Pinnacle Foods Stock Analysis, Valuation (NYSE:PF)

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$63.91 $0.13 (0.2%) PF stock closing price May 25, 2018 (Closing)
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Pinnacle Foods
Updated on : May 25, 2018
previous close
PF 63.9 (0%)
S&P 500 2721.3 (0%)
Closing Price On: May 25, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Food-Misc-Diversified
Sector :
Consumer Staples
5 Quarter Revenue
Revenue Growth
2018-Q1
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
5%
Operating Profit
Operating Margin:
14.3%
Sector Average:
12%
5 Quarter Net Profit
Net Margins
2018-Q1
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
2.76B
Debt/Equity Ratio:
 1.15
Compared to the industry
Cash Flow
Operating cash flow:
$121.6M
Net Income:
$56.9M
Dividend Yield
PF dividend yield:
2%
PROS      CONS
Long Term Growth
Operating Margins
Net Margins
Cash Flow
ROE
FCF Margin
Recent Growth
High Debt Burden
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
PF PS :
2.4
Industry PS :
1.6
Sector:   Consumer Staples.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
5.9%
Return on Equity:
26.5%
Free Cash Flow Margin:
11%
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Pinnacle Foods Stock Analysis

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View the Pinnacle Foods stock analysis video on Amigobulls. This is our analyst opinion covering the buy and sell arguments for PF stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Pinnacle Foods Inc Stock Rating 3/5

Amigobulls PF stock analysis uses latest quarter 2018 Q1 financial data like Pinnacle Foods revenue growth, profit margins and cash flows. Pinnacle Foods valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. Pinnacle Foods stock rating encapsulates our opinion about the company based on the fundamentals.

Should you buy PF stock?

  • Revenue growth has been tremendous with a compounded annual growth of 5% over the last 5 years.
  • Pinnacle Foods had a healthy average operating margin of 14.3% over the last 4 quarters.
  • Net margins came in at average 17.9% for Pinnacle Foods over the last twelve months.
  • The operating cash flow looks good at 2.1 times the net income.
  • Pinnacle Foods has a good Return On Equity (ROE) of 26.5%.
  • The company has a healthy free cash flow margin of 11%.

Should you sell PF stock?

  • 2018 Q1 revenue growth of 1.7% YoY was meagre.
  • Pinnacle Foods has a debt/equity ratio of  1.15, which is worse than the average in the Consumer Staples sector.
  • PF stock is trading at a PS multiple of 2.4, which is a negative when compared to the Food-Misc-Diversified industry average multiple of 1.6.

Comments on this video and Pinnacle Foods stock

Amigobulls Pinnacle Foods stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of PF stock. The fundamentals of a company are vital to identify long-term investment opportunities.

Pinnacle Foods revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. Along with fundamentals, investors can utilize technical analysis to get a better idea about the price trend of Pinnacle Foods stock.