Premier Foods (PFD) AI Stock Analysis

• Market Cap: £1.74B
• Dividend Yield: 0.86%
• Average Volume (3M): 1.20M
• Price to Earnings (P/E): 15.9
• Beta (1Y): 0.73
• Revenue Growth: 5.90%
• EPS Growth: 11.24%
• Country: UK
• Employees: 4,000
• Sector: Consumer Defensive
• Sector Strength: 77
• Industry: Packaged Foods
• EPS (TTM): 0.13
• Shares Outstanding: 868,795,840
• 10 Day Avg. Volume: 1,178,062
• 30 Day Avg. Volume: 1,203,758
• PEG Ratio: 1.42
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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: £230.00
• Price Target Upside: 14.14% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Premier Foods shows strong financial health with consistent revenue growth, robust margins, and solid cash flow. The technical indicators suggest potential upward momentum, while recent corporate events highlight confidence and strategic growth. However, the valuation is moderate, with a relatively low dividend yield. Overall, the stock is positioned for growth but with some valuation considerations.

Positive Factors

Cash Generation

Premier Foods has rapidly developed into a very strong cash generator.

Growth Potential

Significant growth potential in the core business.

Market Performance

Premier Foods reported a robust set of H1 results with solid trading momentum.

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 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: Positive
• Last Price: 201.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:PFD, the sentiment is Positive. The current price of 201.5 is above the 20-day moving average (MA) of 192.35, above the 50-day MA of 186.40, and above the 200-day MA of 184.11, indicating a bullish trend. The MACD of 4.00 indicates Negative momentum. The RSI at 68.66 is Neutral, neither overbought nor oversold. The STOCH value of 86.43 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	£14.74B	11.56	11.89%	3.07%	-0.38%	14.68%
ULVR	80 Outperform	£119.20B	24.43	30.27%	3.11%	-0.76%	-12.83%
PFD	79 Outperform	£1.74B	15.90	8.03%	0.86%	5.90%	11.24%
TATE	76 Outperform	£2.46B	13.28	12.23%	3.45%	-11.03%	-2.05%
SBRY	72 Outperform	£6.07B	17.64	6.21%	4.97%	0.34%	150.85%
Sector *	64 Neutral	$8.88B	14.97	4.71%	174.26%	3.67%	4.40%

Premier Foods Corporate Events

Premier Foods Announces Share Capital Details for March 2025

Premier Foods plc has announced that as of March 31, 2025, its issued share capital consists of 868,795,815 ordinary shares, each with voting rights. This information is crucial for shareholders to calculate their interests in accordance with the FCA’s Disclosure and Transparency Rules, potentially impacting shareholder notifications and company transparency.

Premier Foods Director Acquires Shares, Signaling Confidence

Premier Foods plc announced that Tania Howarth, a Non-executive Director, has purchased 6,906 ordinary shares at a price of 183.59p per share. This transaction, conducted on the London Stock Exchange, reflects managerial confidence in the company’s future prospects and may influence stakeholder perceptions positively.

Premier Foods Director Increases Stake, Signaling Confidence

Premier Foods plc announced that Tim Elliott, a Non-executive Director and Audit Committee Chair, has purchased 1,500 ordinary shares of the company at a price of 180.248p per share. This transaction, conducted on the London Stock Exchange, is a part of the company’s regulatory compliance with the Market Abuse Regulation, indicating confidence in the company’s financial health and potentially impacting investor sentiment positively.

Premier Foods Executives Exercise Share Options Under LTIP

Premier Foods plc announced that Alex Whitehouse, CEO, and David Wilkinson, HR and Communications Director, exercised their share options under the company’s Long Term Incentive Plan. They sold a portion of these shares to cover tax obligations, with the transactions reflecting a strategic financial decision by the company’s leadership. This move highlights the company’s ongoing commitment to aligning management incentives with shareholder interests, potentially impacting its market perception and stakeholder confidence.

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.