NYSE:POST

Stock Analysis Report

Executive Summary

Post Holdings, Inc. operates as a consumer packaged goods holding company in the United States and internationally.


Snowflake Analysis

Slightly overvalued with limited growth.


Similar Companies

Share Price & News

How has Post Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

5.7%

POST

8.5%

US Food

7.2%

US Market


1 Year Return

-25.0%

POST

-4.1%

US Food

-10.4%

US Market

Return vs Industry: POST underperformed the US Food industry which returned -4.1% over the past year.

Return vs Market: POST underperformed the US Market which returned -10.4% over the past year.


Shareholder returns

POSTIndustryMarket
7 Day5.7%8.5%7.2%
30 Day-19.8%-2.6%-12.6%
90 Day-25.6%-14.4%-19.4%
1 Year-25.0%-25.0%-1.5%-4.1%-8.5%-10.4%
3 Year-6.6%-6.6%-12.2%-19.4%15.8%8.3%
5 Year67.6%67.6%22.9%8.3%35.8%21.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Post Holdings undervalued compared to its fair value and its price relative to the market?

44.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: POST ($81.2) is trading below our estimate of fair value ($146.72)

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


Price To Earnings Ratio

PE vs Industry: POST is poor value based on its PE Ratio (59.9x) compared to the Food industry average (19.4x).

PE vs Market: POST is poor value based on its PE Ratio (59.9x) compared to the US market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: POST is poor value based on its PEG Ratio (3.6x)


Price to Book Ratio

PB vs Industry: POST is overvalued based on its PB Ratio (1.7x) compared to the US Food industry average (1.6x).


Next Steps

Future Growth

How is Post Holdings forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

16.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: POST's forecast earnings growth (16.6% per year) is above the savings rate (1.7%).

Earnings vs Market: POST's earnings (16.6% per year) are forecast to grow faster than the US market (12.2% per year).

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

Revenue vs Market: POST's revenue (2.5% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: POST's revenue (2.5% 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 POST's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Post Holdings performed over the past 5 years?

67.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: POST has a large one-off loss of $95.2M impacting its December 31 2019 financial results.

Growing Profit Margin: POST's current net profit margins (1.7%) are lower than last year (4.6%).


Past Earnings Growth Analysis

Earnings Trend: POST has become profitable over the past 5 years, growing earnings by 67% per year.

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

Earnings vs Industry: POST had negative earnings growth (-66.4%) over the past year, making it difficult to compare to the Food industry average (-0.7%).


Return on Equity

High ROE: POST's Return on Equity (3.2%) is considered low.


Next Steps

  • Explore strong past performing companies in the Food, Beverage & Tobacco industry.

Financial Health

How is Post Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: POST's short term assets ($1.9B) exceed its short term liabilities ($883.1M).

Long Term Liabilities: POST's short term assets ($1.9B) do not cover its long term liabilities ($7.7B).


Debt to Equity History and Analysis

Debt Level: POST's debt to equity ratio (207.6%) is considered high.

Reducing Debt: POST's debt to equity ratio has increased from 181.2% to 207.6% over the past 5 years.

Debt Coverage: POST's debt is not well covered by operating cash flow (8.1%).

Interest Coverage: POST's interest payments on its debt are not well covered by EBIT (1.3x coverage).


Balance Sheet

Inventory Level: POST has a high level of physical assets or inventory.

Debt Coverage by Assets: POST's debt is not covered by short term assets (assets are 0.3x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate POST'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 POST's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

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


Next Steps

Management

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

2.2yrs

Average management tenure


CEO

Rob Vitale (53yo)

5.25s

Tenure

US$11,305,816

Compensation

Mr. Robert V. Vitale, also known as Rob, has been the Chief Executive Officer and President of Post Holdings, Inc. since November 1, 2014. Mr. Vitale has been Executive Chairman at BellRing Brands, Inc. si ...


CEO Compensation Analysis

Compensation vs Market: Rob's total compensation ($USD11.31M) is above average for companies of similar size in the US market ($USD7.28M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Robert Vitale
President5.25yrsUS$11.31m0.19% $10.7m
Jeff Zadoks
Executive VP & CFO5.25yrsUS$3.41m0.023% $1.3m
Diedre Gray
Executive VP5.25yrsUS$2.95m0.022% $1.3m
Mark Westphal
President of Foodservice2.17yrsUS$2.86m0.081% $4.6m
Howard Friedman
President & CEO of Post Consumer Brands1.67yrsUS$2.94m0.0029% $162.3k
Bradly Harper
Senior VP & Chief Accounting Officer1.25yrsno data0.0013% $71.5k
Jennifer Meyer
Head of Investor Relationsno datano datano data
Helen Wilson
General Counsel1.83yrsno datano data
Christopher Neugent
Executive Vice President of Strategy1.67yrsUS$2.99mno data
Steve Schonhoff
Senior Vice President of Integrated Supply Chain for Bob Evans Foods & Michael Foods2.17yrsno datano data

2.2yrs

Average Tenure

53yo

Average Age

Experienced Management: POST's management team is considered experienced (2.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Vitale
President5.25yrsUS$11.31m0.19% $10.7m
Jay Brown
Lead Independent Directorno dataUS$420.24kno data
William Stiritz
Non-Executive Chairman8yrsUS$481.64k6.65% $377.5m
David Kemper
Independent Director4.42yrsUS$319.75k0.012% $673.8k
David Skarie
Independent Director8yrsUS$390.51k0.040% $2.2m
Gregory Curl
Independent Director8yrsUS$234.96k0.0083% $471.1k
Edwin Callison
Independent Director8yrsUS$403.51k0.012% $656.2k
Robert Grote
Independent Director8yrsUS$380.66k0.0099% $564.2k
Ellen Harshman
Independent Director2.42yrsUS$270.46k0.0023% $130.0k

8.0yrs

Average Tenure

73yo

Average Age

Experienced Board: POST's board of directors are considered experienced (8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: POST insiders have only sold shares 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 7.5%.


Top Shareholders

Company Information

Post Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Post Holdings, Inc.
  • Ticker: POST
  • Exchange: NYSE
  • Founded: 1895
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: US$5.676b
  • Shares outstanding: 69.91m
  • Website: https://www.postholdings.com

Number of Employees


Location

  • Post Holdings, Inc.
  • 2503 South Hanley Road
  • St. Louis
  • Missouri
  • 63144
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
POSTNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 2012
2PODB (Deutsche Boerse AG)YesCommon StockDEEURJan 2012
0KJZLSE (London Stock Exchange)YesCommon StockGBUSDJan 2012

Biography

Post Holdings, Inc. operates as a consumer packaged goods holding company in the United States and internationally. It operates through Post Consumer Brands, Weetabix, Foodservice, Refrigerated Retail, and BellRing Brands segments. The Post Consumer Brands segment manufactures, markets, and sells branded and private label ready-to-eat (RTE) cereal and hot cereal products. The Weetabix segment primarily markets and distributes branded and private label RTE cereal products. The Foodservice segment produces and distributes egg and potato products in the foodservice and food ingredient channels. The Refrigerated Retail segment produce and distributes side dishes, eggs and egg products, cheese, sausages, and other refrigerated products to retail customers. The BellRing Brands segment provides ready-to-drink (RTD) protein shakes, other RTD beverages, powders, nutrition bars, and supplements. Post Holdings, Inc. sells its products to grocery stores, mass merchandise customers, supercenters, club stores, natural/specialty stores, and drug store customers; military, e-commerce, and foodservice channels; discounters, wholesalers, and convenience stores; restaurant chains, and food manufacturers and processors; online and specialty retailers, supplement stores, and distributors; and food ingredient customers. The company was founded in 1895 and is headquartered in St. Louis, Missouri. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 02:42
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
Annual Earnings2019/09/30


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.