CBPX

Continental Building Products Inc

Industrial/Transportation


Presented:10/27/2015
Price:$18.44
Cap:$0.80B
Current Price:$36.99
Cap:$1.28B

Presented

Date10/27/2015
Price$18.44
Market Cap$0.80B
Ent Value$1.24B
P/E Ratio36.73x
Book Value$7.06
Div Yield0%
Shares O/S43.61M
Ave Daily Vol380,465
Short Int5.25%

Current

Price$36.99
Market Cap$1.28B
Continental Building Products, Inc. engages in manufacturing and supplies of gypsum wallboard and complementary finishing products. It provides wallboard and joint compound materials for the building and construction of residential houses and commercial buildings. The company operates through two business segments: Wallboard and Other. The Wallboard segment produces wallboard for the commercial and residential construction sectors. The Other segment manufactures finishing products, which complement the company's full range of wallboard products. It offers its solutions under product brands, such as LiftLite, Mold Defense, Firecheck, Protecta, Weather Defense and Rapid Coat. The company was founded on July 26, 2013 and is headquartered in Reston, VA.

This idea was presented at the Excellence in Investing Conference, San Francisco on 10/27/2015.
Publicly traded companies mentioned herein: Continental Building Products Inc (CBPX)

Highlights

The presenter presented a bull thesis on Continental Building Products (CBPX). He believes the company is well positioned to benefit from increased housing starts, and since CBPX operates a high fixed cost business and major capex expenditures are now in the rear-view mirror, he expects the company to generate significantly higher free cash flow over the coming years. He believes CBPX can eventually trade at $38 per share, as free cash flow generation will allow for rapid deleveraging. To maintain stated leverage targets, share buybacks are an additional possibility.

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Idea Discussion

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