Post Holdings manufactures, markets, and sells refrigerated, active nutrition, and private label food products in the United States and Canada. The company operates through five segments: Post Foods, Michael Foods, Active Nutrition, Private Brands, and Attune Foods. The company was founded in 1895 and is based in St. Louis, Missouri.
POST Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Post Holdings Inc. To summarize, we found that Post Holdings Inc ranked in the 60th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 78.33%. In terms of the factors that were most noteworthy in this DCF analysis for POST, they are:
Interest coverage, a measure of earnings relative to interest payments, is 0.49 -- which is good for besting merely 22.34% of its peer stocks (US stocks in the Consumer Defensive sector with positive cash flow).
The company's compound free cash flow growth rate over the past 5.75 years comes in at 0.48%; that's greater than 82.35% of US stocks we're applying DCF forecasting to.
Post Holdings Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than merely 0% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
UN, CCEP, SJM, MO, and HMHC can be thought of as valuation peers to POST, in the sense that they are in the Consumer Defensive sector and have a similar price forecast based on DCF valuation.
The coronavirus pandemic hit hard in the first half of 2020, prompting a series of extraordinary governmental measures to combat the disease: extreme social lockdowns, economic shutdowns, massive fiscal stimulus and support. The combination has created an unusual market circumstance, with economies in freefall, pummeled by the strongest recessionary pressures since the 1930s, while at the same time stock markets have rallied from the initial blow and given investors an 11-week bull run.David Kostin, head of US equity strategy for Goldman Sachs, notes the unusual situation and writes, “Many of our client discussions have centered on the apparent disconnect between financial assets and the economy. Most institutional investors have been stunned by the juxtaposition of the sharpest GDP con...
Goldman Sachs analyst Jason English is looking beyond the boost packaged-food stocks have gotten from the Covid-19 pandemic. Year to date, the shares are up about 2%, better than the 9% drop of other food and beverage stocks in the S&P. The company has gained as the pandemic forces more people to eat at home, supporting Kraft’s cash flow and helping the company maintain its attractive dividend.
In this article we will check out the progression of hedge fund sentiment towards Post Holdings Inc (NYSE:POST) and determine whether it is a good investment right now. We at Insider Monkey like to examine what billionaires and hedge funds think of a company before spending days of research on it. Given their 2 and […]