Weetabix

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Pet food and potential profitability improvements (from cost-saving initiatives and cost synergies from their pet food acquisition) could support Post Holdings’ (NYSE:POST) financial performance going forward. Valuation appears fair.

Overview

Post Holdings is a

Q1 2024

Q1 2023

Post Consumer Brands

13%

14%

Weetabix

16%

18%

Foodservice

13%

13%

Refrigerated Retail

13%

7%

Debt to equity (MRQ)

Post Holdings

159.9

General Mills

131

Nestle

161

Revenue growth rate %

3.5% annually (based on 8% growth for their pet food division and 2% growth for the rest of their food businesses)

Terminal growth rate %

2%

Net margin %

Gradually improving to 5% (based on productivity improvements, cost synergies from pet food acquisition)

Depreciation %

5.8% of revenues

CAPEX

6% of revenues

Discount rate %

8%

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