LSE:PFD

Stock Analysis Report

Executive Summary

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.


Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Share Price & News

How has Premier Foods's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PFD's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

PFD

-4.0%

GB Food

-3.3%

GB Market


1 Year Return

-32.4%

PFD

-23.9%

GB Food

-25.0%

GB Market

Return vs Industry: PFD underperformed the UK Food industry which returned -23.9% over the past year.

Return vs Market: PFD underperformed the UK Market which returned -25% over the past year.


Shareholder returns

PFDIndustryMarket
7 Day0%-4.0%-3.3%
30 Day-26.5%-18.9%-19.5%
90 Day-38.1%-28.0%-28.9%
1 Year-32.4%-32.4%-22.1%-23.9%-21.0%-25.0%
3 Year-48.2%-48.2%-20.8%-26.0%-14.7%-25.8%
5 Year-46.2%-46.2%-24.6%-32.3%-1.5%-24.1%

Price Volatility Vs. Market

How volatile is Premier Foods's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Premier Foods 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: PFD (£0.24) is trading below our estimate of fair value (£0.6)

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


Price To Earnings Ratio

PE vs Industry: PFD is unprofitable, so we can't compare its PE Ratio to the Food industry average.

PE vs Market: PFD is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: PFD is good value based on its PB Ratio (0.2x) compared to the GB Food industry average (1x).


Next Steps

Future Growth

How is Premier Foods forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

54.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PFD is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.5%).

Earnings vs Market: PFD is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: PFD's is expected to become profitable in the next 3 years.

Revenue vs Market: PFD's revenue (2.1% per year) is forecast to grow slower than the UK market (2.4% per year).

High Growth Revenue: PFD's revenue (2.1% 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 (7.3%).


Next Steps

Past Performance

How has Premier Foods performed over the past 5 years?

15.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PFD is currently unprofitable.

Growing Profit Margin: PFD is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PFD is unprofitable, but has reduced losses over the past 5 years at a rate of 15.3% per year.

Accelerating Growth: Unable to compare PFD's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: PFD is unprofitable, making it difficult to compare its past year earnings growth to the Food industry (5.8%).


Return on Equity

High ROE: PFD has a negative Return on Equity (-1.81%), as it is currently unprofitable.


Next Steps

Financial Health

How is Premier Foods's financial position?


Financial Position Analysis

Short Term Liabilities: PFD's short term assets (£210.5M) do not cover its short term liabilities (£257.4M).

Long Term Liabilities: PFD's short term assets (£210.5M) do not cover its long term liabilities (£1.1B).


Debt to Equity History and Analysis

Debt Level: PFD's debt to equity ratio (43.5%) is considered high.

Reducing Debt: PFD's debt to equity ratio has reduced from 162.7% to 43.5% over the past 5 years.


Balance Sheet

Inventory Level: PFD has a low level of unsold assets or inventory.

Debt Coverage by Assets: PFD's debt is not covered by short term assets (assets are 0.4x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable PFD has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: PFD is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 7.8% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate PFD's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate PFD's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if PFD's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PFD's dividend payments have been increasing.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PFD's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

0.7yrs

Average management tenure


CEO

Alex Whitehouse

0.67

Tenure

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 ...


Leadership Team

NamePositionTenureCompensationOwnership
Alexander Whitehouse
CEO & Director0.67yrno data0.032% £63.0k
Duncan Leggett
CFO & Director0.33yrno datano data
Paul Thompson
Operations Director1.25yrsno datano data
Richard Godden
Director of Investor Relations & Treasuryno datano datano data
Simon Rose
General Counsel & Company Secretary1.67yrsno datano data
David Wilkinson
Human Resources & Communications Director2.92yrsno data0.026% £51.6k
Yilmaz Erceyes
Chief Marketing Officer0.50yrno datano data
Richard Martin
Chief Customer Officer0.50yrno datano data
Hannah Collyer
Corporate Affairs Directorno datano datano data

0.7yrs

Average Tenure

Experienced Management: PFD's management team is not considered experienced ( 0.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Alexander Whitehouse
CEO & Director0.67yrno data0.032% £63.0k
Duncan Leggett
CFO & Director0.33yrno datano data
Colin Day
Non-Executive Chairman0.67yrno datano data
Simon Bentley
Non-Executive Director1.17yrsUK£4.99kno data
Richard Hodgson
Senior Independent Non-Executive Director0.92yrUK£57.00kno data
Pamela Powell
Non-Executive Director6.92yrsUK£57.00k0.019% £37.8k
Orkun Kilic
Non-Executive Director1.17yrsno datano data
Daniel Wosner
Non-Executive Director1.17yrsno data0.0086% £17.2k
Shinji Honda
Non-Executive Director2.08yrsno datano data

1.2yrs

Average Tenure

64yo

Average Age

Experienced Board: PFD's board of directors are not considered experienced ( 1.2 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: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

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


Top Shareholders

Company Information

Premier Foods plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Premier Foods plc
  • Ticker: PFD
  • Exchange: LSE
  • Founded: 1975
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: UK£199.659m
  • Shares outstanding: 847.81m
  • Website: https://www.premierfoods.co.uk

Number of Employees


Location

  • Premier Foods plc
  • Premier House
  • Centrium Business Park
  • St Albans
  • Hertfordshire
  • AL1 2RE
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PFDLSE (London Stock Exchange)YesOrdinary SharesGBGBPJul 2004
PFOD.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2004
FOJ1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2004
PFDLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJul 2004
FOJ1MUN (Boerse Muenchen)YesOrdinary SharesDEEURJul 2004
PRRF.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDMay 2012

Biography

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. It operates through Grocery and Sweet Treats segments. The company offers a portfolio of product categories, including flavourings 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. Its products portfolio also comprises ambient desserts under the Ambrosia, Bird’s, Angel Delight, Mr Kipling, and Cadbury brands; and ambient cakes under the Mr Kipling, Cadbury, and Lyons brands. The company offers its products through supermarkets, discounters, convenience stores, and wholesale and food service facilities, as well as through online channels. Premier Foods plc was founded in 1975 and is headquartered in St Albans, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 20:31
End of Day Share Price2020/04/01 00:00
Earnings2019/09/28
Annual Earnings2019/03/30


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.