Is Treasury Wine Estates (ASX: TWE) an Undervalued Opportunity Hiding in the ASX 200?
Investors often associate value with overlooked assets. But sometimes, a well-known name quietly slips below the radar and starts sending clear signals that it is trading below what it is worth.
That is exactly what Treasury Wine Estates is doing right now.
As one of the world’s largest premium wine companies, Treasury is not a new name. But it may be acting like a new opportunity. The company has announced an on-market share buyback of up to 5 percent of its issued capital. In its words, this reflects confidence in its financial position and growth profile and a belief that the share price does not reflect the business’s underlying value.
For FY25, Treasury expects EBITS of approximately $770 million, representing a 17 percent increase on the previous year. Penfolds delivered $222.4 million in EBITS in 1H25, a 33.9 percent increase, with a margin of 44.9 percent.
- Free cash flow conversion of 90.4 percent
- Interim dividend of 20.0 cents per share, up 17.6 percent
- Net debt to EBITDAS of 2.0 times
Penfolds has already returned to more than 10,000 outlets in China, with the company reporting that demand is tracking ahead of expectations. Treasury Americas and Treasury Premium Brands contributed $106.8 million and $61.7 million in EBITS respectively.
With strong brand positioning, consistent profitability and a clearly signalled capital return strategy, Treasury Wine Estates might not be just another consumer stock.
It could be one of the most undervalued stories on the ASX right now.
Accent Group (ASX: AX1): Is This Undervalued Retailer the ASX Dark Horse?
In a market that rewards visibility, some companies deliver quietly and consistently without drawing too much attention. Accent Group may be one of those undervalued players hiding in plain sight.
Known for brands like Platypus, Hype DC, Skechers and The Athlete’s Foot, Accent is deeply embedded in Australia and New Zealand’s retail landscape. And the numbers from its recent half-year results are starting to raise eyebrows.
Total sales reached $845 million, up 4.2 percent. Net profit after tax rose 11.7 percent to $47.2 million. The group opened 42 new stores, pushing its total footprint to 903 locations.
- Owned sales of $767 million, up 4.6 percent
- EBIT up 11.5 percent to $80.7 million
- Gross profit of $426.5 million at 55.6 percent margin
- Fully franked interim dividend of 5.5 cents per share
But the most interesting move may have come in April. Accent secured a 25-year strategic partnership with Frasers Group to bring Sports Direct to Australia and New Zealand. Frasers took a 19.57 percent stake via a $60.4 million placement at $1.718 per share.
Accent will roll out at least 50 Sports Direct stores in six years with a longer-term target of 100. It will also gain access to exclusive global brands like Everlast, Lonsdale and Slazenger.
This is not just another retailer. It is a scaled platform with international backing and fresh momentum.
And that makes it one undervalued ASX name worth a closer look.
(Source: Company Announcements)
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