I have added cerebos pacific to my stock holdings. I will be providing info on cerebos as best as i can.
- Stable company with a strong set of products, backed by its flagship product Brands chicken essence
- Strong past earnings and sales. Operating profit has been positive for past 15 years. only 1 year out of those 15 years has it gone into net profit loss.
- PE 13.5 times
- Market to book ratio 2.28 times
- latest div yield 9.06%
- latest payout 122% of net profit
- free cashflow yield 8.75%
- free cashflow /Enterprise value 7.71%
- Cash dividend coverage 1.18 times
- Net profit margin 9.26%
- ROE 16.92%
- Cash coverage 12.63 times
Past div record(cents)
1993 – 8.4
1994 – 10.4
1995 – 12.6
1996 – 14.7
1997 – 16.3
1998 – 13
1999 – 8
2000 – 8
2001 – 10
2002 – 18.46
2003 – 12.9
2004 – 16
2005 – 25
2006 – 26.88
Note:
- latest payout looks irresponsible at 122%.however, on examination of operating cashflow -capital expenditure shows that the fcf yield is close to the div yield. I believe fcf is a better gauge of whether cerebos can payout such div in the future.
- investors should be expecting yield to decrease. latest sales is at an all time high. Management is finding the operating environment increasing challenging to grow more sales. Still, its consistent payout makes cerebos attractive. a long term yield of 5.5% at 16cents div looks a more realistic target.
Kyith is the Owner and Sole Writer behind Investment Moats. Readers tune in to Investment Moats to learn and build stronger, firmer wealth foundations, how to have a Passive investment strategy, know more about investing in REITs and the nuts and bolts of Active Investing.
Readers also follow Kyith to learn how to plan well for Financial Security and Financial Independence.
Kyith worked as an IT operations engineer from 2004 to 2019. Currently, he works as a Senior Solutions Specialist in Fee-only Wealth Advisory firm Providend.
You can view Kyith's current portfolio here, which uses his Free Google Stock Portfolio Tracker.
His investment broker of choice is Interactive Brokers, which allows him to invest in securities from different exchanges all over the world, at very low commission rates, without custodian fees, near spot currency rates.
You can read more about Kyith here.
- How Bad Were the Returns During the 16 US Recessions in the Past 100 Years? - June 27, 2022
- Learning to Invest in Individual Stocks & Proper Portfolio Management with Investment Quadrant 2022 - June 25, 2022
- JPGL vs IFSW vs Dimensional Global Core vs SWDA – 22-year Performance Showdown Comparison - June 22, 2022