POST – Market expectations are for Uniform ROA declines, but management is confident about their market share and M&A activity

• Post Holdings Inc. (POST:USA) is currently trading near corporate averages relative to UAFRS-based (Uniform) Earnings, with a 21.8x Uniform P/E. At these levels, the market has bearish expectations for the firm, but management is confident about their market share growth and recent M&A activity
• Specifically, management is confident they were able to gain market share by moving early into licensed sweetened product growth areas and that they look at investment and sourcing independently when making M&A pipeline decisions. Moreover, they are confident that the cost synergies from their Weetabix supply chain integration is larger than previously announced and that they sold 29% of their stake in their Active Nutrition business through the BellRing Brands IPO