Is it a good company at a reasonable price? Fairfax has offered to buy this stock at around $8.00 a share. A group led by Andrew Peller is rolling its shares into the buyer rather than selling their shares. See an article on Morningstar. If I know a stock I owned is being bought out, I sell. Why hold on for maybe months before you get your money and you can only generally get slightly more money.
I do not own this stock of Andrew Peller Ltd (TSX-ADW.A, OTC-ADWPF). This stock was on Mike Higgs' dividend growth stock list. I owned this stock as Andres Wines Ltd between 1996 and 2000. When I held this stock, it was called Andres Wines Ltd. I sold in 2000 and I only made a total return of 5.41% per year. Wh
en I was updating my spreadsheet, I noticed the stock climbed sharply in June 2026 and that was due to a definitive agreement to be acquired by Fairfax Financial Holdings Limited. After earnings losses in 2023 and 2024, the company had positive earnings in 2025. This year earnings are up 143% and higher than they were in 2021. There may be a Total Return loss over the 5 years to the end 2025, but the stock is up 50% year to date. Note that the financial year ends in 31 March each year, so I am reviewing the March 31, 2026 year end.
If you had invested in this company in December 2015, for $1,004.01 you would have bought 147 shares at $6.83 per share. In December 2025, after 10 years you would have received $320.77 in dividends. The stock would be worth $779.10. Your total return would have been $1,099.87. This would be a total return of 1.05% per year with 2.50% from capital loss and 3.55% from dividends.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $6.83 | $1,004.01 | 147 | 10 | $320.77 | $779.10 | $1,099.87 |
The current dividend yield is moderate with dividend growth low. The current dividend yield is moderate (2% to4% ranges) at 3.08%. The 5 year median dividend yield is good (5% to 6% ranges) at 5.07%. The 10 year and historical median dividend yield is moderate at 2.41% and 3.84%. The dividends grew by a low amount (less than 8% per year) at 2.7% per year over the past 5 years. The main reason is that dividends have been flat for 3 years. The last dividend increase was in 2022 and it was for 9.04%.
The Dividend Payout Ratios (DPR) are currently good. The DPR for 2025 for Earnings per Share (EPS) is good at 40% with 5 year coverage too high at 121%. The DPR for 2025 for Adjusted Earnings per Share (AEPS) is good at 40% with 5 year coverage too high at 137%. The DPR for 2025 for Cash Flow per Share (CFPS) is good at 15% with 5 year coverage at 26%. The DPR for 2025 for Free Cash Flow (FCF) is good at 23% with 5 year coverage high at 50%.
| Item | Cur | 5 Years |
|---|---|---|
| EPS | 40.38% | 120.95% |
| AEPS | 39.55% | 136.72% |
| CFPS | 14.59% | 26.20% |
| FCF | 23.12% | 50.16% |
Debt Ratios are good. The Long Term Debt/Market Cap Ratio for 2025 is high at 0.63 and currently good at 0.39. The Liquidity Ratio for 2025 is good at 3.25 and 3.25 currently. The Debt Ratio for 2025 is good at 2.00 and 2.00 currently. The Leverage and Debt/Equity Ratios for 2025 are good at 2.00 and 1.00 and currently at 0.00 and 0.00. (They no longer have any debt.)
| Type | Year End | Ratio Curr |
|---|---|---|
| Lg Term R | 0.63 | 0.39 |
| Intang/GW | 0.38 | 0.23 |
| Liquidity | 3.25 | 3.25 |
| Liq. + CF | 4.20 | 3.75 |
| Debt Ratio | 2.00 | 2.00 |
| Leverage | 2.00 | 0.00 |
| D/E Ratio | 1.00 | 0.00 |
The Total Return per Year is shown below for years of 5 to 41 to the end of 2025. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2020 | 5 | 2.71% | -9.66% | -12.75% | 3.09% |
| 2015 | 10 | 5.25% | 1.05% | -2.50% | 3.55% |
| 2010 | 15 | 5.51% | 8.68% | 4.02% | 4.66% |
| 2005 | 20 | 6.36% | 6.95% | 2.98% | 3.97% |
| 2000 | 25 | 5.06% | 11.47% | 6.04% | 5.43% |
| 1995 | 30 | 4.46% | 9.72% | 4.93% | 4.78% |
| 1990 | 35 | 3.81% | 11.65% | 4.97% | 6.68% |
| 1985 | 40 | 3.50% | 6.45% | 2.81% | 3.64% |
| 1984 | 41 | 7.61% | 3.51% | 4.10% |
The 5-year low, median, and high median Price/Earnings per Share Ratios are 6.83, 7.80 and 8.76. The corresponding 10 year ratio of 12.87, 17.82 and 20.96. The corresponding historical ratios are 11.39, 13.12 and 14.71. The current ratio is 16.98 based on a stock price of $7.98 and EPS estimate for 2027 of $0.47. This ratio is between the low and median ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I also have Adjusted Earnings per Share data (AEPS). The 5-year low, median, and high median Price/Earnings per Share Ratios are 12.21, 15.40 and 18.59. The corresponding 10 year ratio of 13.24, 17.13 and 21.26. The corresponding historical ratios are 11.68, 14.65 and 16.08. The current ratio is 15.65 based on a stock price of $7.98 and EPS estimate for 2027 of $0.51. This ratio is between the low and median ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I get a Graham Price of $8.31. The 10-year low, median, and high median Price/Graham Price Ratios are 0.97, 1.29 and 1.67. The current ratio is 0.96 based on a stock price of $7.98. The current ratio is below the low ratio of the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.
I get a 10-year median Price/Book Value per Share Ratio of 1.53. The current ratio is 1.33 based on a stock price of $7.98, Book Value of $264.3M and Book Value per Share of $6.02. The current ratio is 13% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I get a 10-year median Price/Cash Flow per Share Ratio of 14.04. The current ratio is 7.98 based on Cash Flow per Share estimate for 2027 of $1.00, Cash Flow of $43.91 and a stock price of $7.98. The current ratio is 43% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.
I get an historical median dividend yield of 3.84%. The current dividend yield is 3.08% based on a stock price of $7.98 and Dividends of $0.25. The current dividend yield is 19.7% below the historical median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.
I get a 10 year median dividend yield of 2.41%. The current dividend yield is 3.08% based on a stock price of $7.98 and Dividends of $0.25. The current dividend yield is 28% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.
The 10-year median Price/Sales (Revenue) Ratio is 1.05. The current P/S 0.89 based on a Revenue estimate for 2027 of $395.6M, Revenue per Share of $9.01 and a stock price of $7.9. The current ratio is 16% below the current P/S Ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.
Results of stock price testing is that the stock price is probably expensive. The dividend yield testing is saying the stock price is relatively expensive, but the P/S Ratio testing is saying that it is relatively reasonable. The rest of the testing ranges from cheap to reasonable but above the median.
When I look at analysts’ recommendations, I find one Hold (1). The consensus is a Hold. The 12 month consensus stock price is $8.00 with a high of $8.00 and a low of $8.00. This is the offer from Fairfax. The 12 month stock price consensus implies a total return of 3.33% with 0.25% from capital gains and 3.08% from dividends based on a current stock price of $7.98.
The one entry on Stock Chase for 2026 say Do Not Buy. Analyst says the company is fairly well run but it is in a tough area with thin margins and lots of taxes. Amy Legate-Wolfe on Motley Fool says to buy companies that can survive when costs rise. Christopher Liew on Motley Fool says that you should buy this company for passive income. The company put out a Press Release about their fourth quarter ending March 31, 2026. The company put out a Press Release about their first quarter of 2027.
The Canadian Press via Yahoo Finance put out a press release about Fairfax Financial Holdings Ltd buying Andrew Peller Ltd. Simply Wall Street via Yahoo Finance reviews this stock think this stock is worth keeping an eye on.
Andrew Peller Ltd is a wine-producing company. The company is engaged in the production, bottling, and marketing of wine, spirits, and craft beverage alcohol products in Canada. Its web site is here Andrew Peller Ltd.
The last stock I wrote about was about was BlackBerry Ltd (TSX-BB, NYSE-BB) ... learn more. The next stock I will write about will be Evertz Technologies Ltd (TSX-ET, OTC-EVTZF) ... learn more on Friday, August 7, 2026 around 5 pm. Tomorrow on my other blog I will write about Something to Buy August 2026 learn more on Thursday, July 2, 2026 around 5 pm.
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