Director Joseph Steinberg purchased 47,418 shares of Crimson Wine Group Ltd. (CWGL, Financial) on March 23, according to an SEC filing. He paid an average of $9.16 per share.
Steinberg now owns 2,467,088 shares of the company following the transaction.
Headquartered in Napa, California, Crimson Wine Group produces and sells premium and luxury wines. It also owns and operates boutique, estate-based wineries in California, Oregon and Washington.
The company's wineries include Pine Ridge Vineyards, Seghesio Family Vineyards, Archery Summit Winery, Chamisal Vineyards and Double Canyon Vineyards.
Founded in 1991, the company has a market cap of $222.46 million, a price-earnings (P/E) ratio of 66.22, an enterprise value of $209.21 million, a price-book (P/B) ratio of 1.08, a current ratio of 7.99 and a quick ratio of 2.76.
According to GuruFocus, Crimson Wine Group has a 7 of 10 financial strength rating. It has a cash-debt ratio of 1.87, an equity-asset ratio of 0.86 and an Altman Z-Score of 4.25, indicating it is financially strong. The Beneish M-Score of -2.80 suggests the company does not manipulate its financial statements. The Piotroski F-Score of 5 indicates Crimson Wine Group’s financial situation is typical for a stable company.
The company has a 7 of 10 profitability and growth rating. It has an operating margin of 9.65%, a net margin of 5.07%, return on assets (ROA) of 1.39% and return on capital (ROC)Â of 3.84%, ranking it lower than 77% of the 200 companies in the Global Beverages- Wineries & Distilleries industry.
The company has reported strong averages in its financial statements. Its revenue has increased by 6.50%, its net income by 290.71%, its earnings per share by 295.01% and its gross margin by 62.78%.
Its P/B ratio is currently 1.05, which is close to its one-year low of 0.97. The price-sales (P/S) ratio of 3.39 is close to its five-year low of 3.06 as well. Having low P/B and P/S ratios is a good sign.
The company has been gaining momentum with an estimated 5.98% increase in sales and an estimated 9% increase in market price over the previous year.
The Peter Lynch chart below shows the stock is trading above its intrinsic value.
Disclosure: Author does not own any shares of this company.
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