News: ING Inghams Group posts FY revenue of $2.43 bln, page-7

I have read through Macquarie's ER published last November and completed a quick number crunching (DCF) for the company using the published wacc.

Excluding the effect of 53 rd trading week of last FY. The revenue growth is very limited (3%). Both the poultry and stockfeed category saw a mild decrease in unit price of delivery over last few years and there is no reason to believe the trend will stop. Combined with 5-6% volume growth and this gives a 2% revenue growth rate into next 5 to 10 years at best.

If I take its current EBITDA margin 7.9% to derive the cashflow, the company shall be worth far below its current value, maybe around $3 per share.

Macquire is selling a story that the company's EBIDA margin shall improve and get close to 11% or 12% in the future, a level enjoyed its Kiwi competitor Tegel.

If this can be achieved, then $3.7 is fairly close to its instric DCF value.

But this in my view is really the best case.
There is no other catalyst that push up the price further at this level.