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  5. PBH: This morning a guest on BNN recommended Premium Brands. [Premium Brands Holdings Corporation]
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Investment Q&A

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Q: This morning a guest on BNN recommended Premium Brands. Their new revenue generators with Costco sound promising. However they seem to have a lot of debt and a very high dividend payout ratio.

Do you think their cash flow covers their debt and is the payout ratio really at 128%?

Thanks for all your help.

Mike
Asked by Michael on July 24, 2025
5i Research Answer:

We have posted additional comments on PBH this morning discussing long term potential. Because of accounting and non-cash charges, we prefer to look at operating cash flow when examining payout ratios. On that basis, PBH is 55%. We show less than 70% on an earnings basis so the 128% looks too high. Cash flow is $275M. Last year, interest expenses were $163M. It is leveraged, and this adds some risks.