Scheid Vineyards produces and markets wine. And, their operations cover around 4,200 acreages, with ten vineyards offering 29 grape varieties. For the first 15 years, Scheid was a grape farmer selling its harvest to wineries. The company was established in 1971 when Al Scheid acquired his first property in Monterey County.
52 Week Range= $13.79 - $23.25 ; 52-Week Chg = -25.00%
TB Per Share=29.12; P/TB=.52, EV/Rev=2.58 ; P/S=.25
I believe my numbers are accurate, backing into the market value using the shares outstanding. But multiple financial sites have different MC values.
Google finance Market Cap = 11.03M, Yahoo=32.881M, OTCMarkets = 11.461M,Morningstar = 15.36M, Reuters = 11.03M
I am bullish as it trades below intrinsic value. But, RECOGNIZE that offsetting the asset's fair value is a capital-destroying family-held company. For example, shareholder equity declined -30.33% or -11.206M over the prior 24 prior quarters. EBIT aggregated over the same 24 prior quarters was -10.564M, EBITDA +24.433M.
Scheid Vineyards has much higher ownership of vineyard acreage to enterprise value versus their public peers.
In addition to Vineyards and a state-of-the-art processing plant, there is an additional 123 acres of non-agricultural land now zoned for residential development in Greenfield City Monterey County, California. The market value (my guess) is around 10M to 15M.
Vision Statement: "By 2025, Scheid Family Wines will become one of the most recognized wine producers in quality, innovation, and sustainability in the world."
The assets trade at a fraction of market value. Appreciation from real estate and modern production facilities (new wind turbine power) provides an inflation hedge and cushion to help fund/stabilize as they further develop retail/commercial operations.
Strategic shift to a branded business, emphasizes finished goods over selling inputs. I wrote my thoughts above before Friday's 04/02/21 announcement. "Scheid Family Wines Announces Sale of Three Vineyard Properties." "announced today that it sold three of its vineyard parcels for $33,000,000 in consideration, which includes the buyer assuming $20,000,000 of the Company's debt that was secured by the properties. "
A positive valuation discount compared to its closest public peers; CWGL, WVVI, New IPO NAPA, and Treasury Wine Estates ASX:TWE. Further, SVIN multiples are near historical lows for P/B, P/S and have a higher land and building ownership to its enterprise value.
Management makes financial statements and operational transparency more accessible to the public. The market will slowly recognize its value.