Industrial packaging stock at 6-7x PE

Planning to nearly double EBITDA in next 3 years

I have been looking at German stocks as they are quite cheap. Yes the German economy is nothing to write home about, but there are also plenty of companies with a global presence that trade at cheap valuations. We have to thank those stupid politicians for creating all these bargains for us.

The stock I have today: 

• Trades at ~6-7x earnings 

• <0.5x debt/ebitda

• Operates in a highly regulated niche of industrial packaging market which means switching costs are high 

• Cost as a % for customers is very low 

• Generates 20% organic ROIC. 

• Average daily trading volume is only about €18k worth of shares.

• High inside ownership

The company thinks they can almost double EBITDA by 2027 through small private acquisitions within their industry and organic growth. 

The stock doesn’t screen that well since there was a sizable cash expense in 2023 as they got rid of a loss making non core asset. And because of amortisation of acquisition related intangibles which does not seem to be added back on TIKR estimates.