Peet’s Coffee & Tea, Inc. ($PEET) Target: $53 Confident Investor Rating: Fair

Several times a year, a Confident Investor must reevaluate the companies in the portfolio. Keeping your money in a stock that no longer qualifies as a "Good" company can end up hurting your investment performance a great deal.  Also, there are a lot of Good Companies so losing the worst of the best is not going to impact the ability to have a balanced portfolio.  Over the coming days, this site will evaluate each stock on the Watch List.

 

Company name Peet's Coffee & Tea, Inc.
Stock ticker PEET
Live stock price [stckqut]PEET[/stckqut]
P/E compared to competitors Fair
MANAGEMENT EXECUTION
Employee productivity Fair
Sales growth Fair
EPS growth Good
P/E growth Poor
EBIT growth Good
ANALYSIS
Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $51.77
Target stock price (averages with growth) $71.08
Target stock price (averages with no growth) $56.03
Target stock price (manual assumptions) $57.55

The following company description is from Google Finance: http://www.google.com/finance?q=peet
Peet's Coffee & Tea, Inc. (Peet's) is a specialty coffee roaster and marketer of fresh roasted whole bean coffee and tea. The Company sells its coffee through multiple channels of distribution, including grocery stores, home delivery, office, restaurant and food service accounts and Company-owned and operated stores in six states. The Company operates its business through two segments: retail and specialty sales. As of January 3, 2010, the Company operated 192 retail stores in six states, through which the Company sells whole bean coffee, beverages and pastries, tea and other related items. Its stores are designed to facilitate the sale of fresh whole bean coffee and to encourage customer trial of its coffee through coffee beverages. Each store has a staff person at the bean counter to take orders and assist customers with questions on coffee origins and on home brewing.

 

Confident Investor comments: I have reviewed PEET 3 times to date on this site. The first time, I rated the company as Good and then it fell to Fair but I left it on my Watch List.  I can no longer leave it on the Watch List as a Fair Company. At this time, I think that a Confident Investor can cautiously invest in this stock as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns.

 

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.