NZSE:TGGFood
T&G Global (NZSE:TGG) Stock Faces Valuation Strain Despite Profit Improvement
T&G Global came into this result with a stock that had drifted over the past quarter and a P/E of 21.1x that already asked investors to pay up for every dollar of earnings. The headline today is not the share price reaction. It is the thin 0.8% net margin that still leaves very little room for error in a low margin food business.
Recent earnings growth looks strong on paper, yet it sits against interest costs that are not well covered by profits and a discounted cash flow value of NZ$1.21...