Premier Foods (LSE:PFD) - Share price, News & Analysis

PFD fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	1/6
Past Performance	2/6
Financial Health	4/6
Dividends	0/6

PFD Stock Overview

Premier Foods plc, together with its subsidiaries, manufactures and distributes branded and own label food products in the United Kingdom, other European countries, and internationally.

Rewards

Trading at 61.8% below our estimate of its fair value

Earnings are forecast to grow 6.27% per year

Risk Analysis

Significant insider selling over the past 3 months

Premier Foods Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Premier Foods
Historical stock prices
Current Share Price	UK£1.15
52 Week High	UK£1.28
52 Week Low	UK£0.95
Beta	1.31
1 Month Change	-3.52%
3 Month Change	-1.71%
1 Year Change	8.29%
3 Year Change	240.74%
5 Year Change	183.95%
Change since IPO	-94.75%

Recent News & Updates

May 21

Premier Foods plc Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

It's been a pretty great week for Premier Foods plc ( LON:PFD ) shareholders, with its shares surging 11% to UK£1.19 in...

Shareholder Returns

	PFD	GB Food	GB Market
7D	-2.9%	1.8%	2.3%
1Y	8.3%	-22.7%	-8.6%

Return vs Industry: PFD exceeded the UK Food industry which returned -22.7% over the past year.

Return vs Market: PFD exceeded the UK Market which returned -8.6% over the past year.

Price Volatility

Is PFD's price volatile compared to industry and market?
PFD volatility
PFD Average Weekly Movement	4.7%
Food Industry Average Movement	4.5%
Market Average Movement	5.5%
10% most volatile stocks in GB Market	10.8%
10% least volatile stocks in GB Market	2.8%

Stable Share Price: PFD is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: PFD's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1975	4,000	Alex Whitehouse	https://www.premierfoods.co.uk

Premier Foods plc, together with its subsidiaries, manufactures and distributes branded and own label food products in the United Kingdom, other European countries, and internationally. The company operates through Grocery, Sweet Treats, and International segments. It offers a portfolio of product categories, including flavorings and seasonings under the Bisto, OXO, and Paxo brands; cooking sauces and accompaniments under the Sharwood’s, Loyd Grossman, and Homepride brands; and quick meals, snacks, and soups under the Batchelors and Smash brands.

Premier Foods Fundamentals Summary

How do Premier Foods's earnings and revenue compare to its market cap?
PFD fundamental statistics
Market Cap	UK£989.20m
Earnings (TTM)	UK£77.50m
Revenue (TTM)	UK£900.50m

12.8x

P/E Ratio

1.1x

P/S Ratio

Is PFD overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
PFD income statement (TTM)
Revenue	UK£900.50m
Cost of Revenue	UK£573.40m
Gross Profit	UK£327.10m
Other Expenses	UK£249.60m
Earnings	UK£77.50m

Last Reported Earnings

Apr 02, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.09
Gross Margin	36.32%
Net Profit Margin	8.61%
Debt/Equity Ratio	21.4%

How did PFD perform over the long term?

See historical performance and comparison

Dividends

1.0%

Current Dividend Yield

13%

Payout Ratio

Does PFD pay a reliable dividends?

See PFD dividend history and benchmarks

When do you need to buy PFD by to receive an upcoming dividend?
Premier Foods dividend dates
Ex Dividend Date	Jun 30 2022
Dividend Pay Date	Jul 29 2022
Days until Ex dividend	3 days
Days until Dividend pay date	32 days

Does PFD pay a reliable dividends?

See PFD dividend history and benchmarks

We’ve recently updated our valuation analysis.

Valuation

Is PFD undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for PFD?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for PFD. This is calculated by dividing PFD's market cap by their current preferred multiple.
What is PFD's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	UK£989.20m

PFD key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.4x
Enterprise Value/EBITDA	7.6x
PEG Ratio	2x

Price to Earnings Ratio vs Peers

How does PFD's PE Ratio compare to its peers?

PFD PE Ratio vs Peers

The above table shows the PE ratio for PFD vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	18.1x

Forward PE

Price-To-Earnings vs Peers: PFD is good value based on its Price-To-Earnings Ratio (12.8x) compared to the peer average (18.1x).

Price to Earnings Ratio vs Industry

How does PFD's PE Ratio compare vs other companies in the U.K. Food Industry?

Price-To-Earnings vs Industry: PFD is good value based on its Price-To-Earnings Ratio (12.8x) compared to the UK Food industry average (15.9x)

Price to Earnings Ratio vs Fair Ratio

What is PFD's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

PFD PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	12.8x
Fair PE Ratio	14.7x

Price-To-Earnings vs Fair Ratio: PFD is good value based on its Price-To-Earnings Ratio (12.8x) compared to the estimated Fair Price-To-Earnings Ratio (14.7x).

Share Price vs Fair Value

What is the Fair Price of PFD when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: PFD (£1.15) is trading below our estimate of fair value (£3.01)

Significantly Below Fair Value: PFD is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: PFD is poor value based on its PEG Ratio (2x)

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Future Growth

How is Premier Foods forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

6.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: PFD's forecast earnings growth (6.3% per year) is above the savings rate (0.9%).

Earnings vs Market: PFD's earnings (6.3% per year) are forecast to grow slower than the UK market (11% per year).

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

Revenue vs Market: PFD's revenue (2.8% per year) is forecast to grow slower than the UK market (4.1% per year).

High Growth Revenue: PFD's revenue (2.8% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: PFD's Return on Equity is forecast to be low in 3 years time (5.4%).

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Past Performance

How has Premier Foods performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

38.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PFD has high quality earnings.

Growing Profit Margin: PFD's current net profit margins (8.6%) are lower than last year (11.2%).

Past Earnings Growth Analysis

Earnings Trend: PFD's earnings have grown significantly by 38.6% per year over the past 5 years.

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

Earnings vs Industry: PFD had negative earnings growth (-26.8%) over the past year, making it difficult to compare to the Food industry average (34.6%).

Return on Equity

High ROE: PFD's Return on Equity (5.1%) is considered low.

Discover strong past performing companies

Financial Health

How is Premier Foods's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: PFD's short term assets (£231.3M) do not cover its short term liabilities (£258.7M).

Long Term Liabilities: PFD's short term assets (£231.3M) do not cover its long term liabilities (£767.9M).

Debt to Equity History and Analysis

Debt Level: PFD's net debt to equity ratio (17.8%) is considered satisfactory.

Reducing Debt: PFD's debt to equity ratio has reduced from 66.5% to 21.4% over the past 5 years.

Debt Coverage: PFD's debt is well covered by operating cash flow (27.9%).

Interest Coverage: PFD's interest payments on its debt are well covered by EBIT (6.4x coverage).

Balance Sheet

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Dividend

What is Premier Foods's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.04%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: PFD's dividend (1.04%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.88%).

High Dividend: PFD's dividend (1.04%) is low compared to the top 25% of dividend payers in the UK market (5.18%).

Stability and Growth of Payments

Stable Dividend: PFD is not paying a notable dividend for the UK market, therefore no need to check if payments are stable.

Growing Dividend: PFD is not paying a notable dividend for the UK market, therefore no need to check if payments are increasing.

Earnings Payout to Shareholders

Earnings Coverage: PFD is not paying a notable dividend for the UK market.

Cash Payout to Shareholders

Cash Flow Coverage: PFD is not paying a notable dividend for the UK market.

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Management

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

2.8yrs

Average management tenure

CEO

Alex Whitehouse

2.83yrs

Tenure

UK£2,200,000

Compensation

Mr. Alexander Whitehouse, also known as Alex, served as Managing Director of UK at Premier Foods plc since May 24, 2017 until August 30, 2019 and serves as its Chief Executive Officer and Director since Au...

CEO Compensation Analysis

Compensation vs Market: Alex's total compensation ($USD2.70M) is above average for companies of similar size in the UK market ($USD2.07M).

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

Leadership Team

Experienced Management: PFD's management team is considered experienced (2.8 years average tenure).

Board Members

Experienced Board: PFD's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.

Ownership

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

Insider Trading Volume

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

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/26 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/04/02
Annual Earnings	2022/04/02