I thought I would start a new post to discuss companies which currently offer seemingly good value. I'll start with Molins: 


Molins are based in Milton Keynes.  They supply machinery, instruments and services for the production and packaging of consumer products, such as cigarettes. They have a Market Cap of £31m and an Enterprise Value of £26m. This shows that they have cash on the balance sheet and no net debt. They are trading on a low valuation of around PER 7.5 for the current year and a forward PER of 6.5 for 2015 (based on the consensus broker forecasts). They are currently yielding 3.8% which is covered a safe 3.9 times. The other valuation metrics show very healthy numbers (Price to Sales of 0.30) and a score of 97 on the Stockopedia value rank. The price has come down from £1.90 at the start of the year to a low for the year of £1.52 (current price) however this is a result of broker EPS downgrades. The one big fly in the ointment is the huge pension scheme and a large deficit. The deficit funding is expected to cost £1.7m per annum for the next 17 years.. and hence why the market is valuing them cheaply. However they are trading at a substantial discount to their peers on all valuation metrics and also I would suggest that capital equipment requirements throughout the world will only increase as the global economy continues to recover. Could this be an opportunity? 

I'm not a holder, but am considering buying a few for a recovery. 

Any thoughts?


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