Do you like women and their underwear?!

I have a company for you! CSP international, "one of the leading players in the world markets of hosiery and underwear."

Last 2013 account is not so bright : Revenues 129MEUr down by 4,4%, EBIT 9,7MEUR -21,1%, Net -31% with 5,1MEUR.

Anyway FCF generation is quite good : without taking into account working capital change : 2013 FCF is 7,2MEUR in 2013 10,5MEUR in 2012, and 5,4MEUR in 2011==> average of 7,7MEUR/year.

2013 Net debt is -7,4MEUR against +5,3MEUR in 2011==> improvement of 12,7MEUR in 3 years

With 15% of cost of capital, without any growth assumption, I would get Value of Equity of 7.7*(1+(1/15%))+7,4=66,4MEUR instead 58,5MEUR==> modest upside of 13%.

So why to recommend this company?! Not only because of the beauty of its product! Because 1st Q of its result is showing quite good results : Revenue stabilized -0,2% , EBIT +40% at  4,6MEUR, EBITDA +32% at 5,3MEUR, and Net result 3,05MEUR +50%

We may have substantial profitability recovery in 2014.

 

Best regards

 

Denis

 

I am shareholder of this company, and checked with my wife its product is quite good.

 

 

 

Unlock the rest of this article with a 14 day trial

Already have an account?
Login here