UNVR

Univar Inc

Industrial/Transportation


Presented:04/10/2019
Price:$22.23
Cap:$3.77B
Current Price:$36.14
Cap:$6.09B

Presented

Date04/10/2019
Price$22.23
Market Cap$3.77B
Ent Value$4.78B
P/E Ratio18.27x
Book Value$8.41
Div Yield0%
Shares O/S169.70M
Ave Daily Vol1,740,599
Short Int4.95%

Current

Price$36.14
Market Cap$6.09B
Univar, Inc. is a chemical and ingredients distributor and provider of specialty services. It operates thought the following businesses: Chemistry Distribution, Industries, Products, and Innovative Services. The Chemistry Distribution business is a global chemical and ingredient distributor, and value-added service provider. The Industries business serves a diverse set of end markets and regions around the world in a number of focus industries, such as personal care, food ingredients, energy, and pharma ingredients. The Products business provides a vast portfolio of over 4,500 chemical products to customers in a diverse range of industries. The Innovative Services business includes ChemCare, ChemPoint, Fort Storage, Global Supply Chain & Export Services, Magnablend, and Mini-Bulk. The company was founded by George van Waters and Nat Rogers on August 8, 1924 and is headquartered in Downers Grove, IL.

Publicly traded companies mentioned herein: Brenntag (BNR GR), DowDuPont Inc. (DWDP), PolyOne Corporation (POL), Univar Inc (UNVR)

Highlights

The presenter is long shares of Univar (UNVR) noting that the company, which is now the #1 commodity and specialty chemicals distributor in North America following its acquisition of Nexeo Solutions, is making progress on its plan to achieve target EPS of $3+ in 2021. It reported EPS of $1.22 in 2018, and the stock is currently trading in the low $20s (~14.5x NTM P/E, and ~10x NTM EV/EBITDA). The company’s margins should continue to expand as it improves efficiency and integrates Nexeo. Assuming a 16x forward P/E (11x forward EV/EBITDA) on $3 - $3.50 of EPS in 2021, the price target range is $50 - $60.

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Idea Discussion

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