Topic: How To Invest

Q: May I have your comments/thoughts on Post Holdings (POST)? Thank you.

Article Excerpt

A: Post Holdings Inc., $86.41, symbol POST on New York (Shares outstanding: 63.7 million; Market cap: $5.5 billion; Consumer sector; TSINetwork Rating: Average; www.postholdings.com), is a leading maker of cereals and packaged foods. The company has four operating segments: Post Consumer Brands (38% of sales), Foodservice (36%), Weetabix (8%), and Refrigerated Retail (18%). It also holds 50% equity interest in the Alpen Food Company South Africa Limited, a maker of RTE (ready-to-eat) cereal and muesli. In October 2019, Post sold shares of its BellRing Brands business to the public through an IPO. BellRing makes protein bars, shakes and nutritional supplements. Then, on March 10, 2022, Post distributed its remaining 80.1% stake in BellRing to its shareholders. Meanwhile, on April 28, 2023, the company completed the acquisition of several pet food brands from J.M. Smucker Co. (symbol SJM on New York), including Rachel Ray, Nutrish, Nature’s Recipe, 9Lives, Kibbles ‘n Bits, and Gravy Train. Post paid $700 million in cash, plus issued $500 million…