Review of Premium Brands Holdings Corporation

MAR 26, 2024 - The company has been making investments in the US, and management sees this as a major growth driver for the company. If the weakness in Canada persists, PBH has strategies to redirect capacity to the US market. It trades at a slight premium valuation relative to peers, and given the recent and expected weakness in sales, we are downgrading our rating by one notch to a ‘B’.

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Q: I'm holding the above in a RSP and the above stocks are quite down. Given the current environmnet, is it time to sell them? today, rather than last week!

Read Answer Asked by Brenda on March 28, 2025

Q: I've held Premium Brands Holdings Corporation (PBH) for eight years with minimal returns. Given its recent challenges, such as weaker Canadian sales and a premium valuation relative to peers, I’m considering switching to Alimentation Couche-Tard (ATD) for better long-term growth potential. ATD seems to offer a more resilient business model, steady earnings growth, and strategic acquisition opportunities, like the potential 7-Eleven deal. What’s your view on the rationale for trading PBH for ATD and the timing? PBH is forecasting stronger growth however rarely materializes... Does ATD’s scale, diversification, and growth trajectory make it a stronger candidate for long-term value creation, or should I hold PBH given its U.S. expansion plans and historical dividend growth? Welcome hearing 5i's insight especially considering PBH's pop today resulting from positive earnings report. Thank you!

Read Answer Asked by Maury on March 24, 2025

Q: Hi 5i

Between the 2 which company do you feel would be a better buy today?

Thx
Gerry

Read Answer Asked by Gerry on March 24, 2025