Consumer Goods- Hansens

Hansens-HANS $48.30
Many institutions including G. Sachs upgraded the beverage sector to attractive.
Judy E. Hong (G.S.) “judging by current spot prices, most major commodities that are needed to make and bottle beverages -- aluminum, resin, oranges and corn -- will be flat or down into 2008.”
In an industry that will prosper HANS has exceptional leadership:

Management Effectiveness (TTM)
Return on Assets
29.74%

Return on Equity
42.97%

Return on Inves. Capital
39.48%

The Return on Equity for HANS shows that it is able to reinvest its earnings more efficiently than 100% of its competitors in the Beverages (Nonalcoholic) industry. Typically, companies that have higher return on equity values are more attractive to investors.

Hansens has direct store delivery and warehouse delivery of their products which include:
Natural alternative beverages catering to those who are looking for ‘functional’ refreshment beverages with a purpose. Their lines include energy drinks, vitamin drinks, sports drinks and other natural more consciencious drinks for the consumer.
Coca Cola is also a good buy but a little more expensive with < op. margins and ROE.

Profitability (TTM)
Gross Margin
52.19%

Operating Margin
23.13%

EBITDA Margin
23.38%

Profit Margin
14.47%

HANS's Gross Margin is more than 83% of other companies in the Beverages (Nonalcoholic) industry, which means it has more cash to spend on business operations as compared to its peers. As indicated by the Operating Margin, HANS controls its costs and expenses better than 97% of its peers.

HANS boasts approval by Warren Buffet today, with a 97% 5 year EPS growth.
- which explains the P/E of 44.
- Highest ROIC in the sector
- International presence including Asia
- Quarterly revenue growth is 42% above the industry!!!
- Jones Soda is closest competitor but behind by a long shot.
- Alpha = 0.21
- Beta = 1.15
- Short interest = 8.49% as a % of float
DIRECT COMPETITOR COMPARISON

HANS
JSDA
PEP
Pvt1
Industry
Market Cap:
4.42B
232.26M
113.02B
N/A
2.15B
Qtrly Rev Growth (yoy):
56.90%
29.80%
10.20%
N/A
14.30%
Revenue (ttm):
740.61M
42.45M
36.66B
N/A
1.77B
Gross Margin (ttm):
52.19%
38.50%
54.82%
N/A
43.70%
EBITDA (ttm):
182.05M
2.32M
8.16B
N/A
253.01M
Oper Margins (ttm):
23.13%
2.23%
18.44%
N/A
6.10%
Net Income (ttm):
107.17M
2.36M
5.96B
N/A
2.36M
EPS (ttm):
1.089
0.090
3.565
N/A
0.09
P/E (ttm):
44.55
98.77
19.62
N/A
21.97
PEG (5 yr expected):
0.89
3.51
1.88
N/A
2.27
P/S (ttm):
5.80
5.42
3.08
N/A
1.51
-

Overall analyst consensus is buy-strong buy with a high target of $62.00.