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FLEXO.ATH - Flexopack Plastics


mjohn707

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Flexopack is a manufacturer of plastic packaging materials based in Greece.  The company went public in 1996 and is controlled by the Ginosati family.  At the recent price of 2.36€ it trades for 7 ½ times my estimated 2014 EPS and 60% of book value.  In addition, sales and earnings have been on a upward trend over the last 10 years.

 

I estimate ROIC for 2014 will be in the 9-10% range.  The debt to equity ratio as of 2013 was about 24%, but the company has no net debt if you consider cash and long-term investment balances.

 

Share counts have been stable over the last 10 years.  Executive pay seems reasonable and they don't have stock options.  Inventory and receivable balances have been relatively stable as a percentage of sales over the last 10 years.  Investment in plant and equipment has decreased as a percentage of sales over the period and has contributed to an upward trend in ROIC.

 

I think it’s worth about book value.

 

The company trades on the Athens Stock Exchange and publishes annual reports in English on their website: http://www.flexopack.com/financial-statements/  I’m attaching a copy of my worksheet with includes an 10 year earnings history.  2013 results were affected by a change in Greek tax policy and don’t represent normalized earning power.

flexopack_plastics.xlsx

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  • 5 months later...

Thanks. Very interesting. What was your data source? What is the best way to get the data into excel? I don't have direct access to data for this small caps in Greece and just use the annual reports which is very time consuming.

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Nice idea!

 

Do you know what percentage of revenue comes from outside of Greece? Just in case some crazy Grexit occurs, the smaller is domestic revenue the safer this investment.

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  • 1 year later...

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