Is the Mondi share price good value at 1,587p?
Mondi (LON:MNDI) is a large cap in the Containers & Packaging industry.The Company is engaged in managing forests and producing pulp, paper and compound plastics for industrial and consumer packaging. It is generating a promising c20% return on capital and has an operating margin of nearly 18%.
Right now the Mondi share price appears to represent solid value, as shown in the group's Value Rank of 70. Let's explore this in more detail.
Digging into Mondi's Value Rank
Looking at Mondi's StockReport, we can see that the group has a:
- Rolling price to book value of 2.26,
- Trailing twelve month price to earnings ratio of 8.66
- Trailing twelve month price to free cashflow of 14.0
- Rolling dividend yield of 4.44%
- Trailing twelve-month price to sales ratio of 1.13
This combination of financial traits suggests that, while Mondi stock is not the cheapest, it is far from expensive at these levels and is worth considering - especially if it is exposed to other positive stock market factors as well.
What does this mean for potential investors?
Some of the best quality stocks in the market have defensible models that can deliver high levels of shareholder returns over the long term. But there are no guarantees and it's important to do your own research. Indeed, we've identified some areas of concern with Mondi that you can find out about here.
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