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By Achuva Shats

May 16, 2019

This story covers 8 Food Products isntruments to have in your portfolio in June 2019. Specifically, I will break down the following equities: BRF S A, Mondelez International, John B Sanfilippo Son, McCormick Company Incorporated, Industrias Bachoco S A B de C V, Freshpet, Campbell Soup Company, and Conagra Brands
The Top 8 Food Products stocks to own in June 2019

This list of potential positions covers USA Equities from Food Products industry as classified by Fama & French. Fama and French focuses on testing asset pricing under different economic assumptions in USA. Please note, we provide buy hold or sell recommendation only in the context of selected investment horizon assuming investor has average attitude towards taking risk. Please also consider using Portfolio Positions Ratings and Equity Ratings tools to further calibrate your research.


BRF SA (BRFS)

The company reported previous year revenue of 8.92 B. Net Loss for the year was (831.48 M) with profit before overhead, payroll, taxes, and interest of 5.14 B. The entity currently falls under 'Mid-Cap' category with current market capitalization of 7.39 B. BRF SA shows prevailing Real Value of $9.65 per share. The current price of the firm is $8.85. At this time the firm appears to be undervalued. This module approximates value of BRF SA from reviewing the firm fundamentals such as Shares Outstanding of 811.53 M, Return On Equity of 0.0002  and Profit Margin of 0.0001  as well as analyzing its technical indicators and Probability Of Bankruptcy. In general, we favor to go long with undervalued instruments and to trade away overvalued instruments since in the future assets prices and their ongoing real values will blend. BRF SA competes with ConAgra Brands, Darling Ingredients, Freshpet, Kellogg, DAVIDsTEA, Lamb Weston, BG Foods, Farmer Brothers, and Campbell Soup. BRF S.A. focuses on raising, producing, and slaughtering poultry and pork for processing, production, and sale of fresh meat, processed products, pasta, frozen vegetables, and soybean by-products. The company was formerly known as BRF-Brasil Foods S.A. and changed its name to BRF S.A. in April 2013. BRF SA operates under Packaged Foods classification in USA and is traded on BATS Exchange.

Mondelez International (MDLZ)

The company has return on total asset (ROA) of 0.05 % which means that it generated profit of $0.05 on every $100 spent on asset. This is way below average. Similarly, it shows return on stockholders equity (ROE) of 0.14 % meaning that it created $0.14 on every $100 dollars invested by stockholders. The entity currently falls under 'Large-Cap' category with current market capitalization of 75.04 B.
Total Debt

John B Sanfilippo Son (JBSS)

The company has return on total asset (ROA) of 0.05 % which means that it generated profit of $0.05 on every $100 spent on asset. This is way below average. Similarly, it shows return on stockholders equity (ROE) of 0.09 % meaning that it created $0.09 on every $100 dollars invested by stockholders. The entity currently falls under 'Mid-Cap' category with current market capitalization of 1.18 B. John B Sanfilippo retains regular Real Value of $93.88 per share. The prevalent price of the corporation is $98.4. At this time the corporation appears to be overvalued. This module calculates value of John B Sanfilippo from evaluating the corporation fundamentals such as Current Valuation of 1.22 B, Return On Asset of 0.046  and Return On Equity of 0.09  as well as inspecting its technical indicators and Probability Of Bankruptcy. In general, we encourage to acquire undervalued assets and to sell overvalued assets since at some point stocks prices and their ongoing real values will come together. John B competes with ConAgra Brands, Darling Ingredients, Freshpet, Kellogg, DAVIDsTEA, Lamb Weston, BG Foods, Farmer Brothers, and Campbell Soup. Sanfilippo Son, Inc., together with its subsidiary, JBSS Ventures, LLC, processes and distributes tree nuts and peanuts in the United States. Sanfilippo Son, Inc. was founded in 1959 and is headquartered in Elgin, Illinois. John B operates under Packaged Foods classification in USA and is traded on BATS Exchange. It employs 1470 people.

McCormick Company Incorporat (MKC)

The company has Net Profit Margin of 12.94 % which may imply that it executes well on its competitive polices and has a good control over its expenditures and variable costs. This is very large. In the same way, it shows Net Operating Margin of 20.77 % which entails that for every 100 dollars of revenue it generated 0.21 of operating income. The entity currently falls under 'Large-Cap' category with total capitalization of 22.97 B.
Total Debt

Industrias Bachoco S A B De C (IBA)

The company has Return on Asset of 0.01 % which means that on every $100 spent on asset it made $0.01 of profit. This is way below average. In the same way, it shows return on shareholders equity (ROE) of 0.02 % implying that it generated $0.02 on every 100 dollars invested. The firm currently falls under 'Mid-Cap' category with total capitalization of 2.64 B. Industrias Bachoco retains regular Real Value of $56.25 per share. The prevalent price of the corporation is $49.61. At this time the corporation appears to be undervalued. This module calculates value of Industrias Bachoco from evaluating the corporation fundamentals such as Shares Outstanding of 50 M, Return On Asset of 0.0134  and Return On Equity of 0.0223  as well as inspecting its technical indicators and Probability Of Bankruptcy. In general, we encourage to acquire undervalued assets and to sell overvalued assets since at some point stocks prices and their ongoing real values will come together. Industrias Bachoco retains regular Real Value of $56.25 per share. The prevalent price of the corporation is $49.61. At this time the corporation appears to be undervalued. This module calculates value of Industrias Bachoco from evaluating the corporation fundamentals such as Return On Asset of 0.0134 , Shares Outstanding of 50 M and Return On Equity of 0.0223  as well as inspecting its technical indicators and Probability Of Bankruptcy. In general, we encourage to acquire undervalued assets and to sell overvalued assets since at some point stocks prices and their ongoing real values will come together.

Freshpet (FRPT)

The company has Profit Margin (PM) of (0.02) % which may suggest that it does not properly executes on its current pricing strategies or is unable to control all of the operational costs. This is way below average. Similarly, it shows Operating Margin (OM) of (1.4) % which suggests for every $100 dollars of sales it generated a net operating loss of -0.01. The firm currently falls under 'Mid-Cap' category with current market capitalization of 1.94 B.
Total Debt

Campbell Soup Company (CPB)

The company reported last year revenue of 8.11 B. Total Income to common stockholders was 474 M with profit before taxes, overhead, and interest of 2.71 B. The firm currently falls under 'Large-Cap' category with total capitalization of 14.04 B. Campbell Soup shows prevailing Real Value of $47.03 per share. The current price of the firm is $48.24. At this time the firm appears to be fairly valued. This module approximates value of Campbell Soup from analyzing the firm fundamentals such as Profit Margin of 0.0008 , Current Valuation of 22.55 B and Return On Equity of 0.0057  as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor to go long with undervalued instruments and to trade away overvalued instruments since at some point assets prices and their ongoing real values will blend.

ConAgra Brands (CAG)

The company has Net Profit Margin of 0.06 % which implies that it may need a different competitive strategy as even a very small decline in it revenue may erase profits and result in a net loss. This is way below average. In the same way, it shows Net Operating Margin of 20.5 % which entails that for every 100 dollars of revenue it generated 0.21 of operating income. This firm currently falls under 'Large-Cap' category with total capitalization of 14.51 B.
Total Debt

Current 8 Food Products Recommendations

Competition Technical Indicators

Mean
Deviation
Jensen
Alpha
Sortino
Ratio
Treynor
Ratio
Semi
Deviation
Information
Ratio
Expected
Shortfall
Potential
Upside
Value
At Risk
Maximum
Drawdown
 1.38 (0.03) (0.01)  0.03  2.13 (0.0086) (1.19)  2.65 (3.05)  7.99 
 1.05  0.30  0.29  0.27  0.67  0.20 (1.33)  2.49 (1.57)  10.36 
 1.43  0.13  0.07  0.22  1.58  0.06 (1.60)  4.56 (2.48)  8.82 
 0.68  0.03 (0.01)  0.11  0.82 (0.0064) (0.70)  1.43 (1.34)  4.02 
 3.30  0.24  0.06  0.30  3.69  0.05 (3.93)  7.85 (5.95)  24.40 
 0.76  0.24  0.29  2.21  0.36  0.17 (1.05)  1.95 (0.80)  8.57 
 1.56 (0.11)  0.00 (0.20)  0.00 (0.07)  0.00  3.09 (3.39)  9.53 
 3.06  0.45  0.09 (1.31)  3.80  0.07 (3.79)  6.38 (5.80)  36.24 
 0.76  0.08  0.05  0.29  0.87  0.0469 (0.83)  1.68 (1.51)  5.90 
 2.34 (0.70)  0.00  4.51  0.00 (0.21)  0.00  4.42 (7.78)  23.52 

About Contributor

Achuva Shats
   Achuva Shats is a Member of Macroaxs Editorial Board. Achuva writes about retail product and service companies from the prospective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce View Profile
This story should be regarded as informational only and should not be considered as solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of Macroaxis. Please refer to our Terms of Use for any information regarding our disclosure principles.

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