1. After $ECPG, another boring small cap stock at attractive valuation – its $NOMD.
$NOMD is leader in European frzn food mkt (bigger than $NESN in frzn).
Trades at ~10% FCF yield with a quality mgmt team.
$NOMD is nt a ST pantry load stry but a stable cnsmr stpls story.
$NOMD is leader in European frzn food mkt (bigger than $NESN in frzn).
Trades at ~10% FCF yield with a quality mgmt team.
$NOMD is nt a ST pantry load stry but a stable cnsmr stpls story.
2. $NOMD hs dlvrd consistent LSD +ve organic grwth.
LSD org. grwth is like hitting gold in packaged fd, where mst plyrs barely grw (chck $KHC, $K, $SJM).
Frzn wl cont. 2 b grwth category bcz frzn is a) convenient, b) healthy, no additives, & c) less wstg 4 grocery store.
LSD org. grwth is like hitting gold in packaged fd, where mst plyrs barely grw (chck $KHC, $K, $SJM).
Frzn wl cont. 2 b grwth category bcz frzn is a) convenient, b) healthy, no additives, & c) less wstg 4 grocery store.
3. Covid is a ST tailwnd but 4 frzn it cn elevate grwth prmntly.
Covid hs led 2 incrsd trial & millennials r loving it.
If u will wrk 4m hm more often, you will consume food at home more often. And frozen is healthy & convenient.
Chck wht mgmt hs 2 say at DB conf. in Jun.
Covid hs led 2 incrsd trial & millennials r loving it.
If u will wrk 4m hm more often, you will consume food at home more often. And frozen is healthy & convenient.
Chck wht mgmt hs 2 say at DB conf. in Jun.
4. Run with a pvt equity mindset, M&A is imp. part of strategy.
$NOMD is an indstry consolidator in European frzn fd mkt, with a track record of acquiring assets at cheap valuations, integrating them, & deriving synergies (EBITDA mrgns expanded by 200 bps b/w 2016 & 2019).
$NOMD is an indstry consolidator in European frzn fd mkt, with a track record of acquiring assets at cheap valuations, integrating them, & deriving synergies (EBITDA mrgns expanded by 200 bps b/w 2016 & 2019).
5. Pristine Bal. sht. with ~Eur. 800 mn of dry powder for acquisitions.
EBITDA to FCF convrsn of ~65%.
$NOMD declared a buyback of 9% mkt cap at the peak of Covid sell off - that is what strong companies with robust cash flow generation do at time of price dislocations.
EBITDA to FCF convrsn of ~65%.
$NOMD declared a buyback of 9% mkt cap at the peak of Covid sell off - that is what strong companies with robust cash flow generation do at time of price dislocations.
6. Attractive valuation - both on absolute as well as relative basis.
Org. grwth 4 $NOMD is btr or similar to peers like $K or $CAG.
FCF Yield of ~10%, Un-levered FCF of ~8% - my margin of safety.
Q2 hs bn derisked as $NOMD rlzd its nmbrs - crctn is a buying opportunity.
Org. grwth 4 $NOMD is btr or similar to peers like $K or $CAG.
FCF Yield of ~10%, Un-levered FCF of ~8% - my margin of safety.
Q2 hs bn derisked as $NOMD rlzd its nmbrs - crctn is a buying opportunity.
