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.
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?
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.
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.
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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.
Top Shareholders
Company Information
Premier Foods plc's employee growth, exchange listings and data sources
All financial data provided by Standard & Poor's Capital IQ.
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
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.