John B Sanfilippo & Son: Compelling Risk Reward And Attractive Free Cash Flow
- Buy JBSS with attractive 8.25x P/FCF and 5.4x EV/EBITDA metrics.
- Strengths: Great brands including Orchard Valley Harvest and Fisher; declining debt totals; social media achievements.
- Excellent strategic execution: Demand Foresight's best-of-breed demand planning and supply chain management system and state-of-the-art facility in Illinois.
- Growth potential: Positive momentum in nut industry and global expansion.
- Great strategic moves: Develop brands to demand premium pricing to combat the cyclical nut market and discipline in cost controls.