On the whole, established companies in the food and beverage space
don't typically grow their revenue at more than a low-to-mid single
digit clip over the long term. But then, those companies aren't
Denmark's CHR Hansen (OTCPK:CHYHY)
and aren't leveraged to strong underlying trends in consumer
preferences, as well as R&D-driven edges in customer costs and
efficiency.
Not unlike Novozymes (OTCPK:NVZMY), CHR
Hansen has almost everything I like to see in a company except for an
attractive valuation. I do believe that the company has meaningful
opportunities to leverage growth opportunities in dairy consumption,
probiotics, natural colors, and agriculture, but the stock's valuation
already reflects what I believe are generous assumptions regarding
growth and the quality of the company.
I'd certainly monitor CHR
Hansen in the hope of buying on a market freak-out (whether
company-specific or across the market), but the shares today seem priced
more for those who are comfortable buying growth almost irrespective of
value.
Continue here:
Chr Hansen Is A Rare Story In The Food Sector
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