Yahoo Finance What’s Installed For Bell Food Group AG (VTX:BELL)?
Bell Food Group AG (VTX:BELL), a CHF1.86b small-cap, operates in the consumer staples sector, which is facing a change in consumer taste and pressure for organic and sustainable foods, spurred by more health-conscious consumers. Consumer staple analysts are forecasting for the entire industry, a positive double-digit growth of 10.20% in the upcoming year , and an optimistic near-term growth of 29.40% over the next couple of years. However, this rate came in below the growth rate of the CH stock market as a whole. Today, I’ll take you through the sector growth expectations, as well as evaluate whether Bell Food Group is lagging or leading in the industry.
View our latest analysis for Bell Food Group
What’s the catalyst for Bell Food Group’s sector growth?
Changing tastes in consumer preferences is becoming more disruptive than that of industry competitors. Consumers are predominantly leaning towards more health-conscious alternatives such as whole and raw ingredients. Furthermore, companies that are now emerging are latching on these trends with efficient business models. In the previous year, the industry saw growth in the teens, beating the CH market growth of 11.02%. Bell Food Group lags the pack with its negative growth rate of -4.23% over the past year, which indicates the company has been growing at a slower pace than its food product peers. However, in the upcoming year, Bell Food Group is expected to deliver growth in-line with its industry peers, at a growth rate of 9.80%.
Is Bell Food Group and the sector relatively cheap?
The food product sector’s PE is currently hovering around 22.07x, in-line with the CH stock market PE of 20.8x. This means the industry, on average, is fairly valued compared to the wider market – minimal expected gains and losses from mispricing here. Furthermore, the industry returned a similar 11.09% on equities compared to the market’s 11.90%. On the stock-level, Bell Food Group is trading at a lower PE ratio of 11.87x, making it cheaper than the average food product stock. In terms of returns, Bell Food Group generated 8.62% in the past year, which is 2.47% below the food product sector.
Next Steps:
Bell Food Group is a food product industry laggard in terms of its future growth outlook. This is possibly reflected in the PE ratio, with the stock trading below its peers. If the stock has been on your watchlist for a while, now may be the time to dig deeper. Although the market is expecting lower growth for the company relative to its peers, Bell Food Group is also trading at a discount, meaning that there could be some value from a potential mispricing. However, before you make a decision on the stock, I suggest you look at Bell Food Group’s fundamentals in order to build a holistic investment thesis.
Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
Historical Track Record: What has BELL’s performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Bell Food Group? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
