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What is Ridley’s (RIC) outlook?

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What is Ridley’s (RIC) outlook?

Hi, Ridley Corporation (RIC) just came to my attention and I was quite surprised to see the share price performance of the last three years. The stock looks fully priced at the moment but I would appreciate your insights about the outlook of the business and the management track record. They have an ambitious growth plan and I wonder how capable management is to deliver on that. Thanks, Angela

Answer

Hi Angela,

Animal nutrition/feeds operator Ridley Corporation (RIC) made fresh all-time highs this week after beating market expectations with its 1st half year results e.g. a 25.4% increase in revenue to $637.9mn. No guidance was given but this $712mn 30-year old business looks extremely well positioned over the years ahead especially with its 17.5x valuation not being too demanding against a good pathway for growth.

Also to add spice to the mix Andrew “Twiggy” Forrest holds a 6.53% stake in the company through his Tattarang vehicle – MM likes this business whose more than 3% fully franked dividend is an added bonus. Unfortunately, we do have a history with management so hard to comment there however I will endeavor to get them in at some point.

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Ridley Corp (RIC)
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