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

-1.9%

TSX:PBH

0.07%

CA Food

1.6%

CA Market


1 Year Return

-5.0%

TSX:PBH

-2.8%

CA Food

-0.3%

CA Market

PBH underperformed the Food industry which returned -2% over the past year.

PBH underperformed the Market in Canada which returned -0.5% over the past year.


Share holder returns

PBHIndustryMarket
7 Day-1.9%0.07%1.6%
30 Day-0.2%-2.9%4.1%
90 Day8.4%0.8%1.1%
1 Year-2.6%-5.0%-1.0%-2.8%3.3%-0.3%
3 Year58.6%49.0%-2.8%-7.8%19.3%8.6%
5 Year353.8%292.5%40.6%29.6%21.6%4.1%

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 based on future cash flows and its price relative to the stock market?

46%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Premium Brands Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).

Premium Brands Holdings's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Premium Brands Holdings is overvalued based on earnings compared to the CA Food industry average.

Premium Brands Holdings is overvalued based on earnings compared to the Canada market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Premium Brands Holdings, we can't assess if its growth is good value.


Price Based on Value of Assets

Premium Brands Holdings is overvalued based on assets compared to the CA Food industry average.


Next Steps

Future Growth

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

0.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Premium Brands Holdings's revenue is expected to grow by 6.9% yearly, however this is not considered high growth (20% yearly).

Premium Brands Holdings's earnings are expected to grow by 0.1% yearly, however this is not considered high growth (20% yearly).

Premium Brands Holdings's revenue growth is expected to exceed the Canada market average.

Premium Brands Holdings's earnings growth is positive but not above the Canada market average.

Premium Brands Holdings's earnings growth is positive but not above the low risk savings rate of 1.9%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Premium Brands Holdings will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


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

Premium Brands Holdings has delivered over 20% year on year earnings growth in the past 5 years.

Premium Brands Holdings's 1-year earnings growth is less than its 5-year average (16% vs 40.2%)

Premium Brands Holdings's earnings growth has exceeded the CA Food industry average in the past year (16% vs -23.3%).


Return on Equity

Premium Brands Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Premium Brands Holdings used its assets less efficiently than the CA Food industry average last year based on Return on Assets.


Return on Capital Employed

Premium Brands Holdings's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Premium Brands Holdings's financial position?


Financial Position Analysis

Premium Brands Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Premium Brands Holdings's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Premium Brands Holdings's level of debt (88.9%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (178.6% vs 88.9% today).

Debt is not well covered by operating cash flow (14%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 3x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

2.32%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Premium Brands Holdings before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Premium Brands Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (1.99%).

Premium Brands Holdings's dividend is below the markets top 25% of dividend payers in Canada (5.8%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.4x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


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?

19.7yrs

Average management tenure


CEO

George Paleologou (58yo)

11.3yrs

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

George's remuneration is about average for companies of similar size in Canada.

George's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.


Management Age and Tenure

19.7yrs

Average Tenure

59yo

Average Age

The average tenure for the Premium Brands Holdings management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

12.5yrs

Average Tenure

61yo

Average Age

The average tenure for the Premium Brands Holdings board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

More shares have been bought than sold by Premium Brands Holdings individual insiders in the past 3 months, but not in substantial volumes.


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
BuyCA$477,96820 Nov 18
Stephen Sposari
EntityIndividual
Shares6,900
Max PriceCA$69.43
SellCA$351,84620 Nov 18
Stephen Sposari
EntityIndividual
Shares5,000
Max PriceCA$70.59
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: 11.3yrs
    • 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: 19.7yrs
    • 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: 20.7yrs
  • 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: 11.3yrs
    • Compensation: CA$2.65m
  • Hugh McKinnon (60yo)

    Independent Director

    • Tenure: 12.7yrs
    • Compensation: CA$135.74k
  • Johnny Ciampi (48yo)

    Independent Director

    • Tenure: 14.2yrs
    • Compensation: CA$119.74k
  • Bruce Hodge (66yo)

    Chairman

    • Tenure: 12.3yrs
    • Compensation: CA$243.74k
  • John Zaplatynsky (72yo)

    Independent Director

    • Tenure: 12.3yrs
    • Compensation: CA$125.74k
  • Richard Hempler

    Chairman of Hempler Foods Group

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

    Independent Director

    • Tenure: 4.3yrs
    • 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$3.562b
  • 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 Analysis2019/09/18 00:40
End of Day Share Price2019/09/17 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.