3 Things That Investors Should Know About Dairy Farm International Holdings Ltd

Dairy Farm International Holdings Ltd (SGX: D01) is a bricks-and-mortar retailer that operates over 6,500 outlets across Asia in a variety of formats such as supermarkets, hypermarkets, convenience stores, health and beauty stores, and home furnishing stores.

In Singapore, Dairy Farm is the owner of stores such as GuardianCold StorageGiant and more. The company has businesses in 11 Asian countries and territories inluding Hong Kong, China, the Philippines, Malaysia, and Indonesia among others.

Here are three things investors may want to know about Dairy Farm.

1. Growing revenue and consistent profitability over last 10 years

Dairy Farm is a business that has grown its revenue steadily over the years while delivering consistent profitability.

From 2005 to 2015, the retailer’s revenue has grown from US$4.75 billion to US$11.1 billion, representing a compound annual growth rate of 8.9%. Over the same period, Dairy Farm had generated a profit in each year and those profits have climbed by 7.3% annually from US$205 million to US$424 million.

2. A history of rising dividends

Dairy Farm has paid an annual dividend over the last 10 years. What’s more, the firm has bumped up its ordinary dividend per share from US$0.085 per share in 2005 to US$0.20 per share in 2015.

At the company’s current share price of $6.53, it has a dividend yield of 3.06%.

3. Valuation

At its current share price, Dairy Farm has a price-to-earnings ratio of 21.

Dairy Farm PE ratio since 13 June 2011
Source: S&P Global Market Intelligence

As the chart above shows, the retailer’s PE ratio at the moment is near the lowest it has been over the last five years. For perspective, Dairy Farm’s highest PE ratio in that period was 41.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned.