Dean Foods Co New (NYSE:DF)

CAPS Rating: 3 out of 5

A leading processor and distributor of milk and other dairy products, Dean Foods sells more than 50 private-label brands to grocery stores.

Results 1 - 20 of 84 : 1 2 3 4 5 Next »

Recs

0
Member Avatar nitsud21 (< 20) Submitted: 3/20/2014 1:12:56 PM : Outperform Start Price: $15.14 DF Score: +4.42

DF Input costs will fall as Fluid Milk producers enter the add to supply this spring and summer. DF margins will return to normal, and might benefit from high sticky prices in the consumer dairy market.

Recs

0
Member Avatar klarcbarr (31.17) Submitted: 2/19/2014 12:45:20 AM : Underperform Start Price: $14.21 DF Score: -8.96

Dean Foods is the largest player in a terminally declining business, fluid milk and dairy products. Despite their breadth, they cannot gain control of many key markets nationwide, because milk is an inherently local business. High freight costs per cubic foot sales coupled with low barriers to entry, create an endless stream of smaller competitors. Dean is inhibited on the growth front because it has sold off profitable, trendy divisions like plant-beverage based White Wave, Dean Foods has nothing left but a commodity business that will not reward the supplier with sufficient demand to prosper going forward.

Recs

0
Member Avatar BLOCKHEAD (< 20) Submitted: 2/15/2014 11:19:41 AM : Outperform Start Price: $14.74 DF Score: +5.25

because I blockhead said so, you don't need any more information then that!
bottoming out, reach for the sky

Recs

0
Member Avatar poluh2k (56.98) Submitted: 2/5/2014 11:29:27 AM : Outperform Start Price: $14.65 DF Score: +0.50

P/E 3,68 and I believe that prices for raw milk will up next three years.

Recs

0
Member Avatar jbs4radio (72.24) Submitted: 1/18/2014 3:59:29 PM : Outperform Start Price: $17.39 DF Score: -10.65

(((1/price)*(target))-1*100 =__% potential gain

Upside of about 18-26%

Recs

0
Member Avatar TheValueDude (55.34) Submitted: 1/9/2014 5:27:17 PM : Outperform Start Price: $17.19 DF Score: -10.02

Screen: Under $10B, Top 10% EBIT/EV, Z Score >1.81

Recs

0
Member Avatar 2good2betrue (20.57) Submitted: 8/5/2013 9:19:28 AM : Outperform Start Price: $22.40 DF Score: -39.15

The company behind the Horizon Milk products - It is by far the best organic milk available in supermarkets and we buy a gallon of it a week. Also purchase the horizon organic vanilla milk for the kids lunches - Both products are top shelf. While these are just a couple of the companies many products, it shows the company's smart acquisitions of quality/popular organic suppliers.

Recs

0
Member Avatar Halobloom (< 20) Submitted: 7/22/2013 6:05:39 PM : Outperform Start Price: $19.81 DF Score: -30.37

Oversold. Will make a nice return within 18 months

Recs

0
Member Avatar benyboy (< 20) Submitted: 7/2/2013 11:47:02 PM : Outperform Start Price: $20.58 DF Score: -39.85

JImy

Recs

0
Member Avatar pramathmalik (39.99) Submitted: 7/2/2013 4:03:48 AM : Outperform Start Price: $20.78 DF Score: -40.12

Cramer

Recs

0
Member Avatar EnigmaDude (98.01) Submitted: 5/24/2013 12:49:31 PM : Outperform Start Price: $20.30 DF Score: -35.77

spinoff of White Wave complete.

Recs

0
Member Avatar KennyO (49.21) Submitted: 5/9/2012 1:42:55 PM : Outperform Start Price: $13.43 DF Score: -19.86

The company's got a range of regional brands of staple products that may, with some diligence on the part of management, expand to national brands. It's a difficult and long term task, given how connected people are to their lifelong attachment to dairy product brands, but Dean Foods is well positioned to make it happen.

Recs

0
Member Avatar JohnnyEvers14 (39.46) Submitted: 2/18/2012 9:26:15 PM : Outperform Start Price: $11.34 DF Score: +2.03

Simple business, fairly valued. I like agriculture as a theme.

Recs

0
Member Avatar see522 (< 20) Submitted: 5/17/2011 4:54:11 PM : Outperform Start Price: $12.60 DF Score: -15.33

commities gone boom

Recs

0
Member Avatar BACnumber1 (< 20) Submitted: 5/15/2011 3:26:13 AM : Outperform Start Price: $12.56 DF Score: -14.62

on the rise

Recs

0
Member Avatar lhwwarot9 (< 20) Submitted: 3/31/2011 2:49:23 PM : Outperform Start Price: $9.44 DF Score: +25.94

Dean Foods will outshine the market due to outsourcing entire IT

Recs

4
Member Avatar ScryingPool (< 20) Submitted: 3/24/2011 4:51:59 PM : Outperform Start Price: $9.67 DF Score: +20.21

WHY DEAN FOODS (DF) IS UNDER-VALUED:

Dean Foods is the largest packager/distributor of milk products in the United States. They also lead the market in coffee creamers with their flagship brand “International Delight”. Besides “Dean” milk, here are some other brands of theirs you may have heard of: “Silk”, “Horizon”, “Land-O-Lakes”, “Alpro”.

Over the past 3 years, dairy companies have been one the hardest hit sub-sectors of the agricultural industry. They’ve been wounded by low milk prices pending the food & commodity bubble of 2008 and the subsequent panics that spurred investor exoduses throughout the recession as well as the recovery.

Historic profit margin lows, despite steady revenues, were generated by a drawn-out unfavorable per unit ratio of CME milk valuation to the cost of production ($/gal of CME Grade III/IV : $1.60/gal). This accompanied with the dairy-sector investor exoduses, insider holding declines, share dilution (*See Fool stats - stagnant/increasing revenue w/ decreasing EPS), have brought about beyond belief under-valuation for a massive firm.

WHY INVEST IN DEAN FOODS?

Only until recently (December 2010), milk prices noticeably twitched upward for the first time after 3 years of decline. Supply is down, this may be a sure signal of the dairy sub-sector reacting to prolonged deflation.

Isn’t it strange that Dean’s revenue remains unchanged over these past 3 years despite declines in demand and pricing for milk (which accounts for more than half of their revenue)? The reason for this is because Dean has quantifiably increased sales via the expansion of their recently acquired brands like the organic milk “Horizon” and via variant introductions (i.e. flavors) for existing brands like “Silk”. Revenues have increased despite sub-par milk prices and overall lack of market equity in the dairy sector. This is a planned movement by Dean called “Whitewave-Alpro” and it is being executed successfully along with a $300 million cost-cutting program. Dean has positive earnings estimates 2011 and 2012 (*see Fool growth rates).

Sector analysis: if you read the news, you’ll notice the rate of milk production is declining (a reaction to a prolonged demand dive and negative speculation), a pharmaceutical company released a drug to combat allergies nearly 3% of children have with milk, parents are just starting to complain about increasing milk prices, the FDA and various foreign agencies blocking out supply from Japan, Goldman Sachs’ retaining of a neutral rating for DF (which means they’re probably buying shares right now).

All these are signs of impending demand during a long, strong period of negative speculation.

The only question I have is why two top executives (incl. their COO) resigned this past quarter. If you have an answer or conjecture, I’d like to know it!

Citations:

(CME Milk prices) http://www.cmegroup.com/popup/mdq2.html?code=DCH1&title=March_2011_Class_III_Milk&type=p#period=W

(Whitewave-Alpro)
http://www.whitewave.com/

(Dean Foods Quarterly Report)
http://www.deanfoods.com/our-company/investor-relations/events--presentations.aspx

Recs

0
Member Avatar 2gud2btrue (84.77) Submitted: 2/4/2011 11:27:09 AM : Outperform Start Price: $9.82 DF Score: +17.09

Got in @ 8, nice trade so far.

Recs

0
Member Avatar zoodiverse (< 20) Submitted: 1/11/2011 11:45:27 AM : Outperform Start Price: $9.01 DF Score: +28.16

the price of dairy, needed to produce their product. that and the whole euro thingy, other than that , this one will prevail

Recs

0
Member Avatar poconos27 (< 20) Submitted: 1/7/2011 2:47:57 PM : Underperform Start Price: $8.99 DF Score: -27.60

Milk costs will hurt ST profits plus this market needs a healthy correction. Dont forget debt load folks!!!!

Results 1 - 20 of 84 : 1 2 3 4 5 Next »

Featured Broker Partners


Advertisement