Thursday, September 17, 2015

Seeking Alpha: Chr Hansen Is A Rare Story In The Food Sector

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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