P/E Ratio
NAPA trades at 24.44 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, NAPA's PEG of -2.35 indicates potential undervaluation.
Price to Book
The market values The Duckhorn Portfolio, Inc. at 1.08 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 9.88 times EBITDA. This is generally considered low.
How Well Does NAPA Make Money?
Net Profit Margin
For every $100 in sales, The Duckhorn Portfolio, Inc. keeps $13.81 as profit after all expenses.
Operating Margin
Core operations generate 23.39 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.06 in profit for every $100 of shareholder equity.
ROA
The Duckhorn Portfolio, Inc. generates $3.08 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
The Duckhorn Portfolio, Inc. generates limited operating cash flow of $4.96M, signaling weaker underlying cash strength.
Free Cash Flow
The Duckhorn Portfolio, Inc. generates weak or negative free cash flow of $-28.39M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.19 in free cash annually.
FCF Yield
NAPA converts -1.46% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
24.44
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.35
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.08
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.03
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.27
vs 25 benchmark
Current Ratio
Current assets to current liabilities
8.05
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.05
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How NAPA Stacks Against Its Sector Peers
| Metric | NAPA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 24.44 | 22.53 | Neutral |
| ROE | 5.06% | 1238.00% | Weak |
| Net Margin | 13.81% | -6235.00% (disorted) | Strong |
| Debt/Equity | 0.27 | 1.25 | Strong (Low Leverage) |
| Current Ratio | 8.05 | 2.41 | Strong Liquidity |
| ROA | 3.08% | -157319.00% (disorted) | Weak |
NAPA outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews The Duckhorn Portfolio, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
56.68%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
136.26%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
-90.87%
Industry Style: Defensive, Dividend, Low Volatility
Declining