CSEAF - Premium Brands Holdings Corp - Avoid This Over-Hyped Stock
- Premium Brands Holdings is a serial acquirer structured as a black-box with limited visibility into value creation of the management's acquisition activity.
- After its busiest year of acquisitions in 2018, Return on Adjusted Net Assets, a management metric has taken a nose dive.
- Growth funding strategy is highly dilutive due to its past reliance on convertible debentures and recent spate of four equity issues in the last three years.
- Trading at an exceedingly high premium to its peers in the consumer staples space on any imaginable valuation metric: P/E TTM is 48x, EV/EBITDA is 20x and P/CF is 17x.
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Premium Brands Holdings Corp - Avoid This Over-Hyped Stock