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Investor Insights

This summary was created by AI, based on 6 opinions in the last 12 months.

Based on the reviews from different experts, it seems that the company Premium Brands Holdings Corp is focusing on a 5-year plan to increase its sales to $10 billion, with a strong emphasis on organic growth. The company has shown consistent growth over the years and has strong management and capital allocation skills. Despite some concerns about high debt and thin profit margins, the positive momentum and long-term investment potential make it a good buy for the future.

Consensus
Buy
Valuation
Fair Value
Similar
McCain Foods Ltd, MCN-T
BUY
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

EPS of 54c beat estimates of 52c; revenue of $1.46B was marginally better than consensus. EBITDA of $121M was 6% better. Sales forecast was affirmed. EPS did slip from 64c last year. Revenue rose 2.2%, with specialty foods up 4.1%. Speciality foods has recovered nicely from its 4%+ contraction in the prior quarter, and showed 1% organic growth this quarter. The quarter was good and will likely be a relief for investors. 
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food processing
BUY

It is starting another 5 year plan to bring their sales up to $10 billion. This time it wants 80% of growth to be organic which is better since there will be more within its control. For this to happen it will need to increase revenue by 9 1/2%, more than the increase needed before. Although traction has not yet started, it can raise or hold prices since all are branded products. It is a good buy for the long term.

food processing
BUY
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

PBH is up 40% from seven years ago, but up 145% from exactly eight years ago. It is up 9% this year, nine percentage points ahead of the TSX. None of these returns include dividends. It is up 60% since it was added to the 5i Balanced Portfolio. Now, these are not 'stellar' returns, but consensus calls for 20% growth next year, higher than its valuation multiple. EPS has tripled since 2015, and, considering its stable and growing cash flow, we remain comfortable with it. We show IGM with a five-year return of -5.7% and PBH with a five-year return of 26.7%. 
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food processing
PAST TOP PICK
(A Top Pick Nov 24/22, Up 15%)

Still owns shares in company, and has been buying more lately. Last two years has impacted bottom line with inflation. Great management team with excellent capital allocation skills. Very strong long term investment. Good time to buy at current share price. 

food processing
HOLD
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

After its 35% run this year it is perhaps more vulnerable to profit taking if it misses earnings next week. But we do like the company and the positive momentum is encouraging. We would be fine holding it for the long term, but would keep position size in mind after its recent run up. 
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food processing
HOLD
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

Debt is high, with a debt-to-equity ratio of 1.5 and a net debt/EBITDA of 6.1X, and profit margins are thin, but management has successfully used debt to inorganically grow the company, and this is demonstrated through its top-line sales growth. The recent move comes alongside its reiteration of guidance for the year as well as a bit of valuation re-rating - its forward earnings multiple has expanded from 13X in late 2022 to 23X currently.  

It has missed its last few earnings results, although, the price has continued to rise despite this. We feel that if its earnings are OK or better than expected in August, the stock could continue to climb as signs of peak interest rates and earnings growth appear.
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food processing
PAST TOP PICK
(A Top Pick May 16/22, Down 1%)

IT has lagged due to inflationary costs but pricing has caught up. It is noteworthy that 85% of its revenue growth will be organic in its five year growth plan. There are 18 projects planned , 11 of which have been started. It will source more prepaid food options. It is building a 500,000
square foot sandwich making facility in the U.S.

food processing
BUY
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Highly accretive acquisition announced. Strong momentum helped by COVID. Acquisitions accretive. Improved Free Cash Flows.
food processing
TOP PICK
Growing organically and inorganically. Challenges with supply chains and pandemic, but will work through them and end up stronger. Inflation has hurt, but now cost pressures are subsiding. Expects a few quarters of healthy margins, positive for the stock. High quality, record-low valuation. Yield is 3.33%. (Analysts’ price target is $112.11)
food processing
WATCH
Great management team that keeps making good acquisitions and broadening its distribution and product line. Inflation causes headwinds with increasing input costs.
food processing
PAST TOP PICK
(A Top Pick Nov 15/21, Down 36%) Unable to pass through inflation costs quickly, but they'll get there. High debt hurt by rising rates. In 2015, invested heavily, and stock went up 4x in years after, though inflation will dampen this type of result. With price set on brands, once input costs drop, margins will expand. He's still buying.
food processing
HOLD
Company facing cost increases with inflation, but should be able to pass on to customer. Discretionary purchasers are fickle, will be tough to gauge demand of product. Volatile past few quarters. Waiting to see if shares stabilize. Dividend yield not high enough to justify investment.
food processing
COMMENT
Hesitates on this given risk/reward profile. But it still offers decent value in the medium- and long term.
food processing
BUY
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Highly accretive acquisition announced. Strong momentum helped by COVID. Acquisitions accretive. Improved Free Cash Flow.
food processing
BUY
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Good revenue and dividend growth. Good track record of accretive acquisitions. Expanding its geographic/operating markets. Ability to pass on inflation.
food processing
Showing 1 to 15 of 147 entries

Premium Brands Holdings Corp(PBH-T) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 5

Neutral - Hold Signals / Votes : 2

Bearish - Sell Signals / Votes : 0

Total Signals / Votes : 7

Stockchase rating for Premium Brands Holdings Corp is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Premium Brands Holdings Corp(PBH-T) Frequently Asked Questions

What is Premium Brands Holdings Corp stock symbol?

Premium Brands Holdings Corp is a Canadian stock, trading under the symbol PBH-T on the Toronto Stock Exchange (PBH-CT). It is usually referred to as TSX:PBH or PBH-T

Is Premium Brands Holdings Corp a buy or a sell?

In the last year, 7 stock analysts published opinions about PBH-T. 5 analysts recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Premium Brands Holdings Corp.

Is Premium Brands Holdings Corp a good investment or a top pick?

Premium Brands Holdings Corp was recommended as a Top Pick by on . Read the latest stock experts ratings for Premium Brands Holdings Corp.

Why is Premium Brands Holdings Corp stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Premium Brands Holdings Corp worth watching?

7 stock analysts on Stockchase covered Premium Brands Holdings Corp In the last year. It is a trending stock that is worth watching.

What is Premium Brands Holdings Corp stock price?

On 2024-05-24, Premium Brands Holdings Corp (PBH-T) stock closed at a price of $89.74.