Review of Premium Brands Holdings Corporation
APR 03, 2025
- Its investment cycles have negatively impacted its earnings, but sales growth rates have been robust overall, and management is guiding for a strong FY2025. Valuation has compressed as its profit margins have slid lower and it is facing uncertain times with the threat of US tariffs. Management feels that it can navigate US tariffs well with its manufacturing plants that are positioned in the jurisdictions that it sells to. We believe that this could mark an inflection point for the company’s fundamentals, particularly as it has paused its dividend increases and plans to focus on business
acquisitions. Its price momentum over the past few years has been weak, but it offers an attractive dividend yield at these prices, and it has the potential to see multiple expansion if it can execute on its growth strategy for the coming years. We feel that management is taking the appropriate steps to turn the business in the right direction, and therefore we are maintaining our rating of ‘B’.
Switched from PBH to PRMB months ago (thank you) and have done well .PRMB falling daily and analysts have high targets for PBH due to expansion- time to switch back or not)
Thanks for all you
Dennis
-
Kinaxis Inc. (KXS)
-
Premium Brands Holdings Corporation (PBH)
-
Savaria Corporation (SIS)
-
Hammond Power Solutions Inc. Class A Subordinate Voting Shares (HPS.A)
-
WELL Health Technologies Corp. (WELL)
-
CCL Industries Inc (CCLA)
-
Boyd Group Services Inc. (BYD)
-
TFI International Inc. (TFII)
-
Premium Brands Holdings Corporation (PBH)
-
Savaria Corporation (SIS)
-
Hammond Power Solutions Inc. Class A Subordinate Voting Shares (HPS.A)
-
CCL Industries Inc (CCLA)
-
Boyd Group Services Inc. (BYD)