Post Holdings, Inc.
Post Holdings, Inc. Fundamental Analysis
Post Holdings, Inc. (POST) shows weak financial fundamentals with a PE ratio of 17.32, profit margin of 3.82%, and ROE of 8.49%. The company generates $8.4B in annual revenue with weak year-over-year growth of 2.97%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 38.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze POST's fundamental strength across five key dimensions:
Efficiency Score
WeakPOST struggles to generate sufficient returns from assets.
Valuation Score
ExcellentPOST trades at attractive valuation levels.
Growth Score
WeakPOST faces weak or negative growth trends.
Financial Health Score
ModeratePOST shows balanced financial health with some risks.
Profitability Score
WeakPOST struggles to sustain strong margins.
Key Financial Metrics
Is POST Expensive or Cheap?
P/E Ratio
POST trades at 17.32 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, POST's PEG of -14.79 indicates potential undervaluation.
Price to Book
The market values Post Holdings, Inc. at 1.60 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -1.17 times EBITDA. This is generally considered low.
How Well Does POST Make Money?
Net Profit Margin
For every $100 in sales, Post Holdings, Inc. keeps $3.82 as profit after all expenses.
Operating Margin
Core operations generate 10.44 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.49 in profit for every $100 of shareholder equity.
ROA
Post Holdings, Inc. generates $2.46 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Post Holdings, Inc. produces operating cash flow of $931.72M, showing steady but balanced cash generation.
Free Cash Flow
Post Holdings, Inc. produces free cash flow of $557.26M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $10.68 in free cash annually.
FCF Yield
POST converts 9.92% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
17.32
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-14.79
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.60
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.67
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.16
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.90
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How POST Stacks Against Its Sector Peers
| Metric | POST Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 17.32 | 23.25 | Better (Cheaper) |
| ROE | 8.49% | 1240.00% | Weak |
| Net Margin | 3.82% | -9728.00% (disorted) | Weak |
| Debt/Equity | 2.16 | 0.77 | Weak (High Leverage) |
| Current Ratio | 1.90 | 2.54 | Neutral |
| ROA | 2.46% | -203388.00% (disorted) | Weak |
POST outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Post Holdings, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
75.82%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
51436.83%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
95.98%
Industry Style: Defensive, Dividend, Low Volatility
High Growth