Hey there,
If you look at the companies histories, you'll see that ATD is usually never cheap. It is just a good solid company that continuously outperforms - which is the main reason we include it on our foundational list.
Premium Brands is one that we had liked pre-pandemic (it was on our Bull List at one point) but the pandemic significantly impacted operations since there were no more events and stuff happening. A big component of its business is wholesale/distirbuting to event centres, hotels, etc. That said, now that the lockdowns are largely in the rear view mirror we are starting to see the business rebound and I don't think their share price is accurately reflecting that. I do concur that it provides good value here.
The company is trading at 24 times earnings which drops to 16 times earnings on a forward basis. It is trading at a double-digit discount to historical valuations and while inflation will continue to impacts costs & margins, it is delivering strong topline growth. That said, organic growth is currently below the company's target and while they expect organic growth to accelerate next quarter, it is something to watch. The biggest headwind right now is inflation so if that stabilizes, then margins will follow suit and that will be a good thing for the company.
I like PBH - always have - it was just faced with some significant pandemic and now post-pandemic headwinds which in turn has led to lower than average valuations. Overall, I'd have no problems owning PBH with an eye towards the long term.
Mat