September 21, 2023
Top 10 Stock Premier Foods Buy Recommendation

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For each investment strategy, we provide you with more detailed analysis and our recommendation. You see the ranks of the top 10 stocks ranked by that particular investment strategy (360° View, Sentiment, Value, Growth, Safety and Combined Financial Performance).

360° View: Obermatt 360° View Premier Foods Buy

360 METRICS	September 21, 2023
VALUE
VALUE	56
GROWTH
GROWTH	28
SAFETY
SAFETY	49
SENTIMENT
SENTIMENT	98
360° VIEW
360° VIEW	64

ANALYSIS: With an Obermatt 360° View of 64 (better than 64% compared with alternatives), overall professional sentiment and financial characteristics for the stock Premier Foods are above average. The 360° View is based on consolidating four consolidated indicators, with half the metrics below and half above average for Premier Foods. The consolidated Value Rank has an attractive rank of 56, which means that the share price of Premier Foods is on the lower side compared with the typical size in indicators such as revenues, profits, and invested capital. This means that the stock price is lower than for 56% of alternative stocks in the same industry. The consolidated Sentiment Rank has a good rank of 98, which means that professional investors are more optimistic about the stock than for 98% of alternative investment opportunities. But the consolidated Growth Rank has a low rank of 28, which means that the company exhibits below-average growth momentum when looking at financial metrics such as revenue, profit, invested capital growth, and stock returns. The consolidated Safety Rank has a riskier rank of 49, meaning the company has a riskier financing structure than 51 comparable companies when looking at the amount of its debt, its refinancing requirements, and its ability to service debt. ...read more

RECOMMENDATION: With a consolidated 360° View of 64, Premier Foods is better positioned than 64% of all alternative stock investment opportunities based on the Obermatt Method. Half of the consolidated Obermatt Ranks exhibit above-average performance, but the other half are below market levels. The company enjoys a good value (Value Rank of 56) and positive market sentiment in the professional investor community (Sentiment Rank of 98), but growth expectations are below-average (Growth Rank of 28) and the financing structure is on the risky side(Safety Rank of 49). This combination is rather dangerous, because high debt levels (low safety) require growth to finance the debt burden. The current low growth level may be temporary, because professionals are actually optimistic (positive sentiment). Good value is sometimes an indication that the company's future is challenging. The below-par growth performance may be the reason for this assessment. Companies with less growth typically have a lower price than fast-growing competitors. Even though professional investor sentiment is strong, we recommend further evaluating whether the future of Premier Foods is as challenging as the stock's low price suggests. Since the professional community is optimistic, the stock might just be going through a more challenging phase now, indicating that timing might be good now. ...read more

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Sentiment Strategy: Professional Market Sentiment for Premier Foods very positive

SENTIMENT METRICS	September 21, 2023
ANALYST OPINION
ANALYST OPINION	100
OPINIONS CHANGE
OPINIONS CHANGE	50
PRO HOLDINGS
PRO HOLDINGS	100
MARKET PULSE
MARKET PULSE	60
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	98

ANALYSIS: With an Obermatt Sentiment Rank of 98 (better than 98% compared with alternatives) for 2023, overall professional sentiment and engagement for the stock Premier Foods is very positive. The Sentiment Rank is based on consolidating four sentiment indicators, with all four indicators above average for Premier Foods. Analyst Opinions are at a rank of 100 (better than 100% of alternative investments), which means that, currently, stock research analysts tend to recommend a stock investment in the company. Analyst Opinions Change is also positive with a rank of 50, which means that stock research experts are changing their opinions for the better and recommending investing in the company. They are getting more optimistic about stock investments in Premier Foods. The Professional Investors rank is 100, which means that currently, professional investors hold more stock in this company than in 100% of alternative investment opportunities. Pros tend to favor investing in this company. Finally, Market Pulse has a rank of 60 which means that the current professional news and professional social networks are on the positive side when discussing this company (more positive news than for 60% of competitors). ...read more

RECOMMENDATION: With a consolidated Sentiment Rank of 98 (more positive than 98% compared with investment alternatives), Premier Foods has a reputation among professional investors that is significantly higher than that of its competitors. Since all market sentiment indicators are positive, the professional community highly recommends investment in the company. Does this mean Premier Foods stocks are a safe investment? Far from it. Even professionals make mistakes. Especially in stock investing, there is a tendency to follow the leaders. Since trees don't grow to the heavens, such positive sentiment may also be interpreted as a danger sign. A lot of optimism can often be a sign of troubles to come, albeit unforeseen by most. ...read more

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Value Strategy: Premier Foods Stock Price Value better than average

VALUE METRICS	September 21, 2023
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	32
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	70
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	85
DIVIDEND YIELD
DIVIDEND YIELD	17
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	56

ANALYSIS: With an Obermatt Value Rank of 56 (better than 56% compared with alternatives), Premier Foods shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Premier Foods. Price-to-Profit (also referred to as price-earnings, P/E) is 70 which means that the stock price compared with what market professionals expect for future profits is lower than for 70% of comparable companies, indicating a good value concerning Premier Foods's profit levels. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 85, which means that the stock price is lower as regards to invested capital than for 85% of comparable investments. On the other hand, Price-to-Sales is less favorable than for 68% of alternatives (only 32% of peers have an even less favorable ratio). The same is valid for dividend yield, which is lower than for 83% of comparable companies, making the stock more expensive compared with the company's expected dividend payouts. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 56, is a buy recommendation based on Premier Foods's stock price compared with the company's operational size and dividend yields. This is a puzzling picture, because it means that profits are high while dividends are low. Since the stock price is low compared with invested capital but high concerning expected revenues, the company has more invested capital than peers for generating the same amount of revenue. Since profits are higher, it could be a "cash cow" situation (using the classic Boston Consulting Group or BCG matrix naming convention) where the company is on a downward trend, still living from the profits of past products. As the company pays low dividends, it may harbor the opinion that a turnaround is possible, and it rather invests the cash than distribute it to shareholders through dividends, thus sealing the company's fate early. Any investment optimism should only be a buy trigger once thorough research is completed. ...read more

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Growth Strategy: Premier Foods Growth Momentum low

GROWTH METRICS	September 21, 2023
REVENUE GROWTH
REVENUE GROWTH	37
PROFIT GROWTH
PROFIT GROWTH	31
CAPITAL GROWTH
CAPITAL GROWTH	16
STOCK RETURNS
STOCK RETURNS	76
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	28

ANALYSIS: With an Obermatt Growth Rank of 28 (better than 28% compared with alternatives), Premier Foods shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below average for Premier Foods. Sales Growth has a below market rank of 37, which means that, currently, professionals expect the company to grow less than 63% of its competitors. The same is valid for Capital Growth, with a rank of 16, and Profit Growth, with a rank of 31. Currently, professionals expect the company to grow its profits less than 69% of its competitors). Only shareholders are optimistic. Stock Returns are above average at a rank of 76, which means that the stock returns have recently been above 76% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 28, is a hold recommendation for growth and momentum investors. That picture may be the result for a company that has reached the bottom. All went south for Premier Foods, and it still looks bad, but some investors already see light at the end of the tunnel, rewarding the stock with recent above-market stock returns. It could also mean that investors are correcting an overreaction to negative news. If that were the case, the positive stock returns are not yet a sign of recovery. Investors should look closely at the Value and Sentiment indicators before they make a stock purchasing decision, because growth is unlikely to be the driving argument behind this investment. ...read more

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Safety Strategy: Premier Foods Debt Financing Safety below-average

SAFETY METRICS	September 21, 2023
LEVERAGE
LEVERAGE	91
REFINANCING
REFINANCING	23
LIQUIDITY
LIQUIDITY	33
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	49

ANALYSIS: With an Obermatt Safety Rank of 49 (better than 49% compared with alternatives), the company Premier Foods has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Premier Foods is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Premier Foods and the other two below average. Leverage is at a rank of 91 meaning the company has a below-average debt-to-equity ratio. It has less debt than 91% of its competitors.Refinancing is at a rank of 23, which means that the portion of the debt about to be refinanced is above-average. It has more debt in the refinancing stage than 77% of its competitors. Liquidity is at a rank of 33, meaning that the company generates less profit to service its debt than 67% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 49 (worse than 51% compared with alternatives), Premier Foods has a financing structure that is riskier than that of its competitors. This is an indication that the company is on the riskier side when it comes to debt service. There is only below-market average liquidity, and a short-term refinancing issue might be around the corner. But in the long-term, the debt levels of Premier Foods are on the safer side. ...read more

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Combined financial peformance: Premier Foods Below-Average Financial Performance

COMBINED PERFORMANCE	September 21, 2023
VALUE
VALUE	56
GROWTH
GROWTH	28
SAFETY
SAFETY	33
COMBINED
COMBINED	37

ANALYSIS: With an Obermatt Combined Rank of 37 (worse than 63% compared with investment alternatives), Premier Foods (Packaged Foods & Meats, United Kingdom) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Premier Foods are a good value (attractively priced) with a consolidated Value Rank of 56 (better than 56% of alternatives) but show below-average growth (Growth Rank of 28), and are riskily financed (Safety Rank of 49), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 37, is a hold recommendation based on Premier Foods's financial characteristics. As the company Premier Foods's key financial metrics exhibit good value (Obermatt Value Rank of 56) but low growth (Obermatt Growth Rank of 28) and risky financing practices (Obermatt Safety Rank of 49), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 56% of comparable companies, may indicate the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity. ...read more

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