Premier Foods (PFD) AI Stock Analysis

• Market Cap: £1.67B
• Dividend Yield: 1.06%
• Average Volume (3M): 1.08M
• Price to Earnings (P/E): 13.5
• Beta (1Y): 0.74
• Revenue Growth: 1.01%
• EPS Growth: 11.12%
• Country: UK
• Employees: 4,000
• Sector: Consumer Defensive
• Sector Strength: 53
• Industry: Packaged Foods
• EPS (TTM): 0.10
• Shares Outstanding: 868,795,840
• 10 Day Avg. Volume: 1,541,290
• 30 Day Avg. Volume: 1,083,052
• PEG Ratio: 0.90
• Price to Book (P/B): 1.20
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.44
• 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: £237.50
• Price Target Upside: 23.31% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 72 Outperform
• Price Target: 214.00p ▲(11.11%Upside)

Premier Foods' strong financial performance and positive corporate events are key strengths, providing robust growth and confidence in future prospects. The reasonable valuation supports potential investment appeal, although technical analysis suggests caution due to short-term market weakness.

Positive Factors

Cash Generation

Premier Foods has rapidly developed into a very strong cash generator, even after dividend payments.

Financial Performance

Trading profit of £188m has come in ahead of expectations, supporting robust growth.

Revenue Growth

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

Negative Factors

Capital Expenditure

Premier Foods has meaningfully stepped-up its capex spending.

Premier Foods Business Overview & Revenue Model

Company Description

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. The company's products portfolio also comprises ambient desserts under the Ambrosia, Bird's, and Angel Delight brands; and ambient cakes under the Mr Kipling, Cadbury, and Lyons brands. It offers its products through supermarkets, discounters, convenience stores, and wholesale and food service facilities, as well as through e-commerce channels. The company was founded in 1975 and is headquartered in Saint Albans, the United Kingdom.

How the Company Makes Money

Premier Foods generates revenue primarily through the manufacturing and sale of branded and own-label food products to retailers, wholesalers, and the food service industry. The company's key revenue streams include sales from its established brands, such as Mr Kipling and Bisto, which hold significant market positions in the UK. Additionally, Premier Foods benefits from strategic licensing agreements, such as its partnership with Cadbury for cake production, which allows it to leverage well-known brand names and expand its market reach. The company also engages in product innovation and marketing initiatives to drive sales and maintain its competitive edge. Fluctuations in commodity prices and consumer preferences, along with relationships with major retailers, also play critical roles in Premier Foods' earnings.

Premier Foods Financial Statement Overview

Summary

Premier Foods shows strong financial health with consistent revenue growth and solid profitability. The balance sheet is stable, although better liability management could enhance stability. Robust cash flow supports reinvestment opportunities and financial flexibility.

Income Statement

Premier Foods has shown consistent revenue growth over the past years, with a notable increase in total revenue from the previous period. Gross profit margin has remained stable, supporting robust profitability. The net profit margin has improved, indicating effective cost management and operational efficiency. EBIT and EBITDA margins are strong, reflecting healthy operational performance.

Balance Sheet

The company's debt-to-equity ratio is moderate, indicating a balanced approach to leveraging. Return on equity is strong, showing effective use of equity in generating profits. The equity ratio suggests a stable financial structure with a good proportion of assets funded by equity, though there is room for improvement in reducing liabilities.

Cash Flow

Premier Foods exhibits solid cash flow management with increasing free cash flow, indicating effective capital expenditure control and operational cash generation. The operating cash flow to net income ratio is favorable, suggesting efficient conversion of net income into cash. The free cash flow to net income ratio further supports a strong cash position, enabling potential reinvestment and debt reduction.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.15B	1.14B	1.01B	900.50M	947.00M
Gross Profit	439.30M	432.30M	358.20M	327.10M	335.30M
EBITDA	232.10M	225.30M	177.70M	169.70M	208.30M
Net Income	124.90M	112.50M	91.60M	77.50M	106.00M
Balance Sheet
Total Assets	2.25B	2.33B	2.41B	2.53B	2.27B
Cash, Cash Equivalents and Short-Term Investments	191.50M	102.30M	64.40M	54.30M	4.20M
Total Debt	335.10M	337.90M	338.70M	339.30M	336.90M
Total Liabilities	809.70M	1.01B	999.90M	1.03B	1.09B
Stockholders Equity	1.44B	1.33B	1.41B	1.51B	1.18B
Cash Flow
Free Cash Flow	116.70M	88.90M	67.20M	66.90M	62.00M
Operating Cash Flow	158.10M	121.70M	87.20M	90.10M	85.60M
Investing Cash Flow	-41.40M	-62.10M	-63.80M	-23.20M	13.80M
Financing Cash Flow	-27.50M	-20.70M	-14.30M	-13.70M	-276.20M

Premier Foods Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 192.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 192.6 is below the 20-day moving average (MA) of 197.37, below the 50-day MA of 200.64, and above the 200-day MA of 188.01, indicating a neutral trend. The MACD of -1.85 indicates Positive momentum. The RSI at 35.18 is Neutral, neither overbought nor oversold. The STOCH value of 11.02 is Positive, 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
GNC	80 Outperform	£1.00B	19.16	12.12%	0.86%	0.49%	14.18%
BAKK	74 Outperform	£1.24B	22.40	9.10%	3.31%	4.03%	3.21%
HFG	72 Outperform	£762.94M	19.40	12.74%	5.91%	-0.03%	7.88%
PFD	72 Outperform	£1.67B	13.49	9.02%	1.06%	1.01%	11.12%
TATE	67 Neutral	£2.28B	37.33	3.39%	5.19%	5.40%	-67.46%
Sector *	65 Neutral	$26.88B	15.20	-4.27%	3.19%	1.02%	1.89%
CWK	61 Neutral	£2.75B	20.59	14.14%	0.97%	4.77%	18.94%

Premier Foods Corporate Events

Premier Foods Aligns Executive Incentives with Shareholder Interests

Premier Foods plc announced the grant of deferred bonus awards and long-term incentive plan awards to its executive directors and leadership team. These awards, structured as nil cost options, are part of the company’s remuneration policy and are designed to align the interests of the executives with those of the shareholders. The deferred bonus awards will vest over a three-year period, while the long-term incentive plan awards are subject to performance conditions related to shareholder returns and earnings per share. This move is likely to enhance executive engagement and potentially improve company performance by aligning management incentives with company goals.

The most recent analyst rating on (GB:PFD) stock is a Hold with a £220.00 price target. To see the full list of analyst forecasts on Premier Foods stock, see the GB:PFD Stock Forecast page.

Premier Foods Releases 2024/25 Annual Report and Schedules AGM

Premier Foods has announced the release of its 2024/25 Annual Report, which will be available to shareholders and the public for viewing and downloading. The company has scheduled its Annual General Meeting for July 17, 2025, at its headquarters, and has submitted the necessary documents to the Financial Conduct Authority’s National Storage Mechanism for inspection. This announcement signifies Premier Foods’ commitment to transparency and regulatory compliance, potentially reinforcing stakeholder confidence and maintaining its market position.

The most recent analyst rating on (GB:PFD) stock is a Hold with a £220.00 price target. To see the full list of analyst forecasts on Premier Foods stock, see the GB:PFD Stock Forecast page.

Premier Foods Executives Adjust Shareholdings in Recent Transactions

Premier Foods plc announced recent transactions involving its senior management and their closely associated persons in the company’s ordinary shares. These transactions, conducted on the London Stock Exchange, involved the sale and purchase of shares by key executives, including the Chief Executive Officer and Chief Financial Officer, reflecting routine adjustments in their shareholdings.

The most recent analyst rating on (GB:PFD) stock is a Hold with a £220.00 price target. To see the full list of analyst forecasts on Premier Foods stock, see the GB:PFD Stock Forecast page.

Premier Foods Announces Share Transactions by General Counsel

Premier Foods plc announced a transaction involving Simon Rose, the General Counsel & Company Secretary, who exercised options over 602,931 ordinary shares under the company’s Long Term Incentive Plan. Following this, he sold 344,107 shares at 210p each, while retaining 258,824 shares. Additionally, his daughters, Sophie and Anna Rose, purchased a total of 44,611 shares. This transaction reflects internal movements within the company’s shareholding structure, potentially impacting the company’s market perception and stakeholder interests.

The most recent analyst rating on (GB:PFD) stock is a Hold with a £220.00 price target. To see the full list of analyst forecasts on Premier Foods stock, see the GB:PFD Stock Forecast page.

Premier Foods Director Acquires Shares, Signaling Confidence

Premier Foods plc announced that Malcolm Waugh, a Non-executive Director, has purchased 9,368 ordinary shares of the company at a price of 212.2895p per share. This transaction, conducted on the London Stock Exchange, reflects a personal investment by a senior figure in the company, potentially signaling confidence in the company’s future performance.

The most recent analyst rating on (GB:PFD) stock is a Buy with a £220.00 price target. To see the full list of analyst forecasts on Premier Foods stock, see the GB:PFD Stock Forecast page.

Premier Foods Announces Change in Major Shareholder Holdings

Premier Foods plc has announced a change in its major holdings, with Van Lanschot Kempen Investment Management NV, based in Amsterdam, Netherlands, adjusting its voting rights in the company. The notification indicates a decrease in voting rights from 7.99% to 6.96%, reflecting a strategic shift in the investment management’s stake in Premier Foods. This change could impact the company’s shareholder dynamics and influence future decision-making processes.

The most recent analyst rating on (GB:PFD) stock is a Buy with a £220.00 price target. To see the full list of analyst forecasts on Premier Foods stock, see the GB:PFD Stock Forecast page.

Premier Foods Reports Strong Financial Growth and Dividend Increase

Premier Foods plc reported strong financial results for the fiscal year ending March 2025, with branded revenue growth of 5.2% and a trading profit increase of 6.0%. The company achieved significant market share gains and reduced net debt by £92 million. Strategic priorities included increased capital investment, expansion into new categories, and international revenue growth. The company also announced a 62% increase in dividends, reflecting its strong cash generation and the suspension of pension deficit contributions. Premier Foods aims to continue its growth through product innovation, capital investment, and potential M&A opportunities.

The most recent analyst rating on (GB:PFD) stock is a Buy with a £2.07 price target. To see the full list of analyst forecasts on Premier Foods stock, see the GB:PFD Stock Forecast page.

Premier Foods Reports Strong Financial Growth and Strategic Progress

Premier Foods has reported robust financial results for the fiscal year ending March 2025, with branded revenue growth of 5.2% and a trading profit increase of 6.0%, surpassing expectations. The company has made significant strides in its strategic priorities, including a 46% rise in new categories revenue and a 23% increase in international revenue. The dividend per share has been raised by 62%, reflecting strong cash generation and the removal of the pension scheme dividend match. Premier Foods plans to continue investing in capital projects to enhance efficiency and growth, while exploring M&A opportunities to further leverage its branded growth model.

The most recent analyst rating on (GB:PFD) stock is a Buy with a £2.20 price target. To see the full list of analyst forecasts on Premier Foods stock, see the GB:PFD Stock Forecast page.