Q: What is your current view on TPZ over the next 12-15 months?
Research that I have seen seems to indicate positive growth expectations over the next year but I am not convinced that the markets are viewing the company in the same way. I own the shares, being down slightly, and I am debating whether to continue holding the shares or to sell? Your thoughts please. Thanks.
Research that I have seen seems to indicate positive growth expectations over the next year but I am not convinced that the markets are viewing the company in the same way. I own the shares, being down slightly, and I am debating whether to continue holding the shares or to sell? Your thoughts please. Thanks.
5i Research Answer:
TPZ is forecasted to double it's EPS in 2024 while seeing revenue growth of 4%. TPZ's recent quarterly earnings displayed solid growth while the company continues to be heavily tied to commodity pricing. We think TPZ is fine to hold for income as it pays a good dividend yield at 6.6%, but the payout ratio is quite high compared with the sector. The outlook and strong recent quarter display positively for short-term growth, but we think that there are better options for long-term potential. TPZ is also trading at a very expensive valuation versus other peer companies.