TSX:PBH

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Second-rate 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

Stable Share Price: PBH has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.4%

PBH

4.0%

CA Food

2.3%

CA Market


1 Year Return

5.9%

PBH

-12.2%

CA Food

-4.1%

CA Market

Return vs Industry: PBH exceeded the Canadian Food industry which returned -14.6% over the past year.

Return vs Market: PBH exceeded the Canadian Market which returned -4.6% over the past year.


Shareholder returns

PBHIndustryMarket
7 Day4.4%4.0%2.3%
30 Day13.6%8.8%6.9%
90 Day28.3%10.5%11.4%
1 Year8.7%5.9%-10.4%-12.2%-0.7%-4.1%
3 Year17.6%9.9%-11.8%-16.6%12.5%1.7%
5 Year237.1%198.1%30.3%19.5%34.0%13.6%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PBH (CA$98.82) is trading below our estimate of fair value (CA$249.23)

Significantly Below Fair Value: 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 (42x) compared to the CA Food industry average (15x).

PE vs Market: PBH is poor value based on its PE Ratio (42x) compared to the Canadian market (15.2x).


Price to Earnings Growth Ratio

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 (3.4x) compared to the CA Food industry average (1.5x).


Next Steps

Future Growth

How is Premium Brands Holdings forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

6.9%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if PBH's forecast earnings growth is above the savings rate (1.7%).

Earnings vs Market: Insufficient data to determine if PBH's earnings are forecast to grow faster than the Canadian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PBH's revenue (6.9% per year) is forecast to grow faster than the Canadian market (6% 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

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?

26.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PBH has high quality earnings.

Growing Profit Margin: PBH's current net profit margins (2.3%) are lower than last year (2.9%).


Past Earnings Growth Analysis

Earnings Trend: PBH's earnings have grown significantly by 26.6% per year over the past 5 years.

Accelerating Growth: PBH's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: PBH had negative earnings growth (-8.9%) over the past year, making it difficult to compare to the Food industry average (-8.9%).


Return on Equity

High ROE: PBH's Return on Equity (7.9%) is considered low.


Next Steps

Financial Health

How is Premium Brands Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: PBH's short term assets (CA$874.6M) exceed its short term liabilities (CA$452.6M).

Long Term Liabilities: PBH's short term assets (CA$874.6M) do not cover its long term liabilities (CA$1.6B).


Debt to Equity History and Analysis

Debt Level: PBH's debt to equity ratio (105.1%) is considered high.

Reducing Debt: PBH's debt to equity ratio has reduced from 161.7% to 105.1% over the past 5 years.

Debt Coverage: PBH's debt is not well covered by operating cash flow (12.1%).

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


Balance Sheet


Next Steps

Dividend

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

2.34%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PBH's dividend (2.34%) is higher than the bottom 25% of dividend payers in the Canadian market (1.81%).

High Dividend: PBH's dividend (2.34%) is low compared to the top 25% of dividend payers in the Canadian market (5.85%).


Stability and Growth of Payments

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 high payout ratio (91.5%), PBH's dividend payments are not well 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

How experienced are the management team and are they aligned to shareholders interests?

20.6yrs

Average management tenure


CEO

George Paleologou (59 yo)

12.25yrs

Tenure

CA$1,811,627

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 ($USD1.36M) is below average for companies of similar size in the Canadian market ($USD3.17M).

Compensation vs Earnings: George's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
George Paleologou
President12.25yrsCA$1.81m0.92%
CA$ 35.9m
William Kalutycz
Chief Financial Officer20.58yrsCA$1.29m0.41%
CA$ 15.9m
Irving Teper
Chief Executive Officer of Concord Premium Meats Ltd.no dataCA$821.30kno data
Thomas Hernquist
Chief Executive Officer of Oberto Snacks Inc.no dataCA$1.13mno data
Dennis Papakostas
Chief Executive Officer of Expresco Foods Incno dataCA$857.77kno data
Douglas Goss
General Counsel & Corporate Secretary21.58yrsno data0.086%
CA$ 3.4m
Kevin Kelly
Chief Operating Officer of Quality Fast Foodsno datano datano data
Kenneth Propp
President of PB Premium Processed Meats Groupno dataCA$556.40kno data
Ronald Kleijn
President of Premium Brands Bakery Groupno dataCA$225.30kno data
Gordon Sigurdson
Chief Executive Officer of Harlan Fairbanks and President of Harlan Fairbanksno dataCA$389.62kno data
David Carriere
President & COO of PB Food Serviceno dataCA$794.99kno data
Stephen Sposari
President of PB Sandwich Groupno dataCA$1.06m0.20%
CA$ 8.0m

20.6yrs

Average Tenure

59yo

Average Age

Experienced Management: PBH's management team is seasoned and experienced (20.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
George Paleologou
President12.25yrsCA$1.81m0.92%
CA$ 35.9m
Hugh McKinnon
Independent Director13.58yrsCA$137.48k0.19%
CA$ 7.3m
Johnny Ciampi
Independent Director15.08yrsCA$138.98k0.029%
CA$ 1.1m
Bruce Hodge
Independent Chairman13.25yrsCA$307.48k0.029%
CA$ 1.1m
John Zaplatynsky
Independent Director13.25yrsCA$126.23k0.038%
CA$ 1.5m
Richard Hempler
Chairman of Hempler Foods Groupno datano datano data
Kathleen Keller-Hobson
Independent Director5.25yrsCA$123.74k0.035%
CA$ 1.4m
Sean Cheah
Independent Director0.75yrCA$13.31kno data

13.3yrs

Average Tenure

61yo

Average Age

Experienced Board: PBH's board of directors are seasoned and experienced ( 13.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.8%.


Top Shareholders

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$3.914b
  • Shares outstanding: 39.60m
  • 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
PRBZFOTCPK (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 Analysis2020/08/07 00:58
End of Day Share Price2020/08/06 00:00
Earnings2020/06/27
Annual Earnings2019/12/28


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.