If EPS is €0.30
Dividend scenario:
50 % payout → €0.15
5 % yield requirement → €3.00
Mathematically perfectly consistent.
But…
The food industry doesn’t usually get a 5 % dividend yield requirement if:
- debt is high
- margins are thin
- earnings fluctuate cyclically
In that case, the market may price it with a 6–7 % yield requirement → share price €2.1–2.5.
So, €3 requires:
- a clear reduction in debt risk
- stabilization of earnings
- a credible track record for 2–3 years
The above is a partial quote from an AI analysis. Although HKFoods has been able to improve its performance, a “limit” is reached somewhere. That debt and its servicing are encountered in almost every analysis, including those made by the “machine.” The results definitely need to improve quite a bit so that funds remain for debt repayment while “generous” dividends are paid at the same time. My own guess is that the rise will stall around this two-euro stage. There, HKFoods can develop its operations and pay off debts. And most importantly, react to potential changes in consumer habits.