CCE

Coca-Cola Enterprises Inc

Consumer, Event Driven/Special Sit


Presented:08/12/2015
Price:$52.82
Cap:$12.41B
Current Price:$77.18
Cap:$36.05B

Presented

Date08/12/2015
Price$52.82
Market Cap$12.41B
Ent Value$14.21B
P/E Ratio20.55x
Book Value$4.42
Div Yield2.26%
Shares O/S235.00M
Ave Daily Vol2,503,158
Short Int1.30%

Current

Price$77.18
Market Cap$36.05B
Coca-Cola Enterprises, Inc. markets, produces, and distributes nonalcoholic beverages. It distributes products to customers in Belgium, continental France, Great Britain, Luxembourg, Monaco, the Netherlands, Norway, and Sweden. Its products include Coca-Cola, Diet Coke, Coca-Cola Light, Coke Zero, Fanta, Sprite, Fanta Natural, Powerade Energy, Capri-Sun, Tea and Peach. The company was founded on October 2, 2010 and is headquartered in Atlanta, GA.

Publicly traded companies mentioned herein: The Coca-Cola Company (KO), Coca-Cola Enterprises Inc (CCE)

Highlights

The recently announced three-way merger between Coca-Cola Enterprises (CCE), Coca-Cola Iberian Partners and Germany’s Coca-Cola Erfrischungsgetränke AG is an attractive deal and the presenter sees substantial upside potential for CCE shareholders over the next 12-24 months. He is long the stock and thinks management’s synergy guidance may prove to be conservative and the company’s strong free cash flow should allow it to delever quickly. If these and other assumptions prove to be accurate, pro forma CCE can potentially deliver annual earnings power of $3.25/ share in 2.5 years, and the stock is trading at just 11.5x this earnings estimate (vs. comps trading at 18x - 20x).

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Idea Discussion

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