I was unfortunately expecting to be disappointed by the level of disclosure on certain items: No mention of the dissolution of their Indian JV with Tata – but revenues weren’t significant, and profits were obviously non-existent, and I far prefer they concentrate on a consolidation strategy in Europe, so who cares…
Total Produce (TOT:ID or LN) is releasing 2011 Preliminary Results @ 7am tomorrow, Tuesday March 6th. Consensus 2011 EPS appears to be around EUR 0.071, bang on my own estimate. This out-turn would put TOT on a 6.3 P/E – far too cheap for such a defensive stock with plenty of firepower for acquisition led growth!
In fact, one of the cheapest companies they could buy is…themselves! With Fyffes (FFY:ID or LN) buying back 32.2 mio shares in Sep-Nov last year, I was v disappointed to see no such announcement from Total Produce. Especially with such a cheap share price, and when you note they’d EUR 89.6 mio of cash lying idle when they reported their interims. I hope to see some comment/plans in this regard tomorrow – failing that, management definitely needs to justify themselves with a more aggressive future acquisition strategy…
- Mkt Price: EUR 0.39
- Mkt Cap: EUR 128.7 mio
- Net Int/EBITA%: 9.0%
- P/E: 5.6
- P/S: 0.05
- Div Yield: 4.6%
Time to update my recent Total Produce post. First, a shout out to Philip at pdosullivan who emailed me to highlight Total’s increased stake in Capespan Group Ltd. There are some good follow-up comments here also. A good spot – I looked some years back, and somehow concluded Total’s shareholding was in a Capespan sub. rather than the parent company?! Based on this, I mistakenly decided not to revisit this as a component of my TOT investment analysis. Then again, the lack of transparency and disclosure from Total regarding this shareholding is rather infuriating.