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How Did Diamond Foods Perform Compared to Its Peers?

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Diamond Foods and its peers

An analysis of Diamond Foods’ income statement in 4Q15 follows:

  • The net profit margins of Diamond Foods (DMND), Mondelez International (MDLZ), ConAgra Foods (CAG), and Post Holdings (POST) are 3.89%, 5.57%, 4.66%, and 1.98%, respectively.
  • The EPS (earnings per share) of Diamond Foods, Mondelez, ConAgra Foods, and Post Holdings are $0.25, $0.25, $0.38, and $0.33, respectively.

An analysis of Diamond Foods’ balance sheet in 4Q15 follows:

  • The current ratios of Diamond Foods, Mondelez, ConAgra Foods, Post Holdings, and Hershey (HSY) are 2.07, 0.71, 0.97, 2.17, and 0.99, respectively.

An analysis of Diamond Foods’ valuation follows:

  • The PE (price-to-earnings) ratios of Diamond Foods, Mondelez, and Hershey are 42.35x, 32.13x, and 36.23x, respectively.
  • The PBV (price-to-book value) ratios of Diamond Foods, Mondelez, ConAgra Foods, and Post Holdings are 3.30x, 2.69x, 5.14x, 1.22x, respectively.

According to the above findings, the peers outperformed Diamond Foods based on the net profit margin and EPS. However, Diamond Foods is way ahead of its peers based on the current ratio, PE ratio, and PBV ratio.

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ETFs that invest in Diamond Foods 

The PowerShares S&P SmallCap Consumer Staples Portfolio ETF (PSCC) invests 5.41% of its holdings in Diamond Foods. PSCC tracks a cap-weighted index of Consumer Staples stocks selected from the S&P SmallCap 600.

The PowerShares Dynamic Food & Beverage Portfolio (PBJ) invests 2.85% of its holdings in Diamond Foods. PBJ tracks a multifactor, tiered, and equal-weighted index of US food industry stocks.

The PowerShares DWA Consumer Staples Momentum Portfolio (PSL) invests 2.49% of its holdings in Diamond Foods. PSL tracks an index of US consumer cyclical firms selected and weighted by price momentum.

Comparing Diamond Foods and its ETFs

An analysis of Diamond Foods’ price movement follows:

  • The YTD (year-to-date) price movements of Diamond Foods, PSCC, PBJ, and PSL are 11.02%, 0.42%, 3.26%, and 9.51%, respectively.

An analysis of Diamond Foods’ valuation follows:

  • The PE ratios of Diamond Foods, PSCC, PBJ, and PSL are 42.35x, 19.77x, 24.76x, and 28.95x, respectively.
  • The PBV ratios of Diamond Foods, PSCC, PBJ, and PSL are 3.30x, 1.94x, 4.06x, and 5.33x, respectively.

According to the above findings, Diamond Foods outperformed its ETFs based on the price movement and PE ratio.

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