UNVR

Univar Inc

Industrial/Transportation


Presented:06/07/2019
Price:$21.54
Cap:$3.66B
Current Price:$36.14
Cap:$6.09B

Presented

Date06/07/2019
Price$21.54
Market Cap$3.66B
Ent Value$6.24B
P/E Ratio65.53x
Book Value$10.50
Div Yield0%
Shares O/S169.72M
Ave Daily Vol1,801,835
Short IntN/A

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), Dow Inc. (DOW), Univar Solutions (UNVR)

Highlights

The presenter is long shares of Univar Solutions (UNVR), seeing strong synergies from its recent acquisition of Nexeo Solutions, as well as a favorable outcome from its salesforce turnaround plan. UNVR acquired Nexeo in early March 2019 and is now the largest chemical distributor in the US. The company guided to a $100MM synergy target with $10M to be realized over the rest of 2019. In the presenter’s model, hitting its target in a normal business environment, UNVR can achieve $2.25 of EPS in 2020. Assuming forward PE expands from 13x to 15x, the stock can reach $33.75 in less than a year, representing ~55% upside from today’s price.

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Idea Discussion

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