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Wilmar International (WLMIF) has absorbed a $150 million loss tied to its investment in Pakistan-listed Unity Foods Ltd., adding another layer of pressure to an
The packaged foods industry has broadly declined over the last year with some producers dropping over 20%; dividend yields have expanded to as much as 9.5%. However, a high dividend yield does might not indicate value, profitability, or financial strength. Twenty-three high yield packaged food producers we compared on a matrix of factors including yield, payout ratio, value, growth, profitability, and debt.
Wilmar International Limited (OTC: WLMIF - Get Free Report)'s share price traded down 11.9% on Thursday. The stock traded as low as $2.07 and last traded at $2.07. 53,670 shares changed hands during mid-day trading, an increase of 45% from the average session volume of 36,981 shares. The stock had previously closed at $2.35. Wilmar
I raise Wilmar's rating to Buy, considering its undemanding valuations and the presence of re-rating triggers. The stock is trading below fair value based on a sum-of-the-parts analysis and historical/peer comparisons. Catalysts include the scaling-up of its commissary business to leverage on growth trends, and the attracting of new dividend- and China-focused investors.