Is it a good company at a reasonable price? If you like this stock, now would be the time to buy because it is cheap. There is certainly a risk because of its debt. It has done well in the past and hopefully will do well again in the future. Analysts expect that it DPR will be good going forward from 2027. They will probably increase the dividends when the DPR is better. It is certainly relatively cheap at the present time.
I do not own this stock of Premium Brands Holdings Corp (TSX-PBH, OTC-PRBZF). I was looking for another stock to follow and I found this as one of the top stocks in TD Bank's Canadian Equity Fund in 2016.
When I was updating my spreadsheet, I noticed EPS decline has to do with business acquisitions and equity losses. Note that Adjusted EPS went up. I noticed that they have stopped dividend increases since 2024. They needed to as the DPRs were getting too high. This company has so far done well for its shareholders but currently, it has too much debt. This stock used to be an income trust and such companies could pay more dividends than corporations can. All the old income trust companies are having a hard time getting their dividend levels right and this stock is no exception.
If you had invested in this company in December 2015, for $1,1031.13 you would have bought 27 shares at $38.19 per share. In December 2025, after 10 years you would have received $654.08 in dividends. The stock would be worth $2,746.17. Your total return would have been $3,400.25. This would be a total return of 14.23% per year with 10.29% from capital gain and 3.94% from dividends.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $38.19 | $1,031.13 | 27 | 10 | $654.08 | $2,746.17 | $3,400.25 |
For this company, the 5 year growth in such things as cash flow has not been as good as for the past 10 years, but analysts seem to think that growth will be very good this year for Net Income and Cash Flow. They also think that the stock price will growth well this year. In the chart below, I am showing 5 and 10 year total growth and per year growth in columns 3 and 4. Column 5 shows growth expected over 12 months to the first quarter in 2026 and expected growth over this year.
| Yr | Item | Tot. Growth | Per Year | Gwth | Coverage |
|---|---|---|---|---|---|
| 5 | Revenue Growth | 83.76% | 12.94% | 4.97% | <-12 mths |
| 5 | AEPS Growth | 49.84% | 8.42% | 4.16% | <-12 mths |
| 5 | Net Income Growth | -51.61% | -13.51% | 0.74% | <-12 mths |
| 5 | Cash Flow Growth | -58.82% | -16.26% | -60.58% | <-12 mths |
| 5 | Dividend Growth | 50.61% | 8.54% | 0.00% | <-12 mths |
| 5 | Stock Price Growth | 0.97% | 0.19% | -13.37% | <-12 mths |
| 10 | Revenue Growth | 403.66% | 17.55% | 24.38% | <-this year |
| 10 | AEPS Growth | 152.49% | 9.70% | 33.92% | <-this year |
| 10 | Net Income Growth | 246.33% | 13.23% | 560.49% | <-this year |
| 10 | Cash Flow Growth | 38.97% | 3.35% | 403.16% | <-this year |
| 10 | Dividend Growth | 158.56% | 9.97% | 0.00% | <-this year |
| 10 | Stock Price Growth | 166.33% | 10.29% | 20.85% | <-this year |
The current dividend yield is moderate with dividend growth moderate, but currently stalled. The current dividend yield is moderate (2% to 4% ranges) at 3.86%. The 5, 10 and historical median dividend yield is moderate at 3.07%, 2.68% and 4.15%. The historical median dividend yield is rather high because this company used to be an income trust until 2009. The dividend growth is moderate (8% to 14% ranges) at 8.5% per year over the past 5 years. The last dividend increase was in 2024 and it was for 10.39%.
The Dividend Payout Ratios (DPR) are too high but analysts hope they will improve in 2027. The DPR for 2025 for Earnings per Share (EPS) is far too high at 378% with 5 year coverage at 121%. The DPR for 2025 for Free Cash Flow calculated by the company (FCF Co.) is high at 52% with 5 year coverage fine at 49%. The DPR for 2025 for Adjusted Earnings per Share (AEPS) is too high at 74% with 5 year coverage at 69%. The DPR for 2025 for Cash Flow per Share (CFPS) is good at 40% with 5 year coverage at 39%. The DPR for 2025 for Free Cash Flow (FCF) is too high at 90% with 5 year coverage at 185%. With level dividends analysts think that the DPR will improve to the 40% range in 2027.
| Item | Cur | 5 Years |
|---|---|---|
| EPS | 377.78% | 121.13% |
| FCF Co. | 51.52% | 49.36% |
| AEPS | 74.40% | 68.93% |
| CFPS | 39.11% | 38.69% |
| FCF | 89.76% | 184.94% |
Debt Ratios could be improved and the company has a lot of debt. The Long Term Debt/Market Cap Ratio for 2025 is good at 0.40 and currently at 0.48. The Liquidity Ratio for 2025 is low at 1.23 and 1.28 currently. If you added in Cash Flow after dividends, the ratios are low at 1.18 and currently better at 1.44. The Debt Ratio for 2025 is low at 1.39 and 1.46 currently. The Leverage and Debt/Equity Ratios for 2025 are too high at 4.39 and 3.16 and currently at 3.18 and 2.18. I prefer these ratios to be below 3.00 and 2.00.
| Type | Year End | Ratio Curr |
|---|---|---|
| Lg Term R | 0.40 | 0.48 |
| Intang/GW | 0.30 | 0.20 |
| Liquidity | 1.23 | 1.28 |
| Liq. + CF | 1.18 | 1.44 |
| Debt Ratio | 1.39 | 1.46 |
| Leverage | 4.39 | 3.18 |
| D/E Ratio | 3.16 | 2.18 |
The Total Return per Year is shown below for years of 5 to 30 to the end of 2025. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2020 | 5 | 8.54% | 3.14% | 0.19% | 2.94% |
| 2015 | 10 | 9.97% | 14.23% | 10.29% | 3.94% |
| 2010 | 15 | 7.33% | 19.87% | 14.17% | 5.70% |
| 2005 | 20 | 5.45% | 20.13% | 12.89% | 7.24% |
| 2000 | 25 | 10.68% | 7.61% | 3.07% | |
| 1995 | 30 | 13.02% | 9.89% | 3.13% |
The 5-year low, median, and high median Price/Earnings per Share Ratios are 33.02, 38.97 and 44.91. The corresponding 10 year ratios are 27.78, 34.12 and 41.20. The corresponding historical ratios are 20.46, 23.10 and 25.74. The current ratio is 16.05 based on a stock price of $88.11 and EPS estimate for 2026 of $5.49. The current ratio is below the below the low ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap.
I also have Adjusted Earnings per Share (AEPS) data. The 5-year low, median, and high median Price/Earnings per Share Ratios are 19.11, 21.71 and 25.96. The corresponding 10 year ratios are 19.19, 24.86 and 29.19. The corresponding historical ratios are 18.07, 21.72 and 25.82. The current ratio is 14.40 based on a stock price of $88.11 and AEPS estimate for 2026 of $6.12. The current ratio is below the below the low ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap.
I get a Graham Price of $78.13. The 10-year low, median, and high median Price/Graham Price Ratios are 1.35, 1.76 and 2.11. The current ratio is 1.13 based on a stock price of $88.11. The current ratio is below the low ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap.
I get a 10-year median Price/Book Value per Share Ratio of 2.92. The current ratio is 2.73 based on a Book Value of $1,682M, Book Value per Share of $26.52. The current ratio is 8% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.
I also have a Book Value per Share estimate for 2026 of $49.49. This analyst calculates the Book Value differently that I do. In this case 10-year median Price/Book Value per Share Ratio of 2.27. With a Book Value per Share of $46.49, Book Value of $2,419M and stock price of $88.11, the ratio is 1.90. This ratio is 1.90 is 17% below the 10 year median ratio of 2.27. This stock price testing suggests that the stock price is relatively cheap.
I get a 10-year median Price/Cash Flow per Share Ratio of 21.35. The current ratio is 9.74 based on Cash Flow per Share estimate for 2026 of $9.05, Cash Flow of $471M and a stock price of $88.11. The current ratio is 54% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.
I get an historical median dividend yield of 4.15%. The current dividend yield is 3.86% based on dividends of $3.40 and a stock price of $88.11. The current dividend yield is 7% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable but above the median.
I get a 10 year median dividend yield of 2.68%. The current dividend yield is 3.86% based on dividends of $3.40 and a stock price of $88.11. The current dividend yield is 44% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap.
The 10-year median Price/Sales (Revenue) Ratio is 0.86. The current ratio is 0.49 based on Revenue estimate for 2026 of $9,300M, Revenue per Share of $178.71 and a stock price of $88.11. The current ratio is 43% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.
Results of stock price testing is that the stock price is probably cheap. The 10 year dividend yield test says this. It is confirmed by the P/S Ratio test. Most of the rest of the testing is saying the same thing.
When I look at analysts’ recommendations, I find Strong Buy (5), Buy (6) and Hold (1). The consensus is a strong Buy. The 12 month stock price consensus is $122.92 with a High of $150.00 and low of $108.00. The consensus stock price of $122.92 implies a total return of 43.37% with 39.51% from capital gains and 3.86% from dividends based on a current stock price of $88.11.
Analysts on Stock Chase go the full range from Do Not Buy to Top Pick for 2026. A Do Not Buy was worried about debt. Stock Chase gives this stock 4 stars out of 5. Amy Legate-Wolfe on Motley Fool thinks this is a stock to buy and hold for a very long time. Daniel Da Costa on Motley Fool says that the market is reacting to short term pressures. He thinks it is a good stock to buy now. The company put out a press release via Newswire about their fourth quarter of 2025 results. The company put out a press release via Newswire about their first quarter of 2026.
Simply Wall Street via Yahoo Finance reviews this stock. They do not like the fact that the company has issued more shares during the year. EPS is down over the last 12 months. They have 4 warnings out on this company of dividend of 3.94% is not well covered by earnings or free cash flows; interest payments are not well covered by earnings; profit margins (0.5%) are lower than last year (1.8%); and shareholders have been diluted in the past year.
Premium Brands Holdings Corp is engaged in specialty food manufacturing, premium food distribution, and wholesale businesses with operations in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, Nevada, and Washington State. Its web site is here Premium Brands Holdings Corp.
The last stock I wrote about was about was Empire Company Ltd (TSX-EMP.A, OTC-EMLAF) ... learn more. The next stock I will write about will be Jamieson Wellness Inc (TSX-JWEL, OTC-JWLLF) ... learn more on Monday, July 13, 2026 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. I am not a licensed professional investment advisor. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
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