Weekly Update Monday, February 6, 2017
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Weekly Update Monday, February 6, 2017 Strong January 2017 Jobs Report Help Boost Stocks. Mary Burke Partner With news of a stronger-than-expected January 2017 jobs report, U.S. stocks 312.348.7081 [email protected] finished higher on Friday with the Dow returning above the 20,000 level. Overall, this helped lift major indexes into positive territory for the week. William Whipple Partner The Dow Jones Industrial Average decreased 0.1% on the week, 312.348.7076 finishing at 20,071. [email protected] The S&P 500 rose 0.1% on the week, finishing at 2,297. Philip Zoloto Partner The NASDAQ Composite increased 0.1% on the week, finishing at 312.348.7077 5,667. [email protected] Yield on the 10-year Treasury rose 1 basis points on the week, ending at Lakeshore Food Advisors, LLC 2.49%. 20 North Wacker Drive Suite 1701 Crude oil declined 0.1% on the week, ending at $53.17 per barrel. Chicago, IL 60606 Corn futures fell 1.9% on the week, ending at $3.62 per bushel. NASDAQ Highs: None Lows: Buffalo Wild Wings, Inc., United Natural Foods, Inc., Whole Foods Market, Inc. NYSE Highs: Campbell Soup Company, Constellation Brands, Inc., Dean Foods Company, Dr. Pepper Snapple Group, Inc., Hormel Foods Corporation, Ingredion Incorporated, The J.M. Smucker Company, Kellogg Company, McDonald’s Corporation, Sysco Corporation, Tyson Foods, Inc. Lows: Darling Ingredients Inc., The Mosaic Company Featured Stocks of the Week: The Scotts Miracle-Gro Company (NYSE: SMG) 10-year History Ingredion Inc. (NYSE: INGR) 10-year History 120 160 100 140 120 80 100 60 80 40 60 40 20 20 0 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1 The Lakeshore Food Chain Price Price as Compared to Enterprise Value to Total Debt Price Compared to 52-Week Range YE: Forward LTM: to LTM Company Name 2/3/17 1/27/17 High Low 2015 2014 P/E Revenue EBITDA EBITDA Dow Jones Industrial Average 20,071 (0.1%) 20,101 15,660 15.2% 12.6% 19.0x S&P 500 2,297 0.1% 2,298 1,829 12.4% 11.6% 17.7 NASDAQ Composite Index 5,667 0.1% 5,667 4,267 13.2% 19.7% 25.3 Sector Average: 13.6% 14.6% AGRICULTURAL LAND HOLDINGS Farmland Partners Inc. $11.38 (0.2%) $11.98 $10.00 3.7% 9.3% 45.3x 36.77x 64.2x 23.7x Gladstone Land Corporation 12.22 2.3% 12.34 7.50 41.3% 14.2% 215.5 21.98 31.5 19.7 Limoneira Company 17.19 (0.1%) 21.78 11.30 15.1% (31.2%) 42.3 3.12 23.0 6.3 Sector Average: 20.0% (2.6%) 43.8x 20.63x 39.6x 16.6x 20071.46 INPUTS *Agrium Inc. $134.59 (1.7%) $146.99 $104.70 8.8% 22.4% 19.6x 1.46x 11.6x 3.7x American Vanguard Corporation 16.75 (5.4%) 20.00 11.05 19.6% 44.1% 30.9 1.72 13.0 1.1 CF Industries Holdings, Inc. 35.68 (2.3%) 37.72 20.77 (12.6%) (34.5%) 106.5 3.92 12.5 4.3 DuPont 76.43 (1.6%) 78.36 55.94 14.8% 3.4% 20.6 2.81 13.4 1.7 FMC Corporation 60.30 (2.3%) 62.84 32.24 54.1% 5.7% 18.9 3.00 14.8 2.9 Intrepid Potash, Inc. 2.03 (5.6%) 3.04 0.65 (31.2%) (85.4%) NM 1.64 NM NM Monsanto Company 108.87 (0.5%) 114.26 83.73 10.5% (8.9%) 23.2 3.89 13.5 2.1 The Mosaic Company 31.85 1.4% 33.99 22.20 15.4% (30.2%) 36.4 1.93 11.5 3.1 * Potash Corporation of Saskatchewan Inc. 24.19 (1.6%) 26.62 19.93 2.1% (41.1%) 33.8 5.02 14.5 3.6 S&W Seed Company 4.65 1.1% 5.35 3.90 10.2% 16.3% 48.9 1.07 20.4 NM The Scotts Miracle-Gro Company 90.08 (4.2%) 98.82 62.72 39.6% 44.5% 22.1 2.44 14.2 NM *Syngenta AG 424.70 0.6% 434.90 360.50 8.3% 32.7% NA 3.36 17.2 2.1 Zoetis Inc. 55.92 2.3% 56.07 38.26 16.7% 30.0% 25.6 6.44 19.4 2.7 Sector Average: 12.0% (0.1%) 35.1x 2.98x 14.7x 2.7x AGRICULTURAL EQUIPMENT *Ag Growth International Inc. $54.10 (1.9%) $57.69 $24.68 62.7% (4.3%) 22.3x 2.03x 14.8x 4.8x AGCO Corporation 63.18 (0.4%) 64.38 43.75 39.2% 39.8% 26.5 0.94 11.1 3.5 Art's-Way Manufacturing Co., Inc. 3.30 2.0% 4.70 2.50 6.5% (36.6%) NA 0.88 66.5 22.7 * Buhler Industries Inc. 4.46 (3.0%) 6.00 4.40 (18.0%) (25.4%) NA 0.48 NM NM CNH Industrial N.V. 9.27 (0.3%) 9.51 5.84 35.5% 15.0% 23.2 1.41 17.6 13.8 Deere & Company 107.99 0.0% 108.47 74.91 41.6% 22.1% 24.2 2.51 17.5 9.4 Lindsay Corporation 75.84 (2.9%) 89.98 65.78 4.8% (11.5%) 31.6 1.63 19.6 2.8 Titan Machinery Inc. 13.42 (4.5%) 15.93 7.87 22.8% (3.7%) NM 0.60 33.7 23.0 Sector Average: 24.4% (0.6%) 25.6x 1.31x 19.0x 9.5x AGRIBUSINESS AGT Food and Ingredients Inc. $36.25 (1.4%) $42.16 $31.56 6.6% 31.6% 15.7x 0.71x 11.6x 4.4x The Andersons, Inc. 37.20 (1.5%) 44.90 23.25 17.6% (30.0%) 17.8 0.36 12.9 4.7 Archer-Daniels-Midland Company 43.99 (1.2%) 47.88 31.30 19.9% (15.4%) 15.5 0.51 11.9 3.0 Bunge Limited 69.63 1.4% 74.00 46.08 2.0% (23.4%) 11.5 0.37 9.4 3.3 Darling Ingredients Inc. 12.33 3.4% 15.93 7.78 17.2% (32.1%) 24.1 1.15 6.9 4.3 * Gruma, S.A.B. de C.V. 282.48 (0.9%) 297.04 240.01 16.8% 79.6% 19.6 2.05 12.4 1.3 Ingredion Incorporated 117.12 (8.6%) 140.00 96.01 22.2% 38.0% 15.4 1.74 9.7 1.9 Landec Corporation 12.30 (5.7%) 15.50 9.48 4.0% (10.9%) 18.3 0.73 14.9 2.1 * Olam International Limited 2.01 0.5% 2.17 1.56 10.4% (0.5%) 15.6 0.83 12.7 10.2 Omega Protein Corporation 25.95 0.4% 26.99 14.58 16.9% 145.5% 14.1 1.42 5.7 0.1 Sector Average: 13.4% 18.2% 16.8x 0.99x 10.8x 3.5x DIVERSIFIED FOODS B&G Foods, Inc. $44.70 1.0% $52.84 $31.81 27.6% 49.5% 19.3x 3.24x 13.3x 4.8x Campbell Soup Company 63.28 1.1% 67.89 52.59 20.4% 43.8% 20.1 2.86 14.4 2.3 Conagra Brands, Inc. 39.37 1.0% 48.86 33.61 (6.6%) 8.5% 21.8 1.71 9.8 1.9 General Mills, Inc. 62.73 0.0% 72.95 54.84 8.8% 17.6% 19.2 2.90 13.3 2.8 The Hain Celestial Group, Inc. 39.41 0.3% 56.99 33.32 (2.4%) (32.4%) 19.2 1.69 13.2 2.5 The J. M. Smucker Company 138.78 2.4% 157.31 121.79 12.5% 37.4% 17.7 2.85 12.7 3.2 Kellogg Company 73.36 0.5% 87.16 70.33 1.5% 12.1% 19.1 2.55 16.3 3.9 The Kraft Heinz Company 89.27 (0.2%) 90.54 70.01 22.7% NA 23.6 5.15 15.8 3.8 Lancaster Colony Corporation 133.68 3.3% 149.30 95.78 15.8% 42.8% 27.2 2.98 15.8 0.0 Mondelez International, Inc. 44.36 0.4% 46.40 35.88 (1.1%) 22.1% 22.1 3.17 18.2 4.0 * Nestlé S.A. 72.85 (0.4%) 80.05 67.00 (2.3%) (0.1%) 20.7 2.70 13.4 1.5 Pinnacle Foods Inc. 54.03 1.7% 54.45 39.37 27.2% 53.1% 22.8 3.15 15.7 5.3 Post Holdings, Inc. 85.37 3.1% 89.00 59.74 38.4% 103.8% 31.3 1.87 10.7 5.4 SunOpta Inc. 8.86 (8.3%) 10.09 4.14 (6.3%) (35.6%) 20.2 0.88 15.1 6.9 Treehouse Foods, Inc. 76.37 5.4% 104.53 62.64 (2.7%) (10.7%) 23.1 1.36 13.5 5.5 * Unilever N.V. 37.94 (0.2%) 43.11 36.22 (5.4%) 16.2% 18.7 2.29 12.7 1.8 Sector Average: 9.3% 21.9% 21.6x 2.58x 14.0x 3.7x 2 Price Price as Compared to Enterprise Value to Total Debt Price Compared to 52-Week Range YE: Forward LTM: to LTM Company Name 2/3/17 1/27/17 High Low 2015 2014 P/E Revenue EBITDA EBITDA ETHANOL Pacific Ethanol, Inc.