Despite Bega Group's strategic shift toward a more diverse product offering, we expect dairy products to continue to represent the majority of sales over the next decade, exposing the firm to commodity pricing and volatile input costs. In our view, Bega has not carved an economic moat required to consistently generate economic profits, and we expect its powerful customers to limit margin growth potential.
Bega Group's strategic shift away from dairy products lowers its exposure to volatile milk prices and diversifies earnings.
Changing consumer trends toward dairy-free and vegan diets could lead to declines in per capita dairy and cheese consumption, weighing on the majority of Bega's earnings.
|
Metric
|
BGA
|
KHC
|
SAP
|
|---|---|---|---|
Price/Earnings (Normalized) | 74.22 | 12.85 | 15.22 |
Price/Book Value | 1.22 | 0.94 | 1.71 |
Price/Sales | 0.36 | 1.77 | 0.66 |
Price/Cash Flow | 79.43 | 9.85 | 9.08 |
|
Metric
|
BGA
|
KHC
|
SAP
|
|---|---|---|---|
Quick Ratio | 0.61 | 0.44 | 0.58 |
Current Ratio | 1.30 | 0.99 | 1.55 |
Interest Coverage | −6.74 | 4.94 | 4.88 |
|
Metric
|
BGA
|
KHC
|
SAP
|
|---|---|---|---|
Return on Assets (Normalized) | 1.41% | 4.15% | 4.96% |
Return on Equity (Normalized) | 2.97% | 7.62% | 10.05% |
Return on Invested Capital (Normalized) | 3.68% | 6.39% | 7.09% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
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