Grain Mill Products
Post Holdings, Inc. operates as a consumer packaged goods holding company in the United States and internationally. It operates through four segments: Post Consumer Brands, Weetabix, Foodservice, and Refrigerated Retail. The Post Consumer Brands segment manufactures, markets, and sells branded and private label ready-to-eat (RTE) cereal, hot cereal, and peanut and nut butter. It serves grocery stores, mass merchandise customers, supercenters, club stores, natural/specialty stores, and drug store customers, as well as sells its products in the military, ecommerce, and foodservice channels. The Weetabix segment primarily markets and distributes branded and private label RTE cereal, hot cereals and other cereal-based food products, breakfast drinks, and muesli. This segment sells its products to grocery stores, discounters, wholesalers, and convenience stores, as well as through ecommerce. The Foodservice segment produces and distributes egg and potato products in the foodservice and food ingredient channels. It serves foodservice distributors and national restaurant chains. The Refrigerated Retail segment produces and distributes side dishes, eggs and egg products, sausages, cheese, and other dairy and refrigerated products for grocery stores and mass merchandise customers. Post Holdings, Inc. was founded in 1895 and is headquartered in Saint Louis, Missouri.
Discounted Cash Flow Valuation of Post Holdings, Inc.
Growth
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Discount
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Multiple
g\r | +10% | +11% | +12% | +13% | +14% |
---|---|---|---|---|---|
0% | 10 | 9 | 8 | 8 | 7 |
+1% | 11 | 10 | 9 | 8 | 8 |
+2% | 13 | 11 | 10 | 9 | 8 |
+3% | 14 | 13 | 11 | 10 | 9 |
+4% | 17 | 14 | 12 | 11 | 10 |
Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
---|---|---|---|---|---|---|---|---|---|---|---|---|
FCF | $626.4M | $625.3M | $624.3M | $623.2M | $622.2M | $621.1M | $620.1M | $619M | $618M | $616.9M | $615.9M | $6.159B |
DCF | $543.8M | $472M | $409.8M | $355.7M | $308.8M | $268.1M | $232.7M | $202M | $175.4M | $152.2M | $1.522B | |
Value | $4.643B |
In the chart Earnings are multiplied by this value.
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
Years | 09-2015 | 09-2016 | 09-2017 | 09-2018 | 09-2019 | 09-2020 | 09-2021 | 09-2022 | 09-2023 | TTM |
---|---|---|---|---|---|---|---|---|---|---|
Net Margin | -2.8% | -0.56% | 0.67% | 7.3% | 2.1% | 0.014% | 2.7% | 13% | 4.3% | 4.4% |
ROA | 2.3% | 5.8% | 4.4% | 5% | 6.5% | 5.8% | 5.7% | 11% | 5.9% | 6.3% |
ROE | -4.4% | -0.94% | 1.2% | 15% | 4.1% | 0.028% | 6.1% | 23% | 7.8% | 8.5% |
The average Net Margin over the past 5 years is +4.9%.
The trend of Net Margin over the past 5 years is +0.57%.
The average ROA over the past 5 years is +6.62%.
The trend of ROA over the past 5 years is +0.49%.
The average ROE over the past 5 years is +9.36%.
The trend of ROE over the past 5 years is +0.79%.
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
Years | 09-2015 | 09-2016 | 09-2017 | 09-2018 | 09-2019 | 09-2020 | 09-2021 | 09-2022 | 09-2023 | TTM |
---|---|---|---|---|---|---|---|---|---|---|
Debt FCF | 13.17 | 12.11 | 36.85 | 14.80 | 17.22 | 18.20 | 18.13 | 46.32 | 13.53 | 10.28 |
Debt Equity | 1.52 | 1.53 | 2.59 | 2.39 | 2.43 | 2.49 | 2.61 | 1.83 | 1.57 | 1.61 |
MIN | ||||||||||
Graham Stability | - | - | - | - | 79% | 0.39% | 86% | 100% | 98% | 0.39% |
The Debt/FCF trailing twelve month is 10.28.
The trend of Debt/FCF over the past 5 years is 2.31.
Graham’s Stability measure stands at 0.00.
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
Years | 09-2016 | 09-2018 | 09-2020 | 09-2022 | Trend |
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Revenue | 4.8% | 2.2% | 7.1% | 19% | -5.7% |
Net Income | - | -8% | 620% | -60% | 450% |
Stockholders Equity | 3.6% | 4.7% | 10% | 18% | -0.037% |
FCF | 2.3% | -2% | 4.6% | 250% | -16% |
The Revenue CAGR over the past 5 years is +2.24%.
The trend of Revenue growth rate over the past 5 years is -5.74%.
The Earnings CAGR over the past 5 years is -8.01%.
The trend of Earnings growth rate over the past 5 years is +449.92%.
The Equity CAGR over the past 5 years is +4.7%.
The trend of Equity growth rate over the past 5 years is -0.04%.
The FCF CAGR over the past 5 years is -1.98%.
The trend of FCF growth rate over the past 5 years is -15.64%.