Ann: F24 Half-year Investor Presentation, page-13

This is from today's 'lively' blog and is the opinion of two fund managers from Blackwattle and Auscap (if you've not heard of them, join the club).

As always, DYOR remains optimum:

Endeavour Group (ASX: EDV)

James Marlay: The next stock is Endeavour Group, the operator and owner of Dan Murphy's and BWS. It's down 21% over the past 12 months. I've got a few mates doing dry months. Dry July seems to have taken over the whole year. Buy, hold, or sell on Endeavour Group?

Tim Riordan (HOLD): We're a hold. In terms of what the business can become, particularly in hotels - that's probably something I would point to, to say, "Look, there's some optionality here." That is something that hasn't been done particularly well in terms of allocating capital and proving that business. That could take a turn for the better, particularly after the board seems to have sorted out the direction it wants the business to go in recently. So that's probably the key reason for the hold.

James Marlay: Same stock for you. As I mentioned, a lot of people are on a health kick. You mentioned declining per capita consumption of alcohol. Buy, hold, or sell on Endeavour Group?

Will Mumford (BUY): It's actually a buy for us. Over the last six months, there's been a lot of noise and an AGM around potential gaming regulation changes as well as the potential need for reinvestment within the pubs. And at the same time, there are some genuine ESG issues that you've got to get your head around with the company. But for me, the key is Dan Murphy's. So it's got price leadership, it's got more revenue than its next two competitors combined, and it's got double the EBIT margin of its next two competitors. So if you put Dan Murphy's on a premium multiple, then you're not paying much for the balance of the business. And after the AGM, I think I'd argue that management is very aligned and very focused on shareholder interests. There are probably some easy wins now within the pub business, so I think you've got a defensive business on a reasonable multiple with some asymmetric upside.