POST - Embedded Expectations Analysis - 2021 04 08
Post Holdings, Inc. (POST:USA) is currently trading below corporate averages relative to UAFRS-based (Uniform) earnings, with a 16.3x Uniform P/E. At these levels, the market has bearish expectations for the firm, and management may have concerns about inflation, their investment in Hungry Planet, and seasonal sales declines in BellRingSpecifically, management may lack confidence in their ability to capitalize on external growth opportunities, mitigate inflation headwinds, and meet their Post Consumer Brands sales and profitability targets. Furthermore, they may be overstating the potential of both their peer-to-peer business opportunities and equity investment in Hungry Planet. Finally, they may have concerns about seasonal declines in their BellRing business, and they may lack confidence in their ability to recover performance to benchmark levels
Post Holdings is a consumer packaged goods holding company. The company's segments are: Post Consumer Brands, which manufactures, markets and sells branded and private label ready-to-eat (RTE) cereal and hot cereal products; Weetabix, which markets and distributes branded and private label RTE cereal products; Foodservice, which produces and distributes egg and potato products; Refrigerated Retail, which produces and distributes side dishes, eggs and egg, cheese, sausage and other refrigerated products; and BellRing Brands, which markets and distributes ready-to-drink protein shakes, other RTD beverages, powders, nutrition bars and supplements in the nutrition category.
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- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
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