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Writer's pictureLester Davids

Mondi Plc | Fundamentally Appealing? | Tuesday, 29 August 2023

Business Description: A holding company, which engages in the manufacture and distribution of packaging and paper products. It operates through the following segments: Corrugated Packaging, Flexible Packaging, Uncoated Fine Paper, and Corporate.


Recent Developments

  • Sold Russsian operations

  • Agreed to acquire Hinton Pulp mill in Alberta, Canada from West Fraser Timber Co. Ltd for USD 5 million

In this note, I consider 7 charts that may put into context the fundamental valuation of the group.


Data Source: TradingView


Earnings Per Share. Steady Growth Over Several Years

Return On Invested Capital. The steady upward trend reflects improved capital allocation.

Free Cash Flow % Margin

Debt-To-Equity Ratio. Near multi-year lows.

Price-to-Book Ratio. Lowest since 2012. Further signs of fundamental appeal?

Price-to-Sales

Price-to-Earnings. At the cheaper end of it's multi-year range.





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