Tyson's Keystone Deal Creates International Opportunities but Doesn't Materially Alter Our Outlook
No-moat Tyson's $2.2 billion cash purchase of Keystone Foods from Marfrig Global Foods should not alter our $67 fair value estimate much. While we think the deal creates international growth potential, we do not anticipate it will meaningfully change our low-single-digit top-line growth and high-single-digit adjusted operating margin expectations for the next decade. We believe Tyson's shares trade fairly.Valued at about 10 times trailing adjusted EBITDA (8 times including synergies), the deal ...
Tyson Foods is a food company. The company's operations consist of breeding stock, contract farmers, feed production, processing, further-processing, marketing and transportation of chicken and related allied products, including animal and pet food ingredients. Through its wholly-owned subsidiary, Cobb-Vantress, Inc., the company is engaged as poultry breeding stock supplier. The company also processes live fed cattle and hogs and fabricates dressed beef and pork carcasses into primal and sub-primal meat cuts, case-ready beef and pork and fully-cooked meats. The company produces a range of fresh, frozen and refrigerated food products. The company operates in Beef, Pork, Chicken and Prepared Foods segments.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.
Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.
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