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Post Holdings stock soars to all-time high of $118.96

Published 11/26/2024, 11:14 PM
POST
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In a remarkable display of market confidence, Post Holdings , Inc. (NYSE:POST) stock has reached an all-time high, touching a price level of $118.96. This milestone underscores a period of significant growth for the consumer packaged goods company, which has seen its stock value surge by 36.27% over the past year. Investors have rallied behind Post Holdings, propelling the stock to new heights as the company continues to expand its portfolio and strengthen its position in the competitive food industry. The achievement of this all-time high reflects the positive sentiment surrounding Post Holdings' strategic initiatives and its potential for sustained growth.

"In other recent news, Post Holdings reported a significant increase in adjusted EBITDA over the past two years, with a 45% growth primarily driven by organic growth and strategic acquisitions, especially in the pet sector. The company also revealed an optimistic FY25 EBITDA estimate of $1.447 billion, which was put forward by an analyst at Evercore ISI, surpassing both the previous forecast and the consensus estimate.

The analyst also noted Post Holdings' potential for organic profit growth, citing the upcoming Nutrish brand relaunch and the enterprise resource planning implementation at Weetabix as key factors. Evercore ISI also highlighted the company's strong position to benefit from strategic capital allocation, including mergers and acquisitions, and projected a $500 million free cash flow generation in FY25.

These recent developments also include the closure of the Lancaster cereal plant to optimize capacity. Despite a slight 2% decline in consumption volumes, the company generated approximately $1 billion in free cash flow and significantly reduced its net leverage.

Consolidated net sales reached $2 billion, marking a 3% year-over-year increase. Looking ahead, Post Holdings anticipates a more normalized operating environment in FY 2025, with stable inflation but pressured consumer volumes. The company projects FY 2025 capital expenditures to range from $380 million to $420 million."

InvestingPro Insights

Post Holdings' recent stock performance aligns with several key insights from InvestingPro. The company's stock is indeed trading near its 52-week high, as highlighted by one of the InvestingPro Tips. This corroborates the article's mention of POST reaching an all-time high of $118.96.

The company's financial health appears robust, with InvestingPro Data showing a market capitalization of $6.93 billion and a P/E ratio of 18.3 (adjusted for the last twelve months as of Q4 2024). Post Holdings has demonstrated strong revenue growth, with a 13.33% increase over the last twelve months, reaching $7.92 billion. This growth trajectory supports the market's positive sentiment mentioned in the article.

An InvestingPro Tip suggests that POST stock generally trades with low price volatility, which may be attractive to investors seeking stability. Additionally, the company's profitability is underscored by another tip indicating that analysts predict Post Holdings will be profitable this year, further reinforcing investor confidence.

For readers interested in a more comprehensive analysis, InvestingPro offers 10 additional tips for Post Holdings, providing deeper insights into the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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