Report
Valens Research

URC:PHL - Embedded Expectations Analysis - 2018 05 04

Universal Robina Corporation (URC:PHL) is currently trading near the lower end of valuations since 2013 relative to Uniform Earnings, with a 33.6x UAFRS-based (Uniform) P/E. However, even at these levels, markets are pricing in expectations for ROA to improve materially going forward

Specifically, the market appears to be optimistic about URC's sustainability strategy called “Our Purposeful Transformation”, and about the launching of offerings in their Great Taste Brand, namely in brown and stronger black coffee segments, in FY 2018
Underlying
Universal Robina Corp.

Universal Robina is engaged in a range of food-related businesses. Co. operates within three business segments: the branded consumer food segment which manufactures and distributes a range of salty snacks, chocolates, candies, biscuits, bakery products, beverages, noodles and tomato-based products; the agro-industrial segment, which engages in hog and poultry farming, production and distribution of animal health products and manufacture and distribution of animal feeds, glucose and soya bean products; and the commodity food segment, which engages in sugar milling and refining, flour milling and manufacture and marketing of pasta.

Provider
Valens Research
Valens Research

In 2009, just as the dust was settling from the last major equity and credit market crises, we launched a boutique research firm with the intention of breaking Wall Street’s biases and broken incentives:

  • GAAP and IFRS have failed to provide rules for reliable financial statement reporting
  • Stock analyst recommendations are not grounded in disciplined financial analysis
  • Credit agencies have been set up to grossly fail in their responsibilities to investors and the public markets
  • Utter lack of willingness of major research firms to employ the the most advanced forensic analysis available

We sought to provide investors and company analysts with a source of information that changed all that.
Many years later, our business model remains because little has changed on Wall Street.

  • Corporate credit ratings remain years behind the fundamental underpinnings of company performance
  • Stock analysts continue to make recommendations with deeply inherent biases
  • Research firms have failed to break down the walls between credit, equity, and macroeconomic research
  • The governing accounting bodies have created more leeway for mis-estimates and mis-classifications as financials have become unwieldy and overwhelming

The integrity of Valens Research is founded in our disciplined processes and analytics. No “star” analysts. No corporate advisory relationships. No-nonsense opinions and recommendations.

Analysts
Valens Research

Other Reports on these Companies
Other Reports from Valens Research
Other Reports from these Analysts

ResearchPool Subscriptions

Get the most out of your insights

Get in touch