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San Miguel Pure Foods Company Inc. (PF) Stock Analysis

San Miguel Pure Foods Company, Inc. (PF) was incorporated on October 13, 1956 to primarily engage in the business of manufacturing and marketing of processed meat products. The Company, through its subsidiaries, later on diversified into poultry and livestock operations, feeds and flour milling, dairy and coffee operations, franchising and young animal ration manufacturing and distribution.

In the last quarter of 2013, PF, through its wholly-owned subsidiary, San Miguel Mills, Inc., inaugurated and commenced operations of the Golden Bay Grain Terminal in Mabini, Batangas.

The Company offers a range of food products and services to household, institutional and food service customers in the Philippines.

The brands in its portfolio include:

  • Magnolia” for chicken, ice cream and dairy products.
  • Monterey” for fresh and marinated meats.
  • Purefoods” for refrigerated processed meats and canned meats.
  • Star and Dari Crème” for margarine.
  • San Mig Coffee” for coffee.
  • B-Meg” for animal feeds.
  • La Pacita” for biscuit and flour-based snacks beginning February 2015.

PF operates its business through its subsidiaries such as:

  • San Miguel Foods, Inc.
  • The Purefoods-Hormel Company, Inc.
  • Magnolia, Inc.
  • PT San Miguel Pure Foods Indonesia
  • San Miguel Super Coffeemix Co., Inc.
  • San Miguel Pure Foods Investment (BVI) Limited
  • San Miguel Pure Foods International, Limited
  • RealSnacks Mfg. Corp.

Sector Details:

  • Sector: Industrial
  • Subsector: Food, Beverage & Tobacco

source: PSE Edge

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Value Screen Scorecard

Stocks are scored based on Profitability & Growth, Financial Health, Quality, Dividends and Valuation. Each criterion in the list is scored based on financial data for a total of 100 points. Stocks are ranked from 1 to 5, 1 being the highest.

Read this post to get more information on how the value scorecard works.

Scoring Criteria:

  • Rank # 1: Extremely good company
  • Rank # 2: Good company
  • Rank # 3: Average company
  • Rank # 4: Needs further study and research to identify the company's weaknesses
  • Rank # 5: Risky company

Value Scorecard (2-14-2017 3Q2016)

Piotroski F-Score

The Piotroski F-Score is a financial metric model that's helpful in spotting turnaround businesses. For more information, you may read about it here.

Scoring Criteria:

  • 7 to 9 points: Wonderful business
  • 5 to 6 points: Average business
  • 1 to 4 points: Weak business

Piotroski F-Score (2-14-2017 3Q2016)

Altman Z-Score

The Altman Z-Score is a bankruptcy prediction model that's helpful in spotting low quality companies. More information about it can be found in this post here.

Scoring Criteria:

  • Z > 2.99; “SAFE” Zone (Healthy business)
  • Z < 1.81; “DISTRESS” Zone (Troubled business)
  • 1.81 > Z > 2.99; “GREY” Zone (Warrants more investigation)

Altman Z-Score (2-14-2017 3Q2016)

Estimated Growth Rates

Estimated growth rates are calculated using exponential chart trend line formula.

Estimated Growth Rates (3Q2016)

Intrinsic Value Calculations

The figures and all other variables used in order to get the intrinsic value are listed in detail below for reference purposes so that cross-checking can be made to verify the values obtained.

Intrinsic Value Calculations (2-14-2017 3Q2016)

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  • February 14, 2017

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  • JRP says:

    Another good company. Sadly, it’s current share price is already overvalued.

    Always looking forward to your posts. Keep up the good work!

    • Just a caveat, an analyst friend of mine sees PF as undervalued at current prices. According to him;

      1) it’s trading at 9x PE.
      2) at least 30% eps growth.
      3) 4.6x EV/Ebitda.
      4) with ROE of 17-18%.
      5) with growth potential looking to double/triple in 3-5 years.

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