Small Cap Stocks: Angostura Marks Bicentennial Milestone

The TDR Three Key Takeaways regarding Angostura’s Bicentennial Milestone and Small Cap Stocks:

  1. Angostura celebrates two centuries of beverage market success.
  2. Angostura’s financial strength underscores small-cap viability.
  3. ESG principles integral to Angostura’s market strategy.

Angostura Holdings (TTSC: AHL), a small-cap stock, is celebrating its 200th anniversary, demonstrating its longevity in the global beverage industry​​. The company’s iconic Angostura Bitters has been a staple in the industry, and the stock is traded on the Trinidad and Tobago Stock Exchange with a market capitalization of $700 million and a share price of $2.79​​. The company was highlighted in Trade to Black Small Cap Sunday yesterday and can be viewed at the link below.

Angostura is a leading Caribbean manufacturing company known for its exceptional rum brands, including Angostura 1824, 1919, and 1787, as well as its unique flavored rums and bitters. The company also offers innovative beverages like Angostura Chill. As a Royal Warrant holder to Queen Elizabeth II, Angostura aromatic bitters have a global reach in 170 markets. The company’s iconic bitters recipe remains unchanged since 1824. Angostura has delighted generations in Trinidad and Tobago, and its premium rums have earned numerous international accolades, with over 25 prestigious awards received.

Angostura Holdings has a solid financial profile, with annual revenue of $156 million and a consistent growth rate of 6.2% annually over the past five years​​. The company reported a year-over-year revenue growth of 11.8% in the latest fiscal year, surpassing the global industry growth rate of 4%. Their strategic focus on international expansion and diversification into non-alcoholic beverages indicates promising future developments​​.

The company’s dividend yield stands at 1.7%, with a five-year dividend growth rate of 3.1%. With a gross margin of 48.1% and levered free cash flow of $12.39 million, Angostura showcases strong profitability. The tangible book value per share is $1.05, reflecting its net asset value​​.

Angostura’s growth and financial stability make it an attractive option for investors interested in small-cap stocks. The company has embraced sustainability, aligning with ESG principles, which has also contributed to its success. Angostura’s Chairman, Terrence Bharath, emphasized that adhering to ESG principles is vital for global businesses, as the company seeks to meet both customer and regulatory expectations in this area​​. The company is also working on several environmental initiatives, including using biogas for electricity and remodeling its wastewater treatment plant​​.

As I analyzed, I have found that company’s have had stronger growth than the industry, the last five-year trend was six point two percent from the previous annual report to their last one, they had a year or 12-month revenue growth of eleven point eight. This company is outpacing the general growth of the industry.

My approach as both an analyst and entrepreneur provides a unique perspective on Angostura’s performance, particularly focusing on levered free cash flow as an indicator of financial health. When I look at a public company, I naturally take what I’ve also learned as an entrepreneur when looking at these businesses as well. So I have my entrepreneur hat on, and then I also have my analyst hat on as well.

CEO Laurent Schun said, “For any company to reach 200 years is an incredible achievement. We are very proud and excited to celebrate our bicentennial year.” Angostura’s achievements are significant not only for its longevity but also for its contributions to the industry and its commitment to sustainability​​. Want to keep up to date with all of TDR’s research and news, subscribe to our daily Baked In newsletter.

You might also like

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More