Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
In March I observed that “I’m still not buying the stock – or drinking the product – of Fevertree (FEVR)” HERE. The one line view is that nothing has changed and (interestingly given the general market movements over the last few months) the share price is about the same level as it was about six months ago. Whilst the latter sounds dull – especially as the dividend yield is still under 1% – it has not been a disaster given the volatility in some other share prices. The challenge for Fever-Tree however remains its c. x40 EV:EBIT multiple for the full year, around double the level of underlying operating earnings growth. As always, it depends on what you pay for forward growth potential.
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