TSX:PBH

Stock Analysis Report

Executive Summary

Premium Brands Holdings Corporation, through its subsidiaries, manufactures and distributes food products primarily in Canada and the United States.

Snowflake

Fundamentals

Average dividend payer and slightly overvalued.

Share Price & News

How has Premium Brands Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.2%

PBH

0.1%

CA Food

0.1%

CA Market


1 Year Return

0.01%

PBH

-5.9%

CA Food

1.6%

CA Market

Return vs Industry: PBH exceeded the Canadian Food industry which returned -5.9% over the past year.

Return vs Market: PBH underperformed the Canadian Market which returned 1.6% over the past year.


Shareholder returns

PBHIndustryMarket
7 Day-0.2%0.1%0.1%
30 Day-2.2%-5.2%-2.9%
90 Day-3.0%-4.0%-1.4%
1 Year2.6%0.01%-4.2%-5.9%5.2%1.6%
3 Year52.1%43.0%-9.8%-14.4%13.8%3.7%
5 Year356.4%297.7%36.2%25.5%25.3%7.2%

Price Volatility Vs. Market

How volatile is Premium Brands Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Premium Brands Holdings undervalued compared to its fair value and its price relative to the market?

47.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: PBH (CA$92.71) is trading below our estimate of fair value (CA$176.08)

Significantly Undervalued: PBH is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PBH is poor value based on its PE Ratio (33x) compared to the Food industry average (20x).

PE vs Market: PBH is poor value based on its PE Ratio (33x) compared to the Canadian market (13.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate PBH's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: PBH is overvalued based on its PB Ratio (3.3x) compared to the CA Food industry average (1.7x).


Next Steps

Future Growth

How is Premium Brands Holdings forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

0.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PBH's forecast earnings growth (0.2% per year) is below the savings rate (1.9%).

Earnings vs Market: PBH's earnings (0.2% per year) are forecast to grow slower than the Canadian market (13.2% per year).

High Growth Earnings: PBH's earnings are forecast to grow, but not significantly.

Revenue vs Market: PBH's revenue (6.9% per year) is forecast to grow faster than the Canadian market (5.8% per year).

High Growth Revenue: PBH's revenue (6.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if PBH's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Premium Brands Holdings performed over the past 5 years?

40.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: PBH's earnings have grown significantly by 40.2% per year over the past 5 years.

Accelerating Growth: PBH's earnings growth over the past year (16%) is below its 5-year average (40.2% per year).

Earnings vs Industry: PBH earnings growth over the past year (16%) exceeded the Food industry -23.3%.


Return on Equity

High ROE: PBH's Return on Equity (9%) is considered low.


Return on Assets

ROA vs Industry: PBH's Return on Assets is below or equal to the Food industry average last year.


Return on Capital Employed

ROCE Improving: PBH's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Premium Brands Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: PBH's short term assets (CA$755.8M) exceeds its short term liabilities (CA$394.0M)

Long Term Liabilities: PBH's short term assets (755.8M) do not cover its long term liabilities (1.3B)


Debt to Equity History and Analysis

Debt Level: PBH's debt to equity ratio (88.9%) is considered high

Reducing Debt: PBH's debt to equity ratio has reduced from 178.6% to 88.9% over the past 5 years.

Debt Coverage: PBH's debt is not well covered by operating cash flow (14%).

Interest Coverage: PBH's interest payments on its debt are not well covered by EBIT (3x coverage).


Balance Sheet

Inventory Level: PBH has a high level of physical assets or inventory.

Debt Coverage by Assets: PBH's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

What is Premium Brands Holdings's current dividend yield, its reliability and sustainability?

2.26%

Current Dividend Yield


Dividend Yield vs Market

company2.3%marketbottom25%2.0%markettop25%6.0%industryaverage2.0%forecastin3Years2.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: PBH's dividend (2.26%) is higher than the bottom 25% of dividend payers in the Canadian market (2.01%).

High Dividend: PBH's dividend (2.26%) is low compared to the top 25% of dividend payers in the Canadian market (6.01%).

Stable Dividend: PBH's dividends per share have been stable in the past 10 years.

Growing Dividend: PBH's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (71.2%), PBH's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Premium Brands Holdings's salary, the management and board of directors tenure and is there insider trading?

19.8yrs

Average management tenure


CEO

George Paleologou (58yo)

11.4yrs

Tenure

CA$2,648,280

Compensation

Mr. George Paleologou, CA has been Chief Executive Officer of Premium Brands Holdings Corporation (alternate name Premium Brands Inc.) since May 2008. Prior to that he was President of Premium Brands Holdi ...


CEO Compensation Analysis

Compensation vs. Market: George's total compensation ($USD2.65M) is about average for companies of similar size in the Canadian market ($USD2.88M).

Compensation vs Earnings: George's compensation has increased by more than 20% in the past year.


Management Age and Tenure

19.8yrs

Average Tenure

59yo

Average Age

Experienced Management: PBH's management team is seasoned and experienced (19.8 years average tenure).


Board Age and Tenure

12.6yrs

Average Tenure

61yo

Average Age

Experienced Board: PBH's board of directors are seasoned and experienced ( 12.6 years average tenure).


Insider Trading

Insider Buying: PBH insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$13,83416 Aug 19
Douglas Goss
EntityIndividual
Role
Chief Legal Officer
General Counsel & Corporate Secretary
Shares145
Max PriceCA$95.41
BuyCA$47,90223 May 19
Douglas Goss
EntityIndividual
Role
Chief Legal Officer
General Counsel & Corporate Secretary
Shares560
Max PriceCA$85.54
SellCA$351,84620 Nov 18
Stephen Sposari
EntityIndividual
Shares5,000
Max PriceCA$70.59
BuyCA$477,96820 Nov 18
Stephen Sposari
EntityIndividual
Shares6,900
Max PriceCA$69.43
BuyCA$346,99018 Nov 18
George Paleologou
EntityIndividual
Role
Chief Executive Officer
President
Shares5,000
Max PriceCA$69.90
BuyCA$69,23018 Nov 18
Douglas Goss
EntityIndividual
Role
Chief Legal Officer
General Counsel & Corporate Secretary
Shares1,000
Max PriceCA$69.23

Ownership Breakdown


Management Team

  • George Paleologou (58yo)

    President

    • Tenure: 11.4yrs
    • Compensation: CA$2.65m
  • Kenn Propp

    President of PB Premium Processed Meats Group

    • Tenure: 0yrs
    • Compensation: CA$556.40k
  • Ron Kleijn

    President of Premium Brands Bakery Group

    • Tenure: 0yrs
    • Compensation: CA$225.30k
  • Will Kalutycz (54yo)

    Chief Financial Officer

    • Tenure: 19.8yrs
    • Compensation: CA$1.72m
  • Steve Bates (61yo)

    President of Hempler Foods Group

    • Tenure: 0yrs
    • Compensation: CA$373.53k
  • Doug Goss (60yo)

    General Counsel & Corporate Secretary

    • Tenure: 20.8yrs
  • Kevin Kelly

    Chief Operating Officer of Quality Fast Foods

    • Tenure: 0yrs
  • Tom Hernquist

    Chief Executive Officer of Oberto Snacks Inc.

    • Tenure: 0yrs
    • Compensation: CA$592.08k
  • Irv Teper

    Chief Executive Officer of Concord Premium Meats Ltd.

    • Tenure: 0yrs
    • Compensation: CA$772.98k
  • Joe Mannara

    President of Concord Premium Meats Ltd.

    • Tenure: 0yrs
    • Compensation: CA$772.98k

Board Members

  • George Paleologou (58yo)

    President

    • Tenure: 11.4yrs
    • Compensation: CA$2.65m
  • Hugh McKinnon (60yo)

    Independent Director

    • Tenure: 12.8yrs
    • Compensation: CA$135.74k
  • Johnny Ciampi (48yo)

    Independent Director

    • Tenure: 14.3yrs
    • Compensation: CA$119.74k
  • Bruce Hodge (66yo)

    Independent Chairman

    • Tenure: 12.4yrs
    • Compensation: CA$243.74k
  • John Zaplatynsky (72yo)

    Independent Director

    • Tenure: 12.4yrs
    • Compensation: CA$125.74k
  • Richard Hempler

    Chairman of Hempler Foods Group

    • Tenure: 0yrs
  • Kathleen Keller-Hobson (62yo)

    Independent Director

    • Tenure: 4.4yrs
    • Compensation: CA$116.74k

Company Information

Premium Brands Holdings Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Premium Brands Holdings Corporation
  • Ticker: PBH
  • Exchange: TSX
  • Founded: 1917
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: CA$3.469b
  • Shares outstanding: 37.42m
  • Website: https://www.premiumbrandsholdings.com

Number of Employees


Location

  • Premium Brands Holdings Corporation
  • 100 - 10991 Shellbridge Way
  • Richmond
  • British Columbia
  • V6X 3C6
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PBHTSX (The Toronto Stock Exchange)YesNew Common SharesCACADNov 1996
PRBZ.FOTCPK (Pink Sheets LLC)YesNew Common SharesUSUSDNov 1996

Biography

Premium Brands Holdings Corporation, through its subsidiaries, manufactures and distributes food products primarily in Canada and the United States. It operates in two segments, Specialty Foods and Premium ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 00:18
End of Day Share Price2019/10/17 00:00
Earnings2019/06/29
Annual Earnings2018/12/29


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.