K seems like a good value here. They have the international growth, and it is under 15PE for 2014 numbers even after estimates have been cut.
The restructuring will likely save $400+mil/year in 5 years. That is over $1/share. I know they will reinvest some of that back into business, but EPS will grow massively because of the cost savings....not even to mention they seem to have a persistent mild buyback boosting EPS 1% or so a year alone from that. Not even factoring in any organic business growth, the EPS should see strong growth over the next several years.
I have been holding this for a couple of years, and been somewhat disappointed. Staples seem to be out of favor. Every time it seems to gather steam, they have a problem with activists picking at their claims on the box, or analysts giving downgrades, some macro story about health - or even more redic, consumers not having time to eat cereal. But alas, I have probably been not seeing this what it is a consistent income generating investment.. I would have probably picked up some HAIN in hindsight.
Yes, it is a bit disappointing, but so much negativity is priced in, It is closer to 14x 2014 earnings, and most other staples stocks are 15% or so above that valuation. They've raised dividend every year for a decade....with such a low payout ratio it will continue, you get 3%+ to wait and plus the divi growth which has been much faster than inflation. Not bad, for taking relatively low risk in K