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Thursday, October 23, 2014

Corticeira Amorim - Quoted in Euronext

Company Information

One of the most profitable Portuguese companies is Corticeira Amorim. It produces and transforms cork that is now a well known material for all kind of industries from construction to components of space-shuttles!

 You can learn more about it visiting the

- Website of the company;
- Yahoo finance information;
- Google finance information;
- Euronext website.

Geographically, revenue come from: Portugal (5%), Europe (61,7%), USA (18,3%), America (ex-USA) (6,8%), Australia (6,6%) and Africa (1,6%).

Shares

The company issued 133.000.000 stocks and the price is about 3.00€, which corresponds to a market capitalization of almost 400M€ (or $500M)

Free foat is very short, just about 10% of all shares.
Company have 5.5% of own shares.

I will now make a quantitative analysis  of this stock.

2013 Numbers

In 2013 the company had:

- Revenue : 542.5M€ ( + 5.5% CARG last 3 years) ;
- EBITDA : 78.1M€ ;
- Profit : 30.3M€ ( + 12.4% CARG last 4 years) ;
- Equity : 301.7M€ ( + 5.2% CARG last 4 years) ;
- Debt/EBITDA : 1.30

2013 Numbers per share

- Revenue : 4.08€
- EPS : 0.228€
- Book value : 2.268€

At march, 31, 2014

  • the stock quoted 2.85€, 25% above the book value.
  • the Graham Number of this stock was 3.34€. 

Dividends

The stock paid a 0.12€ dividend, which is a 4.2% yield on the march, 31, 2014, closing price. Payout ratio 53% :

My opinion

This stock was a clear BUY at the end of march, 2014, and now is trading in the range 2.85€/3.00€.

For me, the stock can reach 4.10€ in the next 3 years, depending on the dividend payout.

This is clearly, a buy oportunity!

To my readers

What do you think of this analysis?
It was easy to read? Do you find it useful?
How would you feel investing in this company?

Disclosure

I don't have this stock in my portfolio but I can add it if price come to the 2.80€/2.85€ range.

1 comment:

  1. That's a pretty high yield. I'm sure this stock will get the attention of many dividend investors. Of course, this is why I love to read about other portfolios from outside the U.S. I always say it's interesting to learn about new opportunities that you never have heard of. Thanks for sharing.

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