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  5. ATD: Thanks 5i for your valuable inputs. [Alimentation Couche-Tard Inc. Class A Multiple Voting Shares]
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Investment Q&A

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Q: Thanks 5i for your valuable inputs. I owe KHC for about past 4 to 5 years and am down about 50%. For a long term hold with appetite for risk would you recommend to hold and ride it out or suggest something better in the same sector.

Thanks as usual

Asked by Nimish on July 26, 2021
5i Research Answer:

We have a tough time getting to excited by a company like KHC. The valuation looks ok at 14X forward earnings but is not necessarily 'cheap' given slow to declining top-line growth. Fundamentals look fine and while debt is not particualrly concerning, there is some leverage on the balance sheet. The nature of these larger businesses does tend to be that of slower growth, so they aren't names we typically would be too interested in but PEP, L, or ATD.B, might be a replacement worth considering.