Analysis of Costa
BENCHMARKS
Compared with dairy companies, other agricultural producers including Farm Pride, Webster, Freedom Foods and Bellamy. Also with Chiquita and Del Monte in USA.
PROFITABILITY
EBIT to Sales of 10% is reasonable when compared with benchmarks.
BALANCE SHEET MANAGEMENT
ROA is 20% and very good when compared with benchmarks
GEARING
Equity to Total Assets is 60% and reasonable when compared with benchmarks.
ASSET MANAGEMENT
Sales to Total Assets is 2 times and reasonable when compared with benchmarks.
INDUSTRY PRICING
Ag companies seem to be flavour of the month and all the benchmark companies are very expensive to buy.
COSTA PRICING
At bottom of the range, $2.20 there will most probably be a stag.
At top of the range will be very surprised if there is a stag.
( Worth noting the above reasoning applied to MG as well. Currently trading around $2.30 and sold at bottom of range at $2.10 )
What are everyone's views and is anyone going to take any up ?
