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Movement in Post Holdings Stock as It Declares Dividends

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Price movement

Post Holdings (POST) has a market cap of $5.1 billion. On October 13, 2016, it fell 0.74% to close at $79.08. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were -0.96%, -2.6%, and 28.2%, respectively, on the same day.

POST is trading 0.19% above its 20-day moving average, 3.6% below its 50-day moving average, and 6.5% above its 200-day moving average.

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Related ETF and peers

The iShares Morningstar Mid-Cap (JKG) invests 0.34% of its holdings in Post Holdings. The ETF tracks a market-cap-weighted index of US mid-cap companies that exhibit both growth and value characteristics as determined by a multifactor selection. The YTD price movement of JKG was 6.4% on October 13.

The market caps of Post Holdings’ competitors are as follows:

  • Kellogg (K): $26.4 billion
  • TreeHouse Foods (THS): $5.0 billion
  • B&G Foods (BGS): $3.2 billion

Post Holdings declared dividends

Post Holdings has declared a quarterly dividend of ~$0.94 per share on its ~3.8% Series B Cumulative Perpetual Convertible Preferred Stock.

The company has also declared a quarterly dividend of ~$0.63 per share on its 2.5% Series C Cumulative Perpetual Convertible Preferred Stock.

The dividends will be paid on November 15, 2016, to preferred stock shareholders as of November 1, 2016.

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Post Holdings’ results for fiscal 3Q16

Post Holdings reported fiscal 3Q16 net sales of $1.3 billion, which is a rise of 3.3% over $1.2 billion in fiscal 3Q15. Net sales for its consumer, active nutrition, and private brands rose 21.7%, 1.5%, and 0.88%, respectively, and net sales of its Michael Foods Group fell 8.3% between fiscal 3Q15 and fiscal 3Q16.

The company’s gross profit margin and operating profit rose 22.4% and 74.7%, respectively, between fiscal 3Q15 and fiscal 3Q16. It reported adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) of $231.0 million in fiscal 3Q16, which is a rise of 23.2% from fiscal 3Q15.

Its net income and EPS (earnings per share) fell to $0.0 million and $0, respectively, in fiscal 3Q16 compared to $19.8 million and $0.33, respectively, in fiscal 3Q15. It reported adjusted EPS of $0.62 in fiscal 3Q16 compared to $0.27 in fiscal 3Q15.

POST’s cash and cash equivalents and inventories rose 22.8% and 9.3%, respectively, between fiscal 4Q15 and fiscal 3Q16. Its current ratio rose to 3.2x, and its debt-to-equity ratio fell to 2.06x in fiscal 3Q16 compared to 2.9x and 2.10x, respectively, in fiscal 4Q15.

Projections

The company has made the following projections for fiscal 2016:

  • adjusted EBITDA of $915 million–$925 million
  • capital expenditure of $135 million–$145 million, including ~$15 million related to integration activities and ~$15 million related to growth activities
  • maintenance capital expenditure of $105 million–$115 million

Next, we’ll look at Ford Motor (F).

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