UNVR

Univar Inc

Industrial/Transportation


Presented:05/29/2018
Price:$27.22
Cap:$3.87B
Current Price:$36.14
Cap:$6.09B

Presented

Date05/29/2018
Price$27.22
Market Cap$3.87B
Ent Value$6.54B
P/E Ratio23.67x
Book Value$8.25
Div Yield0%
Shares O/S142.00M
Ave Daily Vol966,159
Short Int4.05%

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 AG (BNR GR), Univar Inc (UNVR)

Highlights

The presenter believes Univar’s (UNVR) transformation plan will ultimately result in margin expansion, and is long the stock in anticipation of earnings exceeding Street expectations over the next 12 - 24 months. With the stock at $27 - just 12x the consensus 2020 EPS estimate, likely due to private equity maintaining an 18% stake - downside risk should be limited. On the upside, annual earnings could reach a $3.50/share by the end of 2020, or 2021. Applying a mid-teens multiple results in a 12 - 24 month price target of $52+, and there could be optionality around M&A once leverage reaches the target range of 3x - 3.5x.

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Idea Discussion

Commentor 1 - 2 weeks ago

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