Daily Stock Analysis: Ebro Foods

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Ebro Foods SA is known by the trading ticker symbol, EBRPY. It is included in the Consumer Defensive sector as a Packaged Foods company. This is my first-ever report for any of my six stock Portfolios on EBRPY. 

Ebro Foods SA is a Spanish international food group operating in the pasta, rice, and sauces segments.

The company is present in more than 25 countries in Europe, North America, Asia, and Africa, through its wide network of subsidiaries and brands. 

The core businesses are rice and pasta, offered in dry, fresh, precooked, and frozen varieties. Aside from pasta and rice, Ebro Food offers ready meals, fresh potato, sauces among others. 

The largest geographical segment for the rice division is in Europe, followed by North America, Asia, and Africa. 

Pasta, sauces, and other products account for almost half of revenue and are mainly present in Europe and North America.

The company also engages in industrial and branding activities under a multi-brand model. 

It primarily serves food distributors, food multinationals, and restaurants. 

The company was formerly known as Ebro Puleva, S.A. and changed its name to Ebro Foods, S.A. in June 2010. 

Ebro Foods, S.A. was incorporated in 1998 and is based in Madrid, Spain.

Three key data points gauge dividend equities or funds like Ebro Foods SA:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money. 

EBRPY Price

Ebro Foods Inc's price per share was $20.60 as of yesterday's market close. One year ago its price was $20.71. So EBRPY price has gone down about 0.05% in the past year. 

If Ebro Foods stock trades in the range of $6 to $24 this next year, its recent $20.60 price might rise by $0.60 to reach $21.20 by July 30, 2022. My estimate is in line with the average annual stock price increase over the past eleven years. 

EBRPY Dividends

Ebro Foods SA's most recent regular quarterly dividend payout of  $0.225 was paid July 15, 2021, and projects an annual payout of $0.90 per share to yield 4.437% based on yesterday's $20.60 closing price. EBRPY has paid variable quarterly dividends for 12 years.

EBRPY Returns

Adding the $0.90 annual EBRPY forward-looking dividend to my $0.60 price upside estimate shows a $1.50 potential gross gain, per share, to be reduced by any costs to trade Ebro Foods shares.  

At yesterday's $20.60 price per share, a little over $1000 would buy 49 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at a sale and might cost us about $0.20 per share.

Subtract that maybe $0.20 brokerage cost from my estimated $1.50 gross gain per share results in a net gain of $1.30 X 49 shares = $63.70 for a 6.35% net gain on a $1,009.40 investment.

So it is that Ebro Foods Inc shows a possible 6.35% net gain including a 4.37% forward estimated dividend yield. 

Over the next year at this time, a $1000 investment in Ebro Foods SA could generate $43.70 in cash dividends alone. And a single share bought at yesterday's closing price was $20.60! Thus, EBRPY share price is now 47% of the dividend income from $1K invested. So, according to the dividend dogcatcher ideal, this is a good time to pick up Ebro Foods shares because the dividend from $1k invested exceeds the single share price by over two times. Consider yourself alerted.   

All of the estimates above are speculation based on the past history of Ebro Foods SA. Only time and money invested in this stock will determine its true worth.

Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...

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