Premier Foods (PFD) AI Stock Analysis

• Market Cap: £1.53B
• Dividend Yield: 0.98%
• Average Volume (3M): 1.31M
• Price to Earnings (P/E): 14.0
• Beta (1Y): 0.74
• Revenue Growth: 5.90%
• EPS Growth: 11.24%
• Country: UK
• Employees: 4,000
• Sector: Consumer Defensive
• Sector Strength: 79
• Industry: Consumer Products - Foods
• EPS (TTM): 0.13
• Shares Outstanding: 868,795,840
• 10 Day Avg. Volume: 1,326,352
• 30 Day Avg. Volume: 1,306,589
• PEG Ratio: 1.24
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.34
• Price to Cash Flow (P/CF): 15.20
• P/FCF Ratio: 20.70
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: 227.50p
• Price Target Upside: 26.67% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

Premier Foods demonstrates strong financial performance with healthy margins and cash flow generation. While the technical analysis indicates bearish momentum, corporate events and valuation metrics suggest a positive outlook. The company's strategic growth initiatives and executive confidence further bolster its investment appeal. Investors should monitor technical indicators for potential entry points.

Positive Factors

Market Share

There have been further market share gains for Premier Foods.

Profitability

There is a 9% growth in profit before tax.

Revenue Growth

Revenue growth has increased by 3.1%, with branded revenues outperforming at a 5% increase.

Negative Factors

Premier Foods Business Overview & Revenue Model

Company Description

Premier Foods PLC is a food manufacturing company. It manufactures, processes, and distributes food products. The company's operating segment include Grocery and Sweet Treats. Grocery segment primarily sells savoury ambient food products. The Sweet Treats segment sells sweet ambient food products. It generates maximum revenue from the Grocery segment. Geographically, it derives a majority of revenue from the United Kingdom and also has a presence in Other Europe and Rest of world. Some of the company brands include Ambrosia, Angel Delight, Atora, Batchelors, Be-Ro, Bird's, Bisto, Cadbury, Coffee Compliment, Homepride, and others.

How the Company Makes Money

Premier Foods generates revenue through the sale of its branded and own-label products to retailers, wholesalers, and foodservice providers. The company's key revenue streams include the manufacturing and distribution of its well-established brands, which have strong consumer recognition and loyalty. Premier Foods also benefits from strategic partnerships and licensing agreements that enhance its product offerings and market reach. Additionally, the company engages in innovation and marketing initiatives to drive sales growth and maintain its competitive edge in the food industry.

Premier Foods Financial Statement Overview

Summary

Premier Foods exhibits strong financial performance with consistent revenue growth, robust margins, and solid cash flow generation. While the balance sheet is stable with manageable leverage, improving return on equity could further strengthen financial health. The overall analysis shows a company with a positive growth trajectory, efficient operations, and sound financial management.

Income Statement

Premier Foods has demonstrated strong revenue growth, with a 13.0% increase from FY2023 to FY2024. Gross profit margin stands at 38.0%, and net profit margin is 9.9%, indicating efficient cost management and profitability. The EBIT margin is 15.9%, and the EBITDA margin is 19.8%, both of which reflect robust operating performance. Overall, the company shows a healthy growth trajectory with improving profitability metrics.

Balance Sheet

The balance sheet reflects a solid equity position with an equity ratio of 56.9%. The debt-to-equity ratio is 0.25, indicating manageable leverage. Return on equity is 8.5%, which is decent but could improve. The overall financial stability is strong, but there is room for enhancement in ROE to leverage equity more effectively.

Cash Flow

Premier Foods has shown a commendable free cash flow growth rate of 32.3% from FY2023 to FY2024, highlighting effective cash generation. The operating cash flow to net income ratio of 1.08 signifies efficient conversion of earnings into cash, while the free cash flow to net income ratio is 0.79, indicating reliable cash flow management. The cash flow statement reflects solid cash generation capabilities supporting operational and financial flexibility.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
1.14B	1.01B	900.50M	947.00M	847.10M
	Gross Profit
432.30M	358.20M	327.10M	335.30M	297.50M
	EBIT
181.10M	132.20M	131.10M	152.60M	95.30M
	EBITDA
225.30M	177.70M	169.70M	208.30M	145.70M
	Net Income Common Stockholders
112.50M	91.60M	77.50M	106.00M	46.50M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
102.30M	64.40M	54.30M	4.20M	177.90M
	Total Assets
2.33B	2.41B	2.53B	2.27B	3.03B
	Total Debt
337.90M	338.70M	339.30M	336.90M	607.50M
	Net Debt
235.60M	274.30M	285.00M	332.70M	429.60M
	Total Liabilities
1.01B	999.90M	1.03B	1.09B	1.35B
	Stockholders Equity
1.33B	1.41B	1.51B	1.18B	1.68B
Cash Flow		Free Cash Flow
88.90M	67.20M	66.90M	62.00M	73.10M
	Operating Cash Flow
121.70M	87.20M	90.10M	85.60M	85.90M
	Investing Cash Flow
-62.10M	-63.80M	-23.20M	13.80M	-18.00M
	Financing Cash Flow
-20.70M	-14.30M	-13.70M	-276.20M	82.20M

Premier Foods Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 179.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:PFD, the sentiment is Negative. The current price of 179.6 is below the 20-day moving average (MA) of 183.62, below the 50-day MA of 183.91, and below the 200-day MA of 179.96, indicating a bearish trend. The MACD of -1.93 indicates Positive momentum. The RSI at 32.20 is Neutral, neither overbought nor oversold. The STOCH value of 45.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:PFD.

Premier Foods Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ABF	81 Outperform	£13.95B	9.96	13.06%	3.26%	1.64%	44.38%
PFD	71 Outperform	£1.53B	13.97	8.03%	0.98%	5.90%	11.24%
SBRY	64 Neutral	£5.96B	43.85	2.25%	5.05%	2.66%	80.49%
Sector *	63 Neutral	$20.77B	13.59	-10.67%	7.41%	1.48%	9.07%
TATE	63 Neutral	£2.29B	12.34	12.23%	3.71%	-11.03%	-2.05%

Premier Foods Corporate Events

Premier Foods Executives Report Share Transactions

Premier Foods plc, a prominent company in the food industry, announced that key executives, including CEO Alex Whitehouse and CMO Yilmaz Erceyes, along with Alison Hunt, a person closely associated, conducted transactions involving the sale and purchase of the company’s ordinary shares. These transactions were carried out on the London Stock Exchange and were reported in compliance with the Market Abuse Regulation. The transactions reflect routine financial activities by the management team and associated personnel, indicative of standard portfolio management rather than any strategic or operational shift within the company.

Premier Foods Executives Exercise Share Options

Premier Foods plc has announced that several of its key executives, including the CEO and CFO, have exercised options to purchase ordinary shares under the Company’s Sharesave Plan. Each executive acquired 4,067 shares at an option price of 83.20p per share, reflecting confidence in the company’s performance and future outlook.

Premier Foods Reports Strong Q3 Growth and Raises Profit Expectations

Premier Foods has reported a strong third quarter, with a 3.1% increase in group sales and branded sales rising by 4.6%. The company has experienced significant growth in its Sweet Treats sector, particularly with Mr Kipling, and has seen a 29% increase in international sales. The acquired brands, The Spice Tailor and FUEL10K, have both delivered double-digit growth. With these achievements, Premier Foods anticipates its trading profit to reach the upper end of FY24/25 expectations, driven by strategic progress in international markets and new product categories.

Premier Foods Launches 2024 Sharesave Plan for Key Managers

Premier Foods plc has announced the granting of options to its key managerial personnel as part of the 2024 Sharesave Plan. This move, which allows participants to purchase company shares at a fixed price upon maturity in 2028, is part of a broader strategy to align employee interests with company performance, potentially impacting stakeholder confidence and market positioning.