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URC:PHL - Embedded Expectations Analysis - 2018 05 04

Universal Robina Corporation (URC:PHL) is currently trading near the lower end of valuations since 2013 relative to Uniform Earnings, with a 33.6x UAFRS-based (Uniform) P/E. However, even at these levels, markets are pricing in expectations for ROA to improve materially going forward

Specifically, the market appears to be optimistic about URC's sustainability strategy called “Our Purposeful Transformation”, and about the launching of offerings in their Great Taste Brand, namely in brown and stronger black coffee segments, in FY 2018
Universal Robina Corp.

Universal Robina is engaged in a range of food-related businesses. Co. operates within three business segments: the branded consumer food segment which manufactures and distributes a range of salty snacks, chocolates, candies, biscuits, bakery products, beverages, noodles and tomato-based products; the agro-industrial segment, which engages in hog and poultry farming, production and distribution of animal health products and manufacture and distribution of animal feeds, glucose and soya bean products; and the commodity food segment, which engages in sugar milling and refining, flour milling and manufacture and marketing of pasta.

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