General Mills (NYSE:GIS) Has Re-Affirmed Its Dividend Of US$0.51
General Mills, Inc. ( NYSE:GIS ) will pay a dividend of US$0.51 on the 1st of February. This means that the annual...
Has the U.S. Food Industry valuation changed over the past few years?
|Sun, 05 Dec 2021||US$497.1b||US$417.8b||US$27.5b||20.7x|
|Tue, 02 Nov 2021||US$521.6b||US$413.5b||US$26.8b||23x|
|Thu, 30 Sep 2021||US$516.9b||US$402.8b||US$26.2b||22.3x|
|Sat, 28 Aug 2021||US$517.9b||US$404.9b||US$26.0b||17.7x|
|Sun, 04 Jul 2021||US$541.2b||US$395.7b||US$25.3b||20.7x|
|Wed, 07 Apr 2021||US$511.9b||US$378.8b||US$22.7b||22.9x|
|Sat, 09 Jan 2021||US$481.1b||US$368.6b||US$20.8b||21.1x|
|Fri, 02 Oct 2020||US$456.2b||US$360.6b||US$17.6b||19.8x|
|Mon, 06 Jul 2020||US$422.6b||US$355.8b||US$15.3b||20.6x|
|Thu, 09 Apr 2020||US$392.3b||US$359.2b||US$17.8b||17.4x|
|Wed, 01 Jan 2020||US$451.2b||US$354.5b||US$18.0b||18.7x|
|Sat, 05 Oct 2019||US$439.5b||US$354.0b||US$4.1b||22.4x|
|Tue, 09 Jul 2019||US$421.8b||US$352.3b||US$5.7b||21.7x|
|Mon, 01 Apr 2019||US$403.3b||US$352.5b||US$5.5b||21.4x|
|Thu, 03 Jan 2019||US$365.4b||US$352.3b||US$8.6b||15.6x|
Current Industry PE: Investors are relatively neutral on the industry at the moment, considering it's trading close to its 3-year average PE ratio of 20.5x. It appears they believe that earnings will grow in-line with historical growth rates.
Past Earnings Growth: The earnings for companies in the Food industry have grown 47% per year over the last three years, and revenues for these companies have grown 5.8% per year. This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Which industries have driven the changes within the U.S. Food industry?
|Packaged Foods and Meats||-0.83%|
Industry PE: Investors are most optimistic about the Packaged Foods and Meats industry which is trading above its 3-year average PE ratio of 22.2x. However analysts are expecting annual earnings growth of 12%, which is lower than the prior year's growth of 20% per year. So the market might believe that analysts are underestimating future growth. Meanwhile, investors are most pessimistic about the Agricultural Products industry, which is trading close to its 3-year average of 11.5x.
Forecasted Growth: Analysts are most optimistic on the Packaged Foods and Meats industry, expecting annual earnings growth of 12% over the next 5 years. However this is lower than its past earnings growth rate of 20% per year. Meanwhile, the Agricultural Products industry is expected to see its earnings growth to stay flat over the next few years.
Which companies have driven the market over the last 7 days?
Lamb Weston Holdings
Oatly Group's gross margin improvement in 2022 might be more moderate than earlier expected, and slower-than-expected revenue growth in the medium-term could lead to delayed profitability. OTLY's shares are more reasonably valued following the share price correction in recent months, with the stock boasting a consensus forward next twelve months' Enterprise Value-to-Revenue multiple of 5.9 times. I view Oatly Group's shares as a Hold, rather than a Buy or Sell, taking into account its current valuations and future profitability expectations.
Tootsie Roll Industries
Sanderson Farms is being acquired by Cargill and Continental Grain. The terms look straightforward, but it carries certain antitrust risks. The spread between today’s price and the $203 close represents a decent return. If the deal fails, Sanderson Farms should do well as a standalone investment. Investors beware: investing in mergers like this is inherently risky.