Food and kindred products company · GA · FY ends Jan · Revenue $5.27B · 3.20% margin · $296M FCF
Operating margin is thin at 3.31%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue growth slowed to 3.0%, essentially flat. Margins also contracted 3.5pp. This is a business that needs a catalyst.
ROIC dropped from 9.83% to 4.65%, capital efficiency is deteriorating. Net debt of $2.07B represents 6.5x FCF, leverage limits flexibility.
Profitability & Returns
Revenue (TTM)
$5.27B
▲ +3.0% YoY
Net Income (TTM)
$73M
▼ -66.2% YoY
Op. Margin
3.20%
▼ -3.5pp YoY
ROIC
4.00%
▼ -5.2pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$296M
▲ +13.7% YoY
Op. Cash Flow (TTM)
$418M
▲ +8.1% YoY
Net Debt
$2.03B
Cash & Equiv.
$12M
5Y CAGR: +3.7%
5Y CAGR: -2.2%
Continue Research